The Birth of Shanghai's First Conglomerate

January 2025.

A new look this year, and big profits next year.

This statement doesn't seem quite appropriate when applied to the Chen family.

After several cash-outs in November and February of last year.

Chen Pingsheng currently also holds 1.5% of Nvidia's shares, 1% of Microsoft's shares, and 2% of TikTok's shares.

These three shares are basically strategic shares for him to cash out in the future, and he certainly won't touch them unless necessary.

After all, these are core shares used to support the group's scientific research achievements to go further, so we really can't just mess with them anymore.

The group's employees were still in high spirits in the new year. Regardless of the external market conditions, Tengying Group has been doing very well in recent years.

Not to mention the distant past, just look at the profits each year; they have been growing at a rapid pace.

Their family is already able to reliably receive annual net profit dividends of 30 billion from various groups.

This is undoubtedly an extremely large figure, and it is expected that this number will further expand to around 500 billion by 2028.

Because at that time, there will still be 100% ownership of Tengfei AI mobile phones, and Tengfei AI may achieve substantial profits.

Barring unforeseen circumstances, by 2030, his most valuable stocks will be entirely transferred to the existing four major companies that have taken off.

In other words, 30 years ago, it was either Nvidia's 1.5% or Microsoft's 1%.

The funds will primarily be used to repurchase shares of the four major Ascendas companies and to further expand Ascendas Group's global scientific research achievements.

Even at its current market capitalization, 1.5% of Nvidia is still worth $450 billion.

Hopefully, it can remain stable for another four or five years, which would probably solve all the funding needs for Tengfei Group's development over the next five years.

On January 10th, the group began distributing year-end bonuses for the entire year of 2024.

The minimum is six months' salary, and the maximum is about 12 to 18 months' salary.

When the money is paid out to the employees, it's more effective than any motivational rhetoric.

January 15th, less than half a month until the end of the year.

Tengying Group held a large annual meeting at the stadium. Chen Pingsheng's only summary of 2024 was that the light boat had already passed ten thousand mountains.

The future will only get better.

The group's traditional business segments can also spontaneously expand their scope based on the existing foundation.

They now have the full capability and don't need to worry about being restricted too much.

At least with the green food and health supermarkets built by Tengnong Breeding, Tengnong Member Stores can be opened all over the country.

People are paying more and more attention to food safety these days, and even if green food is more expensive, many people are willing to pay for it.

This is the future development trend of large supermarkets, and the core is green and healthy.

After the annual meeting, all that's left is the Chinese New Year.

Chen An'an is already on vacation, and so is Erpiya. As for Xiaosan, Chen Lu...

He doesn't go anywhere, he just stays at home every day, watching his cartoons, and like other kids, he plays games like King of Glory and PUBG.

The little guy is really good at these two games.

He would also constantly ask Changfu's son to team up with him, and the two of them would use adult accounts to professionally sabotage their teammates.

Give them a cell phone and they could play with it all day.

In this respect, they seem to be no different.

The only difference is that they see things they think are unreasonable, or things in the game that make them angry.

You could angrily say, "What a load of crap game! I want my dad to take it away!"

The profits generated by Honor of Kings in a year are beyond imagination, and the title of a national-level game is not an exaggeration at all.

There are very few things that can compare to it, if not none.

To play with his son, Chen Pingsheng also learned to play King of Glory.

He especially loves playing Daji, where he'll suddenly hide in the bushes, rush out, and take someone's life with a single combo.

It's easy to kill and run, making it simpler to play than other heroes.

On January 20th, perhaps considering that An'an was under a lot of pressure studying during the six months of her senior year of high school.

Chen Pingsheng and his family set off from Hong Kong on their own super private yacht for a global sea voyage.

His yacht, valued at 2.5 billion, can be considered the pinnacle of yachts.

Anything bigger than that isn't a yacht, it's a cruise ship.

It's the one he's building with over 40 billion yuan. Jackie Chan had a movie called City Hunter before, and Titanic is also a type of cruise ship.

This type of ship is also called a "floating city," and it can meet all the needs of maritime entertainment and tourism.

This is a configuration that only top-tier luxury families would have.

The superyacht departs from Hong Kong, passing through international waters and several countries.

All routes are reported in advance, so there is no possibility of being blocked or encountering pirates.

Everything was great during the Chinese New Year, but the only unexpected thing was probably the sharp drop in Nvidia's stock price.

