2003: Starting with Foreign Trade

Chapter 292 Fighting for a Future

“If we’re going to swap shares, then we need to be business-minded.” Tan Jincheng’s attitude became serious.

“That’s for sure,” Zhang Xupeng said seriously.

The company has grown to its current state, which is certainly different from the makeshift team the two of them had back then. As long as neither of them objected, it didn't matter how the assets were distributed.

The two of them became serious, and for a moment the atmosphere in the living room became somewhat heavy. Even Tan Jinyue, who was playing on the floor, felt it and looked at everyone with puzzled eyes.

"Let's go, let's talk in the study."

"Why go to the study? Let's talk here. I want to hear it too. Is there something you're ashamed of?" Zhang Suzhi interrupted.

She was genuinely curious about how her son conducted business, especially with his childhood friend. They were still talking business, and she wanted to hear his methods of doing so.

However, once the son gets serious, his demeanor is indeed different, and he exudes a sense of pressure.

No wonder he's so unruly there.

"Haha, then let's listen to Aunt Zhang. There's really nothing between us that's shameful or secret." Zhang Xupeng laughed.

"Alright then," Tan Jincheng said with a smile.

Deep down, Tan Jincheng wasn't too willing to maintain a distant relationship with Jinpeng. After all, this was the business he built up in this life, and there was some emotional attachment to it.

In addition, I also put a lot of thought into the investment and development of the GXG brand.

The apparel industry is also a labor-intensive industry with its own supply chain and sales channels. It is not difficult to build a brand. In recent years, the profit margin of the apparel industry has been quite high. Although the competition has become more intense, as a fast-moving consumer goods industry, it is still good to maintain its current status.

“You understand what a subsidiary means; it holds at least 51% of the shares. So your shareholding in Jinpeng will have to be reduced to 49%, and you will have to give up 21% of the shares.”

"If we're talking about a share swap, your 21% stake won't get you many shares in my parent company."

Zhang Xupeng nodded: "I know that."

"That's good. Let's use the simplest benchmarking method: Jinpeng Trading will benchmark against my Jinyi Industry, and GXG will benchmark against my Shanchi Technology. No objections?"

“No objection, in fact, I’ve gotten a great deal. FlashDrive has grown so big, while GXG is just getting started,” Zhang Xupeng said with a smile.

Although Jinpeng Trading's export volume is greater than Jinyi Industry's, what Zhang Xupeng said is true. The export of electronic products is a popular export industry comparable to clothing. As for GXG, it cannot be compared with Flash Technology's electric vehicle business at present.

"Okay, as long as you agree with this point, my target for the electric vehicle business is at the tens of billions level, and the same applies to GXG. So these two businesses alone have already offset all your advantages. As for the rest, I won't talk about cars for now, because they account for a small percentage."

What I want to talk about is the battery industry. Currently, it's the industry I'm most optimistic about. Although it's not profitable yet, I see it as a company worth hundreds of billions. Don't doubt my judgment.

Tan Jincheng's casual words left Gu Qingqing and Zhang Suzhi utterly shocked.

"Hundreds of billions?" Zhang Xupeng asked, equally shocked.

"Yes, lithium batteries have a wide range of applications. They can be used in our electric vehicles, and in the future, they can also be used in mobile phones and cars. Dongfeng already has an electric-powered car. You can learn more about it."

Hundreds of billions is actually an understatement. Ningwang has a market value of trillions. In addition, Ningwang is not the only lithium battery company in China. There are many others. If BYD's blade battery were listed and raised separately, its market value would definitely not be what it is now.

This is a trillion-dollar market; anyone who gets a share can make a fortune.

“Well, a share swap doesn’t really offer any advantage. Your two companies have already completely suppressed Jinpeng, not to mention your expectations for batteries,” Zhang Xupeng said helplessly.

With a target value of 10 billion to 100 billion, exchanging 21% of the shares for shares in the parent company doesn't really amount to much.

"Well, your situation is different from Beicang City Investment. They give money directly. On the one hand, I'm short of money right now, and on the other hand, their resources can still help me. So, in exchange for shares in the head office, they won't give you much. In addition, a portion of the profits from the garment factory will be used for investment in lithium batteries, so that your shares won't be diluted later."

Beicang City Investment used 100 million yuan in cash to exchange for a piece of land in Chunxiao for 5% of the shares. The price was not high, but it was exactly what Tan Jincheng urgently needed. So in principle, it was a win-win situation, and it can't be considered that he gained a lot.

The city investment companies have a lot of land, and by maintaining a cooperative relationship with them, Tan Jincheng can more easily obtain more resources. In addition, it can also help Flash Technology in terms of bank credit.

