Recaps

Zhao Chen stabilized Henglong, won approval for a new board and sold its property management business to Jiahe Assets for 2.6 billion yuan. As the sale drove Henglong’s share price to a record high and sparked debate over its value, Zhao Chen continued preparing a pig-farming investment and arranged the transfer of his father’s shares.

• Zhao Chen secured five-year commitments from Henglong’s core executives, appointed Chen Xi and Zhang Qingxue to the board, and arranged to meet Shen Jue about her own nomination.
• At the shareholders’ meeting, Zhao Chen disclosed Henglong’s hidden liabilities and promised greater transparency, then won 97% approval for the Whitewash Waiver and unanimous approval for the new board.
• The new board reappointed Zhao Chen as chairman and unanimously approved selling Henglong Property, while Zhao Chen presented plans to pursue investments in hog farming.
• After attracting several bidders, Zhao Chen’s board approved Jiahe Assets’ 2.6 billion yuan offer, despite questions about its opaque ownership and funding.
• Shen Jue traced Jiahe’s funding to Lu Shen, whom Zhao Chen remembered from an earlier encounter involving Shen Zhiyi, but Zhao Chen proceeded with the sale in the shareholders’ interests.
• Jiahe completed due diligence, and Zhao Chen discovered that Lin Wanqing had invested 100 million of her working capital in the acquisition and was seeking to recover losses she blamed on him.
• Investigations found that funds routed from Blackstone had entered Lin Wanqing’s company, while Henglong’s sale proceeds helped lift its share price and improve its balance sheet.
• Investors disputed whether Zhao Chen had sold Henglong Property too cheaply, and Zhao Chen directed Chen Xi to advance the pig-farming project and Aunt Zhang to finalize the transfer of his father’s shares.

Zhao Chen secured control of Henglong, pursued investment opportunities in pig farming, and baited Lu Shen into investing in Eagle Group. After Jiahe won the deal, Zhao Chen weathered the market reaction and began deciding which underperforming assets Henglong should sell or keep.

• Lu Shen structured Jiahe’s funding for Lin Wanqing’s company to protect Jiahe from losses, while Henglong reduced its debt and Zhao Chen completed the transfer of Zhao Jianguo’s shares, taking control of the company.
• Zhao Chen explored investing in Yunnan Agriculture Group and other pig-farming businesses as Lu Shen tried to approach the same targets, but both companies rejected Jiahe.
• Zhao Chen had Henglong pursue Eagle Group with an optimistic report and convincing negotiations, prompting Lu Shen to believe Henglong genuinely wanted the deal and to compete for it.
• At Eagle’s negotiations, Zhao Chen offered less than Lu Shen and refused to raise his terms without an earnings guarantee, so Eagle chose Jiahe’s 2.07 billion yuan investment for a 20% stake and three board seats.
• Zhao Chen publicly congratulated Jiahe and Eagle, and Henglong’s stock barely fell despite losing the deal, shifting public discussion in Henglong’s favor.
• Zhao Chen reviewed Henglong’s underperforming assets, decided to hold Green Energy Technology for another year while monitoring its research, team, finances, and shareholder clause, and ordered the other listed assets sold.

Zhao Chen negotiated government support and acquired Haoyu Construction, then restarted its projects while preparing to pressure Lin Wanqing and Lu Shen. The arc left Haoyu operating again and Zhao Chen anticipating Eagle Group’s worsening financial troubles.

• Zhao Chen rejected Haoyu projects tied to Lin Wanqing, negotiated with officials over the remaining developments, and then considered Chen Wei’s proposal to acquire Haoyu Construction.
• Zhao Chen reviewed Haoyu’s debts and projects with Chen Xi and Zhang Qingxue, then agreed to pursue the acquisition if Chen Wei cooperated and stayed with Henglong.
• Zhao Chen secured Shen Jue’s support and set conditions for Chen Wei, including resolving liabilities, investigating Lin Wanqing’s projects, and earning shares by reducing Haoyu’s debts.
• Zhao Chen won government backing for Henglong to acquire Haoyu for one hundred million yuan, assume its liabilities, restart its projects, and obtain preferential financing.
• Henglong’s board approved the acquisition, and Zhao Chen signed the transfer agreement with Chen Jianye as the deal drew public attention.
• After Lu Shen used a disguised short sale to push Henglong’s stock down, Zhao Chen told Chen Xi to track his trading and waited for another chance to act.
• Chen Wei proposed how to allocate Haoyu’s funding, and Zhao Chen approved her plan as she restarted projects and negotiated new terms with Lin Wanqing.
• Zhao Chen reviewed Eagle Group’s deteriorating report and predicted that Lu Shen would discover the company’s troubles as its stock fell.

Zhao Chen pushed Henglong to clear inventory and strengthen its finances while preparing for investment opportunities and restructuring Haoyu’s projects. Lu Shen later attacked Henglong through short selling and public accusations, but Zhao Chen rallied his allies and left the stock-market battle poised for a decisive turn.

• Zhao Chen rejected risky pig-farming deals, ordered Henglong to keep its debt under control, and launched steep National Day discounts that cleared inventory and brought in hundreds of millions.
• Chen Wei and Zhang Qingxue negotiated a bank-supervised sale of Haoyu’s headquarters, then prepared to dilute Lin Wanqing’s stakes after she ignored formal notices and an appraisal lowered the projects’ valuations.
• After Yunnan Agriculture Group’s IPO was rejected, Zhao Chen waited for its valuation to fall and told Cheng Jiaxun he remained interested but would not invest until its problems and price stabilized.
• Lu Shen built a large short position in Henglong as Zhao Chen monitored him, while Zhao Chen’s team prepared for the risks surrounding Eagle Group and Henglong’s finances.
• Lin Wanqing accused Henglong and Haoyu of diluting her interests, Lu Shen publicized a lawsuit over Zhao Jianguo’s share transfers, and online allegations of tax evasion and unpaid wages triggered a crisis for Henglong.
• Zhao Chen addressed the accusations at a press conference with documents on Lin Wanqing’s dilution, Henglong’s audits, and Haoyu’s wage payments, while challenging reporters to examine Lu Shen’s short position.
• As Henglong’s stock held above 15 yuan despite Lu Shen’s selling, Shen Jue revealed she had bought shares and estimated Lu Shen still had at least eighty million shares short.
• Zhao Chen promised further information before the next market opening, Shen Jue directed fund managers to go long, and Zhao Chen told Su Wantang he would defeat Lu Shen.