The magical richest man in Zhanjiang, and the capital “mystery” of the young master

On December 15, 2020, Rendong Holdings, the "meat grinder" that had hit the daily limit 14 times in a row, was hit by a huge amount of selling as soon as the market opened, and was blocked by the daily limit.

Three minutes after the market opened, a mysterious wave of hot money entered the market to sweep up goods. In just 37 seconds, Rendong Holdings was raised from the lower limit to the daily limit.

Subsequently, Rendong Holdings was locked on the daily limit board; at the same time, shareholders who were trapped in the early stage were like birds and beasts, cutting their flesh and blood on the daily limit board to stop losses.

With the son of Huo Qinghua, the former richest man in Inner Mongolia, the 33-year-old actual controller of Rendong Holdings - Huo Dong (for details, see: "The "Fall" of the Richest Man in Inner Mongolia, and the "Roller Coaster" of the Young Master!"), Sticking to Rendong Holdings is different; Chen Jiarong, the 32-year-old head of Kingkey Industries, the son of Zhanjiang’s richest man Chen Hua, chose to cut his losses at the daily limit.

On this day, Kingkey Group fled 160 million yuan, reducing its shareholding ratio to 4.99, leaving only a market value of 430 million yuan; plus the 50 million yuan reduction in holdings in the first half of the year, less than 4 years ago An investment of 1 billion yuan has resulted in a visual loss of 360 million yuan.

It can be seen that Rendong Holdings is not only a "meat grinder" for retail investors, it is also a "harvester" for major shareholders.

Chen Jiarong, the eldest son of the richest man in Zhanjiang, Chen Hua, is a young capital hunter.

He has frequently made moves in the capital market. As a barbarian at the door, he "bloodbathed" Kangdaer's board of directors. This time, Chen Jiarong made a mistake in Rendong Holdings. This is not the first time he failed in the capital market. .

So, what kind of capital puzzle does this young marshal have? What kind of legendary experience does his richest father, Chen Hua, who once brought the President of the United States to the platform to advertise?

1.

In 1966, Chen Hua was born in Haling Village, Wuchuan City, Zhanjiang.

The Chen family has made a living by fishing and farming for generations and lives in extreme poverty.

When I was in elementary school, among the 54 classmates in the class, only Chen Hua could not afford a red scarf. Every time the national flag was raised, Chen Hua hid under the tree and did not dare to participate.

When he was 10 years old, his father went fishing at sea and was unfortunately knocked down by a machine, bleeding profusely.

After hearing the news, Chen Hua took his 7-year-old brother and ran all the way to carry his father back.

On the way back, it was raining heavily. Looking at their dying father, Chen Hua and his younger brother Chen Hui burst into tears. He had no idea why life was so difficult or how to change poverty.

Children from poor families have long been the head of the family, so Chen Hua had to help his parents and bear the pressure of life, often working in the fields and fishing in the sea.

In 1984, the family really had no money to pay for tuition, so 18-year-old Chen Hua had no choice but to drop out of school.

After hearing from relatives in Changjiang County, Hainan, that there were plasterers available there, Chen Hua took his younger brother and came to Hainan with 10 yuan borrowed in his pocket.

Unexpectedly, the plastering work was done by others, so Chen Hua couldn't leave empty-handed. Chen Hua looked for work everywhere, and found his first job in a stone quarry owned by a Maoist.

The brothers were not afraid of hardship or tiredness, and they did all the dirty work including breaking rocks, moving cement, and pushing carts.

After half a year, the brothers returned home with 500 yuan. The mother looked at the two dark and thin children, almost not recognizing them, and burst into tears.

After paying off the family’s debt, there is not much left of 500 yuan.

In 1985, just after the Spring Festival, Chen Hua wanted to go to Shenzhen to find a job. After hearing the news, her sister took the initiative to find Chen Hua and loaned him 20 yuan for travel expenses.

In this way, Chen Hua took his younger brother to Shenzhen, hoping to find a stable job in this hot land.

2.

