2003: Starting with Foreign Trade

Chapter 109 Millionaire
"I'm in Guangzhou, just got off the plane."

Imagine years from now, when Zhihu (a Chinese Q&A website) becomes popular, a topic on it might ask: "What was it like to attend the Canton Fair for the first time?"

Tan Jincheng felt he was absolutely qualified to participate in answering this question.

The Liuhua Exhibition Hall, still in use, and the Pazhou Convention and Exhibition Center, which has already been put into operation, were definitely charming places for Tan Jincheng in 2004 and 2005.

Tan Jincheng earned his dream "first pot of gold" here.

The profits from the two exhibitions were enough to support Tan Jincheng's dream of electric two-wheelers. The profit dividends of more than 10 million yuan were enough to cover the operating expenses of the new factory for a year. Tan Jincheng officially solved his worries about starting a business.

On May 6, after two days of fun, Zhang Xupeng and his group of four, who were especially satisfied, boarded a flight to Ningbo and returned home with a full load of goodies. At the same time, the results of this year's Canton Fair were announced.

The apparel, textile, and footwear categories performed poorly overall, all showing a decline. The apparel category saw a 4.1% decrease compared to the previous (spring) edition, with total transactions reaching US$27.4 billion.

Textile sales reached US$21.8 billion, down 0.3%, while footwear suffered the most, with overall sales of US$7.5 million, a drop of 23.2%!

However, when one door closes, another opens. For a country with rapidly rising comprehensive national strength, no amount of policy restrictions will be effective. The clothing and textile industry experienced negative growth due to policy reasons.

Naturally, new industries have emerged. Exports of electronic products, represented by electromechanical products, increased by 10.3% this year, reaching a transaction value of US$119.3 billion, exceeding the US$91.9 billion figure of the second category, and dominating the market.

The second largest category remains apparel, with electronics and textiles remaining the two major export drivers. Additionally, the building materials industry has seen a remarkable surge this year, with a 39.9% increase and a transaction volume of US$8.3 million, surpassing footwear to rank fourth in transaction value.

Is the era of China's infrastructure spending spree about to begin?
Upon returning to Ningbo and seeing these figures, Tan Jincheng's initial smugness gradually subsided. 27.4 billion US dollars—Jinpeng Trading's share was barely a fraction of that.

It's a disgrace to those who are reborn. Others are reborn and are worshipped by all, but I'm reborn and earn a little money, not even enough to drink soup, and I'm already getting cocky!
Zhang Xupeng's mood wasn't so good either. The excitement of making money and the carefree trip to Dongguan City cooled down after Liverpool's 1-0 victory over Chelsea at home!

"No, how did he win?"

Zhang Xupeng, who was lying in his office chair, couldn't figure it out after thinking for a long time, so he suddenly jumped up and said.

On the day of the competition, we were having a great time and didn't pay attention to it. When we got back and checked the news, we found out that they had actually made it to the finals! Is there no justice in this world?!

Garcia's goal was truly a stroke of genius!

"Why can't we win? Luck plays a big part in these knockout matches. Besides, Liverpool played the first leg away and the second leg at home. After holding on to a 0-0 draw away from home, they already had the advantage. Do you even know anything about football?"

"Is this something for those who understand football? Is this what I'm talking about? Is this what I'm dissatisfied with?"

"Haha, you can't argue with that. I'm just that lucky. No matter who wins the championship, I'll make money. Just accept your fate."

"No way, I'm going to buy a 100-yuan Liverpool trophy ticket too, just to support them in winning the title and make Milan lose, so you won't be so smug."

"Out of touch. The final opponents are already out. How much money can you possibly make by betting now?" Tan Jincheng curled his lip. How could the odds be the same now as when the group stage just ended?

Hehe, I'm different. I'll secretly buy a huge amount of the final score. I don't think anyone would expect these two teams to tie at 3:3, right?

I don't know what the odds are for this score, but I'll probably buy a few bets on 0-0 draws, 1-1 draws, etc., that would be ideal.

"Then I want to buy one too."

"Whatever, don't worry about that for now. Let's go to the finance department and calculate the profit distribution. I need the money."

Before I came back, I had already made an appointment with the finance department to settle the profits from last year and the first quarter, deduct the tax rate and other expenses, and see how much money I could get.

The tax rate on shareholder dividends is 20% of the personal income tax. If the dividends are received from a listed company, the tax can be reduced by half. If the dividends are invested in the form of a company, the dividend income can be exempted from taxation.

