Recaps

At Henglong Group’s temporary board meeting, Zhao Chen presented two paths for addressing the company’s debt rollover problems. As directors debated contraction versus compromise, Lin Wanqing argued that lenders had already lost confidence in the company, leaving the board’s decision unresolved.

• Zhao Chen opened the meeting and presented the Special Task Force’s proposal with two possible paths.
• Sun Zhengping opposed Path A, saying it would revive the high-leverage expansion that had caused past problems.
• Wu Hongyuan supported Path B and argued that the company should maintain its contraction strategy despite short-term pain.
• Song Zhongping warned that Path B could strain the company’s capital chain and cause defaults, halted operations, and unpaid wages.
• Lin Wanqing backed Song Zhongping’s concerns and said banks and capital markets had lost confidence in the company’s ability to continue operating.

At a board meeting, Zhao Chen proposed a rights issue to raise nearly HK$1 billion and address Henglong Holdings’ liquidity problems without abandoning its contraction strategy. Lin Wanqing objected, but Zhao Chen pledged that the three major shareholders would subscribe and publicly challenged her claim that he could not represent his father.

• Zhao Chen had Chen Xi distribute a rights issue proposal to the directors.
• Zhao Chen explained the 10-for-4 issue, which aimed to raise about HK$940 million to HK$1 billion for working capital and debt repayment.
• Lin Wanqing objected that the issue would dilute shareholders and signal financial weakness, while Zhao Chen argued that proportional participation by major shareholders would protect their stakes.
• Zhao Chen pledged that he, Su Wantang, and Zhao Jianguo would subscribe to their full entitlements.
• Lin Wanqing challenged Zhao Chen’s authority to represent Zhao Jianguo, and Zhao Chen pointed to his status as Zhao Jianguo’s only legitimate son and authorized voting proxy.
• Lin Wanqing was left speechless, then reiterated her objection and demanded further market communication and feasibility studies.

Zhao Chen secured board approval for the Subscription Plan, leaving Lin Wanqing isolated after her attempt to stop it failed. Lin Wanqing returned to her office and vented her anger, where Wang Bin came to check on her.

• Zhao Chen presented the Subscription Plan, and Su Wantang backed him as the directors considered the vote.
• Liu Mingyu, Song Zhongping, Sun Zhengping, Wu Hongyuan, and Li Weimin voted to approve the plan, leaving Lin Wanqing as the sole dissenter.
• Zhao Chen announced the resolution had passed and left the meeting with Su Wantang, Zhang Qingxue, and Chen Xi.
• Lin Wanqing returned to her office, smashed a teacup, and threw a folder against the wall.
• Wang Bin entered the office and cautiously called out to Lin Wanqing.

Lin Wanqing ordered Wang Bin to investigate Zhao Chen’s funding and expose Zhao Jianguo’s scandals to obstruct Zhao Chen’s subscription plan. On Friday, a wave of sensational media reports about Zhao Jianguo ignited a public-opinion storm against Henglong and the Zhao family.

• Lin Wanqing told Wang Bin to trace Zhao Chen’s money and monitor fund flows connected to him and his associates.
• Lin Wanqing ordered Wang Bin to leak Zhao Jianguo’s alleged misconduct to the media, aiming to damage Henglong’s stock price and derail Zhao Chen’s subscription.
• Wang Bin agreed to pursue the funding investigation and public-opinion campaign while avoiding direct evidence of their involvement.
• On Friday morning, a financial media outlet published an inflammatory investigation accusing Zhao Jianguo of involvement in multiple criminal cases.
• Other media outlets and social-media influencers amplified the allegations, pushing hashtags about Zhao Jianguo and Henglong to the top of trending searches.

Zhao Chen and his team responded to a public-opinion attack that they believed Lin Wanqing had launched to undermine Henglong’s subscription plan. As online attacks shifted toward Zhao Chen personally, Su Wantang issued a restrained statement defending him.

• Chen Xi, Zhang Qingxue, and Su Wantang warned Zhao Chen that inflammatory reports were linking his father’s case to Henglong’s subscription plan and could scare off investors.
• Zhao Chen decided not to comment on Zhao Jianguo’s case and to proceed with the legally approved subscription plan, while Liu Mingyu issued a brief company announcement.
• Henglong published a formal statement on its website and the HKEX Announcement Board, saying it would operate in accordance with laws and regulations.
• Online attacks increasingly accused Zhao Chen of sharing his father’s guilt and criticized his character and university status.
• After Zhao Chen tacitly approved, Su Wantang posted a statement from the group’s official Weibo account saying Zhao Chen had been unaware of his father’s suspected illegal acts and was also a victim of the family tragedy.

