2003: Starting with Foreign Trade

Chapter 227 Settling in Zhongguancun

P.S.: Happy New Year everyone! May everything go smoothly and may wealth flow in during the new year!
The weather in Beijing in February is somewhat similar to that in Ningbo in December, with a large temperature difference between day and night. Tan Jincheng landed on February 20th.

The temperature can reach as high as five or six degrees Celsius during the day, but can drop to minus three or four degrees Celsius at night.

Over the course of more than a week, Tan Jincheng traveled across the north and south, from the warm, spring-like Beihai, through Ningbo, and then to the winter-like capital. Physically, he found it somewhat difficult to adjust.

"I need to get used to it, otherwise this kind of business trip will be too much for me," Tan Jincheng thought to himself.

Sigh, actually, I went a bit overboard over the weekend. Even if you're young, you can't handle it several times a day. Moderation is key!

Tan Jincheng took a taxi and headed straight for the research institute. This time, he didn't receive the same level of treatment as before when he came to the capital.

"For personnel involved in intellectual property protection and trade secrets, a non-compete agreement is required. Therefore, please sign this agreement before joining the company. Let's be cautious from the start, okay?"

"I understand, these are all expected, we know these rules."

"Haha, Mr. Tan's words are interesting, 'be a villain first, then a gentleman'; but it makes sense, that's how one should be, explain the risks clearly first."

Tan Jincheng smiled and replied, "Then please sign these two agreements. Don't worry, if there's anything you're not satisfied with, we can sit down and discuss it."

After the weekend, Tan Jincheng immediately went to the capital to assemble the lithium battery team for Flash Technology.

The first thing to do was to discuss contract terms with the team led by Engineer Lü. Compared to renting a house, talent is the most crucial factor for breakthroughs in lithium battery technology.

The research results of the technical team are returned to Guihang New Energy Technology, so clauses such as non-compete agreements and confidentiality agreements need to be signed in advance.

Fortunately, the experts at these research institutes are quite knowledgeable in this area, and their discipline is unmatched by the laissez-faire attitude of employees in private companies. When the team members were told this, no one had any objections.

After all, they were only "on secondment," and their relationship was still with the research institute. However, for the next few years, they would be serving Hang New Energy Technology, also known as Tan Jincheng.

The R&D department of Hangxin Energy remained in Beijing, responsible for the development of new products and the improvement and optimization of existing products. The first batch of 10 engineers were seconded from the research institute, including R&D engineers, electrochemical engineers, materials engineers, data analysts, environmental experts and other positions.

The team was still led by Chief Engineer Lü, who also served as the Deputy General Manager of Hangxin Energy. These 10 senior engineers were just helping Tan Jincheng with his work, but they were also responsible for helping Hangxin Energy cultivate talent.

Starting this summer, Hangxin Energy will collaborate with research institutes to recruit recent graduates from universities. These graduates will have their future social connections affiliated with Hangxin Energy, becoming the first batch of talents for Hangxin Energy besides those seconded from research institutes.

It's a process of using borrowed resources to generate profits. Moreover, some of the equipment is currently provided by research institutions. The investment in lithium batteries is huge, and some high-end equipment is not easy to buy; it's not something that can be purchased in a short time.

This is one of the benefits of cooperating with state-owned enterprises. During the honeymoon period, they are less likely to fuss over minor details, especially for technical departments like research institutes. In fact, some high-end research institutes are quite well-funded.

In the first batch of 10 people, in addition to Chief Engineer Lü Ruifeng, there is also Deputy Chief Engineer Hu Huaizhong, whose main job is to assist Lü Ruifeng in managing the R&D team. In addition, he is also a data analyst.

Lu Ruifeng reports directly to Tan Jincheng, while the R&D department reports directly to Lu Ruifeng. In addition, departments such as finance, legal affairs, and sales are also being established simultaneously. Except for the R&D department, the other departments are located in Ningbo.

A research and development team of 10 people is naturally not enough for a company that is determined to develop lithium batteries, but that's okay. This is just the most basic framework in the early stages. If there is a shortage of personnel, Lü Ruifeng will naturally find a way to solve the problem.

Tan Jincheng only needs to prepare enough money. Hangxin Energy pays these engineers quite well. The lowest level is an annual salary of more than 15 yuan, while Lü Ruifeng's annual salary is as high as 80 yuan, and Hu Huaizhong's annual salary is 60 yuan.

A team of 10 people costs more than 300 million yuan a year just in salaries. Not to mention the various performance bonuses, the cost of maintaining this team alone is half of FlashTech's profits last year.

这个收入是放在2006年是什么水平？2005年帝都平均工资为3.28万每年，二环内房价平均价格在9500元左右，城市边缘有不少的房价在3000元附近甚至以下徘徊，五环以内的均价在3500元左右！村附近的房价也只有

Even the housing prices near Zhongguancun are only a few thousand yuan, and the average price of commercial buildings is less than 1.6 yuan per square meter.

