Chapter 614: Nervous

The Magic City is still tense in April.

The most obvious change is that fewer people are shopping and more people are eating at home.

There are few people visible in restaurants and various large gatherings.

Even my sister-in-law who worked in the entertainment industry was forced to stop working for well-known reasons.

The suspension of a film crew's work is not as simple as closing a few stores.

The losses are beyond imagination.

Whenever an illness breaks out, the crews and stores in that area will basically fall into depression.

There's nothing we can do about it; that thing is simply too contagious.

If nothing unexpected happens, Tencent Entertainment will suffer losses this year.

Bai Xin mentioned again the importance of celebrities promoting products. First-, second- and third-tier celebrities don’t need to promote products, but those with less fame must have income.

Otherwise, if we continue like this, two out of ten projects will be stopped, and the remaining eight will be in vain.

The pressure is concentrated on the headquarters operations. In order to save themselves, many companies have proposed to start live streaming to sell goods.

Even they are no exception.

Chen Pingsheng is actually fine. No matter what, the bottom line for the traditional sector this year is that it will not make any money at most.

But this affects more than just the entertainment, catering and other sectors.

As a result, Shuiyunjian also saw a significant decline in performance.

After analysis, it was found that there was no problem with the operation, on the contrary, it had been continuously improved over the years.

Shuiyunjian's business has reached its ceiling, mainly because many of its customers have no cash left.

What does it mean?

The assets may not have changed, but they cannot be circulated normally.

A large part of people's money is sunk into their houses.

In other words, houses can no longer be turned over as quickly as before.

A house itself is made of cement and steel bars. In a place like Shanghai, it may be worth 30 to 50 million yuan based on normal housing prices.

This can be called net assets. Once such assets cannot be converted into cash, they are nothing more than steel and cement.

And the biggest problem at the moment is this sector.

As early as 2008, real estate has been the largest reservoir of active money in the country.

It accounts for at least 60% of household assets.

But now it is difficult to circulate this money normally.

The assets in everyone's hands have not depreciated yet, but they have fallen into the first level of predicament.

In other words, it is difficult to cash out.

Once this situation occurs, countless families can only fight the risk by reducing their consumption.

Chen Pingsheng was sitting in the headquarters conference room, while his secretary Tang Jing was taking minutes.

The rest are all CEOs who are already financially independent.

Among them, Chu Qiuyan, who is less than 28 years old, has a personal net worth of billions.

A veritable entrepreneurial goddess, Lin Qiunan and Zhang Wanyi are all Tang Jing's predecessors, and now she is a domineering female president.

The disease came on violently.

The real trouble is not the disease, but the series of consequences it causes. The most important point is that the number of people buying houses has decreased significantly.

When houses are no longer circulated as quickly as before, the money sunk into steel and concrete will become lifeless.

This will reduce consumption desire to the greatest extent, and the consequences are beyond imagination.

Chu Qiuyan has now taken over as the president of the Dream Fund. She reported that, of the small entrepreneurial projects supported in the past three years, except for those that started in the early days, there is almost no hope now.

According to statistics, the basic success rate of small projects supported by the Dream Fund from 2016 to 2018 was around 30%.

Among the 100 companies, there will be no less than seven or eight that can truly grow bigger and stronger based on the 30% share.

Now the basic success rate is visibly decreasing.

It may even drop to less than 15%, which is half of the success rate in the past.

Investment itself is a subject of statistics. If one out of ten major projects is successful, it is considered very good.

The Dream Fund is different. It simply invests in small projects, sifts through the small projects, and then continuously screens and cultivates them to become the final large-scale projects that are listed on the market.

Once this basic success rate is lowered, it will still be reduced by half.

Then the subsequent work, including financial pressure, will increase infinitely.

This is also the main reason for the rapid transformation of investment in the big health field.

We can draw a final conclusion from the statistical rate of the Dream Fund.

The next three years will no longer be suitable for small individual entrepreneurship.

If I have to use one word to describe it, it would be that nine out of ten successes lead to losses.

Out of a hundred people, less than seven or eight can make money, and the remaining ninety or so will have to lose several years of family savings.

This is really winter has come.

I've been saying I'd come, and now I'm really here.

No company or individual can avoid this situation.

The entire Tengying Group, except for Xinteng Live and Tengyou Media in the short video field.

Except for the unlisted Tengfei New Energy, which has little impact, all other companies are fully covered.

Any company that does not have sufficient cash flow reserves will face a life-or-death test.

If you think about how many people will have to find flexible employment again, you can get a rough idea of ​​the future economic direction.

Chen Pingsheng's general direction will not change much.

They are responsible for the small details.

How to complete corporate self-rescue in this economic situation is a new test for everyone.

After the meeting, Chen Pingsheng only said one thing: he could accept the headquarters using money to subsidize employee benefits, but he could not accept that everyone would immediately capsize when a little storm came.

To put it bluntly, he has no negative assets. If anyone goes bankrupt quickly during this process, he can simply shut down that business.

It cannot affect the entire Tengying Group, which has become a giant ship.

He can ensure that the big ship remains stable, while the remaining small boats can only find a way out on their own.

If you are like Feiyangyang now, it is a foregone conclusion that you will lose two or three hundred million a year.

There is no way to change this; the environment is just like that.

But you have to lose more than 10 billion or even more than 2 billion a year.

That's it.

No shareholder could accept it, not even him.

The most stable one is Tenghui Department Store, which owns all the storefronts. It also previously sold all the leased department stores and supermarkets in other cities to Tengyou Media.

He certainly has no pressure now.

The newly appointed president of Feiyangyang was the first to come up with this solution, which was to reduce the number of stores instead of reducing the staff.

Those stores that suffered excessive losses simply removed the Feiyangyang signs and sold the stores.

It's not just his company. Bobo Milk Tea and Lujiao Coffee will also face this inevitable choice.

The big boss wants them to save themselves, so they have to use the knife in their hands to cut off those loss-making stores.

As for the stock price, as long as you don’t cash it out, one dollar or ten dollars doesn’t mean much.

Selling a store is an inevitable choice in this great era.

Having cash in hand is really powerful now.

(End of this chapter)