2003: Starting with Foreign Trade

Chapter 407 Questions Before Project Announcement
The two entrepreneurs who were the most prominent in Anhui Province in April were undoubtedly Tan Jincheng and Dong Jinggui.

After gloating for a few days in Luzhou, Dong Jinggui went back to his hometown for an inspection and then returned to Wuxi. He was just a follower investor and didn't need to stay here like Tan Jincheng.

In a sense, acquiring a stake in Hangxin Era is also an attempt by Dong Jinggui and his Yadi Group in the field of investment.

Seeing Flash Motors thriving in the investment field, it would be a lie to say that the industry giants were not tempted, given the explosive growth in electric vehicle sales across the entire sector.

The sales of the top four companies in the industry speak for themselves. Companies like Bidewin saw their sales surge after hiring Andy Lau as their spokesperson, and their production capacity was able to absorb the demand within a year.

There are also some companies from other industries selling electric vehicles, such as Aucma (which sells air conditioners), Hongdou (which sells underwear), and Zongshen (which sells motorcycles), and their electric vehicles are selling very well.

These companies, backed by strong financial resources, entered the market relatively late but quickly grew into second-tier players and made a considerable amount of money in the electric vehicle industry.

Take Aucma as an example. Last year, they initially announced sales of 48 vehicles, claiming to be number one in the industry.

However, as leading companies such as Flash, Chip, Green Source, and Yadi have announced their specific sales figures, their annual sales of 48 vehicles have been confirmed to be largely inflated, but the actual number should be around 30.

Like the automotive industry, the electric vehicle industry also has the problem of inflating sales figures. However, due to Flash's lack of cooperation, leading companies have begun to be more cautious about inflating sales data.

Since leading companies have stopped exaggerating their figures, those in the back ranks naturally can't be too dishonest either. The fact that Aucma was exposed is a case in point, which has inadvertently helped to regulate the market.

This approach also has its advantages, preventing some uninformed entrepreneurs from blindly entering the market; there's no other way, electric vehicles were selling really well during this period, attracting a large number of entrepreneurs to the industry.

The third tier of manufacturers are mostly those with limited production capacity, with an annual output of less than 30 vehicles. As for the lower tier, they are those miscellaneous brands and small workshops with an annual output of tens of thousands of vehicles.

Small workshops can actually make a lot of money. If we calculate based on a minimum net profit of 100 yuan per electric vehicle, selling a thousand or so vehicles a year can generate a profit of over 10 yuan, which is much better than working a regular job.

The same applies to the garment industry. Labor costs are low. You can buy some second-hand sewing machines, and without creating your own brand, you can hire 10 or 20 workers and make a considerable profit in a year.

These days, there are actually many opportunities to make money for ordinary entrepreneurs. If you are willing to work hard and stay focused, there are plenty of opportunities to do so.

In my past life, selling boxed lunches was actually a benefit of the times. Construction sites were everywhere, and as long as you could endure hardship, you could make a good living with just a small cart.

In addition, running a roadside barbecue stall is also very profitable, with very low costs. If you've had too much to drink, they can charge you randomly without you even noticing.

In a vibrant era, there are many opportunities to make money, and naturally, there are also many opportunities to consume. People have money in their hands, and you don't need to do anything to stimulate them; they will naturally spend it.

Flash is a consumer goods company, so it's somewhat expected that it would perform well. However, the official announcement of its 2006 results and 2007 revenue forecast still surprised the public.

None of the companies acquired in 2006 were consolidated into the financial statements. Only the revenue of a few subsidiaries of the headquarters could be disclosed. What really surprised the public was the revenue forecast of Flash Group in 2007.

The first quarter has passed, and listed companies are releasing their quarterly and annual reports in batches. It is common for a company to set its annual revenue expectations at the beginning of the year. Although Flash is not a listed company, it is normal for it to release its revenue expectations to the public.

Flash Group, which has expanded rapidly through mergers and acquisitions, now has a business that has expanded from its initial focus on electric vehicles to include several major sectors such as apparel, 3C electronic products, components, and batteries.

The company aims for an annual revenue of 50 billion yuan, and it is even more ambitious to join the ranks of the top 500 private enterprises. This company has only been established for three years!

"It's truly a textbook example of a growth experience."

After accumulating initial capital, they seized the opportunity of booming hot industries to expand rapidly with all-in investments. After establishing a stable foothold, they began to make large-scale acquisitions, starting with parts and acquiring and investing in many companies in the industrial chain.

The company then underwent restructuring, spinning off its internet business while simultaneously bringing back its original apparel trading business. This was done through a share swap, allowing them to acquire a highly profitable company without spending a single penny.

During the restructuring of Flash Motors, Jinpeng Industrial, which is engaged in the clothing trade, did not spend any money, nor did Bafang Electric, which is engaged in the production of motors and controllers. Both transactions were carried out through a share swap.

The only thing that cost some money was the acquisition of Shenzhen Dexian Electronics, and this kind of operation has a strong resemblance to capital operation.

While some private enterprises in China engage in capital operations, it is relatively rare in the emerging electric vehicle industry. Large-scale capital operations like those of Flashcar are uncommon, and most companies still operate under more traditional business models.

Compared to the traditional business mindset, Flash's approach of collaborating with various investors is clearly more in line with the business mindset of the new era. In a rapidly developing economy, win-win cooperation is the best approach.

However, Flash Group also has many problems. It is such a large group company, but the board of directors is just a formality. All the company's business ideas come from its founder, Chairman Tan Jincheng.

