2003: Starting with Foreign Trade

Chapter 170 Changes in Equity (Part Two)

After a moment of silence, Zhang Xupeng hung up the phone, not wanting to hear Tan Jincheng gloating anymore.

The initial sadness caused by the "separation of the family" also dissipated.

"Forget it, we're not on the same plane anymore. I'll just focus on making money honestly," Zhang Xupeng said with a wry smile.

Chun Ge, who was signed by chance during the top ten competition, spent several million yuan on signing fees and publicity. There is no way that a super popular star like Liu Yifei could be signed by chance, and her signing fee would probably be at least tens of millions.

Zhang Xupeng realized that Xiao Tan's understanding of doing business was different from his own.

While he was focused on making a lot of money and enjoying life, Xiao Tan clearly didn't think that way. It seemed that Xiao Tan was more focused on his career, and he always spent his money very quickly.

That's true. If he really wanted to make money, he wouldn't need to set up a factory. He's doing very well in exporting clothing and electronic products, and it's been incredibly easy for him. He also gave guidance to the children's clothing business. If he were in charge, he could do just as well.

Setting up a factory is different. Setting up a factory is hard work, requires a lot of investment, and may not be as profitable as doing export business.

Well then, it doesn't seem like a bad thing to "separate" early if we have different ideas, so as to avoid becoming estranged later.

After Zhang Xupeng hung up the phone, Tan Jincheng did not hesitate and immediately called the law firm he had been working with, asking them to draft an equity transfer agreement as soon as possible and informing them of the relevant requirements.

檀锦程将名下锦鹏贸易57%的股份当中的27%转让给张旭鹏，转让金额9.5万元，外加锦鹏贸易年度分红收益中的5300万元，另计2006年1月31日之前，张旭鹏先生根据公司营业额给予檀锦程先生1000万元至2000万元之间的二次补偿金。

Mr. Zhang Xupeng will not participate in the company's annual dividend distribution. Since the completion of the share transfer, the legal representative of Jinpeng Trading has changed from Mr. Tan Jincheng to Mr. Zhang Xupeng.

5300万元当中包括实际跟张旭鹏谈的5000万元以及锦鹏贸易过桥给闪驰车业的300万元短期借款，至于那9.5万元则是过桥的利息以及檀锦程之前买房欠张旭鹏的8万元欠款。

As for the amount of the second compensation, it was agreed upon by Tan Jincheng after contacting Zhang Xupeng again, based on the results calculated from the fourth quarter's turnover. The specific amount was up to Zhang Xupeng. Originally, Zhang Xupeng wanted Tan Jincheng to fill in 2000 million yuan, but this was a bit unpredictable. If the fourth quarter's turnover changed, it would be hard to say. So, in the end, he wrote down this figure.

Tan Jincheng could receive up to 7309.5 million yuan from Jinpeng Trading, which is equivalent to Jinpeng Trading's annual revenue this year. Zhang Xupeng, apart from acquiring a company, has gained almost nothing this year.

To some extent, this was a fair deal for Tan Jincheng, as he was quite generous. Of course, he didn't lose out either. By becoming the legal representative and holding a controlling stake in a well-run trading company, he could earn more than that amount of profit next year, assuming the economic environment remained unchanged.

Based on this year's profits, the dividends from these 27% of the shares would amount to more than 2000 million yuan. As long as the company maintains stable operations for three to five days, it would be practically a free gift.

As for why the transfer fees are so complicated, it's simply for tax avoidance. Both parties involved in the share transfer have to pay stamp duty. In addition, since this is a transfer between individuals, Tan Jincheng is still subject to the 20% personal income tax. All these taxes add up to a considerable sum.

Furthermore, the cash on Jinpeng Trading's books is not owned by Zhang Xupeng. Zhang Xupeng cannot currently produce 5000 million yuan in cash. If he simply writes 5000 million yuan, Zhang Xupeng would have to borrow cash from Jinpeng Trading through a loan, which involves clauses regarding the major shareholder's misappropriation of company funds.

Since that's the case, it's better to use the red envelope first and then transfer it. Now that the company has been established for a year, the income tax on dividends has changed, and only 10% needs to be paid. Also, if you write less stamp duty, you will pay less first.

There's nothing wrong with legal and compliant tax avoidance. Tan Jincheng doesn't care about a little bit of money, but the extra several million in taxes is a bit painful when he's short of money these days. Wouldn't it be better to use those several million to buy QQ stock?

Actually, there is another way, which is to establish another subsidiary in the name of Jinpeng Trading, and Tan Jincheng would exchange 50% of the equity of Jinpeng Trading for 100% control of the subsidiary, which would reduce a lot of costs.

The reason for not doing so was twofold: firstly, to avoid future equity disputes; and secondly, Tan Jincheng did not intend to inject all 5000 million yuan into Shanchi Automotive. In any case, as the boss, he always needed some money in his own hands.

After deducting 10% income tax from the 5000 million yuan, there is still 4500 million yuan left. Tan Jincheng plans to inject 3500 million yuan into Shanchi in addition to the 300 million yuan debt. The remaining 1000 million yuan will be used to buy QQ and Moutai stocks, and to meet his living needs.