Chen Hua has no background, no knowledge, no culture, and no personnel, so he can only work as a coolie on the construction site.

At that time, there were too many monks and too few people. There were many people looking for work, but there was very little work. The construction site can only work for about ten days a month, and they can only earn 5 yuan a day, and the most they can earn in a month is 60 yuan.

Excluding daily expenses, there is not much left after a month. At that time, Chen Hua's dream was to earn 20,000 yuan, build a house in his hometown, and buy a black-and-white TV and radio.

Such an income is obviously still far from a dream.

If you are poor, you will want to change. Instead of sitting back and waiting for death, it is better to take the initiative.

So, when the construction site was not working, Chen Hua would go to each house and knock on other people’s doors, taking the initiative to find work.

On December 16, 1986, Chen Hua came to Beiling House in Huangbeiling, Luohu, Shenzhen and knocked on the door to find a job. When he knocked all the way to the fifth floor, a man wearing glasses asked him: Do you have any Water mill?

Chen Hua keenly realized that there was work to do.

Although he didn’t have it on hand, Chen Hua still said he had it. I heard that this gentleman wrote him a note and asked him to go to Manager Zhu.

Early the next morning, Chen Hua found Manager Zhu at a construction site. Seeing the note, Manager Zhu gave him a thick stack of drawings.

Unable to understand the drawings, Chen Hua found a fellow engineering fellow and wanted to help him contract the project, so he could just do a part-time job himself.

The fellow felt that Chen Hua was an honest person and did not want to cheat him, so he helped him get the project done. On this single project, Chen Hua earned 7,000 yuan.

After receiving the money, Chen Hua was so happy that he couldn't sleep. Inadvertently, he found the feeling of doing business.

With the first pot of gold and experience, Chen Hua established an engineering team and became the contractor.

After several years of hard work, Chen Hua became famous in Shenzhen.

At the end of 1993, a friend came to Chen Hua and told him that there was an owner in Meilin, Shenzhen, who had a piece of land but no money and was looking for someone to develop it together.

Chen Hua, who has been a contractor for many years, knew that this was an excellent opportunity to enter the real estate industry, so he negotiated a cooperation.

In December 1994, Chen Hua established Shenzhen Kingkey Real Estate Development Co., Ltd. with a registered capital of 88.88 million yuan, officially entering the real estate industry.

3.

At that time, Chen Hua had no capital, no capital, no talent, and no personnel. The company was also a standard leather company.

"If you have the conditions, you have to do it; if you don't have the conditions, you have to do it even if you create conditions." This has been Chen Hua's creed for many years.

No one knew about design, so Chen Hua found a friend who knew how to do design and said bluntly: I don’t have money to give you, but I will give you a house for design fees in the future.

When getting the drawings and finding material suppliers, it’s the same routine, first get the goods on credit and then pay.

In this way, by borrowing a chicken to lay an egg, Chen Hua managed to accomplish something that seemed impossible.

After the house was built, Chen Hua thought about how to sell the house.

Chen Hua’s property was called Jinmei Garden, and it was separated from the then famous Lianhua North Community by a North Ring Avenue.

Chen Hua had an idea and spent 3,000 yuan to make a small advertisement in the "Shenzhen Special Zone News". The slogan read: Only one step away from Lotus North.

As soon as the advertisement was sent out, Chen Hua’s phone was flooded with calls. The first "hot spot" marketing gave him a taste of the sweetness.

Chen Hua’s talents in business and marketing have been fully demonstrated in this real estate project.

The Jinmei Garden project allowed Chen Hua to gain a firm foothold in Shenzhen’s real estate market and gain funds and experience for future expansion.

In 1995, Chen Hua continued his efforts and developed Xili Garden in Shenzhen. This was an old renovation project, which once again gave him a place in Shenzhen's subsequent old renovation projects.

Since then, Chen Hua has successively developed several famous properties in Shenzhen Meilin - Biyuntian, Bihua Tingju, etc. These large and small properties have witnessed the growth of Kingkey step by step.

In 2002, Chen Hua left Meilin and developed the Shenzhen Bihaiyuntian real estate.

