family circle of friends

Chapter 29 Blind Expansion
As soon as this news came out, Pingjiang Electronics was pushed to the forefront in an instant.

All kinds of negative news sprung up like mushrooms after rain, as if the building was about to collapse, which caused panic among stockholders, causing the stock price of Pingjiang Electronics to plummet like a cliff, and then fell to the limit for a week, and the stock price was cut in half.

The crisis came so fast that people were caught off guard!
The group's top executives dealt with it urgently. On the one hand, they tried their best to appease the restless employees, and on the other hand, they raised funds to stabilize the stock price.

In the entire Donghai City, the people who could save him could be counted on one hand. Among them, the chairman of Hongyuan International, Shang Chengjun, was naturally that thumb.

This also explained why Tang Minghao visited frequently, even if he was slapped in the face by Shang Chengjun before, he didn't care, almost groveling.

Because the Shang family can save him!
Can save Pingjiang Electronics!

Yuxuan rubbed her chin, not understanding what grandpa was thinking!

Help, but avoid seeing, don't help, but keep people.

From his point of view, Grandpa probably has his own plans in mind, Tang Minghao wants to use Shang's salted fish to make a comeback, so let's peel off the skin first!

Luoluo quickly ran back: "Master, he's gone!"

Yuxuan jumped off the recliner and waved: "Let's watch TV!"

"Watching the news again? I want to watch cartoons!"

"Are you the young master or am I the young master?"

Yuxuan reached out to knock her, but Luoluo hurriedly hid.

Yuxuan stared, the little girl could only reluctantly walk over, and said with a bitter face: "Young master, be gentle!"

Yuxuan flicked her forehead with her fingertips, she immediately felt refreshed, and Luoluo covered her head with her hands, looking angrily.

However, before they could walk out of the garden, they saw Liu Yong hurriedly approaching, and said to Yu Xuan with a smile: "Young master, the master calls you to the study!"

"Grandpa is back? Has he seen Tang Minghao?"

"See you, we chatted in the study for half an hour!"

"Oh!"

When Yuxuan walked into the study, Shang Chengjun was sitting on the sofa looking through documents.

"Grandpa, are you looking for me?" Yu Xuan walked over with a smile.

"Look at this first!"

Shang Chengjun handed the document to him, and Yuxuan opened it, and it turned out to be an internal investigation document of Pingjiang Electronics, with the words 'Top Secret' printed beside it.

After reading it carefully, Yuxuan explained in detail the process of Pingjiang Electronics from prosperity to decline, including rigid systems, lack of innovation, and serious corruption.

Of course, these are unavoidable problems in the development of the group, just like human diseases, which will not kill you in a second, but will only slowly corrode.The root cause of the sudden outbreak of Pingjiang Electronics was actually Tang Minghao!

Three years ago, he took over as the chairman of the board and resolutely carried out drastic reforms in spite of the opposition from the top management of the group. The oil detonated, causing Pingjiang Electronics to catch fire and set itself on fire, which led to the current situation.

How did he do it?
Three years ago, Tang Pingjiang passed away, and his son Tang Minghao took over Pingjiang Electronics. At that time, the internal situation was not good, the group's business continued to shrink, the market was squeezed, and the profit declined year after year.

In order to change this status quo, Tang Minghao, who has just been promoted to chairman, started his ambitious "transformation" road.

It is said to be 'transformation', but in fact it is just a sale of assets. Using methods such as equity pledge, sale of subsidiaries, and equity cash out, Tang Minghao sold many burdensome industries under the group, and borrowed from major banks in exchange for huge amounts of cash. The crazy expansion mode of "buy buy buy".

Through a series of actions, Tang Minghao obtained tens of billions of funds, and successively invested in many well-known enterprises such as Zhenghe Limited, Baoyue Media, UnionPay Business, etc. At the same time, he also injected capital into Haining Real Estate, Yelin Hotel and other projects.

Not only that, Pingjiang Electronics has expanded its layout on a global scale, with footprints all over the world, which caused the group's assets to explode in a short period of time, reaching a terrifying 2000 billion. With this achievement, Tang Minghao became a business star and was recognized by the media. Much coverage.

During that time, Tang Minghao was really high-spirited, and he had the stance of fighting for the front when the sword came out. The stockholders also placed high hopes on him, and some even shouted that he would surpass Hongyuan International and become the new top ten giants in China!
It's just that behind the bustling clusters, Pingjiang Electronics owes a high amount of debts. Among the 2000 billion assets, the liabilities are as high as 1500 billion, of which the bank loans alone have a huge amount of 847 billion.

Putting aside these high debts, Pingjiang Electronics' hematopoietic ability is obviously far from ideal, and its quarterly operating profit has been declining year by year. It has not exceeded 5 million yuan for three consecutive quarters, and it is only a pitiful 8000 million yuan in the first quarter of this year.At the same time, the book cash has also fallen off a cliff, and now only 56 billion is left.

With poor hematopoietic ability and high debts, Pingjiang Electronics was under financial pressure and had to lay off a large number of employees to maintain operations, which led to employee protests.

Yuxuan turned to the last page, which showed that the loan contracts signed by Tang Minghao with major banks were about to expire, and the debts of more than 800 billion yuan were waiting for him to repay. If he failed to pay, the banks would definitely eat him alive!

He smiled unkindly, a little gloating, this guy relying on mortgage loans to transform, is tantamount to killing chickens and picking eggs, he can be called a strange flower in the world of seeking death.

Shang Chengjun put down his teacup and said, "Tang Minghao wants me to inject capital into Pingjiang Electronics and publicly announce the alliance between the two parties. With the golden signboard of Shang's Group, he can stabilize the confidence of shareholders, and then stabilize the entire company."

Yuxuan thought about it, and had to say that Tang Minghao had a good eye. Shareholders were sometimes very shrewd, and sometimes they were blind. The word "following the trend" has existed in ancient and modern times. Once a "potential" is formed, Pingjiang Electronics is likely to survive this crisis.

"What are the conditions?"

Shang Chengjun didn't hide it from him: "Buying 50% of Pingjiang Electronics' shares for 10 billion, if it was before, it would be a big deal!"

"What does grandpa think?"

"Tell me your opinion first!"

Yuxuan thought for a moment, then slowly said: "I read this sentence in a book before, saying that it is better to be a chicken head than a phoenix tail!"

Shang Chengjun's eyes lit up, he sat up straight suddenly, and looked at him fixedly: "You really think so?"

Yu Xuan scratched his head awkwardly: "Is there something wrong?"

"Hahaha! That's right! That's right!"

Shang Chengjun's laughter spread throughout the room, obviously very happy: "I am a member of the Shang clan, I just want to have a sense of pride in my heart, I would rather be a chicken head than a phoenix tail!"

Yuxuan smiled shyly, it seemed that she was mistaken.

(End of this chapter)