Henglong’s stock partly recovered after panic selling, and Zhao Chen ordered the Subscription Plan preparations to continue despite Lin Wanqing’s pressure. After his colleagues left, he read Shen Zhiyi’s messages of concern and felt some of the day’s tension ease.

• Henglong’s share price fell sharply before recovering part of its losses as large funds bought shares at low levels.
• Chen Xi and Zhang Qingxue assessed the sell-off as an emotional overreaction and said the Subscription Plan could improve the company’s finances.
• A financial media article argued that the Zhao Jianguo scandal was separate from the company’s business and that the plan could become a turning point.
• Zhao Chen told Chen Xi and Zhang Qingxue to proceed with the Subscription Plan, improve disclosure, monitor Lin Wanqing and Zhao Jianguo, and avoid public comment unless regulators made a formal inquiry.
• After Chen Xi and Zhang Qingxue left, Su Wantang massaged Zhao Chen’s temples while he read Shen Zhiyi’s messages expressing concern and trust.

Zhao Chen met Shen Zhiyi by the lake, where she comforted him as he described the heated board meeting and the fallout from Lin Wanqing exposing his father’s case. Shen Zhiyi stood by him and changed the subject to Zhou Xiaowen, whose latest trouble she was about to explain.

• Shen Zhiyi ran to Zhao Chen and embraced him when he arrived near Zhengfa University.
• Zhao Chen and Shen Zhiyi walked by the lake, holding hands.
• Zhao Chen told Shen Zhiyi that Lin Wanqing had opposed his Subscription Plan and revealed Zhao Jianguo’s case to the media.
• Shen Zhiyi reassured Zhao Chen that she trusted him and would support him.
• Shen Zhiyi told Zhao Chen that Zhou Xiaowen would likely come crying to them again that weekend, and he asked what had happened.

Lin Wanqing abandoned her hopes of turning public opinion against Zhao Chen and decided to use Zhao Jianguo’s opposition to the Subscription Plan. During a detention-center visit, she told Zhao Jianguo about the plan and began urging him to act against his son.

• Lin Wanqing realized public pressure had failed to shake Zhao Chen’s team and resolved to use Zhao Jianguo’s stake in the company as leverage.
• Lin Wanqing visited Zhao Jianguo at the detention center and concealed the truth about her suspicions concerning Su Wantang and Zhao Chen.
• Zhao Jianguo asked Lin Wanqing about Henglong and Zhao Chen, and she showed him the proposed “10-for-4” Subscription Plan.
• Zhao Jianguo reacted with alarm, recognizing that the plan could force shareholders to invest more money or have their holdings diluted.
• Lin Wanqing portrayed Zhao Chen’s plan as an attempt to cut Zhao Jianguo and her off from Henglong.

Lin Wanqing arranged an emergency call between Zhao Jianguo and Zhao Chen, hoping to delay Zhao Chen’s plans by stirring up their strained father-son relationship. After the call left Zhao Chen shaken, Su Wantang offered to face Zhao Jianguo with him, and Zhao Chen agreed they would stand together.

• Lin Wanqing arranged for Zhao Jianguo to make a monitored emergency call to Zhao Chen at Henglong Group.
• After the call, Zhao Chen sat in silence, visibly burdened by his conversation with his father.
• Su Wantang recognized that Zhao Jianguo had called and understood that Zhao Chen was struggling with their family ties.
• Su Wantang offered to visit Zhao Jianguo in Zhao Chen’s place, but Zhao Chen insisted he had to face his father himself.
• Su Wantang told Zhao Chen they would face Zhao Jianguo shoulder to shoulder.

Zhao Chen confronted Zhao Jianguo in the detention center over Henglong’s planned rights issue and asserted his authority to exercise his father’s voting rights. Zhao Jianguo accused him of plotting to take control, and the confrontation ended with their conflict unresolved.

• Su Wantang brought Zhao Chen to the City Detention Center and promised to wait for him outside.
• Zhao Jianguo angrily challenged Zhao Chen over the rights issue and its cost and share dilution.
• Zhao Chen explained that the Board of Directors had approved the plan to address Henglong’s financial difficulties and said he would secure the funding.
• Zhao Chen said he and Su Wantang would subscribe in full and urged Zhao Jianguo to participate proportionally.
• Zhao Chen invoked his one-year authorization over Zhao Jianguo’s forty percent of voting rights and said Zhao Jianguo could not overturn the Board resolution.
• Zhao Jianguo accused Zhao Chen of planning to take control since the day he signed the authorization.

