The Birth of Shanghai's First Conglomerate

To talk about the biggest business miracle in China in recent years.

A seven-word mantra that cannot be separated from Xiaomi: focus, excellence, reputation, and speed.

Xiaomi Group is the youngest Fortune Global 500 company in history.

In less than three years, Xiaomi has become one of the top three smartphone sellers in China.

Such influence is absolutely beyond imagination.

The only company that stands in stark contrast to Xiaomi is ReTV, whose founder Jia Yueting has stopped working.

Before 2016, Jia Yueting enjoyed smooth sailing in the capital market.

Not only did they build HotTV into a company with a market value of over 100 billion yuan, but they also made moves across mobile phones, televisions, sports, and various other sectors.

This includes the sensational film "The Great Wall" in the entertainment industry.

In the past two years, Jia Yueting has also been recognized as the business tycoon with the fastest wealth growth.

According to Forbes' rankings, his personal wealth has reached nearly 100 billion.

His business miracle cannot be explained in just a few words.

His purpose in coming to see Huang Zhongshi was singular: Tencent Entertainment was developing too fast.

No matter how powerful Huayi is, it's still a force to be reckoned with. For Huayi, only by facilitating cooperation between the two companies can they jointly counter Tencent Film Entertainment's immense influence in the film and television industry.

If there's one quality that Jia Yueting admires most, it's definitely his ability to evoke empathy through storytelling.

Huang Zhongshi's biggest need right now is cash, as a bank mortgage loan of over 2 billion yuan is about to expire.

In addition, there are all sorts of debts coming his way immediately. He must raise 3 billion yuan as soon as possible to break free from the encirclement and suppression by Tengying Group.

Unfortunately, Jia Yueting looked at him with a sincere expression and the final proposal he put forward was a share swap.

What does that mean? It means exchanging shares of Reshi Group for Huayi Group.

Huang Zhongshi's expression changed on the spot, and in the end, it's unclear how he was persuaded by Jia Yueting.

They actually gave up 20% of Huayi shares to exchange for 8% of Reshi shares.

After the two individuals held shares in each other, Jia Yueting suggested that if he was really short of money, he could use the shares of the popular TV show as collateral for a bank loan.

Given the current stock price of HotTV, mortgaging 8% of its shares for over 2 billion is still a very simple matter.

This might be why Huang Zhongshi agreed to the share swap with him.

Unfortunately, he underestimated Chen Pingsheng's determination to completely surround and destroy him.

……

December 17, 1.

Three days after New Year's Day, Chen Pingsheng did not return to Shanghai, but stayed at the headquarters in Hong Kong.

After he returned all the money to Guo Ziyi, he also got back the mortgage on the Hong Kong headquarters building and the four super-sized storefronts.

However, it still cost 300 million in interest, which is considered very low in an emergency.

After this battle with Huateng, he also began to frequently contact the four major families in Hong Kong.

The main purpose is to understand foreign investment and the economic situation in Southeast Asia.

Just as he was having a pleasant conversation with Guo Ziyi and the others, his secretary, Xu Jing, suddenly came over to report to him.

"Uncle Chen, Jia Yueting has completed a share swap with Huayi, and Huang Zhongshi is using these shares to apply for a mortgage loan from a bank."

"Jia Yueting?"

Chen Pingsheng was slightly taken aback, but quickly realized the key point: Old Jia had been telling stories with just a few PowerPoint slides all these years.

They use the money raised from financing to launch projects everywhere.

He suffered huge losses, and he himself was extremely unreliable.

Aside from his mouth, he has absolutely no merit in business management.

With such a large operation, it seems more like a Ponzi scheme.

In China, almost everyone who runs a business like him is a fraud. They tell all sorts of stories, but secretly they're transferring assets.

With the release of Wolf Warrior 2, it is confirmed that Tencent Film & Television will soon take over the position previously held by Huayi Brothers.

Having secured his position as the undisputed leader in the entertainment industry, Jia Yueting's move at this juncture, besides aiming to acquire shares in Huayi Translation, was primarily motivated by a desire to leverage Huayi Translation's resources to enhance the status of his popular video platform within the entertainment world.

To put it bluntly, it's like the former second-in-command taking over.

The third brother started to pull the down-on-his-luck eldest brother along to target him, the current leader.

The idea is good, but unfortunately, the hot TV station itself is the plug of the funnel.

He had already investigated HotTV and said that calling it a commercial miracle was less accurate than suggesting it was more likely a powerful tool for some people.

It's just a way to extract cash assets through hype. As for Jia Yueting's new energy vehicles...

The idea is wonderful, but in reality it's just a sophisticated tool for openly transferring assets overseas.

From the very beginning, Thermovis was a glove company through and through.

Has Jia Yueting resolved his own troubles?

Chen Pingsheng said with dissatisfaction: "You arranged for a few people abroad to file a formal complaint against his new energy vehicle manufacturing, claiming it is a shell company. You also found some newspapers in China to publicly accuse him of transferring assets."

"Only China has the most complete industrial chain for new energy vehicle manufacturing. Among so many new car manufacturers, he is the only one who built his car factory in the United States. Isn't this a clear attempt to transfer assets?"

Whether or not the truth can be found out, as long as the news gets bigger.

Huang Zhongshi's plan to apply for a mortgage loan using the shares of Reshi acquired through the swap will be shattered.

He insisted on delaying the bank loan first, as for the hot TV side.

Tencent Video Group has already made its intentions clear. If HotTV still dares to get involved at a time like this, then we'll have to fight them both.

Tengying Group has long since embarked on its global journey through Xinteng Youxuan, and it certainly has some resources both domestically and internationally.

Arranging a few real-name reports is a very simple matter.

However, for a whistleblower to have an impact, it must be associated with the news media.

Almost as soon as the overseas report was made into the news in the morning, the domestic media received the news in the afternoon.

That evening, a series of news reports about the transfer of assets by HotTV began to appear in the media.

They didn't use the word "suspected," but directly said it was transferring assets.

If the media dares to report this, they either have some crucial evidence, or they bear a great deal of responsibility.

There are many types of asset transfers.

The first issues to be reported were internal problems at HotTV.

Like Tencent Film Group, ReVision is a super-large conglomerate that spans multiple industries.

And it has more than just one or two projects under its umbrella.

If so many projects are financed separately, they are essentially independent projects.

For example, investor A invests 100 million yuan in popular TV sets, while Jia Yueting secretly transfers 30 million yuan to his new energy vehicle manufacturing business.

This is called embezzlement of public funds, because the car factory was built overseas.

It can also be called asset transfer.

It's clear that investors are shifting their investments from one project to new energy vehicle manufacturing overseas.

This is undoubtedly a crime and extremely irresponsible towards shareholders.

If Jia Yueting's suspension is confirmed, his empire will basically face the crisis of collapsing.

He doesn't even need to attack anymore.

As for whether he can stay in China, that depends on how big his financial hole really is.
As far as he knew, if HotTV was investigated, it would basically be like a fuse that ignites something.

Unless someone in higher positions wants to protect him.

(End of this chapter)