Before the building was completed, Chen Hua was thinking about finding a spokesperson for the building.

At a meeting, the executives unanimously agreed to ask Hong Kong's Chow Yun-fat to speak for him, but unfortunately there was no schedule. Chen Hua thought about it, why couldn't he invite former US President Clinton to come and help?

When Chen Hua proposed this idea, the senior executives thought he was fanciful.

Chen Hua, who always "does what he wants and creates conditions if he can't," immediately asked someone to contact the American "Business Weekly".

After many twists and turns, with the help of "Business Weekly", Chen Hua successfully invited Clinton.

However, since the former US president visited Shenzhen only for a private enterprise, which was the first time in China’s diplomatic history, the approval process was relatively cumbersome.

On May 23, 2002, 20 days after the opening of Bihaiyuntian, the former President of the United States came belatedly and delivered a 30-minute speech.

This innovative marketing campaign of Kingkey Real Estate caused a sensation in the country and was enough to be written into a classic case in business schools.

Having tasted the sweetness of presidential marketing, Chen Hua followed suit and continued to create gimmicks to increase the popularity and status of Jingji Real Estate.

At the Boao Forum for Asia in April 2004, Kingkey spent a huge amount of money to become a sponsor, and Chen Hua got a chance to speak. At the meeting, Chen Hua hugged the former President of the United States, Bush Sr., and once again became the focus of the media.

In December 2004, the 10th anniversary of the establishment of Kingkey Real Estate, Chen Hua invited John Major, the former prime minister of the old capitalist country of the United Kingdom, to help out and support his five-star project in Dameisha. The foundation stone of the hotel is laid.

Chen Hua has tried this trick repeatedly.

In 2011, Kingkey’s commercial classic, the 441-meter-high main building, which was the tallest building in Shenzhen at the time, Kingkey 100, was topped out. Chen Hua invited stars such as Long Yongtu, Yang Liwei, and Liu Xiang to Come to help.

In 2014, at the 20th anniversary celebration of Kingkey Real Estate, Chen Hua also invited Brown, the former British Prime Minister, to come and support.

This poor boy who was born in rural Zhanjiang and dropped out of high school has managed to create his own genre in the history of Chinese marketing - presidential marketing. I don’t know if there will be others in the future, but it is certain that there will be no previous ones.

4.

In 2014, Kingkey's development also reached a peak, with annual sales reaching 7 billion yuan.

Although it is far from the first-tier real estate companies, this result is enough to gain a foothold among the second-tier real estate companies in Shenzhen.

At that time, a high-ranking official in Shenzhen was dismissed, and Chen Hua, who was good at presidential marketing, also fell silent.

Chen Hua single-handedly created Kingkey’s real estate empire, spanning residential, commercial, and hotel formats. While he was hiding behind the scenes, the era of the second generation of rich people came.

Chen Hua’s eldest son, Chen Jiarong, was born in 1988. Under the cultivation of his father, he graduated from the University of British Columbia in 2012.

After graduating from university, Chen Jiarong returned to China and worked in the investment banking department of Ping An Securities.

This short two-year job made Chen Jiarong familiar with China’s capital operations.

In 2014, Chen Jiarong returned to his family company Jingji Real Estate, and his title gradually transitioned from "Assistant to the President" to "Vice President".

Chen Jiarong wants to use his work experience in investment banking and the empire he built for his father to obtain lower financing channels. Before that, Chen Hua basically used his own funds to develop real estate projects on a rolling basis and rarely borrowed money.

How much money you have to do what you want makes Jingji Real Estate very stable, but it also greatly limits its own development.

Chen Jiarong, who is known as the successor of Jingji Real Estate, is changing this model. Unlike his father who is conservative in the capital market, Chen Jiarong appears to be more radical.

One year before Chen Jiarong entered Jingji Real Estate, that is, in September 2013, 13 natural person accounts including Lin Zhi and Chen Mulan quietly bought Kangdaer’s shares in the A-share secondary market. It was the earliest chess game laid by Chen Jiarong in the capital market.

