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Chapter 554, page 0542: [Old Master Chen's assets exceed 1000 billion?]

Earlier this year, ByteDance issued a board resolution announcement regarding the proposed spin-off of its subsidiary HarmonyOS Technology for listing on the Hong Kong Stock Exchange.

This is a legally mandated information disclosure obligation for listed companies.

Upon its release, ByteDance's stock price surged and continued to soar for several months afterward.

What followed was a six-month period of silence, during which ByteDance's stock price went from soaring to a steady rise, only experiencing a small surge each time the review process was disclosed.

Due to the time difference, the day after HarmonyOS launched its new device, ByteDance's stock price surged 11.2% to $176.85 in a single day following the announcement confirming the listing date.

On the eve of HarmonyOS's listing on the Hong Kong Stock Exchange, ByteDance's stock price had already soared to $181.36, with a market capitalization of approximately $210 billion.

……

HarmonyOS Technology did not hire foreign companies as its underwriters.

The four underwriters selected by Chen Guiliang all have state-owned backgrounds: CICC, CITIC Securities, Haitong Securities, and CMB Securities.

Given the current state of HarmonyOS, it doesn't matter who underwrites it; investors will be scrambling to buy it.

Hong Kong Financial Center.

The media area is already set up with cameras and microphones, and TV presenters are conducting pre-show reports.

"I'm currently in the Hong Kong Stock Exchange's main auditorium. Although there's still almost an hour before it starts, the atmosphere here is already filled with tension and anticipation. The HarmonyOS stock code behind me has already been lit up..."

The large screen at the venue displayed a series of information: issue price HK$38.5, valuation HK$600 billion, fundraising amount...

This data is outrageous!

HarmonyOS has only been established for a few years. In the past, it only had impressive financial reports, but it went crazy during the IPO stage, directly creating a valuation of HK$600 billion.

But it's not actually that outrageous. Take Alipay's upcoming IPO as an example; Forbes' valuation of it is 10 times higher.

Eight in the morning.

Chen Guiliang, Zhou Guangping, Ye Peng, the person in charge of the listing, and three professors walked to the end of the red carpet to greet the guests.

The guests included leaders from the four major state-owned underwriters, as well as local Hong Kong leaders and tycoons.

"congratulations!"

"Thank you for gracing us with your presence at the bell-ringing ceremony."

"Mr. Chen is a very promising young man!"

"Mr. Huo is too kind."

"..."

Everyone posed for a group photo in front of the camera, and then chatted in front of the ceremony backdrop.

The three professors were all smiling throughout; they all owned company stock options. And they had no shortage of research projects; a whole host of research projects awaited them.

"Old Zhou, you seem a little nervous," Ye Peng said with a smile.

Zhou Guangping said, "Why should I be nervous? I've seen plenty of big events."

Ye Peng said, "Once the company goes public, you'll be completely financially independent. Are you still not nervous?"

Zhou Guangping felt his throat was a little dry, so he coughed twice to clear it: "I'm not nervous at all. With our company's performance, it will definitely surge as soon as it opens."

Ye Peng smiled and didn't expose him further; he could feel Zhou Guangping's body trembling.

Chen Guiliang is chatting with his superiors and local tycoons.

8:45.

The host then introduced the bell ringers, along with their identities and stories.

8:55.

Chen Guiliang began his speech: "I used to work in online communities and games. Why did I get involved in the mobile phone industry? I felt that mobile phones at the time were no good, and I was sure I could make them better than others. As it turns out, I did indeed do a better job than them..."

The audience was stunned for two seconds, then burst into enthusiastic applause.

The reporters, in particular, were snapping photos of Chen Guiliang relentlessly.

In the past, when CEOs of listed companies gave speeches, they were generally very measured and predictable, thanking this person and that person, recalling their difficult entrepreneurial experience, and introducing how amazing their company was.

When have reporters ever seen Chen Guiliang speak like this? He comes right off the bat saying that competitors are no good and that he's the best at making mobile phones.

Arrogant and conceited!

But journalists like it because it's very topical.

After a five-minute speech, Chen Guiliang, Zhou Guangping, and others together held onto the huge wooden mallet, ready to strike the bell.

Hong Kong is a rather nostalgic place; they actually ring a bell when a company goes public, instead of using an electronic clock like other exchanges.

To be precise, it was a huge bronze gong.

"when--!"

Everyone stared at the price displayed on the screen, and the constantly fluctuating numbers finally stopped: 45.88!

It opened 19.17% higher.

"Holy crap!" Zhou Guangping took a deep breath. Ye Peng licked his lips, unable to stop smiling. When he first joined the company, he only had stock options, but because he single-handedly built Hongmeng Technology's marketing system, Chen Guiliang rewarded him with an additional 0.8% of the shares.

Why was Zhou Guangping nervous? Because he held far more shares than Ye Peng!
The audience erupted in thunderous applause and cheers. Chen Guiliang hugged Zhou Guangping and others in celebration, and then shook hands with each of the other guests to express his gratitude.

After cheering, the three professors kept their heads tilted back, staring at the electronic screen. Even those who usually prided themselves on treating money like dirt were now captivated by its allure; behind every fluctuating number lay money.

A financial reporter from the Hong Kong Economic Journal asked in perfect Mandarin: "Mr. Chen, congratulations on your company's successful listing. The market responded very enthusiastically with a nearly 20% increase at the opening. However, we have also noticed that your company's current forward P/E ratio is far above the average level in the hardware industry. Does this indicate a stock price bubble? What do you think is the core factor supporting such a high valuation?"