With 100 million yuan in cash, Tan Jincheng can initially use it to acquire Bafang Electric. As for the construction of the Tianjin factory, it can be financed using FlashTech's existing cash and loan model. Based on the initial investment of 80 million yuan for Xinri, this funding is easily secured. After the corporate restructuring, Jinyi Industrial's cash flow will be able to circulate better among its various subsidiaries; it's not a good idea for this money to just sit in the bank.

"So it seems we won't get much. 21% of the shares for 2.1% of the parent company isn't bad," Zhang Xupeng pondered.

He's still thinking about comparing his career with Xiao Tan's. How can you even compare them?
"Yes, that's about it at most, but I can give you 3%. Think it over carefully. If you have money, I can give you more, which is not impossible. I'm short of money right now, so the more the better," Tan Jincheng said with a smile.

"Goodness, anyone who didn't know better would think you guys were bragging, talking about billions and hundreds of billions all the time." Zhang Suzhi recovered from her shock.

"I'm not bragging. It's possible for our electric vehicle business to reach the 10 billion level, and our apparel business can also reach the 10 billion level. As for the 100 billion I mentioned, that's just an expectation. It might be more than that, or it might not even reach that level. That's how business is."

“Yes, Aunt Zhang, Xiao Tan is right. Although I don’t know much about batteries, the clothing and electric vehicle industries are already quite promising. If they do well, reaching the 10 billion level is no problem,” Zhang Xupeng added.

"So you need to think it through. Your investment is not actually very worthwhile for you. You lose Jinpeng's absolute controlling stake and in return, you gain an uncertain future. At most, you can add my connections. However, if you need my connections, I can't say I won't help you."

"You mean you're betting on the future?" Gu Qingqing asked with a smile.

"You could say that. The investment in batteries is enormous. I'll bet almost all the money I earn on it. I'm betting on the future. If I succeed, I might become the richest man in Yicheng. If I fail, I'll have nothing."

“Of course, it’s not like we have nothing at all. Life will definitely not be worse than it is now, so you and Mom can rest assured about that,” Tan Jincheng added.

"It's okay, it's okay if we lose the bet. We still have Orange Technology, and we still have your 100 houses," Gu Qingqing said with a smile.

"Yes, you can also be a landlord, haha, then you'll be a landlady."

Not only that, I also have stocks. The returns from stocks like Tencent, Moutai, and SAIC alone are unlikely to be bad. Even if I lose the gamble, I'll still live a comfortable life.

"So what he means is that he's gambling, gambling on the future of the battery industry. If you put Jinpeng in the mix, you might end up like him, either succeeding or losing everything." Gu Qingqing looked at Tan Jincheng and explained on his behalf.

"Yes, Pengya, why don't you reconsider?" Zhang Suzhi had roughly understood what was going on and advised Zhang Xupeng.

Zhang Xupeng laughed and said, "I had already thought it through before I came here. If Xiao Tan dares to do it, what can't I do? Besides, it's something that benefits me."

"Even if it's only 2.1% of the shares?" Tan Jincheng asked rhetorically.

Zhang Xupeng rolled his eyes at Tan Jincheng and replied, "Do you think I'm stupid? Is 21% of 10 billion the same as 2.1% of 100 billion?"

The change brought about by quantitative change is like this: if you work for someone else, the salary you get for 5000 yuan in a large company is definitely different from that in a small company. This is especially evident in the realm of capital.

A company worth tens of billions of yuan may go bankrupt quickly if it makes a mistake when facing market shocks, but a company worth hundreds of billions of yuan can survive for a long time and may even turn the crisis into an opportunity. This is the meaning of "it is good to have a big tree to lean on".

"Alright then, once you've decided, that's fine. If there are no problems, we can sign the contract after I return from Suzhou. I'll still give you 3%." The risks have all been discussed. With Jinpeng merging into the group company, the group company's cash flow will be better. There's no reason for Tan Jincheng not to do something that benefits him.

"Okay, contact me when you get back. The finance department isn't being audited anymore? I heard that Beicang City Investment actually audited the finances of all your companies."

"There's nothing to audit between us. Besides, I'm a shareholder of Jinpeng, okay? It's a piece of cake for me to check the accounts."

"That's true. Then we can join forces again, haha. To be honest, it's really difficult for one person to run a company. I used to be a little unconvinced by you, but now I really admire you."

"Is someone from your hometown asking you for favors?" Tan Jincheng asked with a smile.

"how do you know?"

“I understand. When we recruited you, you were the customer, but once you're settled in, you become a local business. Since you're a local business, it's reasonable for us to ask for some benefits, right?”

"So what do you think should be done?"

"Just turn a blind eye to minor issues. It's impossible to have smooth sailing in business. Don't worry about major issues. Just refuse when you should. Also, avoid any financial transactions."

Building good relationships and maintaining distance can be done simultaneously. Even in Beicang, Flash Technology usually prepares shopping cards and makes donations from time to time.

But if anyone has really outrageous tastes, Tan Jincheng won't hold back; he might as well quit.

(End of this chapter)