In just 3 months, the number of 13 natural person accounts holding Condal has reached 15, which is equivalent to three placards (raising placards: in order to protect the interests of small and medium-sized investors and prevent large institutional investors from manipulating the stock price. , announcement is required when acquiring tradable shares 5).

Luo Aihua, the actual controller and chairman of Kangdaer, has not yet realized that a predator has quietly approached her.

Not long after, Luo Aihua was taken away by the police for job embezzlement and was placed under investigation.

However, the court did not prosecute Luo Aihua. On November 1, 2014, Luo Aihua resigned as president of Condal and was succeeded by his son-in-law born in the 1980s.

In June 2015, the shareholding ratio of Lin Zhi and others reached 19.8. Only then did Luo Aihua realize that Lin Zhi and others were not as simple as financial investors.

After discovering the threat, the board of directors led by Luo Aihua quickly rejected Lin Zhi’s proposal to appoint a director and responded instinctively.

Soon, Chen Jiarong showed his "fangs".

In August 2015, Kingkey and Lin Zhi formed a party acting in concert, with the total shareholding ratio reaching 24.7.

Only then did Luo Aihua realize that her real opponent was not Lin Zhi, but Chen Jiarong of Kingkey.

Kangdaer’s board of directors immediately deprived Lin Zhi and others of their shareholder rights, requiring Lin Zhi and those acting in concert to correct their illegal behavior and reduce their shareholding ratio to less than 5.

In December, the conflict between the two sides escalated again.

Kingkey and Lin Zhi took Kangdaer’s board of directors to court, demanding that the resolution made by the board of directors violate the law and be invalid.

In February 2016, Lin Zhi and others transferred all their stocks to Kingkey, and Kingkey also continued to increase its holdings in Kangdaer in the secondary market.

By June 2016, Kingkey’s shares in Kangdaer reached 31.65, which was only one step away from the 31.66 held by Luo Aihua.

Subsequently, this state remained for two years.

On August 3, 2018, Kingkey once again broke the calm and planned to acquire 10 shares of Kangdal at a price of 24 yuan per share to obtain control of Kangdal.

However, this acquisition plan was not approved by Kangdaer. The board of directors believed that Kingkey did not have the qualifications to acquire listed companies.

Just 10 days later, Luo Aihua was taken away by the police again on suspicion of breach of trust in the interests of a listed company.

Subsequently, Kangdaer held several meetings. Among the 11 directors on the board of directors, 10 were nominated by Kingkey and were completely controlled by Chen Jiarong.

Kingkey’s tender offer was once again on the agenda. On November 2, 2018, Kingkey acquired 41.65 shares of Kangdaer.

Chen Jiarong got his wish and spent 3.47 billion yuan to acquire a listed company.

Kangdaer is a well-established Shenzhen enterprise, the same age as Shenzhen, and its main business is pig raising.

Why did Chen Jiarong fall in love with a listed company that raises pigs? The reason is that he has long-term development in Shenzhen. Kang Daer has low-priced land worth tens of billions. This is where Chen Jiarong's acumen lies.

The bloodbath of Kangdaer’s board of directors by Chen Jiarong occurred at the same time as Yao Zhenhua’s acquisition of Vanke. The excitement and tragedy were no less than the “bao-wan dispute”.

However, due to the "Baowan Controversy" occupying the high ground of public opinion, Yao Zhenhua's acquisition plan ultimately failed, and Chen Jiarong, who was hiding behind Yao Zhenhua, successfully swallowed up Kangdaer.

This was Chen Jiarong’s longest acquisition battle and also the most successful one.

However, in addition, Chen Jiarong, who is good at dancing in the capital market, has also failed many times.

5.

Chen Jiarong not only focuses on A-shares, but also Hong Kong stocks.

In 2015, Chen Jiarong teamed up with another Shenzhen second-generation rich man, Liu Gensen of the Heung Kong Group, to invest HK$300 million in Hong Kong-listed company Xian Media.