Chen Pingsheng lost at least 30 billion RMB in a single day.

This is a typical example of a place where several billionaires emerge from the ranks at any time.

The sea voyage was planned for half a month, departing on the 20th and returning to port on the eighth day of the first lunar month.

Once you're rich enough, it's perfectly normal to decide where you spend the Lunar New Year.

It is not necessary to go back to your rural hometown to set off fireworks and firecrackers.

Chen An'an and Erpiya didn't like these things. Compared to ordinary fireworks, they preferred to use tens of thousands of drones to create their own grand fireworks display.

Before 2020, Chen Pingsheng had disposed of all the idle headquarters buildings under the group.

Four or five years have passed, and the headquarters assets he once sold have all been discounted by at least 20% or 30%.

Some were cut in half.

He doesn't own many properties in Hong Kong anymore. Besides the mansion on Barker Road worth over 2 billion HKD, the only other property he owns is Chen An'an's 120 million HKD Victoria Harbour flat.

There's also a top-tier private club with an investment of billions.

It's the place where he usually receives guests.

For places I don't visit often, having this many properties is more than enough.

By the time they returned to Shanghai, most of the people who had gone back to their hometowns for the Lunar New Year had already returned.

Shanghai has returned to its former bustling state.

Even Chen An'an, after playing around for a while, started preparing for the college entrance examination again.

With February halfway through, she began her second semester of senior year, which required even more intense effort.

Erpiya is still the same; she doesn't need to put much effort into her studies, and she always gets good grades on exams.

As for Chen Lu, the mistress, she carried three cell phones with her.

He handed in one, the teacher confiscated another, and he still had one in his back pocket.

Finally, she stopped nagging to play with Su Xiaoxi, but the price was that she played mobile games every day.

Song Yanxi was both amused and exasperated by this.

She has all the worries that ordinary adults have, except for material things, and she also has all the worries about having children.

For example, Xiao San loves playing games, and Er Pi Ya often makes other classmates cry.

She acts like the second princess wherever she goes.

The second princess has arrived; everyone, make way.

They're so rich they have no friends at all.

The big kid is the most reassuring; he still knows to work hard to prepare for the college entrance exam every day.

What my next goal will be after the college entrance exam is, I don't know.

It's impossible for someone to graduate from university, find a good company, and then earn a million-dollar annual salary.

Days pass by leisurely, and the years are like springtime.

After the New Year holiday, everyone returned to their quiet and unpretentious work routines. Chen Pingsheng moved back to Shanghai No. 1 High School, becoming one of the thousands of parents accompanying their children to the exam.

During that time, I also attended a parent meeting at the school, which was also called a pep rally.

The education provided by these schools is truly something else; it's even made parents like them very anxious.

I want to ask my child about their recent academic performance seventeen or eighteen times a day.

Is the psychological pressure high or not?

To be honest, for most parents, the senior year of high school is truly a major hurdle in life.

It was a million times more nerve-wracking than when I was in my senior year of high school.

Winter has passed, and spring has arrived.

February has come to an end amidst much fanfare, and March is on its way.

Tengying New Energy Vehicles' stock price broke through 700 billion, while Tengye Times' stock price also rose to over 600 billion.

His holdings in these two stocks are worth approximately 400 billion.

Each accounts for approximately 35%.

In mid-March, he cashed out another 0.5% of his Nvidia shares, netting him hundreds of billions of RMB.

A large portion of it was used to repurchase shares of the two companies they owned.

The aim is to repurchase more than 50% of the shares and firmly maintain control of the group.

If a major shareholder is willing to personally repurchase shares of a company, it is undoubtedly a high-quality company.

Chen Pingsheng's actions also caused the stock prices of Tengfei Motors and Tengde Times' batteries to soar.

On March 18th, Xiaoteng Online, an artificial intelligence software released by Tengfei AI, became a sensation in the AI ​​industry.

On the 21st, the Tengfei No. 1 AI robot achieved mass production.

And the National Intelligent Robot Competition was held in Shanghai.

This robot was developed independently by Tengfei AI over a period of more than five years.

It features home chat, cleaning, monitoring, danger detection, and assistive wake-up calls, as well as simple body detection functions.

This can be described as a relatively simple and practical home robot.

The development of AI has now fully reached the stage of robotics.

In the future, once the Tengfei AI phone is released, it will enable full network connectivity within the home.

In fact, Chen Pingsheng has already obtained the AI ​​phone jointly developed by Tengfei AI and Tengde Times.

