My Age of Investment

Pengcheng, in a private club.

Bonima and Liu Zhiping sat on the sofa, sighing and discussing the confusing way forward.

"Boni, the stocks we pledged last year have hit the warning line several times. If we hadn't covered our positions in time every time, these stocks would have been liquidated by investment banks!

Now that the financial crisis has broken out around the world and the stock market is weak, our game business has been unable to develop.

If the stock price cannot rise as soon as possible, you and I may face unbearable things! "

Bonima said "Yeah" and said nothing, but his already gloomy face became a little darker.

At the end of last year, Liu Zhiping, he and the other four Penguin Tigers purchased shares from Vision Capital at a high price that were worth HK$4.567 billion at the time.

Then, they really became the Penguin Five Tigers, plus Liu Zhiping, they were called the Six Tigers.

Tiger! It’s the tiger in Northeastern dialect!

Before, he didn't quite believe that Xia Jingxing had specially set up a plan for them, because he didn't think that Xia Jingxing was that awesome and could predict the future?

Some time ago, he saw Xia Jingxing destroying the Li family and shorting the public. He had to admit the reality. He and others were indeed tricked.

Xia Jingxing must have judged that a financial crisis was about to break out, and then sold everything to them while the stock price was still high. .

When they were negotiating to sell their stocks, Xia Jingxing used all kinds of performances, threats and inducements to train them like his grandchildren.

However, they dared not speak out and endured huge humiliation just to eat those stocks.

Looking at it now, what he ate was not Tang Monk’s meat, but dichlorvos!

Whenever he thought about this, he couldn't help but want to give himself two big mouths: Wasn't he cheap at that time? Rush to give money to others!

Afterwards, he felt complacent that this investment would make Xia Jingxing regretful in the future!

Now he understands that the clown is actually myself!

Nearly 4.6 billion Hong Kong dollars worth of stocks. As CEO and largest individual shareholder, he took the lead in subscribing for 2.4 billion Hong Kong dollars.

Since they didn't have that much cash on hand, they found an investment bank to pledge a batch of Penguin stocks.

According to the 50% discount of the stock price of 60 Hong Kong dollars per share at that time, the pledge price was 30 Hong Kong dollars per share. He personally pledged a total of 80 million shares.

According to the agreement signed on the stock pledge loan, the warning line is HK$45 and the liquidation line is HK$39.

It is absolutely impossible for investment banks to wait until the stock price drops to 30 Hong Kong dollars before closing the position, because during the liquidation process, large sales orders will definitely cause the stock price to fall further, resulting in losses.

Therefore, Ponima has suffered a lot in the past six months.

I often receive calls: I, Goldman Sachs, transfer stocks over here!

In this way, Bonima embarked on the same path of no return as many major shareholders of A-share listed companies.

Penguin's stock pledge ratio is rising steadily, which makes retail investors in Hong Kong stocks sweat for the CEO Bonima.

Now that Penguin's stock price has dropped to about HK$20, investment banks such as Goldman Sachs are still giving face, or in other words, they are fishing for the big fish in the long term and continue to give 50% of the pledge rate.

Therefore, Bonima pledged a total of 240 million shares, accounting for 83.13% of all his personal holdings.

When Penguin went public in 2004, Bonima held 14.43% of the company's shares.

Over the years, as he has been reducing his Penguin stock holdings to improve his life, by the end of 2007, his shareholding in Penguin had dropped to 13.68%.

Many years later, this well-known figure has become 8.0%, and Jack Ma, who holds 6.0% of Ali's shares, can be regarded as a moment of great success.

At the same time, Penguin issues additional shares every year to motivate employees, and its total share capital has increased from 1.68 billion shares at the time of listing to 1.818 billion shares today.

Including the 40 million shares acquired from Xia Jingxing, Bonima now holds a total of 288.7 million Penguin shares, accounting for 15.88% of Penguin's total share capital.

Bonima holds less than 290 million Penguin shares in total, but has pledged a total of 240 million shares. The cumulative pledge rate of major shareholders has reached 83.13%, which is not far from the 90% pledge rate of major shareholders that scares A-share investors.

This kind of company that felt like it was about to run away further frightened panicked Hong Kong Island investors and contributed to the decline in Penguin's share price.

How could Bonima let go of this kind of sworn hatred that ruined people's wealth.

Thinking of this, Bonima picked up the whiskey on the table and drank it in one gulp.

Gu\u0026lt;/span\u0026gt; Then, with a flushed face, he said fiercely: "Have you calculated how much the stock price will drop before we liquidate our position?"