The company was later renamed KK Culture. Chen Jiarong once increased his holdings to become the largest shareholder and became the chairman of the board of directors of KK Culture.

But by the end of 2018, Chen Jiarong sold all his shares in KK Culture and resigned as chairman of the board of directors.

When he sold it, the share price of KK Culture was only half of what it was when he invested.

However, KK Culture’s losses can only be regarded as drizzle for Chen Jiarong.

When he met the strongest "leek harvester" - Cai Wensheng, the young marshal also became a bunch of green leeks.

On December 15, 2016, Cai Wensheng’s Meitu company was listed in Hong Kong. Chen Jiarong spent HK$920 million to subscribe for 109 million shares of Meitu at a price of HK$8.5 per share, becoming a cornerstone investor of Meitu.

In June 2017, Chen Jiarong once again spent HK$3.4 billion to buy 400 million shares off-site. At this time, Cai Wensheng's sons and early investors almost all withdrew, and Chen Jiarong became a glorious "successor."

Some netizens summarized the three greatest tragedies in life: becoming a shareholder by speculating in stocks, becoming a landlord by speculating in real estate, and becoming a husband by picking up girls. The root causes of the three great sorrows are all due to being trapped.

Chen Jiarong speculated on Meitu and became a shareholder. In 2020, Chen Jiarong became a non-executive director of Meitu and became a veritable quilt shareholder.

Meitu, which has suffered huge losses for many years, now has a stock price of only 1.5 Hong Kong dollars. Compared with the 8.5 yuan when Chen Jiarong bought shares, it has dropped by 82.

It can only be said that Jiang is still too old, and Jingji Shaodong is still too young in front of Cai Wensheng.

As mentioned at the beginning of the article, Chen Jiarong's Rendong Holdings fell to the limit for 13 consecutive days. When the "floor and sky board" blocked the daily limit, he fled in a hurry. This was Chen Jiarong's third investment failure.

Chen Jiarong has not gained nothing in Hong Kong stocks.

In April 2018, LeTV, desperate, transferred 17.83% of its Coolpad shares to Viri Ventures for a total price of HK$808 million.

In fact, the actual controller of Weiri Venture Capital is none other than Chen Jiarong.

Subsequently, Chen Jiarong transferred the shares of Coolpad to his younger brother Chen Jiajun.

Chen Jiajun is Chen Hua’s second son. He is a post-90s generation and graduated from Southern California Institute of Technology with a master’s degree in finance. After graduating from college, he has been serving as vice president of Kingkey Park Business Management Company.

Coolpad was once a popular mobile phone manufacturer in Shenzhen. After its decline, the land in its hands was extremely valuable.

Chen Jiajun also became the chairman of the board of directors and CEO of Coolpad as he wished. Coolpad’s board of directors is also made entirely of Kingkey employees.

After taking charge of Coolpad, for Jingji Real Estate, those lands are like a treasure trove.

6.

Chen Hua, who came from a poor village, single-handedly built Kingkey’s real estate empire and became the richest man in Zhanjiang.

Chen Hua’s eldest son, Chen Jiarong, and his second son, Chen Jiajun, came from a wealthy family and enjoyed high-quality education abroad.

Compared with Chen Hua, who operates conservatively without leveraging or borrowing money, the two young men with brilliant academic qualifications prefer to attack in the capital market.

As the successor of Kingkey Group, the eldest son Chen Jiarong was even more vicious and became the "barbarian standing at the door", taking control of Kangdaer in one fell swoop.

However, in the Hong Kong stock market, Chen Jiarong has been defeated repeatedly and has become the biggest takeover of Meitu. Apart from a slight gain on Coolpad, there were few successes on several other Hong Kong stocks.

Chen Jiajun’s many arrangements in A-shares and Hong Kong stocks are also dazzling and have become a capital puzzle that is incomprehensible.

The success or failure of Chen Jiarong has not yet been determined.

But there is one thing that he succeeded in, and that was reincarnation.

Newton once said: The reason why I succeed is because I stand on the shoulders of giants.

This sentence is also true for Chen Jiarong and Chen Jiajun.