2003: Starting with Foreign Trade

Chapter 142 The Changing Position of Jinyi Industry
"I understand the principle of being high-profile in work but low-profile in life."

As the company gradually stabilized and key management positions were filled, the number of vehicles became insufficient.

Currently, the company only has one BMW and one pickup truck. The BMW is mainly used by Tan Jincheng himself. It is very inconvenient for senior executives to go out to run errands. Locals like Liu Meilin who have cars are fine because they can get reimbursed for their fuel.

People like Wang Chao, Chen Jinwen, Lin Yumin, and Wu Zhenping are all from out of town and currently do not own private cars, making it quite inconvenient for them to go out.

Now that he has more funds on hand, Tan Jincheng is thinking about whether he should buy a few more cars for the company. In fact, the only car that belongs to Shanchi Auto Industry is the pickup truck, while the BMW is registered under the name of Jinyi Industry.

When Zhang Xupeng heard about this, he thought he should take this opportunity to replace his Passat, because he wanted to drive a BMW too.

Buying luxury cars to deduct taxes is probably the most basic and simplest operation for a company. After driving the car for a few years, it is then transferred to the owner or a relative at a low price, which is almost equivalent to transferring company assets into personal assets.

After the end of this year, Jinpeng Trading and Shanchi Automotive have undoubtedly achieved the scale of large-scale enterprises, which are included in the local CPI. If nothing unexpected happens, Jinyi Industrial will also reach this scale next year.

In just two years, he has established three large-scale enterprises under his control. This speed is remarkable and would make anyone take notice. As Tan Jincheng's initial partner, Zhang Xupeng is bound to attract some attention as well.

Therefore, Tan Jincheng advised Zhang Xupeng that the two of them should keep a low profile in the future.

However, before the sales figures are released, it's not a big deal to get a better car to drive. Zhang Xupeng is now a solid multi-millionaire with a stable company, so driving a Passat is indeed a bit inappropriate.

"Maybe we should wait? The car market this year is a bit strange; damn it, I've only had this car for a few months and the price has already dropped."

The car market this year is a mystery. In the first half of the year, many cars were sold out even with price markups, but in the second half, car companies have started to lower prices. Although BMW hasn't officially announced any price reductions, it's been quietly running a price cut campaign.
Volkswagen is having a promotion this month, with the Passat offering discounts of up to 4.6 yuan. Other models like the Accord and Audi A4 are also having price reductions.

In that case, it's better to wait for the new Audi A6 to be launched next month. Car companies are now focusing on price cuts, and the A6 will probably be no exception. But why is this happening in the second half of this year?
Traditional gasoline-powered vehicles no longer have a chance to enter the market, but that doesn't mean we shouldn't pay attention to automotive information. We still need to keep collecting information, because only by understanding the market can we better plan for the future.

"How long? I'm not in a rush. As long as I can get it this year, that's fine. Hehe, I'll drive a BMW home then, even more impressive than you were last year," Zhang Xupeng chuckled.

“It won’t be long, about next month. But we’ll be going to the Canton Fair in October, so you probably won’t be able to drive it for more than a few days before it’s sitting idle again. Also, I’m planning to buy another car. Flash Auto currently only has one pickup truck, which is a bit of a loss.”

"Buy another car besides the Passat?"

"Hmm, I'm thinking of getting an A6. What do you think? Are you going to buy a BMW or an A6?"

"No, I still want to buy a BMW, but I'm planning to buy a 5 Series."

"Then it's up to you. Let's go and transfer the Passat to Flash Auto first. You can drive it for now."

"can."

"What are your plans for the Canton Fair this year? I probably won't go this year, and even if I do, I won't stay for many days."

This year's Autumn Canton Fair, Tan Jincheng does not plan to be present throughout as before. Although he cannot abandon the import and export business, he also cannot do without Shanchi Automotive. Compared with Jinyi Industrial's business, Shanchi is more important.

The reason is simple: Flash Motors is a capital-intensive company and cannot afford any mistakes, while Jin Yi Industrial, which operates with a light asset model, can be shut down or directly merged into Flash Motors if it really fails.

"Then what about your electronics business? Are you not going to expand it?"

"Expansion? Just send a few salespeople there. Also, I've been working on the Alibaba International Store channel, and it should be good for the future. You should keep a close eye on it and stop wandering around aimlessly all day."

“Where did I wander around aimlessly? I’ve already established the business channels for children’s clothing and am just waiting to participate in the Canton Fair. How can that be called wandering around aimlessly?” Zhang Xupeng retorted.

When Tan Jincheng first became independent, Zhang Xupeng was indeed quite complacent. His business was stable, he had tens of millions in assets, and what more could he ask for?

However, after going to Huzhou with Tan Jincheng and witnessing his purchase orders worth millions or tens of millions of yuan, Tan Jincheng asked him to expand into the children's clothing business, which aroused Zhang Xupeng's ambition.

Afterwards, besides helping Tan Jincheng with some miscellaneous tasks, Zhang Xupeng focused more on expanding the children's clothing market. He frequently traveled to Huzhou recently, and within two months, he finally streamlined the channels, pricing, and logistics. He's just waiting to showcase his skills at the Canton Fair in the autumn.

