2003: Starting with Foreign Trade

Chapter 295 Cooperation reached
Wang Qinghua once again witnessed the work efficiency of FlashTech.

On the evening of the 9th, the same night after reaching a preliminary cooperation agreement with Tan Jincheng, FlashTech's audit team arrived at Suzhou Industrial Park.

The group was accompanied by three finance professionals and a lawyer, and they were very well prepared.

"Did President Tan prepare in advance?"

"I suppose so. Our initial plan was to cooperate with Bafang Electric, but if the cooperation goals are not achieved, we will also acquire a company in Jiangsu Province," Tan Jincheng frankly stated.

"Actually, you don't have to be so blunt," Wang Qinghua thought with some frustration.

After two days, Wang Qinghua had a general understanding of Tan Jincheng's style of doing things. He was quite direct; he would discuss things with you if possible, but nothing was negotiable. For example, the 51% shareholding was non-negotiable.

No matter what I said, it was useless. During the previous negotiations, I tried to get the shares to 49%, which was much higher than the 30% I had expected, but unfortunately, it didn't work.

However, the cross-shareholding plan with Flash Technology is much easier to negotiate. It can be done according to Beicang City Investment's standards, without mentioning any other additional conditions.

In summary, he's easy to talk to if he's willing, but there's nothing to discuss if he's not. He really has a domineering personality. It seems we need to be careful about future collaborations with Flashlink Technology.

The company is still your own company, but you need to communicate the development direction with the other party in advance to avoid them exercising the rights of an investor.

Friday, September 5st.

On the last working day of this week, Flash Group and Bafang Electric officially signed a strategic cooperation agreement, and Wang Qinghua transferred 51% of his shares in Bafang Electric to Flash Group.

In exchange, they received 5% equity in FlashTech, a subsidiary of FlashTech, plus 2000 million yuan in cash.

Based on the cash provided by Beicang City Investment, Tan Jincheng values ​​Bafang Electric at around 2.4 million yuan at this stage, which is quite generous. Wang Qinghua is very satisfied with this valuation.

Furthermore, Wang Qinghua was allowed to put the 2000 million yuan into his own pocket and spend it however he pleased.

This is also one of the reasons that moved Wang Qinghua; after three years of entrepreneurship, although he lost more than half of the company's shares, he could actually cash out 2000 million yuan, and from then on he would be a real millionaire. Who could refuse that?

"Mr. Wang, it's a pleasure doing business with you."

"Mr. Tan, it's a pleasure to cooperate with you."

Regardless of any unpleasantness during the negotiations, both parties were happy when the agreement was officially reached. Tan Jincheng got what he wanted, and Wang Qinghua also secured his own interests.

Wang Qinghua is a tech-savvy boss, relatively easy to please. He can cash out a portion of the profits, and he still effectively runs the company, so he is quite satisfied with the current outcome.

In particular, Tan Jincheng's statement, "Technology can be improved, but time waits for no one," filled him with a sense of crisis.

In addition, in his own opinion, Bafang Electric was not worth that much money. He admired Tan Jincheng's generosity in giving such a valuation.

Young people can be a bit domineering, but they are very generous when it comes to spending money.

The leaders of the Suzhou Industrial Zone were also impressed by this strategic investment agreement, and they welcomed FlashTech's entry into the zone in this manner.

Recently, FlashDrive Technology has become one of the most talked-about companies in China's electric vehicle industry, with manufacturers in the industry paying close attention to its developments.

At the press conference, Tan Jincheng said that FlashTech would conduct independent research and development of motors. Manufacturers are watching to see if Tan Jincheng is exaggerating, while major electric vehicle industrial bases are concerned about where Tan Jincheng will choose to locate the motor factory.

However, no one expected that Tan Jincheng would get involved in the self-developed project in this way, not even the leaders of the Suzhou Industrial Zone.

These days, there are relatively few manufacturers in traditional industries who use this kind of financial thinking. Most manufacturers operate by launching a project, choosing a location to build a factory, and then hiring people and starting production.

"Welcome Mr. Tan's Flash Technology to our Suzhou Industrial Park. The entire industrial park will do its best to serve all the companies in the park."

"No, no, it's a great honor to invest in your esteemed location. Suzhou is a city I've always admired, and it's an honor to participate in its development."

Since the leaders have personally intervened, it can't just be a few empty words. The necessary cooperation and donations are also essential. Fortunately, the actual cash required for this acquisition is only 2000 million yuan, so money is not an issue.

In addition, Tan Jincheng doesn't care much about appearing in the media anymore. Since the hype is already high, he might as well push it a little further, which will be beneficial for his future actions.

For employees of Bafang Electric, the most direct feeling about the company getting a new boss is that starting next month, everyone will have social security!
In addition, each employee's salary has increased by 15% compared to the previous year, with everyone receiving a raise!

In addition, Tan Jincheng also paid Wang Qinghua a salary. Previously, he did not receive a salary at Bafang Electric, but after the change of boss, he received a salary.

