Reborn in 08, a heretical cultivator starting a business

Chapter 148 Wang Junshan rakes in 1 billion, JD.com's moat crumbles! (Seeking monthly votes)

Cui Qian's goal was to acquire these shares of relevant companies in bulk through the block trading system.

If there are no institutions or major shareholders selling off in bulk, Wang Junshan would have to do it slowly in the secondary market if he wanted to buy up so much at the bottom.

The only way to buy the stocks that Wang Junshan needs is to build positions in a diversified manner and operate in batches, taking a month or even two months.

However, if an institution or major shareholder sells in bulk, the block trading system will buy it all at once!
That's much simpler.

I can buy some more on the secondary market later, and it should be done in a week.

The global economic crisis is currently extremely severe, and major companies are selling off large quantities of their stocks.

This applies to companies like Gree, Midea, Haier, as well as Tencent, Baidu, and Alibaba.

Unfortunately, with the economic crisis raging, no one except Wang Junshan is optimistic about the future.

Everyone thinks this economic crisis will last for more than a year, or even more than two or three years...

Everyone thinks the stock price will continue to fall, and it won't bottom out until the end of next year, or even the year after.

Everyone is thinking of selling now to recoup funds and weather the economic crisis.

If all else fails, we can always buy back at an even lower price in the second half of next year.

In this situation, both major shareholders and institutions are frantically selling off their shares in the block trading market!

They entrusted a securities firm to sell the shares and find a suitable buyer.

In order to ship quickly, the prices are even lower than those in the secondary market.

Be greedy when others are fearful!

While everyone else was frantically selling, Wang Junshan did the opposite and bought like crazy!

That makes it easy.

Cui Qian decisively contacted them one by one. The sales staff of various securities firms finally found a buyer, and it was a big client at that.

They decisively lined up to come to the store and even took the initiative to help lower the price, all in order to close the deal and earn commission.

When the economic crisis broke out, the stock market collapsed, everyone was selling off, there were no buyers, and there were very few transactions.

Brokerages are also having a tough time because they can't earn commissions.

If it weren't for the fact that CITIC Securities' stock returns were only three times over three years, Wang Junshan would have bought at the bottom as well.

In high spirits, Cui Qian seized the opportunity to lower the price.

Sellers, fearing further sharp declines, continued to back down.

Ultimately, they negotiated a good price and acquired a large number of shares directly through the block trading system.

The price is 8%-10% lower than the price on the secondary market!

There's no way around it; the stock market during a financial crisis is just like the housing market in 2025.

If you don't sell it now for three million, it will be worth 280 million in two months, and 250 million in six months!

There's no bottom!
Whether it's institutions or major shareholders, they are all frantically cashing out and fleeing.

Of course, everyone knows that prices may rebound in the future, but the question is, when will that be?
One year later, or two years later?

How many people can hold out until then?
During the global economic crisis, everyone's assets were reduced by half, or even by 30%.

If your own company can't even keep going and is on the verge of bankruptcy, where will you get the funds to survive for another year or two?
Cutting losses and leaving the market is undoubtedly the best option.

In just two days, Cui Qian bought up shares of various companies at rock-bottom prices through the block trading system, totaling 8 million yuan!

In the secondary market, eight companies also bought 2 million yuan worth of stocks at bargain prices.

If a company buys an average of 1250 million yuan worth of shares per day at the bottom, and this is spread across different brokerages and multiple accounts, it won't make much of a splash, nor will it cause the stock price to surge.

In just two days, a large-scale transaction and bottom-fishing secured assets worth 10 billion yuan. This progress is much better than expected.

This also put Wang Junshan's mind at ease.

As expected, the village will hold a meeting in the next few days to discuss countermeasures.

In a few days, a press conference will be held to officially announce the four trillion yuan stimulus plan.

Once the official announcement is made, the stock prices of other companies do not fluctuate much and remain at their lowest point.

But the three major white goods manufacturers participating in the rural appliance subsidy program are poised for a meteoric rise.

Fortunately, Wang Junshan had given prior instructions, and Cui Qian was given priority in the operation, using both block trades and the secondary market to acquire a large number of stocks.

In a few more days, we will be able to achieve the goal set by Wang Junshan.

Even if the government officially announces a four trillion yuan stimulus package, it won't matter if the stock prices of the three major white goods manufacturers only rise slightly.

Of course, a sharp rise in the short term is unrealistic.

In the context of the global financial crisis, a single policy announcement will not trigger a comprehensive surge in prices.

At most, it will rise slightly.

When the economy begins to recover next March, capital will be the first to notice and will then begin to buy at the bottom.

Only then will the stock prices of white goods giants surge.

The current four trillion yuan stimulus package will at most result in a slight increase.

For example, a Midea phone that costs 6 yuan might rise to 7 or 8 yuan after the 4 trillion yuan stimulus package was introduced, but it won't go back to the previous 20 yuan.

