2003: Starting with Foreign Trade

Chapter 397 Foolish and Rich, Come Quickly!

Lithium was discovered in 1818, and its fate took a turn in 1913.

As the optimal anode material for batteries, possessing and mastering lithium will grant it an absolute position in the battery field.

Before 2000, the most advanced lithium battery technology, which originated in North America, was from Japanese companies such as Sanyo, Panasonic, and Sony, which held 93% of the global market share.

At the same time, South Korean companies accounted for 3%, while our country's figure was 0%.

"In 2000, the 863 Program was proposed, and we began to fully develop the lithium battery industry. The four giants were born at that time. If we wanted to do it, we had to poach people from these four companies."

During this period, the so-called four giants of lithium batteries were BYD, ATL, and Kelexin.

Tan Jincheng's tone was relaxed, but what kind of company is this that everyone thinks they can get away with? They have far superior technology and patent barriers, how could they let you break through so easily?

"How do you know so much? Your level of education is about the same as mine," Dong Jinggui asked with a curious look.

Tan Jincheng had been busy with work at Orange Technology for half a month, and Dong Jinggui had been waiting for half a month. He was so anxious that when he heard that Tan Jincheng had returned to Ningbo, he rushed over to find him. He was visiting Tan Jincheng's home at the moment.

Anyway, the two places are not far apart, and it is convenient to travel back and forth. The plans of the leading electric vehicle companies this year are actually similar, which is to no longer pursue expansion of production, but to focus on battery production.

In terms of electric vehicle assembly, the focus is on production, seizing and consolidating market share.

Leading manufacturers are better able to respond to and adjust to policies than mid- to downstream manufacturers. They also have a wider range of information. FlashCheer was able to do so quickly because of Tan Jincheng, who has always demanded the same standards from the new national standards.

This is something that Dong Jinggui, Zhang Congxun, and Ni Jie cannot understand. Logically speaking, a newcomer with no connections or resources entering a completely new field, initially aiming to make money, is bound to make some mistakes.

However, Tan Jincheng seems to have known these policies would emerge, and his first steps are always on point with the policies, including the current lithium battery industry.

It's as if their sources are even more informed than they are. It's unbelievable, or is the Beicang government really helping him with all its might?

That won't affect industry policies.

“I have a higher level of education than you, okay? You couldn’t get into university, but I did. How can our educational levels be the same? Besides, I’m currently studying at Ningbo University. Do you think I’m studying for nothing? I’ve been studying hard, okay?”

There is learning involved, but how can one learn so quickly? It's actually thanks to the efforts of one's past life.

In my previous life, I was a businessman. It's very normal for businessmen to brag to others. My knowledge is about the same as that of a novice stock trader, especially when it comes to business battles with foreigners.

Winning brings a sense of pride, while losing brings regret—this is a common sentiment among all Chinese people, and it's perfectly normal to use it as a topic of bragging.

Tan Jincheng didn't think much of BYD's employee benefits, but he had absolute respect for their CEO, Wang Chuanfu, who, in addition to being BYD's CEO, also held a master's degree in physical chemistry.

People often joke about hand-crafting chips online, but this guy is truly a master at hand-crafting lithium batteries. His contribution to the development of China's lithium battery industry is definitely greater than that of Ning Wang and his ilk.

He can be said to be a pioneer in the domestic lithium battery industry. Without money to buy production lines, he used a manpower-intensive strategy to reduce costs. He did everything by hand, since labor costs were cheap. The other three lithium battery companies also learned from BYD.

Xiao Rizi has applied for almost all lithium battery patents, so I'll find a way to circumvent their patents. You say this thing can only fill half a bucket? Fine, then I'll fill a whole bucket, and that way I won't infringe on their patents.

Bypassing patents inevitably involves technological breakthroughs, and everyone knows how difficult it is to achieve technological breakthroughs in a closed environment.

Next, Tan Jincheng will also learn from them. We have an advantage in labor costs. There is no need to be arrogant before we have an absolute breakthrough in technical strength. We should use them when necessary, which can also solve employment problems.

“I’ve contacted the chairman of Guoxuan that you mentioned last time. He was very interested when he heard that it was going to cooperate with Hangxin New Energy of Shanchi, and he said he hopes to meet you, his fellow townsman, as soon as possible.”

"That's good. I'll be busy for a few more days, then we'll go visit Mr. Li together."

Li Zhen, the founder of Guoxuan, is from Tongcheng, Yicheng. He is indeed a fellow townsman of Tan Jincheng. In addition to having Dong Jinggui make the contact, Tan Jincheng also asked Tao Qinian to help make the contact. Tao Qinian is also from Tongcheng.

Although he has worked and lived in Wangjiang for most of his life, he still has some connections in his hometown.

There are quite a few high-tech companies in Luzhou in the future. In the field of power batteries, Tan Jincheng's decision to return to Anhui Province is actually a very good idea. Dong Jinggui also saw the potential in this area and wanted to take a ride on it.

