"It's not a secret." Zhao Chen put down the teacup,
"There is no need to say. Era Vanguard is Era Vanguard, and Henglong is Henglong.
Two independent legal entities, each making its own investment decisions."
Elon Musk's mouth curved.
"Wall Street doesn't think so. You flew to New York not for Henglong's sake.
Nvidia's position is already high - everyone is waiting for Era Vanguard to cross that line."
Zhao Chen did not deny it.
"Once the 13D declaration is submitted, Era Vanguard's name will appear on Shareholder Register of Nvidia.
At that time, the SEC will most likely ask you to provide information about the actual controller after the penetration."
Elon Musk's voice is not high-pitched, but every word carries an insight accumulated after traveling between Silicon Valley and Wall Street for twenty years.
"Are you ready?"
Zhao Chen's gaze passed through the porthole and landed on the Pacific Ocean area under the clouds where the coastline was no longer visible.
Under the afternoon sun, the ocean surface glowed with fine silver light, like a piece of tinfoil spread to the end of the sky.
"I've been preparing for it for a long time."
The plane passed through the clouds above Pacific Ocean, and the track of Gulfstream stretched into an invisible line behind it.
Zhao Chen said goodbye to Elon Musk directly at the airport and got into the car arranged by Lin Shicheng.
After getting in the car, Lin Shicheng directly handed a document into his hand without exchanging pleasantries.
The logo of Era Vanguard is printed in the upper left corner of the cover, and the first line of text on the inside page is "Nvidia Position Summary".
"9.99%." Lin Shicheng's voice was very low, so low that only Zhao Chen could hear it.
"The last batch was sold before you even got on the plane.
The total share capital of Nvidia is approximately 605 million shares, and Era Vanguard holds a total of 60.4 million shares, accounting for 9.99% of the total share capital of Nvidia.
The weighted average cost is approximately 148 US Dollar, and the total investment is approximately 8.9 billion US Dollar."
Zhao Chen opened the file and scanned the dense transaction records.
From last November when Nvidia Financial Report started to build a position, to SoftBank to clear the position Selling Pressure to accumulate funds in the most intensive window period, and then to the last batch to accurately stop at the 9.99% critical point--
It took Lin Shicheng less than two months to move the ammunition depot of Era Vanguard to Shareholder Register of Nvidia.
9.99%.
It is just one step away from the SEC's 10% red line.
Crossing that line, the 13D declaration will be submitted within five working days, and an alert will pop up on the terminals of Bloomberg and Reuters at the same time--
"Times Pioneer Capital holds more than 10% of the shares of Nvidia, becoming the company's largest institutional shareholder."
Section 16's Insider status will take effect within ten calendar days, and every transaction thereafter must file a Form 4 public disclosure with the SEC within two business days.
Every move Era Vanguard makes on Nvidia will turn from the undercurrent under the water into a track visible to everyone on the water.
The car drove out of Kennedy Airport and onto the highway leading to Manhattan.
The position of Era Vanguard on Nvidia stopped at this line.
It's not because there is no funds to continue buying - Tesla's equity pledge still has a quota, and US Dollar's funds in Era Vanguard's account have not been exhausted.
It's because after crossing 10%, the rules of the game completely change.
It's not that I don't want to buy it.
It is important to complete all the preparation work before buying.
"Lawyer Lin, the draft of 13D declaration, are you ready?"
"Ready." Lin Shicheng pulled out a document from Briefcase,
"The wording is in line with the direction we have previously agreed upon - Era Vanguard recognizes Nvidia's long-term value, does not seek to change the company Control, and does not seek Board of Directors Seat."
On major decisions, Era Vanguard's voting rights will be consistent with the management's recommendations."
Zhao Chen took the 13D draft and turned to the declaration purpose column. Lin Shicheng's wording was impeccable--
"Times Pioneer Capital increased its stake through the Secondary Market transaction based on its recognition of the long-term value of Nvidia.
This declaration does not mean that Era Vanguard seeks to change the company Control, nor does it mean that Era Vanguard seeks to Board of Directors Seat or exert influence on the company's daily operations.
