Lin Shicheng organized his words, and his voice was lower than before, with a kind of caution typical of lawyers when touching the most sensitive information.
"Zhao Zong, there is one more thing I must remind you in advance.
Once we respond with a complete statement of source of funds as required by the SEC --
Hong Kong pledge document, Hong Kong Stock Exchange registration, cross-border transfer certificate,
These materials will all involve Henglong Group, and the ultimate actual controller of Henglong Group is you.
SEC's EDGAR System is public. Once the response letter is submitted, anyone--
Including Bloomberg, Reuters, the Wall Street Journal, as well as domestic media - the complete files can be downloaded.
Your name will officially appear in the SEC's public database as the actual controller of Era Vanguard.
It is no longer speculation circulated privately by Wall Street, it is an official record written in black and white.
In other words, after this reply, the core layer of all the Offshore Structure you have carefully built over the past few years will be completely revealed."
Zhang Qingxue took over the conversation. She just looked up from a pile of legal documents.
The glasses were pushed up on his forehead, a pen was held between his fingertips, and the caution in his tone was a little lower than Lin Shicheng.
"Xiao Chen, Lawyer Lin are talking about overseas exposure.
In China, the Henglong Group pledge financing matter can no longer be delayed.
Although the pledge registration of Hong Kong Stock Exchange has been completed, a message came from Liu Mingyu saying,
Some media are already deducing the whereabouts of our funds based on the abnormal fluctuations in cross-border capital flows.
More importantly, you promised in the announcement that you would not pledge or reduce your holdings--
Now that all 360 million shares have been pledged, the pledge announcement must be made.
Once the announcement is made, the Regulatory Inquiry letter will be initiated simultaneously, and there will most likely be disciplinary proceedings later.
The market needs an explanation, and you have to think about how to explain it in advance."
Shen Zhiyi placed a cup of freshly brewed Black Tea in front of Zhao Chen, and then sat down next to the armrest of the sofa.
Her voice was still as clear as she had been trained in countless debate competitions in school, but now it had a softer layer of concern.
"I can't help you much with your compliance and regulatory issues, but there's another thing you may not have thought about."
She turned her head and looked at Zhao Chen,
"Are you ready to deal with school leaders?
Once Era Vanguard is exposed, your influence on Zhengfa University will increase exponentially.
This is the capital of Wall Street, and its influence is not comparable to that of Henglong.
Political and legal professional course instructors and the dean of School of Economic Law will come to you.
Once the Forbes list is updated, your name will be at the top of the 'Outstanding Alumni' page on the school's official website.
Large-scale events in major universities will contact you to give speeches, have you thought about how to answer them then?"
Thinking of these Zhao Chen gives me a headache.
It's not like he never thought that this day would come. From the moment Era Vanguard submitted 13D on Nvidia, he knew that sooner or later he would have to stand under the sun.
But he really didn't expect that when this day came, not one thing, but three things came to him at the same time -
SEC's public disclosure, Hong Kong Stock Exchange's pledge announcement and Regulatory Inquiry, as well as overwhelming invitations and attention from schools and society.
He leaned on the back of the sofa and remained silent for longer than any other decision-making process.
"I am not afraid of my identity being exposed. Wall Street's capital is no longer able to pose a threat to me.
From the day Era Vanguard submitted the first 13D, I had no intention of hiding it for the rest of my life.
The response to the SEC inquiry letter proceeds as usual--
Lawyer Lin, please sort out the complete chain of funding sources and submit it according to normal procedures."
He remembered the pros and cons that he had repeatedly considered during this period. From Shan City Jiangbeizui to today, he had never taken a step back in every battle because he was afraid of leaving his name, so he made this sudden relief even calmer than the lights outside the window.
"Henglong this way," he looked at Zhang Qingxue,
"I have already thought about it. I will compensate Listed Company 200 million Hong Kong Dollar in my personal name every year until all 360 million shares are released from pledge.
This money does not enter the income statement or investment income, but is directly used as compensation for the damage caused by Listed Company due to breach of promise.
I want to write this clearly in the pledge announcement - a promise is a promise, and the price is a price. I broke my promise, and I pay the price."
Zhang Qingxue's brows that had been tense all night finally relaxed a little. At least this is not a solution that the legal team cannot operate.
She quickly wrote down the key points of the follow-up announcement on her notepad, and reminded:
"Additional letter disclosure and Related Party Transaction review will definitely not go away, but Financial Data can be handled in a compensation mode, and the changes in fair value can be relatively clear."
"As for school--"
Zhao Chen picked up the Black Tea handed over by Shen Zhiyi and found that the tea was already cold. He put the cup back, with a real bitter smile and embarrassment in his voice for the first time.
"I really haven't thought about a solution to this. The school's face cannot be ignored.
In the future, when the 100th anniversary of the school, Alumni Mentor Program, and junior brothers and sisters come to invite me to share, I guess it will be difficult to refuse.
There are also activities in the city, Commerce Bureau, Investment Promotion Office, these favors - much more tiring than fighting a tough battle with Short Sellers."
He turned his attention to Shen Zhiyi,
"Zhiyi, you know the school best. Please help me contact the teachers at the college first, using gentle words but not too public.
If the school invites me back, don't arrange it around the events reported by the media, just find the most normal Alumni Salon."
Shen Zhiyi nodded solemnly. She knew better than anyone how much her alma mater attached importance to alumni contact, and she was finally able to share with him a front that was truly suitable for her to handle.
Zhao Chen Put the teacup back on the coffee table and start arranging it one by one.
"Aunt Zhang, you and Chen Xi return to China first.
Henglong The matter of pledge financing cannot be delayed any longer. Hong Kong Stock Exchange needs to prepare the pledge announcement as soon as possible.
In terms of wording, I included the compensation plan I had set before - annual compensation of Listed Company Two Hundred Million Hong Kong Dollar until all pledges are released.
The online Board of Directors also needs to be prepared simultaneously, and the time is scheduled to be two days after you land.
I am on Board of Directors and personally give an explanation to Shen Jue and them."
Zhang Qingxue loaded the legal documents and laptop into Briefcase, nodded, and didn't ask any questions.
"Lawyer Lin, you should give priority to Schedule 13D Amendment Filing of Nvidia and update all the position changes as of today.
Then submit the SEC's inquiry response materials as soon as possible.
The complete chain of funding sources in the reply materials must be organized in a watertight manner--
Hong Kong pledge document, Hong Kong Stock Exchange registration, cross-border transfer voucher, Henglong Group Board of Directors resolution, these four documents are all attached.
We are prepared in advance for the SEC to officially launch the investigation, and the opportunity will be in our hands during the investigation."
Lin Shicheng Quickly jot down key points in your notebook:
"Schedule 13D Amendment Filing Submit after the market closes tomorrow at the latest.
I will sort out the SEC inquiry response materials and send them to you for review before officially uploading them EDGAR System."
Zhao Chen After making arrangements, he leaned back on the sofa and his eyes stopped on the faces of the three of them for a moment. "The meeting is over. Do whatever you need to do."