However, this has nothing to do with Wang Junshan.

Cui Qian made a block trade to buy 1 million yuan worth of Midea shares at just 5.5 yuan per share!
They also bought 2000 million yuan worth of Midea shares in the secondary market over two days at 6 yuan per share.

In the following days, I will buy another 3000 million yuan worth of Midea stock at the bottom, and the total cost price will be around 5.7 yuan.

It doesn't matter if it rises slightly to 10 yuan.

Even Wang Junshan was able to cash out some of his shares when the price was high at ten yuan, and then buy them back at eight yuan when the price dropped later.

The stock market continued to fluctuate.

It's definitely slightly higher than the floor price before the 4 trillion yuan stimulus package, but things will still be volatile afterward.

By timing things right—reducing positions at highs and buying more at lows—you can make a lot of money.

That's what the investment department does.

Wang Junshan believes that within three years, they can turn 150 billion into 200 billion, or even 20 billion!
Unlike the smooth sailing of future technologies.

JD.com, on the other hand, is in a gloomy situation.

Even with official announcements of following the T+15 standard, not many 3C brands have renewed their exclusive cooperation agreements.

This infuriated Chairman Liu, who convened another emergency meeting:
"We've been following up on the T+15 day plan for three days now. How many brands have we signed with?"

The subordinates fell silent for a moment.

"Say!"

"Currently, only Lenovo has renewed its exclusive agreement for next year; ASUS, Dell, and HP have not signed any agreements and are still considering it."

"Still considering?" Chairman Liu was furious.
"What are you talking about? You all know they've already signed contracts with Vipshop. The contracts expire at the end of the year, and they're going to immediately go live on Vipshop and start a full-scale partnership."

"Chairman, they gave up their exclusive agreement with JD.com for Vipshop?" The subordinate was startled.

Although I had my doubts, I didn't think much of it.

JD.com is the number one 3C giant, why would these brands do this?

"Nonsense!" Chairman Liu roared, "Vipshop's rise has been much faster than we imagined!"

"Especially in the 3C (computers, communications, and consumer electronics) sector, I estimate that Vipshop's sales in this area are already approaching those of JD.com!" "What!"

Everyone in the room was startled, and some couldn't believe it:
"How is it possible that Vipshop, which mainly focuses on apparel and cosmetics, has caught up with JD.com in the 3C (computer, communication, and consumer electronics) sector?"

"If that's the case, then it's really troublesome."

Chairman Liu sighed: "It's not impossible, it's very likely."

The other high-ranking officials looked complicated and began to speak:
"No wonder ASUS, HP, and Dell are dragging their feet on renewing their exclusive agreements. It turns out that Vipshop has grown too big and they are turning to Vipshop."

“Even Lenovo, if we hadn’t offered them such a low markup of 10%, probably wouldn’t have renewed their contract and would have partnered with Vipshop instead.”

"This is a big problem. Vipshop's 3C products are going on a full-scale explosion, and we at JD.com are probably no match for them."

"After all, Vipshop has at least 2000 million users, which is ten times that of JD.com."

"Yes, WeChat Farm is so popular that it keeps bringing in new users for WeChat and Vipshop."

"Yes, especially with Vipshop shopping, which offers diamonds back in the WeChat Farm game, many JD.com users have switched to Vipshop to shop in order to play the game."

"There's also YouTuan International. Ever since Sanniu went bankrupt, YouTuan International has been the largest platform for purchasing imported maternal and infant products, leaving users with no better alternatives. But YouTuan International and Vipshop are both subsidiaries of YouTuan.com."

"When users open YouTuan.com to buy maternity and baby products, the first thing they see is Vipshop's homepage discount recommendations, which is hard not to be tempted by. Once they buy clothing and cosmetics, they will also continue to buy 3C digital products!"

"That's exactly right. Future Technology's combination of technologies is amazing, and they're rich. They even got Hu Xiaoyao to be their spokesperson and keep throwing money at it."

"That's Wang Junshan's brilliance. He hired Hu Xiaoyao, who had just made his comeback, as their spokesperson. The endorsement fee was low, only 200 million. Future Technology saved on the endorsement fee and used it to sell traffic. They spent a lot of money on advertising on Tieba, Tianya, and the four major portal websites, causing the number of WeChat users to rise steadily. Vipshop's users and orders also continued to surge. We, JD.com, can't compete with that!"

"It is only natural that those brands would abandon their exclusive agreements with JD.com and switch to both Vipshop and JD.com."

Listening to everyone's words, Chairman Liu sighed:

"You're absolutely right. The moat of 3C digital products has been completely destroyed, and those partners are unreliable."

"Then all we have left are large appliances, our last line of defense."

"If Vipshop also breaches this moat, then we're completely finished!"

"JD.com is finished."

Everyone was greatly shocked, but they had to admit that it was indeed the case.

3C digital products have already lost ground.