Lu Ruifeng's annual salary of 80 yuan is enough to buy a small three-bedroom apartment within the Second Ring Road. It's no exaggeration to say that he spent a fortune to buy a horse's bones. Of course, high-end talents deserve this kind of treatment. Besides, anything that can be solved with money is not a problem.

Before coming, Tan Jincheng specifically researched the real estate market in Beijing. He was quite fortunate; in previous years, Beijing's housing prices had risen too rapidly, leading to regulatory policies. Additionally, construction for the 08 Olympics resulted in very few record-breaking land sales. This led to a slight overall decline in Beijing's housing prices from the second half of last year to the beginning of this year, especially at the beginning of this year, with a vibrant secondary market for commercial buildings and many sellers looking to make a move.

Judging from news interviews I've seen online, ordinary people are convinced that housing prices are falling, which is quite interesting.

Take the very famous Zhongguancun as an example. Huaqing Jiayuan, which was launched in 2000 and was known as the "cosmic wonder property", had a starting price of around 4000 to 4500 yuan for the first phase, with an average price of around 5000 yuan. The price for the second phase was around 7000 yuan.

Apartments near Huaqing Jiayuan, such as those in Wanliu, were generally only around 7,000 to 8,000 yuan per square meter. However, in later generations, the prices in this area were even driven up to a sky-high price of 100,000 yuan per square meter, especially for some small-sized school district apartments.

The reason why housing prices in Zhongguancun are not high is also related to the current public opinion environment. Public opinion is not friendly to housing prices in Zhongguancun, and there are often articles such as "Zhongguancun is declining and all the enterprises have left" and "High housing prices have driven away high-tech enterprises. Where is the road ahead for Zhongguancun?"

These articles put the leaders of the science park and HD district in a rather passive position, and to some extent also prompted the regulators to lower housing prices.

So Tan Jincheng was quite lucky. He originally planned to rent a house, but after seeing the situation, he decided to buy a house. Hang New Energy's location was set in Zhongguan Village.

The lithium battery company is a high-tech enterprise, and it's conveniently located not too far from the research institute. I can buy an office building and a residential building, and then I won't need to stay in a hotel when I come here. Perfect!

It can be said that as long as these two houses exist, even if Lü Ruifeng's team doesn't achieve anything significant, Hangxin Energy's investment in the research institute will not be a loss.

In 2006, the housing purchase (residential building) policy for non-local residents in Beijing was relatively lenient. They were only allowed to purchase one newly built commercial housing unit, and the purchase area could not exceed 90 square meters. In addition to providing proof of work and residence and requiring the purchase price to be paid through a bank account in Beijing, there were also restrictions on the loan amount.

These are not issues for Tan Jincheng, the general manager of Hangxin Energy. He only plans to buy a small apartment for his business trips, and besides, a small apartment is easier to sell.

As for the loan amount, that's even easier to solve. A 90-square-meter apartment would cost less than 100 million yuan in full, so we can just pay the full amount directly.

Commercial buildings are even simpler. I'm setting up a high-tech company in Zhongguancun, Beijing, which is an investment. Plus, I can associate it with a research institute, and maybe I can get some preferential policies.

"Mr. Lü, let's go to Zhongguan Village and take a look. I'm planning to choose an office building there to use as the R&D department's offices. What do you think?"

After everyone had signed the contract, Tan Jincheng didn't intend to hide anything and spoke about it directly in front of everyone.

Another advantage of settling in Zhongguancun is that it's close to those internet giants. Besides the internet giants, there are also many listed companies near Zhongguancun, so you might get lucky and gain some benefits.

"That's great! President Tan has chosen to have his office in Zhongguan Village. He's really taking care of us," Lu Ruifeng quickly replied with a smile.

The other nine people in the office also looked pleased. Who wouldn't want their workplace to be close to where they live, especially in a big city where commuting time is the most troublesome thing?

"Mr. Lu is joking. It's not about taking care of you. When you're in a good mood at work, your work efficiency will be higher. Besides, wasting your commute time is a kind of torture."

“Who says otherwise? I’ve often heard of people whose commute to work takes two hours. Sigh, how efficient can their work be?” Hu Huaizhong sighed.

"Isn't it all because of housing prices? The average salary is three or four thousand, while housing prices are seven or eight thousand, even close to ten thousand. What can we do if we don't live further away?"

"Who says it isn't?"

Everyone says that men in Beijing are good at talking, but Tan Jincheng didn't expect that his simple question about commuting would make them start complaining about housing prices. He quickly interrupted, "I don't have much experience in R&D. Engineer Lü, what size office do you think would be suitable for us?"

Lu Ruifeng thought for a moment and said, "We only have about 10 people. Some experiments need to be done at the research institute, so the area doesn't need to be too big. A hundred square meters is enough. However, in preparation for future expansion, renting a larger place, two or three hundred square meters, is also acceptable."

“Alright, let’s go with the standard of 500 square meters. Let’s go. I’ll trouble Engineer Lü to come with me. Engineer Hu can also come along if he’s free,” Tan Jincheng said decisively.

Are you kidding me? I can't afford a lithium mine, but I can afford an office building. Rent? No way!

Anyone with a guaranteed monthly pass, please send one!



(End of this chapter)