It is called an AI phone mainly because it is equipped with a series of underlying AI architectures through Tengfei AI.

In addition, it is equipped with the best solid-state battery from Tenda Technology and a top-of-the-line Samsung screen.

When it comes to mobile phone screens, Samsung has always been synonymous with high-end.

The chip is naturally the latest Snapdragon processor.

There are actually three types of chips: research and development, manufacturing, packaging and testing.

Relatively speaking, Tengfei AI, including the Tengfei Group, has the capability to develop chips.

However, manufacturing top-tier chips is quite difficult.

China's current chip manufacturing technology has reached about 14 nanometers, which is still a long way from the world's most advanced 3 nanometer technology.

We are still working hard to catch up.

Chip packaging and testing is a strong point for China. Among the world's top ten packaging and testing companies, four are Chinese, accounting for more than 25% of the market share, which is more than a quarter of the global market. Moreover, as early as 2023, these packaging and testing companies had already stated that they possessed packaging and testing technology for three-nanometer chips.

The chip design process has also reached 3 nanometers.

The only thing holding us back is probably chip manufacturing.

It is precisely because China has supported a large number of chip companies in recent years that Chen Pingsheng does not intend to do this himself.

The future of the chip industry will definitely see severe overproduction. Once overproduction occurs, the industry's profits and future prospects will be concentrated in the hands of the two leading technology giants.

The rest are just for show.

He has been developing the Tengfei AI system, including the design of AI chips based on AI functions.

In the manufacturing process, no private enterprise in China can complete it independently.

If there is one, it would probably be TSMC, which is located in the Taiwan Strait.

The release of Tengfei No. 1 Robot still caused quite a stir in China.

As for the Tengfei AI phone, only 10,000 units have been produced so far, and it is still in the internal testing phase.

Over the years, Tengfei Group has made significant progress by investing over 10 billion yuan in 2018 to build a full-ecosystem supply chain industrial park.

We have always been very strict in our quality control management.

Quality control is essentially about controlling the components in the supply chain.

Samsung screens and Snapdragon chips are two of the most advanced components in the mobile phone industry, not to mention Samsung's screens and Snapdragon chips.

For the remaining items, domestic production has achieved over 95% self-sufficiency.

All that's needed is to strictly control the quality of the components.

Companies that do a good job in quality control all have one thing in common.

That means leaving enough profit for downstream component manufacturers and making progress together.

That's what Tengfei New Energy has been doing all these years.

If downstream manufacturers are not given sufficient profits, most will definitely choose to use inferior products.

No single company can independently achieve 100% self-sufficiency in mobile phone components.

Even Apple can't do it; it also needs to assemble and produce domestically.

It's just that its quality control is very strict.

Anyone with even a basic understanding of this industry knows that even if Apple finds a component to be substandard, it would be considered high-quality by a typical mobile phone manufacturer.

From this perspective, its high prices, including Huawei's high prices, are not without reason.

Similarly, Tengfei AI phones will not compete in the low-to-mid-range market; they will only target the most profitable mid-to-high-end mobile phones.

In these two areas, there are only two manufacturers recognized worldwide.

One is Samsung, and the other is Apple.

For well-known reasons, a very powerful domestic mobile phone manufacturer is unable to enter the global mobile phone market.

The most difficult thing about the mobile phone industry is that the market has already been formed.

This is true both domestically and internationally.

It would be incredibly difficult for another global mid-to-high-end mobile phone manufacturer to emerge.

It was only after so many years of accumulation that Chen Pingsheng dared to take big steps into this industry.

Currently, the 10,000 phones are only in the internal public beta testing phase.

It will be at least another six months before it is actually released.

Testing, tuning, and integration are essentially a large process of identifying, solving, and improving problems.

Once everything is ready here, and the Tengfei AI phone is certain to have a place in the same price range and in the global market, then...

Only then will it be officially announced to the public.

To be honest, it's impossible for Huawei to outsell Huawei in the domestic mid-to-high-end market.

Even though the entire group is very confident in its mobile phone product, no one believes it can sell better than Huawei.

As for the reason, it must be because its products are good enough.

The most important thing is that no other company can surpass the patriotism that makes a living.

He can't either.

Compared to surpassing Huawei's sales in the domestic market, surpassing Samsung's sales worldwide is significantly easier.

This is a consensus across the entire group, so their goal from the very beginning has been to target the global market.

(End of this chapter)