Zhao Chen left the detention center after forcing Zhao Jianguo to stop opposing the rights issue, and Su Wantang welcomed him home. In a meeting at the detention center, Lin Wanqing warned Zhao Jianguo that participating could drain their cash and leave their pledged shares vulnerable to forced liquidation.

• Su Wantang embraced Zhao Chen outside the detention center and took him home.
• Zhao Chen reflected that his confrontation with Zhao Jianguo had ended in victory, but that the struggle was not over.
• Zhao Jianguo told Lin Wanqing that he had agreed not to oppose the rights issue and had secured a one-year ban on further equity financing.
• Lin Wanqing angrily challenged Zhao Jianguo's decision and said they had less than four hundred million in cash.
• Lin Wanqing warned that funding the rights issue could drain their reserves and expose their pledged Henglong shares to forced liquidation.

Lin Wanqing and Zhao Jianguo clashed over whether to protect Henglong’s controlling stake, widening the fracture between them. Afterward, Zhao Chen leaned on Su Wantang for comfort and thanked her, leaving their relationship at a moment of quiet closeness.

• Lin Wanqing urged Zhao Jianguo to accept Zhao Chen’s Stock Issuance and preserve their funds, but he demanded that she find money to protect Henglong’s shares.
• Lin Wanqing left the detention center without agreeing to Zhao Jianguo’s demands, and he realized their alliance had fractured.
• Su Wantang drove Zhao Chen to the villa, where he sat silently, overwhelmed by the recent conflicts and his father’s anger.
• Su Wantang covered Zhao Chen’s hand, and he embraced her and thanked her for her support.

Zhao Chen proposed that Su Wantang use the scandal surrounding Zhao Jianguo to seek a divorce and dissolve their Co-action Agreement, while planting suspicion between Zhao Jianguo and Lin Wanqing. Su Wantang embraced the plan as her own choice, binding her freedom and future to Zhao Chen's.

• Zhao Chen explained that Zhao Jianguo's scandal gave Su Wantang an opportunity to divorce him and end their Co-action Agreement.
• Zhao Chen planned for Lawyer Zhang Qingxue to handle the divorce and let Zhao Jianguo suspect Lin Wanqing had caused the scandal to obstruct the rights issue.
• Su Wantang approved the strategy, and Zhao Chen took her hand and apologized for turning her divorce into part of his plan.
• Su Wantang told Xiao Chen that she freely chose to let him use her past, identity, and pain to help secure their shared future.

Su Wantang and Zhang Qingxue confronted Zhao Jianguo with a divorce agreement that would leave Su with only the assets already in her name. Zhao initially refused, but learning that reports about his alleged assault had triggered public attacks on Su and Zhao Chen, he realized he had little basis to blame her.

• Zhang Qingxue prepared a divorce agreement and legal strategy under which Su Wantang would keep her 5% stake in Henglong Group and her villa, while ending the Co-action Agreement.
• Su Wantang and Zhang Qingxue visited Zhao Jianguo in the City Detention Center to present the divorce agreement.
• Zhao Jianguo angrily rejected the divorce and accused Su Wantang of abandoning him during his misfortune.
• Zhang Qingxue explained that reports about Zhao Jianguo's case had exposed Su Wantang and Zhao Chen to public abuse, strengthening Su's resolve to divorce.
• Zhao Jianguo suspected Lin Wanqing had leaked the reports to obstruct the rights issue, then slumped back as he recognized he could not blame Su Wantang.

Su Wantang finalized her divorce from Zhao Jianguo and reclaimed control of her shares, while Zhao Chen hurried home after hearing the agreement was signed. Zhao Jianguo was left grieving and blaming Lin Wanqing, and Su Wantang headed toward the home she shared with Zhao Chen.

• Su Wantang told Zhao Jianguo that she would end their marriage and exercise her own voting rights, then left the Detention Center with Zhang Qingxue.
• Su Wantang messaged Zhao Chen that the agreement had been signed, and he replied that she should rest before they met that evening.
• Zhao Jianguo stared at the divorce agreement and began to resent Lin Wanqing, whom he suspected had helped bring about his downfall.
• Zhao Chen rushed through his remaining work, told Chen Xi to handle or postpone his schedule, and left for home with driver Liu Haitao.

