Despite the ongoing global economic back down, Taiwanese multinational technology corporation Acer is reported to have grown by more than 123% in market value since Chen Junsheng joined as the company’s CEO in early 2014. The firm undercounted an 8-year dividend of 26 billion yuan and hidden value.
Announcing the smash in a press release, the founder of Acer Group, Shi Zhenrong, expressed his affirmation to Chen Junsheng and Acer’s management team at large for the achievement. Since Acer Chairman Chen Junsheng officially joined as CEO in early 2014, Acer’s market value has been less than NT$51.2 billion. Now, with Acer’s stock price rising, the market value has risen to more than 100 billion yuan, a growth rate of more than 123%, which is more than doubled.
According to Shi Zhenrong, when they see the market worth of a firm in news reports, they frequently only perceive the tangible, direct, and present explicit value; instead, they should consider the intangible, indirect, and long-term hidden value produced by the organization. Along with caring about how much profit the business generates for its shareholders, it also worries about how well it balances the needs of all its stakeholders, including customers, suppliers, and society.
At the end of 2004, Shi Zhenrong retired as Acer chairman. He entrusted the helm to a qualified manager after retiring. Up until he ran into the problem of the PC market stagnating. Shi Zhenrong went back to Acer at the end of 2013 to begin the third reconstruction after the initial business plan failed.
Shi Zhenrong claimed that following Chen Junsheng’s appointment as CEO, he implemented significant changes and ceased placing orders that were not profitable. Even though a substantial decline in income resulted, he started to turn a profit. Over the previous eight years, he has used public reserve dividends at first, then slowly built up surplus before switching to surplus dividends.
And finally, Shi Zhenrong also drew attention to the blind spots in the rich list that are frequently highlighted in the media. He claimed that wealthy people frequently ignore their liabilities when determining their worth and specifically reminded them that long-term investments cannot be made with loans. Some people will invest via stock pledge loans, which have inflated assets.
