In early June, a video showing a woman entering an elevator and embracing a man went viral across Chinese social media platforms. Online users quickly identified the man as Chen Tao, 54, chairman of ShengHong Technology, a leading Chinese enterprise in printed circuit boards for AI servers.

Following the video's widespread circulation, ShengHong's stock price dropped by 7,6% on 5/6. This led to a substantial reduction in the group's market capitalization, which fell by approximately 54 billion NDT (7,54 billion USD) within two days.

The video sparked a romantic scandal involving the ShengHong group's chairman. *World Journal*

The woman in the video was identified as Song Zhenzhen, a former employee of the group, who admitted to uploading the clip online. Song stated that Chen concealed his marital status to pursue a relationship with her and asked her to have a child. Chen's wife discovered the affair late last year, leading to a confrontation with Song and the initiation of legal proceedings.

After a series of unsuccessful negotiations and feeling estranged by her lover, Song decided to release various pieces of evidence, including chat history and video calls, to expose the truth. Chen has not yet commented on the incident.

On 8/6, a ShengHong representative stated that the viral video was a personal matter unrelated to the company's operations and reported it to authorities for investigation. To stabilize the market, the company's management announced a plan to spend nearly 700 million NDT on share buybacks.

Chen Tao has been an inspiring figure in China, known for his rags-to-riches entrepreneurial story. Born in Xinjiang, he moved to Guangdong in 1990, starting as a low-level sales employee. Through years of effort, he built a powerful technology empire. In May, he was the sole Chinese business representative at Nvidia CEO Jensen Huang's VIP partner dinner.

By Bao Nhien (According to World Journal)