After Su Wantang was released from the detention center, Zhao Chen hurried home to welcome her. They embraced and shared dinner and wine, celebrating her freedom and a new life together.

• Zhao Chen left work early after receiving Su Wantang's message that the agreement had been signed and everything was settled.
• Zhao Chen rushed home, impatiently asking Liu Haitao how long the drive would take.
• Su Wantang greeted Zhao Chen at the door with a bright but uncertain smile, and he realized she was finally free of the constraints of being Mrs. Zhao.
• Su Wantang embraced Zhao Chen and told him she felt relaxed for the first time in years but was unsure how to stand on her own.
• Zhao Chen promised Su Wantang she could lean on him, and they toasted to a new life over dinner.

Su Wantang finalized her divorce from Zhao Jianguo and remained a 5% shareholder of Henglong Group, with her voting rights now independent. At Zhao Chen's villa, Zhang Qingxue advised her to preserve that independent status as they considered the upcoming rights issue plan.

• Zhang Qingxue's legal work secured a Civil Mediation Document ending Su Wantang and Zhao Jianguo's marriage.
• Henglong Group announced that Su Wantang remained a 5% shareholder and that her Co-action Agreement with Zhao Jianguo had ended.
• Su Wantang celebrated her divorce with Zhao Chen, Zhang Qingxue, and Chen Xi, then proposed signing a new Co-action Agreement with Zhao Chen.
• Zhang Qingxue recommended that Su Wantang remain legally independent, explaining that it could help their plans and that the rights issue had to comply with the Hong Kong Stock Exchange's 25% public-float requirement.

Zhao Chen reviewed the final preparations for Henglong’s stock issuance before visiting Zhengfa University to surprise Shen Zhiyi in her Securities Law class. When the professor recognized him, he teased Zhao Chen about whether he had come for the lecture or for a certain classmate.

• Zhao Chen stressed that the stock issuance documents, underwriter negotiations, and market communications needed careful handling, while Zhang Qingxue and Su Wantang supported him.
• Zhao Chen went to Zhengfa University without telling Shen Zhiyi and slipped into her Securities Law lecture.
• The professor spotted Zhao Chen entering, and Shen Zhiyi turned around, dropped her pen, and blushed when she saw him.
• After recognizing Zhao Chen, the professor teased him in front of the class about his interest in the lecture or a certain classmate.

Zhao Chen used a classroom presentation on Hong Kong listing rules to explain how Su Wantang’s independence changed Henglong’s public float and voting structure, while subtly reassuring Shen Zhiyi about his position. He then outlined the rules for advancing Henglong’s subscription plan and left the presentation focused on the plan’s debt-reduction purpose.

• Zhao Chen explained that Hong Kong-listed companies had to maintain a public float of at least 25% and described which shareholders counted as public.
• Zhao Chen said Su Wantang’s 5% stake returned to the public float after her acting-in-concert relationship with Zhao Jianguo ended, giving her votes potential importance on resolutions requiring independent shareholders.
• Zhao Chen’s explanation reassured Shen Zhiyi, who understood his remarks as a candid indication of his attitude and smiled faintly.
• Zhao Chen explained that certain rights issues below the regulatory threshold could be approved by the board without a shareholders’ meeting, provided the plan was fair and passed review.
• Zhao Chen said Henglong’s subscription plan aimed to optimize its capital structure and reduce debt, and that this purpose had been emphasized to the independent directors and board.

Zhao Chen visited Shen Zhiyi at Zhengfa University and explained how Lin Wanqing's uncertainty over the Subscription Plan could threaten Henglong's shareholding plan. Shen Zhiyi comforted him and promised her support, and Zhou Xiaowen called to summon them to Boiling Memories.

• Zhao Chen told Shen Zhiyi about his conflict with Lin Wanqing over the Subscription Plan and his difficult visit to Zhao Jianguo at the Detention Center.
• Zhao Chen explained that Su Wantang's 5% shares becoming independent public shareholding could help protect the plan if Lin Wanqing withdrew.
• Shen Zhiyi embraced Zhao Chen and assured him that she trusted his decisions and would support him.
• Zhou Xiaowen called Shen Zhiyi and invited her and Zhao Chen to meet at Boiling Memories.

