After Zhao Chen finished speaking, the silence in Meeting Room lasted for about ten seconds.
It was not an awkward silence, but a room full of people after digesting the number 27.1 billion US Dollar.
It takes a moment for the brain to catch up with the ears.
Shen Jue was the first to break the silence.
She didn't ask any questions, she just turned the copy of Quarterly Briefing in front of her to a blank page.
I wrote a few words on it with Fountain Pen, and then raised my head.
Her voice was still calm, but there was an extra layer in her tone that she rarely revealed on Board of Directors--
It's not a question, it's a cautious concern.
"Zhao Zong, you just mentioned that the three billion US Dollar pledged by Henglong will be repaid in full in advance, and the 360 million shares will be released from pledge soon.
We have seen this in the New York announcement, but you confirmed it yourself today, and I feel truly at ease."
She put Fountain Pen on the table,
"Now I would like to ask Chen Xi to explain the specific follow-up plan in detail."
Chen Xi is sitting on the right side of Zhao Chen.
She did not open the PPT or access any electronic devices.
She just opened the notebook in front of her, which contained all the key points of how she handled the follow-up matters of pledge financing in China in the past few months.
She stood up and nodded slightly to Shen Jue and several other directors, and then began to report, speaking slowly but very clearly.
"Mr. Shen, fellow directors, regarding the follow-up processing of Henglong equity pledge financing, the current progress and plans are as follows.
First up is Fund Flow.
All funds obtained from pledge financing have been remitted through the compliant cross-border channel between Henglong and Era Vanguard.
The final use is to replenish the pledge deposit of Tesla from May to June,
And Common Stock, which accumulates Tesla and Nvidia in the bottom range.
We retain the bank statements of each cross-border transfer, Foreign Exchange Registration Certificates and Brokerage Statements on the Era Vanguard side,
All credentials are consistent with the disclosures in SEC public documents, and also correspond one-to-one with the internal files maintained by New York's office."
She turned to the next page of her notebook and continued.
"The second is the repayment progress.
Zhao Zong has instructed Lin Shicheng's lawyer to give priority to allocating funds from the realization of part of Era Vanguard's floating profits.
The pledged financing principal and interest were fully repaid through the original cross-border channel.
The funds will be gradually transferred to Trust Account of Hong Kong Family Office,
And the office issued a written confirmation letter of pledge release."
She turned the notebook to the last page, and this page contained the most critical content she was going to say next.
"The last thing is the follow-up arrangements.
Although the pledge itself will be gradually released,
However, Hong Kong Stock Exchange and Hong Kong Securities Regulatory Commission may still have doubts about the use and use of funds for this pledge financing during the annual report review.
Additional inquiries were made regarding cross-border routes and sources of reimbursement.
My suggestion is that we don't have to wait for regulation to ask.
Led by Liu Mingyu, proactively disclose a brief Supplementary Explanation in the next periodic report,
Clearly explain the purpose of the funds, the source of repayment and the time when the pledge will be released.
The wording can be based on the tone of SEC Response Letter - only stating the facts without any justification or modification."
Chen Xi Close the notebook and sit down again.
Shen Jue went through the key points that Chen Xi just said in his mind, and then nodded slightly.
"Active disclosure is better than passive response. Liu Mingyu, you are responsible for checking the wording of this Supplementary Explanation, and the disclosure time point is aligned with Chen Xi."
After she finished speaking, she leaned back in her chair and turned her eyes to Zhao Chen.
Independent Director Sun Zhengping, who was sitting in the back row, took off his reading glasses and lightly tapped the notebook in front of him with his temples.
He is a former Securities Regulatory Bureau official and is more sensitive to the regulatory risks of this type of pledge financing than anyone here.
"Chen Xi, I agree with what you said about voluntary disclosure."
He spoke very slowly, with the caution typical of someone with a supervisory background.
"But there is one detail I need to confirm - the funds are from Hong Kong Family Office to Era Vanguard,
Going back to Hong Kong, is there any link that needs to be reported to the mainland regulatory authorities?
Henglong Group is Hong Kong Stocks Listed Company, but the actual controller Zhao Zong himself is a citizen of China.