Large home appliances are JD.com's last line of defense!

Chairman Liu shouted sternly, "Large appliances must not be lost!"

"Gree, Midea, Haier, Hisense, Philips, and others must renew their exclusive agreements in full!"

"Even if we have to compromise and offer even lower commission rates in addition to T+15, we still have to sign the contract."

"If Vipshop also acquires large home appliances, then JD.com will be finished."

"I believe this, and everyone knows it!"

Everyone nodded in agreement, without any doubt.

In terms of capital, JD.com has been losing money every year and relies on financing to survive, which is not as good as Vipshop, which is backed by Future Technology and has a large and powerful business.

In terms of users, JD.com has two million users, but it can't compete with Vipshop's more than 20 million users.

In terms of product categories, JD.com currently only offers 3C digital products and home appliances, with a few office supplies and daily necessities, which are just beginning to be tested.

It is far less comprehensive than Vipshop's promotion of clothing, beauty, bags, 3C products, home appliances, department stores, and dairy products.

The difference is too great.

“Chairman, JD.com also needs to sell imported baby and maternity products!” Guo An, the purchasing director, suddenly spoke up.

"Imported baby and maternity products?" Chairman Liu became interested: "Tell me more about it."

Guo An explained in detail: "Vipshop started later, but developed faster and completely surpassed JD.com. This was due to the traffic generated by WeChat and the capital support from U-Group International."

“YouTuan International’s biggest source of profit was initially the grey market iPhone 3G. At that time, YouTuan International made millions a day by selling iPhones.”

"Later, Sanniu went bankrupt, and imported maternal and infant products became the new cash cow for Youtuan International."

"According to research institutions, YouTuan International's sales of maternal and infant products exceeded 12 billion yuan last month, with profits exceeding 5 million yuan!"

"so much!"

Everyone was shocked:

"JD.com, which sells 3C products and home appliances, only has a total annual revenue of a little over one billion yuan, which is only equivalent to U-Group International's monthly revenue?"

"How can this be?"

"Mr. Guo, is your data accurate? Are you sure there's no exaggeration?"

"Is it possible that you were scammed by the research firm?"

Guo An shook his head: "When I first saw this report, I was also shocked and startled."

"But after asking a friend at customs to check some data, I became even more convinced of the report."

"Last month, the total transaction volume of imported maternal and infant products in China reached 70 billion yuan."

"U-Tuan International achieved legendary status through the San Niu incident, becoming the number one giant in the maternal and infant category, similar to JD.com's position in the 3C and home appliance sectors, but even higher."

"If you calculate it that way, it's normal for them to sell over a billion a month."

Chairman Liu nodded: "That's right. The booming maternal and infant product category has been completely capitalized on by YouTuan International."

"Yes, Chairman, now that Vipshop is entering JD.com's 3C and home appliance categories, we can do the opposite and enter their mother and baby category!"

"I suggest that JD.com immediately find suppliers and launch a mother and baby product category. This trend is terrifying and powerful. With a monthly transaction volume of over 7 billion yuan, Youtuan International can capture over 1 billion yuan. Even if JD.com only captures a fraction of their share, it will still amount to several hundred million yuan!"

"More importantly, the profit margin is high!"

Before Chairman Liu could even speak, the finance department protested:
"Mr. Guo, your idea is excellent. But I must remind you of one thing: funding, funding, and more funding!"

“We have no money!”

“Imported maternal and infant brands, especially top-tier brands, are difficult to negotiate with. They will not accept our 30% prepayment, nor will they accept our T+30, T+60, or T+90 cycle settlement.”

"On the contrary, it is highly likely that 70% prepayment will be required before shipment, and the remaining 30% payment will be settled in full upon delivery."

"If you want to achieve a transaction volume of several hundred million, you also need to put up several hundred million in capital to purchase goods. Only after they are sold can you get the money back!"

"But the reality is, we don't have any money in our accounts!"

"The T+15 fee for major KA brands is squeezed out by exploiting small and medium-sized brands and pushing them to the brink of despair."

"Don't tell me you're going to continue squeezing small and medium-sized brands. If you do, and it backfires, JD.com will be finished!"

"This..." Guo An fell silent.

I'd like to say that I'm in charge of procurement; the finance department should figure out how to handle the money issues.

But seeing the CFO's murderous gaze, I gave up.

Finally, Chairman Liu sighed:
"The mother and baby product category is a good way out, we should do it. As for the money, I'll try to raise funds."

"First, squeeze out 5000 million to purchase goods, ideally 7000 million worth."

"The goods will be shipped by sea and arrive before the end of the month. Once they go on sale, they should sell out next month. The sales volume will be 140 million, and the profit will be around 50 million. That's pretty good."

Seeing that Chairman Liu had said so, the CFO had no choice but to reply:

"Then let me think of a way to squeeze out 5000 million!"

(End of this chapter)