Chapter 693: Chapter 501: Resource Integration
Teng You dia has gained a lot of weight within just half a month.
The workload of the secretary, Zhang Wanyi, is definitely getting busier.
Fortunately, Tengying Group has transferred quite a few Generals to assist her, allowing her to digest both Clothes Warehouse No. 9 and the newly acquired Tenghui Departnt Store within a few months.
Talking about Tenghui Departnt Store, it was worth over ten billion when it went public, operating in only the four cities of Beijing-Shanghai-Guangzhou-Shenzhen.
Later, they invested another forty to fifty billion in Xiangjiang, and the stock value rose to over two hundred billion.
Then, it continuously expanded, and after a few years, the stock value increased from over two hundred billion to two hundred and twenty billion.
Such stagnation illustrates that the capital market is not optimistic about expansion beyond these top-tier cities.
It also reflects the increasing difficulty of traditional departnt stores.
Apart from a few exceptions like Pang Donglai, most supermarkets are on the decline.
They are either acquired by internet companies, or other retail enterprises buy out the largest shareholder.
In a nutshell, the current state of departnt stores is in decline.
After Tenghui Departnt Store slimd down, the stock price soared imdiately.
This further solidified the strategic target of Tenghui Departnt Store for the future, which is to only develop in top-tier cities.
Expansion in other cities will be completely canceled.
Teng You dia has renad the 138 Tenghui supermarkets they acquired to Tengyou Youxuan.
Source: , updated on ƝονǤᴑ.сᴑ
The day the news was released, Tenghui Departnt Store invested 1.5 billion in shares, acquiring a 30% stake in Tengyou Youxuan.
And affird the relationship as strategic partners.
This kind of operation seems very complicated, as if there’s no need.
But in reality, it’s a typical win-win.
Firstly, after Tenghui Departnt Store rid themselves of these hundred-plus suburban supermarkets, their core strategy beca very clear.
They would not expand all over the country, instead focus on the middle and high-end departnt store sector in top-tier cities.
With these assets, Teng You dia can conduct live streaming e-comrce of departnt store goods, and even achieve sa-day delivery in many cities.
This way, whether selling vegetables or other departnt store products, compared to other internet celebrities marketing goods, the advantages are very clear.
Even surging ahead.
And changing these Tenghui Departnt Stores to Tengyou Youpin also differentiates them from traditional departnt stores to a new type of internet-based video supermarket.
In the future, they could also pursue an independent IPO.
At that ti, it would not be a traditional supermarket, but a new economy of departnt stores under the domain of short videos.
Although it’s just a change in concept, it signifies a fundantal difference in the capital market.
Much like the traditional economy under the enhancent of the internet.
Even to a certain extent, they are entirely different concepts, and the stock prices are worlds apart.
Teng You dia spent sixty billion to complete this acquisition, of course, they wouldn’t let it just be an auxiliary venture.
It must also yield a higher return on this investnt.
Spinning off Clothes Warehouse No. 9 and now Tengyou Youpin as independent entities beca very necessary.
It’s just that the capital operations seem complex, but essentially it’s all about one thing.
That is making a profit, also called appreciation.
After a series of complicated swaps within the group industry, the outcos are gratifying.
Tenghui Departnt Store received 4.5 billion in cash, as well as a 30% stake in the newly established Tengyou Youpin.
Moreover, the stock prices swiftly rose to twenty-eight billion.
While Clothes Warehouse No. 9 has just changed a manager, in essence, it is still a mber of the Tengying Group, and when it goes public independently in the future, it will be a physical clothing business in the short video domain.
Adding the tag of short videos, the market value will be at least one to five tis higher.
.groupControlled Revisions:
Teng You dia, although spending seventy-five billion in cash.
But their valuation jumped from the previous 450 billion to 800 billion.
And they now own over a thousand clothing stores, and more than a hundred Tengyou Youpin stores.
Just this mutual exchange, clearly results in a triple-win.
This is called capital integration, also known as capital operation.
Nothing has changed, yet the value has jumped by several hundreds of billions.
Once the news broke.
Anyone slightly associated with Chen Pingsheng couldn’t wait to desperately seek a eting with him.
Suggesting not just to vertical-align their own businesses but to package theirs too.
Let’s not ntion others, Song Shuiqing’s Magic City Tang Family was utterly confused by this series of operations.
It seems that by swapping their own businesses back and forth like this, not only did the valuation of Teng You dia increase by several hundreds of billions.
But other assets also substantially increased, even causing a massive surge across the entire Tengying Group.
If this is possible, why should everyone still struggle in physical industries?
Better to play with capital operations.
You wouldn’t believe it, but now even constructing buildings is all about capital operation.
You just need to have the money to buy the land, the rest is mostly bank loans and the buyer’s prepaynts.
Under this model, if it collapses, it would cause an avalanche.
No one could escape unscathed.
Chen Pingsheng doesn’t feel particularly clever about this maneuvering, because whether it’s his group’s global Economic Research Institute, or Shen Nanpeng, Tong Zelan, and other such individuals.
They could all easily co up with this.
Outsiders think it’s brilliant simply because they have yet to enter the high-end capital sector.
From the outside, everything appears mysterious.
Once you’re inside, you will find that the essence of capital is just about telling a good story.
Now that short video stories are popular, it’s ti to upgrade these traditional companies that are declining or plumting by wrapping them in a short video narrative.
It’s the sa companies, but after applying a layer of short video allure, the story changes completely.
Of course, not just any wrapper fits.
Like a chili seller suddenly announcing the establishnt of their own microchip research institute.
And then proclaiming it’s not selling chilies, but microchip technology.
This combination treats investors like fools.
Forcefully depreciating everyone’s intelligence.
It’s known that the country supports tech stocks heavily in recent years, and many heads of companies try every possible way to align their businesses towards tech stocks.
Online sales claim they are tech companies.
Ga developers also say they are tech companies.
From this, you can see the importance of the nature of a business.
Otherwise, other businesses could also apply a layer of short videos before re-erging.
Milk tea shops could declare themselves as short video milk tea.
Coffee sellers could say the sa.
It just wouldn’t be significant.
To break his habit of always being correct, Chen Pingsheng made a rightful decision for himself.
That is to work one hour each evening from 7 to 8 pm as a car-hailing service driver.
It’s only because selling durian on the streets isn’t respectable, or else he would’ve considered reviving a tricycle to sell durians for an hour daily.
His wife is at ho taking care of their child, so spending an hour as a car-hailing driver is quite nice.
One must not forget their roots.
After all, he hasn’t hesitated to do such work before; it’s just that now he’s wealthy and no longer needs to do these anymore.
Reviews
All reviews (0)