Both men are from Anhui Province, and leveraging each other's resources can be quite useful within the province. Furthermore, Dong Jinggui also intends to build a factory in his hometown, similar to Flashchip. Besides Guoxuan in Luzhou, Tan Jincheng has also established many other companies, among which Xingyuan Material, which, like Guoxuan, is arguably the most successful and yet to be listed.

Xingyuan Material, established in September 2003, has made rapid technological breakthroughs despite its short history. At the end of last year, they began to possess both dry and wet production processes for power lithium-ion battery diaphragms.

As the first company in China to possess both production processes, it has filled a technological gap, and its production lines are already fully booked even before they are fully operational.

This is the high-tech company where ByteDance's investment in the primary market has yielded the fastest results.

Tan Jincheng initially gave Zhao Xinyi and Zeng Jixiang a list of companies in the lithium battery industry. This list was later handed over to ByteDance, allowing them to buy shares in listed companies and negotiate investment terms with unlisted companies.

Xingyuan Material is one of them. Although he was badly burned by Zhong Guoping in his previous life's stock trading experience, Tan Jincheng entered the market when the new energy industry was booming. Even if you have never bought stocks related to new energy, you have heard about them in the retail investor groups.

Brands like Guoxuan, Xingyuan Material, and Yangguang Diyuan appeared in the group chat every day back then. The most impressive one was a girl named Tan Jincheng, who recommended Yangguang Diyuan every day, starting at around 8 yuan.

She's not just making empty promises; she can talk about the company's business and industrial structure in a very logical and eloquent way. She even promoted Xingyuan Materials, and looking back, she was absolutely amazing.

These are the kinds of information sources you didn't get to enjoy in your past life, but you're getting to enjoy them in this one.

Is this some kind of unconventional "accumulated knowledge and skills leading to a breakthrough"? It's really quite outrageous.

Given Tan Jincheng's current position, he no longer cares how much the stock price can rise. What he really cares about is how to cooperate with high-quality companies, seek progress in power batteries from Hangxin New Energy, and achieve a breakthrough.

Stock returns are just an added value. Would Lei Jun (CEO of Xiaomi) go around bragging about his amazing investments? No, he would only brag about his mobile phones and the cars he's going to build.

For some people, money can never compare to the sense of accomplishment that comes from their career.

In a way, Tan Jincheng was lucky to catch the right time. The commercialization of our lithium battery industry started very late, and private enterprises started even later. The earliest start was only in the late 90s, and most companies were established after 2000.

Most companies are more or less lacking in capital and technology. FlashDrive's profits are used for investment through ByteDance's advertising platform, while Hangxin New Energy has lithium battery technology.

Most companies would agree to a partnership that doesn't require controlling stake but rather cooperation or equity participation, has money and technology, and is backed by the reputable Flash Group.

Because our lithium battery industry started relatively late, most companies are still in the early stages. Many of the founders are technical personnel who left the industry to start their own businesses, hoping to make a fortune or realize their ideals. They do not have a strong understanding of the industry.

They certainly don't have the same level of understanding as Tan Jincheng. If Tan Jincheng told them at this time that lithium ore would rise to 20 yuan per ton, they would definitely think that Tan Jincheng was crazy.

Given the information gap, the willingness to cooperate, and the shared ideals or common goals, ByteDance's primary market investment has been relatively smooth. Some companies that have not yet achieved technological breakthroughs have been able to acquire decent shares without spending much money.

While ByteDance's AI platform is not well-known in the investment world, it is a household name in the lithium battery industry.

There is an investment institution backed by a large group, with money, technology and connections. Just like venture capital firms in the internet industry, it seeks out lithium battery companies all over the country to invest in.

Most of the companies they invested in were private enterprises that had not been established for long. Initially, they were seen as scammers, but later they were labeled as fools with too much money.

"When should we go? The Shanghai exhibition is almost here, and I'm afraid that if we go too late, we'll be late again."

Tan Jincheng wasn't in a hurry, but he was. Regarding the cooperation on lithium batteries for both wheels, FlashDrive had Boneng producing them, while Yadi was already a step behind. Now, they either had to build their own factory or place orders with Boneng or other lithium battery manufacturers.

Yadi, which has always been accustomed to the entire industry chain, could not possibly give up the idea of ​​building its own lithium battery business. However, building its own business takes time, and Yadi has little experience in lithium battery technology.

Yadi has its own lead-acid battery factory and does not lack production resources; what it lacks is technology. At a time when manufacturers of all sizes are starting to lay out lithium batteries, cooperating with FlashChe is the best way for Yadi not to fall behind.

Who could have imagined that just after the Lunar New Year, the lithium battery market, which was viewed with skepticism before the holiday, would experience such a dramatic turnaround?

"Tell me, do you have some special sources of information? Otherwise, how could your company's plans be so precise? Your ByteDance engine is known for its 'foolish and rich' reputation."

Dong Jinggui couldn't help but feel a little overwhelmed; this was a question she shouldn't have asked in the first place.

Tan Jincheng laughed and said, "It's just money from fools anyway. If I keep all the profits, I'll have to pay a lot of taxes. I might as well invest in a few more companies. What if they succeed? Right?"

(End of this chapter)