2003: Starting with Foreign Trade

Chapter 182 The Highlight of Being 20 Years Old
"Beicang District Urban Investment Company invested in Flash Technology with 150 mu of land resources (Daqi block), 7000 million yuan in funds and 2 million yuan in interest-free loans, exchanging 5% of Flash Technology's shares for a valuation based on emerging manufacturing industry."

"This 5% equity stake cannot be diluted. FlashTech's annual dividends must be paid on time. Furthermore, the city investment company must not interfere with FlashTech's specific operations and development strategy."

"The 2.7 million yuan is intended for the construction of the FlashTech Beicang Industrial Park. FlashTech and its controllers must not misappropriate this money; it must be used for its designated purpose."

On November 16, 2005, after more than 10 days of repeated consultations between the legal teams of both parties, the two parties officially signed a contract, and the Beicang District Government officially intervened in the development of Flash Technology in the name of the City Investment Company.

"Mr. Tan, it's a pleasure to cooperate with you. The funds will be transferred to the designated account within 5 business days, please rest assured."

"It's a pleasure to cooperate. Thank you, Mr. Qin, and the district for your strong support."

"No, it's about win-win cooperation."

"Yes, cooperation leads to mutual benefit."

"We hope Mr. Tan will cooperate with the signing ceremony of the cooperation agreement later."

"It's my duty, it's what I should do."

Even if he doesn't want to show his face and prefers to keep a low profile, there are still some occasions that are unavoidable. For example, at the press conference for the establishment of an industrial park, Tan Jincheng still needs to make an appearance.

The 150-acre land is currently worth about 30 million yuan. Adding the 70 million yuan in cash brings the total value to 100 million yuan. Exchanging 100 million yuan for 5% of the shares would value FlashTech at 2 billion yuan.

A valuation of 2 billion is not low these days. Although it cannot be diluted, it does provide tremendous support, not to mention the 20 million yuan interest-free loan.

Tan Jincheng never expected it to have such a dreamlike effect.

Manufacturing companies don't usually have very high valuations when they go public. I think Aima went public in its previous life, what was its market value again? But if Flashcart goes public, the local government financing vehicle company will definitely make a profit.

Given the nature of the A-share market, it's almost certain that the original shareholders will double their money, especially since the company is still far from listing and has been operating well over the years, with substantial dividends.

Regardless, although the company has gained an untouchable shareholder, it is only beneficial to Tan Jincheng, since the shareholder is providing substantial financial support and can also offer significant assistance in terms of resources.

With this connection, it should be more convenient to develop new energy vehicles in the future, right?
Often, resources are more important than money. For manufacturing companies, foreign investment is not very meaningful. Instead, local resources are more advantageous. With government support, things will go much smoother.

Tan Jincheng carefully put the contract away, thinking to himself, "This should be considered what's called Series A funding, right?"

Angel rounds shouldn't count. So-called angel rounds are about investing when a company has nothing. FlashTech's angel round should be its own. The A-share financing means that the model has been basically verified and is feasible.

Based on the current situation, FlashTech should have completed its Series A financing. As for Series B and C, that's when the company enters a period of rapid growth. After that, the next step is probably an IPO.

For internet companies, having a founder with more than 20% of the shares is considered incredibly impressive before an IPO. However, the manufacturing industry is different. Manufacturing companies don't need much financing, and it's common for founders to hold more than 50% of the shares at the time of an IPO.

"If I have time, I need to take a course to learn some financial knowledge, otherwise I won't understand valuation and it will be difficult to operate in the future."

I also wanted to get a diploma. I wonder if universities in Anhui Province would still accept me now?
Following President Qin out of the lounge, we arrived at the conference center that had been set up in front. There weren't many people inside, and some of the people carrying cameras looked familiar; they were probably the same group of reporters from the last inspection.

Mr. Qin, the general manager of the city investment company, and Mr. Tan Jincheng gave speeches on stage. They were all just polite remarks, and their speeches were prepared in advance. They just needed to memorize them and read them.

Sitting in the audience, Zhang Xupeng and Gu Qingqing looked at the spirited Tan Jincheng on stage and felt as if it were all a dream.

The Canton Fair has long since ended, but Jinpeng Trading Company still achieved good results during this trip. The women's wear business remained stable, and the children's wear business also made significant breakthroughs.

Zhang Xupeng was initially a little smug, as he had been in charge of the entire operation and was planning to show off to Xiao Tan when he got back.

Little did she know that upon her return, Xiao Tan was first greeted by a high-ranking leader, followed by today's scene.

He was invited to attend the ceremony today.

He could understand Xiao Tan's feelings. In Ningbo, besides her uncle and aunt, he was Xiao Tan's closest relative; of course, now there was another one.

It's truly unpleasant to have no family or friends around to share your most glorious moments.