However, none of these apply to Tan Jincheng, so he definitely has to pay this tax.

It seems that in the future, it's better to use the company's name for investments other than stocks; however, it's not entirely without advantages. Local governments judge the weight of a company based on two main factors: job creation and tax revenue.

The taxes paid by the founders are also a major consideration.

Tan Jincheng was in a hurry to deal with the dividend issue, not entirely because he was eager to buy stocks. In fact, Zhang Mingcan had already found a factory for him. Zhang Mingcan was knowledgeable about machinery and equipment, and according to him, there were no particularly good deals on used machinery and equipment at the moment.

Either the equipment was outdated or the price was too high. However, Tan Jincheng did find a factory, which was also located in Xiapu Town, in Shanqian Village, between Hedong Village and the overpass.

This location is relatively close to the future main urban area, with a national highway and Taishan Road connecting it. A subway station will also be built a few kilometers away in the future, so the location can be said to be quite good.

Tan Jincheng also knew that the best thing about this place was that even though it was so close to the city, there was no need to worry about demolition issues by 2023!
Urban development inevitably leads to expansion, and demolition is an unavoidable part of it. For businesses, the benefits are not that great, as relocating a large or medium-sized enterprise is quite troublesome.

I don't know why, but by 2023, there was almost no land left to develop in the vicinity of the urban area of ​​Beicang District, but this area was not demolished.

So if the factory space that Zhang Mingcan introduced is really the right size, then it can be used for at least 10 years.

As for equipment, if you really can't buy suitable used equipment, then you can only buy new ones. Price is one aspect, but equipment that is too old is definitely not acceptable.

"Let's go, let's go, I'll drive your BMW." Zhang Xupeng said with a grin. Ever since he learned that Tan Jincheng had bought a BMW, he had been itching to own one.

"Here you go," Tan Jincheng said, amused, as he handed over the car keys.

After leaving the office, Tan Jincheng told Li Yanning that he wouldn't be coming back today, and the two left the company. Before leaving, Tan Jincheng looked back and said to Zhang Xupeng, "Isn't this office a bit small if all the staff are here?"

"It's too small. When you were talking about hiring in Guangzhou, I was going to tell you about it too, but then we changed the subject and I forgot about it."

"Then you decide what to do. Maybe find a bigger one, or see if there are any offices for rent next door." "I'll keep an eye out for that. Oh, by the way, can you give me the phone number of the real estate agent you used to buy the house last time?"

Zhang Xupeng really intends to buy a house here, unlike in his previous life when he bought one in his hometown first. Tan Jincheng took out his phone and said, "Buying now should be a bit more expensive than last year. If you're going to buy, make sure you find out more details, especially about mortgage terms and conditions."

"Why not pay in full? The money I've saved up and the dividends from this time should be enough to buy an apartment about the same size as yours."

“You can buy a bigger one, or even two. It’s not like you can’t afford the mortgage. House prices will definitely continue to rise. If you think it’s expensive now, it will definitely be more expensive later.”

“That makes sense. When we first came here, it was less than 3500. A few hundred more a year is considered a profit.”

Tan Jincheng smiled but didn't say anything. "Now it's rising by several hundred yuan a year. Wait until later and see if it scares you to death. Around 2004 or 2005, housing prices were actually quite reasonable. In most provincial capitals and relatively developed cities like Ningbo, the price per square meter was around three or four thousand yuan. In other prefecture-level cities, it was basically around two thousand yuan."

Take Guangzhou as an example. In 04, most apartments in the main urban area cost only around 0 yuan. This year, a policy of zero down payment for moving in has been introduced. It seems like a good idea to buy an apartment in Guangzhou.

Anyway, I'll be going there often in the future, and staying in my own house to attend the Canton Fair seems much better than staying in a hotel.

After receiving the dividends, I'll have more money in my pocket. This trip to Hong Kong might be a good opportunity to check it out. These days, there are no purchase restrictions, so you can buy whatever you want.

“Hey, speaking of houses, should we buy one in Guangzhou too? That way we can stay in our own house when we attend the Canton Fair.”

"Are you crazy? You go to Guangzhou at most twice a year. You buy a house there, but if you live there yourself, you can't rent it out to make money. It will just sit empty."

"That would save on hotel accommodation costs."

"Haha, then you buy it, I won't. I'll stay at your place then, that way it'll be more economical."