Era Vanguard respects the strategic direction and operating decisions of the Nvidia management and will fully consider the management's suggestions in subsequent shareholder votes."
"Okay."
"The compliance of Section 16 Contingency Plan has also been completed.
Once the 10% is triggered, Form 3 will be submitted within ten calendar days.
For each subsequent transaction, Form 4 is submitted within two working days.
In terms of trading rhythm, my suggestion is that after the 10% trigger, the frequency of holdings increase is reduced to no more than once per quarter, and the scale of each increase is controlled within 0.5% of the total equity.
In this way, the filing curve of Form 4 will be smoother and will not send a signal of aggressive fundraising to the market."
Zhao Chen closed the 13D draft and handed it back to Lin Shicheng.
"Where is the communication window with Huang Renxun?"
"Initial contact has been established through Nvidia's investor relations department.
The other party replied that Mr. Huang Renxun welcomes Era Vanguard to become the long-term shareholder of Nvidia,
If the shareholding ratio reaches a point where communication is needed, he is willing to arrange a meeting."
Lin Shicheng paused, "Zhao Zong, they don't know yet that Era Vanguard's position has reached 9.99%."
"Then let them know. After 13D is submitted, we will make a formal appointment with Huang Renxun."
Lin Shicheng then reported, "On January 7, Huang Renxun released RTX 2060 at CES.
Market Reaction is good, the stock price of Nvidia rose by more than 6% that day."
Zhao Chen did not answer the call.
He knows what the release of RTX 2060 means--
Turing Architecture is starting to sink from the high-end to the mainstream market. It is priced at 349 US Dollar, which is nearly half cheaper than the flagship card.
The market's response was a 6% increase, indicating that Wall Street finally began to re-examine Nvidia's fundamentals in the game business.
But he also knows that this is just the beginning.
The real outbreak is yet to come - the growth of Data Center's business, the moat of CUDA ecosystem, and the exponential rise in demand for AI Computing Power.
"SoftBank Over there, has the clearance been completed?"
"The news from Bloomberg is that Masayoshi Son has cleared all Nvidia's positions between December last year and early January this year."
Lin Shicheng's voice is not high-pitched, but every word carries a precision unique to a lawyer.
"Four.9 percent of the shares, approximately more than 4 billion US Dollar, were all digested in Secondary Market. We took over a considerable part of it."
Masayoshi Son's Nvidia journey is over.
SoftBank invested in Nvidia at the beginning of 2017 and bought about 4 billion US Dollar shares, with a shareholding ratio of nearly 5%.
Two years later, the store was cleared in tears.
And Era Vanguard built his position from zero to 9.99% in the pit he created.
"What happens next is divided into three steps."
Zhao Chen's eyes retracted from K-line Chart and fell on Lin Shicheng's face,
"The first step is to complete all preparations for breaking through 10% within three days.
The final version of the 13D filing, the draft Form 3 of Section 16, and the formal communication letter from the Nvidia investor relations department - all are ready."
Lin Shicheng was recording quickly on his notebook.
"The second step is to make the final purchase after the preparations are complete, so that Era Vanguard's shareholding ratio exceeds 10%. Then submit 13D immediately."
He paused.
"The third step, after submitting 13D, make an appointment at Huang Renxun."
Meeting Room was quiet for a moment.
"Zhao Zong, 13D submission time, I suggest choosing after Friday."
Lin Shicheng raised his head,
"SEC regulations require submission within five working days, but earlier is not always better.
Friday is submitted after the market opens, and the market has the entire weekend to digest the information.
By the time trading opened on Monday, the panic reaction had been diluted by the cooling-off period over the weekend.
This is Wall Street's practice - bad news Friday is sent after the market opens, and good news is released before the market opens on Monday."
"Okay."
Zhao Chen stood up, his eyes passed through the lights and fell further away--
It fell on the triangular glass building of Silicon Valley Nvidia's headquarters, and on the nameplate on Huang Renxun's desk that read "We are always only thirty days away from bankruptcy."
9.99%.
This is where Era Vanguard left off on Nvidia.
It's not the end.
It's the starting line.