The Birth of Shanghai's First Conglomerate

"If you ask me, I'd definitely cash out Tesla first."

"A market capitalization of $5200 billion, surpassing Toyota, is clearly inflated."

"Whether considering the profit margins or the future, Tesla's valuation is inflated and it does not have the strength to surpass Toyota."

Toyota has an annual profit of 140 billion yen, but its stock price is less than half that of Tesla.

This is obviously not normal.

Tesla has clearly benefited from the concept of new energy vehicles, with everyone buying into a future price.

However, in reality, Tesla's net profit in 2019 was only $1.05 million.

Toyota's net profit in 2019 reached 1400 billion yuan.

The stock price is less than half of its value, which shows how much of Tesla's stock is inflated.

Everyone voted by raising their hands and unanimously agreed to reduce their Tesla holdings first.

The secretary, who was taking meeting minutes, felt her scalp tingle. It turned out that the big boss, who always complained about how difficult things were, was actually quite something.

He owns $260 billion in equity assets in Tesla stock alone.

He poured a lot of money into Tengfei New Energy, but he also invested countless amounts of money in the new energy industry.

Tesla, in particular, which is the world's number one in new energy vehicles, has been continuously buying shares for five years.

She only realized after a brief meeting that the whole world is short of money, and the big boss is certainly not short of money either.

No wonder the Global Economic Research Institute has remained indifferent to these domestic situations.

Everyone knows that traditional sectors may lose money, so it doesn't matter if the big boss takes out 20 billion to subsidize employees.

So it turns out that while the east side is dark, the west side is bright.

He made a fortune from investments in just these two stocks.

It's true that the domestic economy is declining, and it's also true that big bosses are getting richer.

The more you spend, the more you have!

The meeting lasted less than half an hour, and everyone unanimously voted to reduce their Tesla holdings first.

Chen Pingsheng agreed, but wouldn't reduce it entirely.

He called Ascendas on Wall Street, aiming to reduce his holdings by 2% within a month.

The cash-out amounted to approximately US$104 billion, which is equivalent to RMB 715 billion.

This is also his largest cash-out to date.

Once the funds have been cashed out, figuring out how to spend them becomes a big question.

Tengfei New Energy already has enough funds for 2020, and he still plans to allocate 20 billion yuan.

The main reason is that the new energy market is about to experience a sales boom, so in addition to building more super factories, battery production also needs to be expanded.

All of this costs money.

In addition, he plans to allocate 315 billion yuan to increase his stake in Nvidia.

Artificial intelligence is definitely the future trend, that goes without saying.

Nvidia, poised to become the world's number one in artificial intelligence, will likely see its stock price soar further.

His 300 billion yuan seems like a lot, but in reality, he can only buy 1.2% of the market.

Including what he already owned, his personal stake in Nvidia is approximately 4%.

Tesla will only have 3% left, and they definitely don't plan to reduce their holdings this year.

The remaining 20 billion will be invested heavily in Tengnong Livestock to expand its influence in agricultural production.

At least 15 billion of that will be invested in that.

Completed the expansion to twelve provinces.

Even with this round of restructuring, it seems that Tencent Pictures is still facing significant challenges.

In reality, they have $400 billion in cash reserves available at any time.

It's the kind of company with no debt whatsoever. Which other private enterprise in China can do that?
With that amount of cash reserves, if he were to go out and buy up assets now, he could buy back countless giant companies.

Chen Pingsheng would never do that, nor would he have any reason to do so.

The current 30% discount will be a whopping rip-off in two years.

Xu, who claims to have 300 billion yuan in cash reserves, is just bragging.

He's probably having a really tough time right now; the old guy's in danger.

Chen Pingsheng proceeded at his own unhurried pace. His wife was in charge of the company's entire health and wellness sector, and with Shuiyunjian supporting them, there was no need to touch his money.

He continued to expand into the technology sector, including agricultural production, as originally planned.

As for traditional sectors, just hang in there; things might improve when the illness is completely over.

He's not in a hurry at all; he has enough food at home, so there's no rush.

Xu Pidai was indeed in a hurry; he even launched a 30% discount on houses.

The general idea is that homebuyers who refer other homebuyers can receive many corresponding benefits and rewards.

Anyone who dares to drag their relatives into buying a house these days is absolutely ripping them off.

We won't be able to be relatives anymore.

After the meeting ended, Chen Pingsheng had a private chat with the director of the Economic Research Institute.

Putting this year aside, as long as this disease is not completely eradicated, the economy will certainly have a hard time recovering.

Even after the disease subsides, it will be difficult to regain the level of consumer enthusiasm seen in the past.

He'll just have to endure it. If he really can't take it anymore, he won't mind buying some quality assets at rock-bottom prices.

"Boss, our Tengying Group has never been short of money."

Tang Jing chuckled a few times, as if he were very proud.

"We don't lack money to begin with, but we want to prevent everyone from borrowing money, and also to keep the group's senior executives aware of potential crises."

"Oh, I see a lot of people in the employee group talking about whether the company is facing a crisis or something, and they even want to crowdfund."

"Have a heart."

Although he is not short of money, he is still quite pleased that his employees have this idea.

Chen Pingsheng said, "Have the group's corporate communications department adjust the direction of the publicity. There's no need to deliberately create that sense of crisis anymore. In June, our group can hold a three-day team building activity. Don't worry about the expenses. I will personally contribute 800 million to organize this activity."

Before a crisis occurs, the group should publicize the crisis to keep employees vigilant at all times.

Since the crisis has arrived, we must maintain an optimistic attitude.

Eight hundred million seems like a lot, but if you add up all the employees at Kingsoft headquarters, the total is at least forty or fifty thousand.

With so many people organizing team-building activities, what kind of fun could you possibly have without spending hundreds of millions?

He personally contributed 800 million, and the major listed companies also had to contribute a portion, so that 12 billion would be about right.

If you want to have fun in Shanghai, there are still many places to go.

Even if so many people can't do activities together, we should still have fun even if we're separated.

Planning an event like this requires a lot of manpower and resources.

This is a small matter that can be handled by the secretary.

The event plans would be submitted to him afterwards, and they could only be implemented after his approval.

This can be considered a major encouragement during a period of economic downturn.

"Boss, do you still have team building activities this year?"

"must have."

Chen Pingsheng was still thinking about ensuring that all the group's employees could have company housing, and now all the houses in the Tengying community have been sold out.

That's still not enough to accommodate everyone, so he plans to buy another residential plot of land.

We will build another 12,000 to 16,000 houses.

Having money in hand means there's no need to worry. Building a high-end community like Tengying Phase II is definitely worthwhile.

In addition, a top-tier villa area needs to be developed, exclusively for the group's senior executives.

We don't need too many of these houses; a few hundred will suffice.

He acquired land in Jinshan at a relatively low price, especially under the current circumstances.

It is estimated that 5 billion yuan will be enough to buy land and start construction.

If someone wants to take over his project, they will need to provide upfront funding.

With the influence of Tencent Group, there is no problem at all.

Chen Pingsheng immediately went to find someone to prepare to take care of this matter in advance.

(End of this chapter)