Tan Jincheng curled his lip. "Fine, don't buy it then. I'll buy it. Don't regret it later."

I remember a joke from my past life: Ten years ago, the owner of a small business in Shenzhen did a good deed. To take care of a young and beautiful girl, he bought her a house of more than 100 square meters for convenience and gave her 2 yuan of pocket money every month. Ten years later, they went their separate ways. After selling the house, he calculated that he had made several million yuan.

He slapped his thigh, regretting that he hadn't done more of that kind of good deed back then!
The situation is similar in Shenzhen, and it's likely similar in Guangzhou as well. Whether Mr. Tan will donate to this cause remains to be seen, but now that there's an opportunity to buy a house in Guangzhou, it's not something to be missed.

Unfortunately, the now-famous Zhujiang New Town was still a large area of ​​wasteland at this time.

The meeting place with the finance department was a teahouse. When the formal meeting took place, Lin Qifen, who was sitting by the window in a private room, watched Tan Jincheng and his companion get out of the BMW and felt a mix of emotions.

No one knows better than her how these two overly young bosses built their fortunes. In just six months, they went from nothing to a net worth of over a million, and after this Canton Fair, their net worth of over ten million is a foregone conclusion.

Especially Tan Jincheng, this young man will not be 20 years old for another two months; in terms of age, this head of Jinpeng Trading is only 5 years older than his daughter, but he has become a multi-millionaire in just half a year.

He even ambitiously founded his second company, Jin Yi Industrial. Lin Qifen, as the accountant, also participated in and helped with the registration process. Just from the name of this company, you can tell that Boss Tan has great ambitions.

"Sorry to keep you waiting, Sister Lin." Tan Jincheng greeted her warmly as soon as he entered the house.

"It's okay, I just arrived a little while ago. I already told you not to call me 'sister,' it sounds too awkward," Lin Qifen replied with a smile.

"Call me 'sister' in a more affectionate way. Besides, you're still young," Tan Jincheng said shamelessly.

Zhang Xupeng grinned from the side, thinking, "How could Xiao Tan say such a thing? This guy is only two years younger than his mother."

In reality, Tan Jincheng's way of addressing me wasn't entirely shameless; he simply didn't want to lower his status. Theoretically, since we're all connected through work, we're equals. Although I'm young, I'm still a boss, so there's no need for me to lower myself.

"Alright, call me whatever you want. Let's begin. I'll do the math for you," Lin Qifen said helplessly.

In the quiet tea room in the afternoon, Lin Qifen explained each expense item by item, including the tax rates. It was only for two quarters, so it wasn't complicated. Besides, Tan and Zhang already knew a lot about it, so it didn't take much effort.

In less than an hour, Lin Qifen explained the profits she had calculated for the fourth quarter of last year and the first quarter of this year, totaling 337.43 million yuan available for distribution. Then she asked the two how much they wanted to distribute so that the company could withhold taxes on their behalf.

"How about we split it into 330 million?" Tan Jincheng asked Zhang Xupeng after considering it for a moment.

The company has more cash on hand than that; 330 million yuan was allocated, and the rest will be distributed next time.

“I’m fine with anything, let’s allocate it according to 330 million.” Zhang Xupeng nodded. He knew that Xiao Tan was currently short of money. Last time, she had borrowed 40 yuan in the name of the company, and she also had a loan of 50 yuan.

Including the 8 yuan I lent him, I owe 98 yuan just from these. I'll probably need to borrow more money for the factory construction. It would be good if I could share more with him and let him borrow less.

“Okay, then you’ve decided. I’ll transfer the tax-deducted money to your individual accounts as early as next Monday,” Lin Qifen replied.

"Okay, thank you, Sister Lin."

"It's just part of my job, nothing to worry about. Congratulations to the two millionaires!" Lin Qifen joked with a smile.

As a finance professional, I've handled a lot of money. Being a millionaire in 2005 wasn't exactly rare, but becoming a self-made millionaire at the age of 20 is still something to be proud of.

Lin Qifen also noticed that her words of praise and congratulations were interpreted differently by the two men. Mr. Zhang looked smug, while Mr. Tan just smiled faintly.

Tan Jincheng's next sentence surprised Lin Qifen.

"Sister Lin, how much do you earn per month? Are you interested in working in the finance department of my new company? My new company needs full-time finance and cashier staff."

(End of this chapter)