Chen Guiliang said, "There is no bubble. I don't think the current stock price reflects the true level of HarmonyOS. Why is the valuation so high? Because our products sell well, and they have always sold well. It will only get better in the future! Don't look at anything else, and I won't boast. Just look at the financial reports in the future."

An Apple Daily reporter stood up and asked a question in Cantonese.

Chen Guiliang had lived in Guangzhou in his previous life and could understand some Cantonese words. He could communicate in daily life by using gestures.

But before the host could translate, Chen Guiliang said, "Sorry, I don't understand Cantonese."

The reporter then switched to English and asked: "HarmonyOS's performance grew rapidly before its IPO, but some questioned whether this was due to internal funding from ByteDance and related-party transactions. Now that HarmonyOS has been separated from its parent company, does it truly have independent and sustainable competitiveness? Or is this merely a high-level cash-out by the parent company for its shareholders?"

Chen Guiliang said, "I don't understand what you mean by related-party transactions. The two companies' businesses are complementary, and their finances have long been separate. Next."

The interview session ended quickly, and Chen Guiliang went to rest and chat with the guests.

On the first day of a new stock listing, there is usually a lot of excitement at the beginning. But once the enthusiasm subsides a bit, some people start looking for opportunities to short the stock during the trading day.

However, something's not right today.

The stock price kept rising, reaching a peak increase of 32.5%. It gradually fell back in the afternoon, closing at HK$49.5, a 28.6% increase on its first day.

News of HarmonyOS's stock price surging on its first day of trading in the US prompted ByteDance's stock price to continue rising as well.

The Forbes China Rich List, scheduled to be released in two weeks, quickly organized a team to recalculate Chen Guiliang's assets.

……

"Holy crap, guys, HarmonyOS's stock price has gone crazy. The company's market value has already exceeded 700 billion Hong Kong dollars."

"Is Old Master Chen's net worth less than hundreds of billions?"

"The major shareholder of HarmonyOS is ByteDance, not Chen Guiliang personally. Chen Guiliang and Youke together hold more than 55% of ByteDance's shares. ByteDance's stock price is also soaring, already exceeding 200 billion US dollars. I roughly calculated that, just considering the shares held by ByteDance and HarmonyOS, Chen Guiliang's assets are 1050 billion RMB."

"How many?"

"Not counting Youke, and nothing else. Just considering the stock prices of ByteDance and HarmonyOS, as well as Chen Laozu's shareholdings, he has 1050 billion RMB!"

"Holy crap!"

“I’m studying in Hong Kong, and the Hong Kong media has gone crazy. The headlines are getting more and more sensational. Old Master Chen has several nicknames, the most outrageous of which is ‘King of the Realms’.”

"This is hilarious! It should be called the 'Internet Addiction God'! I almost got addicted to the internet because my computer wasn't powerful enough."

"Why is he called Supreme Kai?"

"The King Kai from Dragon Ball was used by Hong Kong media. HarmonyOS is the hottest tech stock in Hong Kong this year, so Hong Kong media called him the King of the Tech World."

"Is HarmonyOS's market value a bit inflated?"

"It is indeed a bit unrealistic, but the sales of HarmonyOS phones are too strong. Investors will flock to subscribe to the stock. If the sales of HarmonyOS phones decline even slightly, I estimate that the stock price will fall."

"..."

Not only did Hong Kong media report on it extensively, but news about it also flooded the mainland.

Articles claiming that Chen Guiliang's net worth exceeds 1000 billion yuan, even without considering Youke's assets, are everywhere.

Countless people were stunned.

According to last month's Hurun Rich List, the second-ranked Zong family only had assets of 800 billion yuan. How much more has Chen Guiliang surpassed the second-place holder now?

Rupert Hoogewerf (Hurun) reappeared for an interview: "I have always believed that Mr. Chen Guiliang's assets have been underestimated. As it turns out, I was still a bit conservative."

There were even online posts joking: "Any brothers want to buy HarmonyOS Yaoguang? If you're in the same city, let's set up tents and queue up together. I'll sell my blood to buy one this time, using my hard-earned money to try and help Chen Laozu buy a few more Bugattis."

"You're going to make me laugh to death, why don't you go sell your kidney?" someone immediately replied.

"No joke, Yaoguang is really awesome. I've compared the specs of the iPhone 5 and Yaoguang repeatedly, and Yaoguang is still more powerful. Besides, the iPhone 5 hasn't been released in China yet, so Yaoguang is definitely the first choice."

"I don't have that much money. Although HarmonyOS Shining isn't a flagship phone, its price-performance ratio is really good. I'll buy one after I get my year-end bonus."

"You guys haven't actually seen the iPhone 5. It's so light and thin, way better than Yaoguang. Old Chen is a real schemer; he kept quiet about the phone's weight and size before the iPhone 5 even hit the market, completely fooling you!"

"You stupid Apple fanboy, this is the HarmonyOS community. Get out!"

"He's getting anxious, he's even swearing in his anxiety..."

The overwhelming reports about Chen Guiliang's wealth directly boosted the online pre-orders for HarmonyOS Yaoguang.

On the first day of its official launch in physical stores, long lines formed early in front of stores in many major cities across the country. Tents, benches, and other similar items were also present.

Many young people are just following the trend; they have average salaries, but they still spend one or two months' salary to buy these things.

Of course, Xiaomi stores also had long queues.

These Xiaomi fans often like to mock HarmonyOS fans, believing that HarmonyOS fans are being ripped off. This is because the Xiaomi phones they bought for 1999 yuan have the exact same chip as the 4999 yuan HarmonyOS Yaoguang.

(End of this chapter)