Unlike the situation of the garment and textile industry at the Spring Canton Fair, the situation has improved significantly after several months of negotiations by the SW Department, and the final negotiation results are expected to be released before the Autumn Canton Fair.

Based on media reports, theoretically, the negotiation outcome should be that apart from an increase in tariffs, there will not be many other restrictions, which is a major benefit for garment export companies like Jinpeng Trading.

The outcome of a game in the incremental market is usually not too bad; it is precisely because he can see the situation clearly that Tan Jincheng allowed Zhang Xupeng to continue to expand new business channels, rather than limiting himself to the women's clothing track.

"When we get to the Canton Fair, could you keep an eye on Jinyi Industry's booth for me? Is there anything you can help them with?"

"No problem, I'll send Brother Liu over to oversee things. He's been there once before and has experience."

Sun Yuming followed Tan Jincheng, while Liu Wenbin chose to stay at Jinpeng Trading. In the past two months, Zhang Xupeng recruited several more salespersons and put Liu Wenbin in charge of their management. Including order commissions, Liu Wenbin was doing no worse than Sun Yuming.

When it comes to employment, as long as you are one of the core employees of a startup company that is riding a wave of success, and as long as your abilities are not too bad, your status and income will not be low. The principle of "spending a fortune to buy a horse's bones" is never uncommon.

The initial purpose of establishing Jinyi Industrial was to solve the funding problems of Shanchi Automotive. Now that Shanchi is no longer short of money, the role of Jinyi Industrial has become less important.

Therefore, Tan Jincheng's vision for Jinyi Industrial is to be self-sufficient, survive, and hold out until the electric vehicle export boom arrives.

Currently, Jinyi Industrial mainly focuses on the export of computer peripherals, with USB flash drives being the largest product. These are products independently developed in China, and almost all of the patented technologies are based domestically.

From its inception to 2005, the USB flash drive had only been around for six short years. The profit margin was not as high as before, but the market was much broader. This is the essence of the saying "small profits but quick turnover".

Netac Technology Co., Ltd., which holds the most USB flash drive patents in China, filed a lawsuit against Sony Electronics for infringement last August and obtained formal authorization from the U.S. Patent and Trademark Office for the basic invention technology of flash drives at the end of the year. After that, USB flash drives produced in my country are virtually unrivaled in the world.

Currently, Jinyi Industrial's USB flash drive export business primarily sells Langke and Aigo USB flash drives, making it one of their agents.

In addition to other businesses, Jin Yi Industrial also undertakes any orders that can generate profit, such as MP3 players, MP4 players, mice, and keyboards. At the same time, Jin Yi Industrial also tries to import some electronic products.

We cannot only focus on export business; we must also engage in import business and establish closer ties with foreign businesses. In the future, both the electric scooter market and the dream of new energy vehicles will be inseparable from imports.

New energy vehicles are not a separate industry; the industrial chain involved is enormous. Both raw materials and technological barriers are not low. Technology can be overcome gradually, and patents can be obtained for those that cannot be overcome in the short term. However, if the raw materials are not available domestically, you will need to import them.

Electric vehicles - new energy vehicles - automobiles: this is a complete and clear industrial chain.

The reason I know so much is thanks to my past life as a seasoned investor who was easily taken advantage of. Novice investors should all understand this: when entering the market, they do all sorts of research on technical aspects, read news, and review past performance. Tan Jincheng entered the market during the peak years of new energy and new energy vehicles.

In this era of highly developed mobile internet, the more "leeks" (newbies who are easily taken advantage of) reflect on their experiences, the more they not only fail to make money but also receive more and more useless information. Who would have thought they would be reborn?
Could this be considered an alternative opportunity given to those who are prepared?
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After completing the formalities at the vehicle management office, I went to Jinpeng Trading for a short while. Jinpeng Trading is no longer the small office it used to be. Last month, Zhang Xupeng rented an office of more than 300 square meters in Zone B, and the entire company moved here.

When the relocation took place, Tan Jincheng made a quick trip there to familiarize himself with the area; it was now located in the same district as Jinyi Industrial, making it even closer to them.

Li Yanning remains very dedicated and has earned Zhang Xupeng's trust. Li Jinglan has also grown a lot and is now able to handle orders independently. Although her business skills cannot compare to her sister's, she is young and willing to learn.

Not long after I sat down, Li Jinglan came running over with a smile and said, "Boss Tan, thank you for the little electric scooter."

"You're thanking me too soon. I won't accept this for nothing; before October, you and your sister need to submit a written report on your driving experiences to me," Tan Jincheng said with a smile.

"No problem, it's a small matter. I was originally thinking of buying a small electric scooter, but this will save me several thousand yuan."

Then, Li Jinglan asked, "Boss Tan, do you have an internal purchase channel for your electric scooter? Some of my colleagues and fellow villagers also want to buy one, especially the black one, they think it's so cool."

Tan Jincheng's eyes flashed as he glanced at Zhang Xupeng, who was lying calmly in the chair, and saw that he smiled without saying a word.

(End of this chapter)