Tech Giants: Starting from Bankrupt Companies

181: Chapter 181 The ”Capital Game” of Spin-off ListingsThe meeting lasted for three hours.

The final plan was determined: February’s production capacity would be allocated as planned, and the bidding and sharing platform would be piloted starting in March.

After the meeting adjourned, Su Chen and Luo Qinghe remained in the conference room.

”Under a lot of pressure, huh?” Su Chen said.

Luo Qinghe rubbed his temples: ”Every time I open my eyes, I’m met with calls from dozens of companies chasing for chips. But compared to before—when we had to beg others to sell chips to us—this is a happy problem.”

”What about Europe?” Su Chen asked, ”How is the EDA rescue operation progressing?”

Luo Qinghe pulled up the report: ”Very smoothly. Our expert team has already restored the design capabilities of three companies, and the ’Shennong’ platform has been installed over five thousand times in Europe. Academician Li Weimin is currently communicating with the European Union Standards Committee to promote ’Shennong’ as the recommended tool for chip design in Europe.”

”What is America’s reaction?”

”Aside from tough talk, there haven’t been any substantive actions yet.” Luo Qinghe smiled, ”They probably didn’t expect Europe’s reaction to be so intense. The French Minister of Economy publicly stated yesterday: ’If America continues its sanctions, Europe will consider reciprocal countermeasures, banning American chip design companies from entering the European Union market.’”

”A cornered dog jumping over a wall.” Su Chen commented, ”But be careful; America will not give up easily.”

”Understood.” Luo Qinghe nodded, ”That’s why we’ve accelerated the 7-nanometer R&D. As long as we catch up in advanced manufacturing processes, all of America’s blockades will become a joke.”

Outside the window, the sky of Shenzhen was deep blue.

The production lines at the four chip bases were churning out wafers carrying the era of Huaxia’s intelligence at a speed of dozens per minute.

February 10th, Spark Technology Headquarters Boardroom.

9:00 AM, Board of Directors meeting.

Around the oval mahogany table sat the nine directors of Spark Technology, along with representatives from four top investment banks.

Xu Zhenyu, 42, a partner at the country’s largest investment bank, ’Huatai Capital,’ was wearing a custom-made suit today, with cufflinks in the shape of miniature chips. He stood in front of the large screen, the dot of his laser pointer dancing across the PPT.

”Board members, after three months of deliberation, we have formed the final split-listing plan.”

The large screen displayed:

Spark Technology Business Split Blueprint — ’Seven Swords Descend the Mountain’

Spark Electronic Technology (Consumer Electronics Business)

Includes: Mobile phones, tablets, laptops, smart wearables, IoT devices.

2017 Revenue: 80 billion. 2018 Expected Revenue: 200 billion.

Net Profit: 32 billion.

IPO Valuation: 2 trillion.

Listing Location: Shenzhen Stock Exchange Main Board.

Time: April 1st (Planned).

Spark Semiconductor

Includes: Full industry chain of chip design, manufacturing, and packaging/testing.

2017 Revenue: 50 billion (Domestic business only). 2018 Expected Revenue: Massive explosion to 200 billion.

Net Profit: 15 billion (Huge R&D investment).

Valuation: 3 trillion (Huge potential).

Listing Location: To be determined (Considering A + H).

Spark Power

Includes: Battery, motor, electronic control (Three-Electric System).

2017 Revenue: 120 billion. 2018 Expected Revenue: 240 billion.

Net Profit: 48 billion.

Valuation: 2 trillion.

Listing Time: July 2018.

Spark Materials

Includes: Semiconductor materials, battery materials, special alloys.

2017 Revenue: 80 billion. 2018 Expected Revenue: 200 billion.

Net Profit: 32 billion.

Valuation: 1.5 trillion.

Spark Auto

Includes: Red Flag brand, overseas automotive business.

2018 Expected Revenue: 150 billion.

Net Profit: -5 billion (Investment phase).

Valuation: 1.2 trillion (Based on 8x Price-to-Sales ratio).

Spark Industry

Includes: High-end equipment, industrial software, screens and optoelectronics.

2018 Expected Revenue: 120 billion.

Expected Net Profit: 36 billion.

Valuation: 800 billion.

Spark Investment

Includes: Investments in banking, insurance, securities, and other financial sectors.

Asset Scale: 500 billion.

Valuation: Will not be listed; Su Chen will hold 100% after the split.