At Henglong Group’s annual general meeting, Zhao Chen defended his low-debt strategy against criticism from Haifeng Investment representative Li Mingda. Zhao began supporting his argument with Lennar’s asset-light model, leaving the meeting focused on his case for safer, more resilient growth.

• Zhao Chen acknowledged Henglong’s mediocre 2016 results and presented shrinking the balance sheet and reducing leverage as the company’s guiding strategy.
• Li Mingda challenged Zhao’s plan, arguing that debt-funded expansion and growth were essential for Henglong to compete.
• Zhao rejected the idea that low debt meant abandoning development and displayed financial information about major industry players.
• Zhao explained how Lennar used REIT partnerships and an asset-light model to limit debt while focusing on homebuilding and sales.

Shen Zhiyi and her roommates watched Zhao Chen dismantle a shareholder’s criticism of Henglong’s strategy, while Chen Hao’s family argued over his approach. As Zhao Chen moved on to Henglong’s subscription plan, another shareholder challenged him over its cost to investors.

• Shen Zhiyi and her roommates watched Zhao Chen answer Li Mingda’s criticism with examples from Lennar and D.R. Horton.
• Zhou Xiaowen teased Shen Zhiyi about Zhao Chen, while Chen Shuhua praised his response and Li Jing congratulated her.
• Chen Wei urged Chen Jianye and Chen Hao to consider Zhao Chen’s warnings about high debt, but they defended their family’s leveraged business model.
• Chen Hao watched Zhao Chen’s success with jealousy and resentment as the shareholder meeting turned to reviewing the subscription plan.
• An elderly shareholder challenged Zhao Chen over the 10-for-4 plan and its demand for nearly one billion more from shareholders.

At the shareholders’ meeting, Finance Director and board member Lin Wanqing challenged Zhao Chen’s rights issue, questioning the funding sources and how effectively the money would be used. As Shen Zhiyi and others watched anxiously, Chen Wei warned that Zhao Chen could turn the public confrontation into an opportunity to establish authority.

• Lin Wanqing publicly questioned Zhao Chen’s claims about major shareholders subscribing and demanded clarification of the funds’ sources.
• Lin Wanqing argued that the planned rights issue might not provide enough financial security and asked whether the money should instead generate returns for shareholders.
• Shen Zhiyi watched the confrontation and realized how intense the pressures Zhao Chen faced at work had become.
• Li Jing, Chen Shuhua, and Zhou Xiaowen worried that Lin Wanqing’s challenge could damage confidence in Zhao Chen’s proposal.
• Chen Hao celebrated Lin Wanqing’s opposition, but Chen Wei cautioned him that Zhao Chen could use the confrontation to establish authority.

Zhao Chen defended the rights issue at the shareholders' meeting, answering Lin Wanqing's questions and winning broad support. In the Zhengfa University dorm room, Shen Zhiyi and her friends celebrated his success while worrying about the pressure and attention he faced.

• Zhao Chen assured the shareholders that Zhao Jianguo would fulfill his subscription obligations and that the funding sources of Su Wantang and himself were legal and compliant.
• Zhao Chen argued that the rights issue would reduce debt, strengthen liquidity, and protect long-term shareholder returns, countering Lin Wanqing's concerns.
• Shareholders applauded Zhao Chen's defense, and several voiced support for his cautious, long-term strategy.
• Zhou Xiaowen excitedly hugged Shen Zhiyi and offered to treat everyone to hot pot, while Chen Shuhua and Li Jing praised Zhao Chen's response.
• Shen Zhiyi felt proud of Zhao Chen but worried about the pressure he endured, and Chen Shuhua warned that his success would bring greater demands and challenges.

Zhang Qingxue explained why Zhao Chen’s rights-issue subscription could trigger a mandatory general offer and presented a Whitewash Waiver motion to prevent that complication. Zhao Chen and his related parties abstained, and independent shareholders passed the motion, clearing the final procedural obstacle to the rights issue.

• Zhang Qingxue explained that Zhao Chen’s subscription could push his stake past the 30 percent threshold and trigger a mandatory general offer.
• Zhang Qingxue stated that Zhao Chen and his related parties had to abstain, leaving independent shareholders to decide the Whitewash Waiver motion.
• Su Wantang voted without hesitation as an independent shareholder.
• Independent shareholders approved the Whitewash Waiver motion by a high percentage, removing the last procedural obstacle to the rights issue.
• Uncle Li asked his son about the vote, and his son explained how independent shareholders could influence the company’s affairs.