2003: Starting with Foreign Trade

Chapter 405 Old Tan's Highlight Moment

What will happen in 2008?
Many things will happen in 2008, and this year will change many people. For Tan Jincheng, Gu Qingqing will graduate in 2008, and from then on, he can live in Beicang in peace.

We can now focus more of our energy on Orange Technology.

For Flash, the Olympics were about to be held, but the financial crisis was also on its way.

A crisis is a danger, but also an opportunity.

Given the already dangerous situation, this was an opportunity for both Tan Jincheng and Shan Chi, and a very big one at that.

The global financial crisis did impact some domestic industries, but thanks to the 4 trillion yuan stimulus package, the overall impact was relatively small. It was after this financial crisis that our development accelerated dramatically.

The real estate industry has undoubtedly undergone the most significant changes, but other industries have also ushered in major development opportunities.

Flash Motors' main business will not be affected by this financial crisis. On the contrary, electric vehicles will sell better when the economy is bad, due to the downgrading of consumption.

The two-wheeled electric vehicle industry continued its rapid growth in 2008.

Private enterprises that maintain normal cash flow while ensuring their main business remains unaffected and have large projects in hand are more likely to receive support, whether in terms of loans or policy incentives.

These few points alone are enough to make Tan Jincheng take a gamble. In addition, Southeast Asia seems to have suffered more from the 08 financial crisis, and there seems to be some kind of battle to defend Hong Kong.

Tan Jincheng dared not speak on the financial front, but he knew some of the general direction. If the opportunity arose, he could let ByteDance's investment department take advantage of Lao Mi and his group.

Tan Jincheng didn't really know how to short sell, but he knew the general direction. He also had Li Jiamin's side of the industry, so he believed they should know about it and could probably operate it themselves.

If all else fails, just buy the dip. Every retail investor knows those top-notch American tech stocks. Just buy them, and you'll definitely make some money off the American market.

With his grasp of the overall trend, Tan Jincheng doesn't necessarily seek great wealth or status, but rather to gain some benefits. Given his current abilities, this is something he can easily accomplish.

Today's meeting is about equity distribution. There is not much controversy on this point. The four parties have jointly established a new company with a registered capital of 100 million yuan. The legal representative is Zhang Xuhui.

The new company is named Jinshidai. Tan Jincheng is aiming to be like Prince Ning. Whether he can actually do it is another matter. He just wants to boost his morale by choosing such a name.

Jinshidai's equity structure is also very simple: Shanchi Group, as the main controlling shareholder, holds 65% of the shares, while Yadi, which co-invested, holds 20%.

Guoxuan and Luzhou City Investment, as strategic investors, hold 5% and 10% of the shares respectively, and the responsibilities of each of the four shareholders are also very clearly defined.

As the largest and second-largest shareholders, Flash and Yadi are responsible for providing funds in proportion to their respective shares. Flash is responsible for the operation and management of the factory, while Yadi has the right to supervise finances and also has a seat on the board of directors, but is not allowed to participate in the company's operations.

As a strategic investor, Guoxuan does not need to invest capital. In the early stages, it will use its technology and experience to help Jinsheng New Era establish the battery factory and assist Flashpoint Operations in completing the operation of the battery factory as soon as possible.

The reason why Luzhou City Investment, which acted on behalf of the Luzhou Municipal Government, obtained a 10% stake was because they factored in the land price and also provided some administrative support.

According to the latest Luzhou City 2006-2020 urban planning scheme and Tan Jincheng's own opinion, Hangxindai's battery factory was located in the future Economic Development Zone, now Feixi County.

There is also a university town plan in the future, which will make it very convenient to cooperate with Hangxindai. However, it is a bit of an exaggeration to say that it is a barren land, but it is no different from the township where Tan Jincheng's hometown is located.

They even look poorer.

After the plan was announced, in the eyes of ordinary people, Tan Jincheng had acquired a piece of land that was practically useless and had inconvenient transportation, making him seem like a sucker.

But what they don't know is the benefit of cooperating with the government in the urban planning process. What looks like a dilapidated place now will become a university town in the future.
Of course, by choosing this location in the new era, they are essentially playing the role of pioneers, and the future appreciation of land and housing prices is their due reward.

An investment of several billion dollars involves many details and a lot of things to discuss between the two parties. Such a large project needs to be publicized on the government website, and there are quite a few procedures to go through.

However, none of this affected the public announcement of the intention, and Tan Jincheng appeared on the Anhui Provincial News the following evening.

Tan Jincheng is now quite adept at bragging.

"I must have done something wrong in my past life to be born in Huizhou. It is said that the coming-of-age ceremony for children from Anhui Province is to go to work in Jiangsu, Zhejiang and Shanghai. That includes me. I went to Ningbo after graduating from high school." "Now that I have achieved some success, I hope to set up a few factories in my hometown so that our coming-of-age ceremony does not have to be so far away. I also hope that young people like me can stay closer to home and go back to take care of their parents more often."