Many major shareholders of A-shares reduce their holdings citing the reason of improving their lives, and Boss Tan also wants to improve his life.

If a new company were established, all 5000 million yuan would go into the new company, making it much more complicated to spend the money. Buying stocks would also be considered a company investment, and financial investments would be even more troublesome. At this time, Tan Jincheng had no plans to establish an investment company.

After contacting the lawyer and discussing tax issues with the finance department, both parties communicated and confirmed the details, and then supplemented the contract details. It took several more days to finally draft the transfer contract. Then Tan Jincheng waited a few more days.

The wait finally ended on October 14th. The Autumn Canton Fair will officially begin tomorrow, and Jinpeng Trading will also celebrate its first anniversary. All legal doubts have been resolved, and we can finally sign the contract.

During this period of more than a week, Flash Automotive's brand name has been officially changed to Flash Technology, its trademark brand has also completed the change procedures, and the construction of the new factory area is also in full swing.

Furthermore, they've already contacted Liu Yifei, but haven't received a concrete response yet. That's how it is with big-name celebrities, I suppose. Apparently, her mother is a bit difficult to deal with; any business dealings require her approval. Tan Jincheng had read this in some gossip novels and news articles, and he wasn't sure if it was true or not.

Fortunately, Flash had previously hired Chris Lee and advertised on Hunan TV, Anhui TV, and Henan TV, making it no longer an unknown brand. If the price was right, Tan Jincheng felt there shouldn't be any major problems.

This endorsement offer is much more impressive than before, with two factory areas covering more than 4000 square meters, a registered capital of 2000 million yuan, and a production plan with an annual output value of more than 5 million yuan. It is not some unknown company.
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"I'm flying to Guangzhou tomorrow, are you coming with me?"

On Friday afternoon, Tan Jincheng came to Ningbo University to have dinner with Gu Qingqing. It was just the two of them today, and it was their first meeting since the National Day holiday. After the 5th, Gu Qingqing didn't ask Tan Jincheng to pick them up because she was worried about the long drive.

I got four seat tickets from a scalper and went through a lot of trouble to get back to school.

"Aren't you very busy here? Why are you going to Guangzhou again?" Gu Qingqing asked in surprise.

After several nights during the National Day holiday, the two became much closer. It had been almost ten days since they last saw each other again, and now they had to part ways again. Gu Qingqing's face was full of reluctance.

"Go and sign a contract with Zhang Xupeng. I no longer have the energy to manage Jinpeng Trading, so I'm preparing to transfer the shares to him."

"Oh, that's how it is."

"How about it? Want to come with me? The Canton Fair starts tomorrow, you can go and see for yourself." Tan Jincheng blinked and said.

Gu Qingqing pouted and said irritably, "You've already bought the tickets, why are you telling me now? There's no time to wait."

"Ha, you can't blame me for this. It's Zhang Xuhui who was clueless. He bought the tickets without even asking me beforehand. But I can change the tickets. I'll make him buy new ones."

"Why don't you go and see for yourself? It opens tomorrow, and there are a lot of foreigners there. You're from the School of Foreign Languages, so there's nothing wrong with you going to the Canton Fair. Jinyi Industry also has an exhibition there, so maybe they can use you."

Gu Qingqing was somewhat tempted: "How many days do you want to stay? Too long won't do either, I'll need to ask for leave."

"Take a few days off. You're a good student, what's wrong with taking a few days off? We'll be back in four or five days at most. I have things to do here, and I also need to contact Liu Yifei's agent about signing the contract. If she doesn't respond soon, I'll just go to Hengdian."

If you include the weekend, which is four or five days, then it would only take three days off, so it wouldn't interfere with her studies. Gu Qingqing thought to herself as she glanced at Tan Jincheng.

Seeing Tan Jincheng's darting eyes, Gu Qingqing suddenly remembered something, blushed, and said, "Are you planning something naughty again?"

"I wasn't thinking anything bad," Tan Jincheng protested, vehemently denying his innocence.

"Hmph, I think you're just trying to cause trouble, otherwise why would you be so eager?"

"Would you like to go to the Canton Fair? It's the largest trade fair in China. Also, you've never been to Guangzhou, have you? It would be nice to go and have some fun. If time allows, we can also go to Hong Kong."

Gu Qingqing looked noncommittal, actually not believing Tan Jincheng's explanation. However, she really wanted to go. She thought the two of them would have a good weekend, but she didn't expect to have to go on a business trip. This was very difficult for a girl who was experiencing love for the first time.

As for whether they'll do anything bad? I can't worry about that anymore.

"Then I'll ask my counselor for leave."

"Okay, I'll have Zhang Xuhui book the tickets for you. Just give me your ID number."

Gu Qingqing blushed and said, "I can go together, but you have to promise me one thing."

"Hmm? Tell me, what do you want me to do?"

After some hesitation, Gu Qingqing mustered her courage and whispered in Tan Jincheng's ear, "I don't want to do it in a hotel for the first time."

Tan Jincheng's eyes flashed, and he raised his eyebrows slightly, unable to suppress his joy any longer.

(End of this chapter)