Liu Zhiping also picked up his wine glass, took a sip, and then replied with a solemn expression: "If Penguin's stock price falls to 13 Hong Kong dollars, a new round of covering up positions will be carried out. If it falls below 10.8 Hong Kong dollars, all positions will be liquidated. For Penguin, Control may be lost.

Of course, after closing the position and paying off the stock pledge loan, there may be some residue left, but it will definitely not be much, only one-tenth of it at most.

It is more likely that there will be nothing left, and at the same time, investment banks will collect debts. "

Bonima gritted his teeth. If such an extreme situation really happened, and he, the founder of Penguin, turned into a polished commander with a shareholding of one or two points, or even zero, then Penguin's internal forces might change of weather.

"If the position is really liquidated, is there any way to continue to control Penguin?"

Like a gambler who lost most of his chips at the card table, Bonima looked at Liu Zhiping with red eyes.

"Well, then the only way to go is restructuring. Like the chrysanthemum factory next door, the founder can control the company with just one or two points of shareholding.

Or change it to different rights for the same stock. For Class A stocks, one share corresponds to one voting right; for Class B stocks, one share corresponds to 50 or 100 voting rights. "

When he heard that the number was five or ten times more than the 10 voting rights of the conventional B shares, Bonima became excited.

He lit a cigarette silently, puffed on it, and gradually began to calm down. He asked: "Do you think shareholders such as MIH, IDG, Legend Capital, Hony Capital, and Li Yikai will support the restructuring?" ?"

"It's a bit difficult! Moreover, Hong Kong stocks currently do not support the AB share design. The only option is to delist and then re-list in the United States."

Liu Zhiping looked at Ponima with a heavy expression, his forehead lines twisted into a Sichuan shape. He hesitated for a few seconds, and finally told the truth.

Today's control of Penguin comes from the CEO and director nomination rights owned by the founder, Bonima.

On the eve of Penguin's listing, the management reached an agreement with the major shareholder MIH: the company's CEO was nominated by the founder, and the CFO was nominated by the major shareholder MIH. As for board members, the number of nominees from the founder and the majority shareholder MIH must be equal.

Today's Penguin, Bonima nominated himself and Liu Zhiping, occupying two executive director seats;

MIH nominated 2 non-executive directors;

There are also five external independent non-executive directors;

There are 9 directors in total.

The most critical design that allows Ponema to control the board of directors is not only the issue of the proportion of board members, but also the further agreement between the Penguin founding team and MIH: resolutions passed by the company's shareholders' meeting or the board of directors must be voted by the shareholders' meeting or the board of directors. A resolution must be approved by a vote of 75% of the shareholders or directors present at the meeting, rather than a simple majority approval.

When many companies vote at shareholders' meetings, simple proposals can be passed with more than 50% approval, and special proposals require two-thirds approval, but Penguin has increased it to 75%, which makes it easier for the founding shareholders to exercise their veto power.

For example, Bonima and Liu Zhiping already occupy two director seats, and they only need to recruit one of the five independent non-executive directors to reach one-third of the opposition.

But if the stock pledge is liquidated and the management's shareholdings shrink significantly, it will be difficult to form a total shareholding of more than 25%.

When Penguin was listed, the total management shareholding was as high as 37.5%. After Bonima and his brothers improved their lives and reduced their holdings, it remained above 25%.

But this time they stepped on the trap Xia Jingxing had set for them. If the worst happened, they might only have a few points left to hold shares.

In this case, when the shareholders' meeting is held again, even if the management and founding team collectively object, other shareholders can reach 75% of the vote and bypass them to pass some important proposals.

This means that the originally well-designed system may have a huge loophole due to Penguin Liuhu's stock pledge liquidation.

Fortunately, Bonima and Liu Zhiping were alert enough to have discovered this loophole and are now thinking about how to fix it.

Liu Zhiping suddenly patted Bonima on the shoulder: "Don't think so much, the shareholders will be here soon.

If you have any difficulties or pressures, don’t bear it alone, let’s face it together! "

Seeing the healing smile on Liu Zhiping's face and the encouraging eyes, Bonima was moved in his heart.

No matter what the future holds, there are still brothers who are willing to carry it with me.

Not long after, Bonima and Liu Zhiping finally waited for a group of shareholders.

Among the large group of people, in addition to the representatives sent by the old shareholder MIH, there were also a large group of new shareholders who bought and sold shares of Vision Capital, such as Li Yikai, Xiong Xiaoge, Yan Yan, Zhu Linan, and Zhao Linghuan.

Li Yikai and Xiong Xiaoge have entered the palace for the second time. Both of them and the institutions behind them chose to sell all their shares before Penguin went public.

Reunited after so many years, it feels so special in my heart!