A monthly salary of 20,000 yuan is not much for Wang Qinghua, who has already cashed out 20 million yuan, but it is a token of his appreciation and represents the new boss's goodwill.

This is one of Tan Jincheng's ways of winning people over. Making empty promises is fine with someone like Wang Qinghua, who has ambition and ideals; but making empty promises to ordinary, grassroots employees is a bit unethical. Giving them money and raising their wages is the most practical thing to do.

This single move resolved the unrest caused by the change of ownership at Bafang Electric.

Wang Qinghua also witnessed another side of Tan Jincheng. He could be extremely stingy when he needed to be, and wouldn't even discuss acquiring more than 5% of Shanchi Technology's shares. However, he could also be incredibly generous when he needed to be. For example, Bafang Electric couldn't provide social security for all its employees, which would have increased the company's expenses considerably.

However, he couldn't object to this. If the new boss gave out bonuses to the employees, and he, the original boss, objected, he probably wouldn't be able to keep his 49% stake, and the employees would rebel against him.

After the acquisition was completed, Tan Jincheng did not rush back. He planned to stay in Suzhou for half a month to thoroughly review Bafang Electric's business and personnel structure.

Wang Qinghua will be in charge of the subsequent business strategy, but Tan Jincheng still needs to know about the situation of Bayan Electric.

"Mr. Tan, do you think we should change the company name?"

After working together for a while, Wang Qinghua gained some understanding of Tan Jincheng; it has to be said that this young boss is really capable of making the company so big. He doesn't understand technology, but he can always come up with some good ideas.

This is quite bizarre. For example, the company is researching adding an electric system to bicycles, internally called an electric bicycle project. This project uses an electric motor drive system to provide auxiliary power, thereby changing the way bicycles are ridden.

He pointed out that if everything is changed, it will lose its meaning. The fun of bicycles lies in riding them. If everything is changed, wouldn't it become an electric bicycle? Therefore, mechanical force can only play a supporting role, and human power should still be the main force.

"In modern life, bicycles are a means of transportation, but as the quality of life improves, especially in developed countries in Europe and America where the quality of life is far higher than ours, bicycles are not just a means of transportation, but more of a source of enjoyment."

A single sentence led the research team to decide to overturn their previous research direction.

Wang Qinghua thought about it and realized it was true. Bafang Electric had previously focused on the domestic market because they were only thinking about survival. In their view, electric vehicles were still a bit expensive for many people.

If a bicycle with an electric drive system can be developed that is cheaper than an electric bike, the market should be quite large.

But none of these tech people, including himself, were as sensitive to the market economy as Tan Jincheng.

“It’s good to do R&D, but you can’t do it blindly. You have to see what the market needs and what the future market will need. Only then will your investment yield results; otherwise, it’s a waste.”

These were the words Tan Jincheng left for the R&D team, and he also suggested that the R&D staff go out more and not stay cooped up in front of the computer and imagine things out of thin air.

"No need, this name is fine. Bafang is good enough. We want to expand our business to all corners of the world," Tan Jincheng said with a smile.

What does it matter what the company's name is? Besides, I'm terrible at naming things, and changing the name might not make it as catchy as the current one.

“Alright, then let’s change the shareholding and the business license.” Wang Qinghua nodded.

He was also somewhat moved. He was the one who named him. Whether he admitted it or not, the boss now should be Tan Jincheng. He was at most a professional manager.

It's understandable that Tan Jincheng wanted to change the company's name, but he didn't do so.

"There's a meeting for parts companies in the industrial park, kind of like an association, it's going to be held the day after tomorrow, Mr. Tan, would you like to attend?"

"I'll leave it to you. If you want to participate, then go ahead. Just do what you did before. I said I wouldn't interfere with these specific matters, and I won't. I'm just getting a general understanding of the company these next few days, so please don't worry about it, Mr. Wang."

"How could that be? What boss doesn't understand his own company?"

Wang Qinghua didn't necessarily overthink it, but he did feel a bit lucky. Boss Tan, who didn't understand technology, had a strong market foresight and a strong learning ability. He could offer his own opinions on a design after just one look.

But these aren't the kinds of suggestions from laymen to experts; they're all insightful and meaningful. People like that are quite dangerous.

If I hadn't agreed to cooperate with Flash Motor a few days ago, they might have disassembled and analyzed the motor, and poached a group of people from the company. Bafang Electric might have really suffered a major blow.

He had heard in the past few days that when Boss Tan visited Yadi's R&D department, he said he wouldn't poach anyone, but in the past few days, several Yadi engineers have secretly resigned and joined FlashTech.

The owner of Ya Di was furious, but there was nothing he could do.

There are also rumors that the plan for ChipSun to hire Jacky Lung as its spokesperson was accidentally let slip by ChipSun's boss during a visit by Boss Tan. Boss Tan then quickly signed Jay Chou to counter Jacky Lung's popularity.

Listen to this, listen to this, is this something a human being would do?

If we don't agree to his proposal, he'll probably poach our entire R&D team.

(End of this chapter)