The Birth of Shanghai's First Conglomerate

Tengyou Media has grown significantly in just half a month.

Secretary Zhang Wanyi's work is definitely getting busier and busier.

Fortunately, Tengying Group transferred many top talents to her, and it will probably be able to digest No. 9 Warehouse and the newly acquired Tenghui Department Store in just a few months.

Teng Hui Department Store is truly something else. When it went public, it only operated in four cities: Beijing, Shanghai, Guangzhou, and Shenzhen, yet its valuation was already over 10 billion yuan.

Later, they invested another four or five billion in Hong Kong, and the stock price rose to more than two hundred billion.

Then it continued to expand, and it took several years for the stock price to rise from over 20 billion to 22 billion.

Such stagnation demonstrates that the capital market has no confidence in these expansion strategies outside of first-tier cities.

This also reflects the increasing difficulties faced by traditional department stores and supermarkets.

Except for a very few like Pang Donglai, most supermarkets are declining.

It will either be acquired by an internet company, or its status as the largest shareholder will be bought by another retail company.

To sum up department stores today in one sentence: they're going downhill.

After Teng Hui Department Store completed its restructuring, its stock price soared.

This further solidifies Teng Hui Department Store's future strategic goal: to only develop in first-tier cities.

Expansion into other cities will be cancelled.

Tengyou Media renamed the 138 Tenghui Supermarkets it acquired to Tengyou Youxuan.

On the same day the news broke, Tenghui Department Store invested 15 billion yuan to acquire a 30% stake in Tengyou Youxuan.

They also confirmed that the two companies remain strategic partners.

This method of operation looks complicated and seems unnecessary.

But in reality, it was a classic win-win situation.

Firstly, after Teng Hui Department Store shed these more than 100 supermarkets outside the city, its core strategy became very clear.

Instead of expanding nationwide, we focus solely on the mid-to-high-end quality department store sector in top-tier cities.

With this asset, Tengyou Media can even achieve same-day delivery in many cities through live-streaming e-commerce in the department store sector.

Whether selling vegetables or other general merchandise, this gives it a significant advantage over other influencer-driven sales methods.

They even left everyone else in the dust.

Renaming Tenghui Department Store to Tengyou Youpin is also a new type of short-video internet supermarket that is different from traditional department stores.

In the future, it may also pursue an independent listing.

At that time, it was not a traditional supermarket, but a new type of department store economy in the field of short videos.

Don't be fooled by the fact that it's just a change of concept; in the capital market, it makes a fundamental difference.

It's like the traditional economy versus the traditional economy enhanced by the internet.

Those are completely different concepts to a certain extent, and their stock prices are worlds apart.

Tencent Media spent 6 billion yuan to complete this acquisition, so of course it won't just be an auxiliary tool.

It also needs to generate a higher return on this investment.

It is therefore very necessary to separate No. 9 Warehouse, including the current Tengyou Youpin, from the market.

It can only be said that although the ways capital works seem complicated, their essence is actually just one thing.

That's making money, also known as appreciation.

After a series of complex exchanges, the group's industries have yielded gratifying results.

Teng Hui Department Store received 45 billion yuan in cash, as well as a 30% stake in the newly established Tengyou Youpin.

In addition, the stock price quickly rose to 28 billion.

Nine Clothing Warehouse is just a different middle-aged woman; it is essentially still a member of Tencent Group. When it goes public independently in the future, it will be a physical clothing company in the short video field.

Adding the words "short video" to a product's name will increase its market value by at least one to five times.

As for Tencent Media, although it spent 7.5 billion yuan in cash.

However, its valuation jumped from 45 billion to 80 billion.

It also owns more than 1,000 clothing stores and more than 100 Tengyou Youpin (a premium online retailer).

This exchange clearly results in a win-win-win situation. This is called capital integration, or capital operation.

The items themselves haven't changed, but their value has jumped by tens of billions.

News from all sides has been released.

Anyone who had even the slightest connection with Chen Pingsheng was practically begging him to schedule a time with them.

Don't just target your own company, why don't you package all of mine as well?

Leaving aside others, Song Shuiqing's husband's family, the Tang family of Shanghai, were completely bewildered by this series of actions.

So you're just swapping your own companies around like this, and Tencent's valuation has increased by tens of billions.

Other assets also saw significant increases, even driving up the overall value of the Tencent Group companies.

If this is acceptable, then why should everyone continue to work so hard in the physical business?

They should all just play the capital game.

You know what, building houses these days really is all about capital operations.

You only need to pay for the land yourself; the rest is mostly bank loans and down payments from homebuyers.

In this model, once it collapses, it's an avalanche.

No one was spared.

Chen Pingsheng didn't feel particularly clever about his actions, because whether it was his group's Global Economic Research Institute, or Shen Nanpeng, Tong Zhelan and others.

They are all easy to think of.

The reason outsiders think it's brilliant is simply because they haven't entered the high-end capital circle yet.

From your perspective as an outsider, everything appears mysterious.

Once you get to this point, you'll find that the core of capital is nothing more than telling a good story.

Since short videos are so popular now, why not just give these traditional businesses that have been declining or even going downhill a short video makeover?

The companies are still the same companies, but after putting on a short video platform, the story becomes completely different.

Of course, not just any leather can be used.

It's like a chili pepper vendor suddenly announcing the establishment of his own chip research institute.

Then they announced to the public that they were not selling chili peppers, but chip technology.

Such a combination is tantamount to treating stock market investors like fools.

They're practically rubbing everyone's intelligence into the ground.

Everyone knows that the government has been vigorously supporting technology stocks in recent years, and many business owners are trying every means to get their companies associated with technology stocks.

The online sellers claim to be technology companies.

The game developers also claim to be technology companies.

This demonstrates the importance of the nature of a business.

In other words, other companies are not of much help to Tencent Media; otherwise, they could all just put a short video label on and come out again.

Those who sell milk tea can say they are short video milk tea sellers.

The same applies to coffee sellers.

It's not very meaningful.

In order to get rid of his bad habit of always being right, Chen Pingsheng made the right decision for himself.

That means I drive a ride-hailing car for an hour every evening between 7 and 8 pm.

It's just that selling durians on the street is too undignified, otherwise he would have liked to get a tricycle and sell durians for an hour every day.

His wife takes care of the kids at home, so it's fine for him to spend an hour as a ride-hailing driver.

One should never forget one's roots.

He used to do all sorts of things, but now that he's rich, he doesn't need to do them anymore.

(End of this chapter)