If this fund is deemed to be an individual's overseas investment behavior in cross-border transfers, it may involve foreign exchange management compliance issues."
Chen Xi did not answer immediately.
She opened a form in her notebook,
Above is Lin Shicheng and Zhang Qingxue, who finalized Compliance Checklist after several rounds of confirmation back and forth between New York and Hong Kong.
She pushed the form in front of Sun Zhengping.
"Teacher Sun, regarding this issue Lawyer Lin and Lawyer Zhang have already done a complete compliance assessment before.
Every cross-border fund transfer will be accompanied by a compliance certificate issued by the bank.
Foreign exchange registration and tax declaration are handled through Licensed agency, and all materials have been filed.
If necessary, we can provide a complete explanation to the relevant mainland regulatory authorities."
Sun Zhengping read the form from beginning to end, then took off his reading glasses, folded the temples and put them in his pocket.
"Okay. I can't see any loopholes in this form. I can trust the compliance skills of Lawyer Zhang and Lawyer Lin."
He leaned back in his chair and didn't ask any more questions.
Song Zhongping remained silent.
He was sitting next to Shen Jue, with the Liquidation Progress Schedule of Haoyu Construction spread out in front of him.
Just before Zhao Chen came in, he circled a few numbers on it that needed to be signed as soon as possible.
But after listening to Chen Xi's report and Sun Zhengping's questioning, he closed Liquidation Progress Schedule.
"Zhao Zong, I have a question."
His voice was not high, but everyone in Meeting Room could hear it clearly.
"If the pledge is released.
Do you still want to continue to implement the annual compensation Listed Company Two Hundred Million Hong Kong Dollar that you promised before?
If the pledge has been released, does the reason for compensation still exist?"
Zhao Chen picked up the tea cup in front of him and did not drink it, but just turned it around slightly on the rim.
"Continue to execute." He put down the tea cup, his voice was low but every word fell steadily on the conference table.
"The reason for compensation is not the pledge itself, but my violation of my promise to shareholders.
The pledge can be released, but the fact that the promise has been breached cannot be released.
This Two Hundred Million Hong Kong Dollar will continue to be paid annually until the compensation period agreed in the pledge announcement expires."
Song Zhongping looked at him for a few seconds, then nodded slightly,
I reopened Liquidation Progress Schedule and wrote a line on it, as if crossing it off the to-do list.
Shen Jue looked at the time, and then closed the Quarterly Briefing in front of him.
According to Zhao Chen's habit, after he reports himself and listens to the supplements from various departments, he will enter a brief internal discussion session and then adjourn the meeting.
But today she did not rush to announce the adjournment of the meeting. Instead, she leaned back on the chair and moved her eyes from Zhao Chen's face to the river view outside the window, and paused for a while.
"Zhao Zong, before you came today, a few of us had a few chats in Meeting Room."
Her voice was slower than usual,
"Since you pledged Henglong shares, we have discussed it more than once in the director group--
The risk of this money is too great. If the round of replenishment in May fails, the entire Henglong will be dragged down.
But you got through it, and Henglong did not suffer any substantial losses from the beginning to the end."
She stood up, picked up the suit jacket from the back of the chair and put it on her arms.
"I have nothing more to ask at today's meeting. I agree with this follow-up plan for pledge financing."
Song Zhongping nodded immediately. Chen Qiming signed the document, and Chen Wei closed Haoyu Construction's progress chart.
Sun Zhengping put the compliance verification form into his notebook and nodded to Zhao Chen.
Independent Director Xu Yong took off his glasses, wiped the lenses, and whispered, "I agree too."
Finally, everyone's eyes fell on Zhao Chen. He stood up and closed the document in front of him.
"Then this plan is officially approved.
Liu Mingyu, Supplementary Explanation You draft the wording, Chen Xi checks it, and submit Hong Kong Stock Exchange before next week.
In addition, Mr. Song, the land Xiyong is subject to your judgment, and the signed documents will be sent over tomorrow morning."
He swept around Meeting Room,
"The meeting is dismissed."