This business approach would have been fine for Flashpoint Technology a little over a year ago. Back then, the company was small and couldn't withstand much disruption, and the boss's one-man rule was actually more conducive to the company's operation.

But now it is a large group enterprise with an expected annual revenue of 50 billion yuan, and its revenue scale is approaching that of the top 500 private enterprises. If the boss makes any mistakes in decision-making, it will be fatal to the company.

Tan Jincheng doesn't usually read newspapers; he doesn't have the time. These are things his colleagues in the marketing department of Flashpoint and Tan Lihua told him.

During the project's public announcement period, Tan Jincheng had many things to do that required him to stay in Luzhou, but he could still spend weekends there. He would also usually go back to his hometown on weekends to visit his father and check on the construction progress of the Wangjiang Industrial Park. "Is there anything wrong with what the newspaper said?"

It was another weekend, and Tan Lihua was holding a newspaper when he asked Tan Jincheng about the issue of Flashcar currently only having one voice, as mentioned by the experts in the article. However, his son frowned after taking the newspaper.

"What the hell? Forget about 50 billion in revenue, even if it's 500 billion, I'll still be the only one making noise. I'm being targeted."

"You've got your eye on them? What do you mean?" Tan Lihua asked nervously.

His sense of smell is still a bit lacking, but that makes sense. If he had even a little bit of a sense of smell, he wouldn't have ended up in his forties and only managed to get promoted thanks to his son's abilities. With that kind of experience, he should have been promoted.

In the newspaper, Tan Lihua only saw economic experts stating with certainty that private enterprises with revenue of 50 billion yuan have a great responsibility to society. Although the company is currently profitable, the chairman is too young.

The board of directors has failed to fulfill its responsibilities and its supervisory role. If the young chairman makes a wrong decision one day, it will have an impact on many people.

It seems to make sense, but it's actually utter nonsense.

Which company isn't run by the boss? Even in listed companies, when the actual controller has absolute control, minority shareholders have little voting power. When Ms. Dong wanted to get into new energy and acquired a new energy company that had previously gone bust, did all the minority shareholders oppose it, or did she still let her acquire it?

What kind of company does Ms. Dong manage? And what kind of company is FlashChi?

It's obvious that Flashpoint is being targeted. Now Flashpoint's industries have spread from north to south. Even without releasing financial reports, it operates in high-margin industries, has no shortage of orders, and has ample cash flow.

The only unprofitable business is the power battery project currently under construction, which is also part of the national 863 Program. It belongs to high-tech and supported industries, and there are many preferential policies. The future market potential is also immeasurable.

This can be seen by looking at the four giants in the battery industry, each of which is doing quite well.

If Tan Jincheng initially thought the collective questioning of FlashChe's cash flow was just a trick by competitors, and he still doesn't understand the continued skepticism after the financial report was released, then he's been wasting his time all this time.

While competitors certainly played a role, it's clear that someone had their eye on Flashcart.

It's not that they want to destroy Flash, but they probably want to get involved while Flash's project is still in the planning stages, so they can get a piece of the action.

"It looks like the company is going to set up a public relations department. It's a bit too slow to have the marketing department monitor this kind of public opinion."

This was the first time Tan Jincheng had faced large-scale questioning since starting his business, and it could also be said that FlashDrive had faced a real public relations crisis for the first time. The experts of this era did not have the reputation of the so-called "experts" of later generations.

Ordinary people still trust experts' opinions. Take Tan Lihua for example, he thinks that what the experts in the newspaper say makes sense.

But thinking about it, it makes sense. Before, Flash was a small company that only sold a few electric cars. Nobody cared, so there was no public opinion crisis. Since the acquisition, Flash has become a large conglomerate.

It's no surprise that such a group, controlled by a mere 22-year-old, would attract attention and be coveted by others; it would be strange if it didn't.

With an expected annual revenue of 5 billion, even if the profit margin is only 10%, that's still 500 million. In 2006, the entry threshold for the top 50 companies in China was only 8 million. This is a golden egg.

Especially during this period, the ambiguous attitude of Beicang has given some people a bad signal. The support from Beicang District is indispensable to the rapid development of Flash Motors.

Tan Lihua sat on the sofa, looking at his silent son. At this moment, he finally understood what his son meant by being targeted.

"How do you plan to handle this? This matter could be a big deal or a small deal, right?"

Tan Jincheng realized that his reaction had frightened his father a bit: "It's okay, I can handle it."

First and foremost, we need to communicate well with Beicang District and avoid leaving a bad impression on them. To be honest, Shanchi's actions during this period have indeed caused some misunderstandings. After the headquarters building was purchased, Tan Jincheng has become somewhat lax.

Investment at the Beicang headquarters has stalled, but external expansion is rampant.

However, the most important thing right now is not this matter. The Beicang side is not so petty. Let's deal with the other side's mouthpiece first.

He took out his phone and dialed Zhou Ao: "Collect all the public statements made by these experts who question us in the newspapers over the past five years. If there are any contradictions, focus your attacks on that point."

I refuse to believe you're really that concerned about the country and its people.

When it comes to manipulating public opinion, Tan Jincheng is not afraid of these people at all. He owns a portal website and also maintains the most powerful online army in the country.

Could you please give me some guaranteed monthly votes at the beginning of the month? I heard that these affect the intelligent recommendation system, but I don't know if it's true or not.

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(End of this chapter)