Genius of the Rules-Style System

Chapter 898: Chapter 463 Follow Academician Zhao, Sure Profit!_2

"But from an investment perspective..."

"Right, I’m going to tell you the truth, just don’t spread it around," Zhou Haoren looked around and whispered, "Actually, Academician Zhao decided to inject capital, I personally think, is just to make an investment and earn money, so, that’s why I’m speaking from an investment perspective..."

"You all know the situation of our group’s secondary market," he said, shaking his head repeatedly.

The two department heads also shook their heads.

It wasn’t that they didn’t have faith in their own company, but that they simply couldn’t compete in market technology.

Red Wind Industry is a state-owned large-scale manufacturing group that manufactures supplies for infrastructure and military equipment systems, with a large portion of the industry being state-owned. The part that actually belongs to the listed company is very small, with a market value of only about twenty billion yuan.

This very small part shares the group’s technology, but their main core is manufacturing. They need to bring technology into market competition. If we talk about the military sector, they have a certain strength internationally, but for civil and export sectors, they need high-end manufacturing, or else they’ll be worse off than many small domestic companies. In China’s high-end industrial fields, there’s a considerable gap with foreign countries, placing them at an absolute disadvantage in competition.

The stock price of Red Wind Industry has been very steady. After being listed for more than a decade, there has been no growth, and compared to its market value at the time of listing, there has even been a slight decline.

This is the current situation.

The management of the group hopes that the listed part of the company can perform well, create more profit, and distribute more dividends to shareholders, but their high-end manufacturing technological strength is limited. To develop, they can only take it step by step, slowly increasing R&D investment to enhance the technological strength of the group.

This process is extremely slow, accumulating achievements over several years or even decades, slowly allowing the company to capture more market share.

From a development perspective, the listed part of Red Wind Industry really doesn’t have much investment value, even the company’s internal management thinks so.

It’s not a management issue, but purely falling behind due to a late start and insufficient technological accumulation.

Zhou Haoren and the others talked for a while and he summed it up by saying, "So, Academician Zhao is not always outstanding, he has his areas of weakness too."

"Look at him doing R&D, he’s really this!" He gave a big thumbs up, "As for investing..."

He shook his head to express his inner opinion.

Someone next to him followed up, "That’s normal, no one is omnipotent, it’s impossible to be an expert in everything. But investing in our group, there won’t be any big losses at least."

"...True!"

Zhou Haoren nodded in agreement.

Very soon.

On the day before the trading day, Red Wind Industry applied to the securities administration department to release two pieces of new information. After being approved, the information was officially announced.

The first piece was a collaboration between Red Wind Industry and Yanhua University’s Mechanical System and Vibration Laboratory to tackle the technical challenges in industrial spindle manufacturing.

The second piece was that Star Billion Technology Company injected a hundred million yuan of liquidity into Red Wind Industry. In return, Red Wind Industry issued 10,500,000 new shares to Star Billion Technology Company at an approximate price of 9.52 yuan per share, amounting to about 0.48% of the total capital stock of the company.

After the two announcements were officially released, at first they didn’t cause any public stir.

The Mechanical System and Vibration Laboratory was just an ordinary provincial key laboratory, with no reputation to speak of. It was professionally in line with the mechanical labs to cooperate on R&D with Red Wind Industry.

There are thousands of listed companies in China, and Red Wind Industry is just an ordinary military stock with a total market value of only a little over twenty billion yuan, so it doesn’t attract much attention. It’s quite normal for an external company to invest a hundred million yuan to acquire a portion of the shares at a slightly lower price than the market value.

But the news spread quickly.

Firstly, someone recognized ’Star Billion Technology’. A quick internet search revealed that Zhao Yi himself is the legal representative of Star Billion Technology, and he holds over ninety-nine percent of its shares.

Star Billion Technology’s injection of capital into Red Wind Industry essentially meant Zhao Yi personally spent a hundred million yuan to buy Red Wind Industry’s shares.

That was enough.

The news quickly spread and sparked a huge public debate, "God Zhao really has money! He single-handedly injected a hundred million into Red Wind Industry!"

"He doesn’t take action often, but when he does, it’s with a hundred million!"

"Don’t envy wealth! Don’t envy wealth! The money Academician Zhao has comes from his scientific research earnings and shares of patent rights. I’ve heard Academician Zhao also holds IT-related patents abroad, which earn him quite a bit of money."

"There’s certainly no issue with the source of funds, but the key question is... why would Academician Zhao buy Red Wind Industry’s stocks!"

"Why!"

"Could it be an investment?"

"God Zhao is an investment magnate. The last time he sold or sponsored Yutu Robotics, now it’s said he has made hundreds of times the return on investment. This time it’s Red Wind Industry..."

The celebrity effect was in play! frёeωebɳovel.com

In reality, the securities market’s response to the ’celebrity effect’ is lukewarm and sometimes even negative, such as when a celebrity’s purchase of a company’s stock is leaked, and many retail investors may just sell off directly because the impression of most celebrities is that they’re ’completely clueless about investing’ and ’lose more than they earn’.

Zhao Yi was different. freewebnøvel.com

Zhao Yi is a star in the scientific research community. The only known investment the public is aware of is his sponsorship of the Yutu Robotics team, which resulted in hundreds of times the profit. Unnoticed, he has amassed a fortune in the billions, and to the average person, he must be someone with great insight, otherwise how could he have saved so much money?