Tan Jincheng can now speak boastfully and make empty promises without any pressure.

Tan Jincheng was boasting based on his own age group, but what he said was true. At that time, the Yangtze River Delta region did not include Anhui Province, so the economy was really bad, as evidenced by the fact that the provincial capitals were all third-tier cities.

Going to work in other places is something almost every person from Anhui Province has to go through, even those who have gone to university. Many of them end up working in other places because, apart from taking civil service exams or working in state-owned enterprises, it's really hard to find a good job within the province.

Children like Tan Jincheng, whose parents both work, are in a better position. However, the options for children from rural areas are very limited. Before the expansion of university enrollment, very few could get into university. Apart from working in the Yangtze River Delta region, there seemed to be no better future for them.

In 2006, the average wage in Luzhou was 1825 yuan, while in Ningbo it was 2412 yuan, meaning that labor costs alone were about 30% lower.

As for average wages, well, everyone knows what that means; most don't even reach the 1800 level.

The overall wages at FlashCheer are much higher than the local average wage level, especially at the Beicang headquarters, and this will naturally continue at the Luzhou factory in the future.

The interview with the chairman of Flash Group was somewhat blunt and hard to accept, but it reflects the current economic situation in Anhui Province, and the news was still reported truthfully.

These words resonated with many parents. If it weren't for the pressure of making a living, who would want their son and daughter to go out and work?

These days, transportation is actually very inconvenient, especially in the mountainous areas of southern Anhui, where it's quite difficult to go out.

Take the trip from Yicheng to Ningbo as an example. There are no trains or planes. There is only one minibus departing from the passenger transport center to Ningbo every day. Don't think that the passenger transport center is a legitimate business. You will still have to stop at some shady restaurants along the way.

These days, the place that people from Anhui Province visit most often is Nanjing, because transportation to Nanjing is relatively convenient.

When the news from Anhui Province aired, Tan Jincheng specifically reminded Tan Lihua to watch it. However, even without the reminder, Old Tan would have watched it anyway, as state-owned enterprise employees like them don't usually have any hobbies.

Reading newspapers and news has become an integral part of their lives and a habit.

Tan Jincheng's interview left Tan Lihua speechless. "Don't you have any self-awareness about how you got to Ningbo?"
Is it the employers or employees who are preventing you from studying?
Aren't you afraid of being dug up and laughed at? Sure enough, when entrepreneurs start bragging, they're even willing to slap themselves in the face.

However, these few words were quite empathetic. Although they were a bit embarrassing, they were harmless. Moreover, with these words, Flash will probably not have any difficulty recruiting workers in the province in the future.

This was Tan Jincheng's first interview with Anhui TV, and strictly speaking, his first official appearance in front of his hometown people.

When he was a child, Tan Jincheng was handsome, but he wasn't a well-behaved kid. He and Zhang Xupeng often ran around the petrochemical residential area. Even though he's only been away for a few years, there are still quite a few people in the petrochemical residential area who recognize him.

In addition, there were school teachers, parents of classmates, and relatives from his hometown. Even though his demeanor had changed considerably, they could still recognize Tan Jincheng.

Moreover, following the news report, there was a special feature on Flash Group and an exclusive interview with Tan Jincheng himself. This was top-tier treatment from Anhui TV, all to support Flash Group's investment announcement.

Of course, Dong Jinggui also made an appearance, but there has to be a distinction between primary and secondary roles, as Flash Group is the main investor after all.

Old Comrade Tan has been walking with his back straight these past few days, and he's always on top of the world. No matter how powerful the Flash Group was in the past, its sphere of influence was actually more in Beicang. No matter how well it sold in Anhui Province, Tan Jincheng's personal fame among his generation was relatively limited.

No one will pay special attention to a young person who has gone to another city to start a business unless it is related to their own interests.

Setting up a factory back in one's hometown would be a different story. It would not only solve the development problem of Luzhou, but also provide another option for migrant workers in the surrounding areas of the province. Moreover, the interview with Anhui TV would be quite lengthy.

For Lao Tan, his son's appearance in front of his hometown people was his moment of glory. If it weren't for his personality, he would want to ask everyone he met if they had read the news or the newspaper.
In the interview, Tan Jincheng also responded to the current doubts about Flashpoint's financial situation.

"Flash is currently in a very healthy financial position. Flash Technology, Jinyi Industry, Jinpeng Industry and Bafang Electric, the four holding companies are all in a state of high profitability. The only loss-making company, Hangxin New Energy, has also found a way to make a profit. Therefore, we do not have any situation of broken capital chain."

"In addition, my girlfriend and I hold a 57.6% stake in Orange Technology, which is valued at over 4.3 million yuan. If Orange Technology wants to conduct a Series C financing, I believe many institutions would be willing to invest."

"Therefore, I am not short of money at all, and any doubts about the cash flow of Flash Group are nonsense."

(End of this chapter)