He himself is the same way. Now that he has money, he doesn't dare to show off too much to his parents. In their minds, making hundreds of thousands or even millions a year in business might seem exaggerated, but it's acceptable.

But if you say you make tens of millions or even hundreds of millions a year doing business, it will only scare them away, so Zhang Xupeng can only show off to Tan Jincheng.

Of course, Xiao Tan sincerely invited him to the ceremony today, but it cannot be ruled out that there was an element of showing off, otherwise why didn't she invite his uncle over?

"Sigh, I did pretty well at the Canton Fair, and I was just about to brag to your Xiao Tan when he pulled this stunt on me," Zhang Xupeng complained to Gu Qingqing, who was sitting next to him, with a wry smile.

Gu Qingqing smiled upon hearing this, ignoring Zhang Xupeng, and fixed her eyes on Tan Jincheng, who was speaking on the stage.

Today, Tan Jincheng was dressed very formally, in a suit and tie, and his hair was neatly styled. His whole demeanor was quite different from usual.

This was the first time she had seen Tan Jincheng in a suit, and he looked so handsome!
She was also invited to attend the ceremony today, but she doesn't need to ask for leave as she has no classes today.

At the same time, she was also a little excited. A few days ago, Tan Jincheng asked her which day was free besides the weekend. She originally thought it was a date after she finished her work, but who knew it would be like this.

"Is it because I don't have classes today that you specifically scheduled the signing for today?"

While the probability is low, it's not impossible. Once the cooperation is agreed upon, the date of the signing doesn't seem to matter much, right? It's not like it's going to drag on for a long time.

"A 5% stake is worth about 100 million yuan, but the district's valuation is 2 billion yuan. Who is that kid on stage?"

"I don't know, but I've heard of their brand. It's strange that they're not sold in Beicang yet."

"It's not surprising that they can't sell them in Beicang. Beifa is the same way. They probably target markets outside the province or abroad. But is it possible to make money from electric scooters?"

“Making money should be secondary. The district doesn’t consider things so one-sidedly. I know a little about the electric scooter business. The industrial chain is quite large. Think about how many parts a scooter has. If they were all produced in the district, how many jobs would be created?”

"That makes sense. As a base for the entire industry chain, employment, tax revenue, and investment attraction are the main sources of income. Making money is a minor matter. But why this kid? Does he have any connections? I've never heard of him before."

"Didn't you do your homework before coming here? You're not a very good reporter. Because of Super Girl, Flash Motors can be said to be one of the hottest electric car brands this year. This company is really strange. The top 15 competition just ended and they quickly signed Chun Ge. You know, the most popular person at that time was the runner-up, who was heavily promoted by Hunan TV."

"Holy crap, I've heard my colleagues in the entertainment section talking about this. It's this guy, right? Back then, everyone said he got incredibly lucky."

"Do you still think this was just pure luck? Obviously not. Either they have a powerful background or they are very capable to be chosen. In addition, they are about to launch a new brand and have hired another popular female celebrity this year as their spokesperson. The endorsement fee is said to be more than 3000 million yuan."

"I've heard about this too. The celebrities have already started promoting it, and the news is already circulating online. The entertainment industry is in shock."

"Indeed, I've heard my colleagues complain that they work themselves to the bone every day, while celebrities can't earn that much from a single endorsement in dozens of lifetimes."

"Yes, we invited Liu Yifei. I'm a fan of hers now. I wonder if she'll come to Beicang when she shoots the commercial. If she does, I'll have to find a chance to go and see her."

"Damn it, you're a burly man in your thirties with a scruffy beard, and you're a fan of celebrities and like young girls?"

"So what if you're in your 30s? Men's aesthetic sense remains the same, okay?"

"Then you don't call yourself a fan, you call yourself a lecher."

The print journalists sitting in the back row weren't interested in the speeches. They were tired of hearing these platitudes and knew exactly how to write press releases. So, those who knew each other would occasionally whisper among themselves.

The information we obtained is truly astonishing; the general manager of FlashTech is only 20 years old!
20 years old? You're telling me that at 20 years old, it only took less than two years to go from making a fortune to having a net worth of over 2 million, and that was in the physical industry?
In the past few years, the internet industry frequently produced news of people getting rich overnight. A certain company went public and created tens of billions and millions of millionaires, which made everyone envious. But those were internet companies, and since the bursting of the internet bubble, they have not been doing well.

But this is about physical businesses. Even his two previous trading companies were only semi-physical. When did physical businesses become as fast-growing as the internet?
A 20-year-old from Yicheng, from an ordinary family, has amassed a fortune of over 100 million yuan in just over a year. Who would believe it?

"It's not that I can't keep up with the times, it's that the world is changing too fast."

Zhang Xupeng and Gu Qingqing exchanged glances and looked at each other blankly.

Their positions were relatively far back, so they could vaguely hear some of the conversations between these writers. Zhang Xupeng, who was originally going to continue complaining, immediately started cursing.

(End of this chapter)