2003: Starting with Foreign Trade

Chapter 512 What to do with Zhongtai Beicang?
Why was it so satisfying?
He couldn't make this decision on his own, but Old Gu still readily said what the district needed to do, simply because anyone in the district who could make the decision would agree to it.

How much money Flash has made can be seen from its tax payments. Last year, their electric vehicle business and foreign trade grew very rapidly.

Electric vehicles require R&D investment and marketing costs, but foreign trade is a real money-making opportunity, all about cash flow.

The company itself is operating well and has good cash flow. The district is also well-off. Since one company is willing to try and cooperate to create a car brand that belongs to Beicang District, why not give it a shot?

It's impossible to manufacture cars without the support of local governments; no company can survive without that support, no matter what advantages they have.

"You've known me for so long, you should know my personality. I can't make excessive demands, just normal policies will do."

Additionally, we plan to locate our car factory in Chunxiao. The district should provide support in terms of transportation, and hopefully the land will be cheaper.

Unlike the land in impoverished counties like Wangjiang in inland areas, which is not worth much, the land in Beicang is quite valuable. The land in Meishan is the cheapest, but it is only for industrial use.

With housing prices set to surge next year, the Meishan Chunxiao area will be hyped up for sea-view properties, such as sea-view villas, which will be even more sought after than houses in the city center, fooling a lot of gullible people.

Besides the land issue, the most important problem is traffic. It's quite inconvenient if the traffic problem isn't solved. It's impossible for Shanchi to build a road on its own; the district has to cooperate.

In addition, the establishment of some basic facilities also requires the cooperation of the district. As for the general policies, there is no need to elaborate on these; the necessary measures will certainly not be lacking.

Another requirement is financial support, such as low-interest loans. If there are investors, FlashRace will not refuse.

If you can use money from banks or investment institutions to build cars, that would naturally be the best.

"The district will consider your request, but we'll have to wait until after you officially start work. We'll hold a meeting to discuss it then, and we'll let you know the specific time. Also, I heard you're still working on the IPO plan for Flashpoint Technology, right? Can Flashpoint manage to handle both of these simultaneously?"

FlashTech's listing plan requires the cooperation of Beicang City Investment, so it's not surprising that relevant personnel in the district know about it. The district also supports FlashTech's listing, as there are not many strong listed companies in Beicang District at present.

The only one that can be considered a well-known company is Shenzhou, but it is listed on the Hong Kong Stock Exchange and has little reputation in mainland China. If Flash is to be listed, it will definitely be on the A-share market. In the A-share market, which is dominated by retail investors, a company's reputation will be much higher.

"Thank you, leader. Manufacturing cars really needs the district's strong support. It's quite difficult for our company to do it on its own," Tan Jincheng said sincerely.

"There's another question: now that your company is manufacturing its own cars, what about Zhongtai?"

The actual operating rights of Zhongtai Beicang Branch are with the parent company of Zhongtai, but Tan Jincheng and Beicang together hold more than 51% of the shares. If the two companies partner up, then Shanchi will be the actual controller of Zhongtai Beicang.

It's a good thing that the district has its own car brand, but Zhongtai was also one of the key projects introduced earlier. Looking back now, we can already guess some of Tan Jincheng's ambitions behind that equity structure.

This guy probably already had the ambition to build cars when he partnered with Zhongtai or even when he acquired Andar.

When did Flash acquired Andar? Flash was only a small company back then. It seems this company has huge ambitions. In other words, from the very beginning, it was aiming to build cars.

"Have you been eyeing Zhongtai for a while now?" After realizing what was happening, Leader Gu's gaze towards Tan Jincheng changed.

This equity structure is clearly aimed at acquiring Zhongtai Beicang and using Zhongtai as a springboard to enter the car manufacturing industry.

In the business world, it's jokingly said that Tan Jincheng always tries to take advantage of others wherever he goes, and it seems to be true now. If he can successfully negotiate with Zhongtai and take control of Zhongtai Beicang without falling out, it will indeed be of great help to Shanchi's foray into the car manufacturing industry.

The existing production lines, factory buildings, and workers can effectively drive the development of the Meishan factory.

"You've noticed that, haha. I did have that idea, but I need to talk to President Ying and President Wu about it first." Tan Jincheng didn't deny it.

Actually, he initially had his sights set on Zhongtai's parent company, wanting to acquire the entire company. However, our CEO Ying is currently focused on acquiring and manufacturing cars, and Zhongtai is not yet listed on the stock exchange. Obviously, he cannot give up on cashing out the entire Zhongtai company at this time.

It's even uncertain whether Zhongtai Beicang Branch will give up its business. Forcibly seizing control would not only be a matter of face, but could also easily cause disputes and be detrimental to Shanchi's car manufacturing business.

"This might be a bit difficult. There shouldn't be any problem with the district's equity being transferred to you, and we might even be able to offer you a discounted price. But how to convince President Ying is something you'll have to handle yourself."

Zhongtai also made a significant impact in the automotive market, acquiring the Southeast Motor and Fiat brands, greatly enriching its model lineup. The Alto TT, with a starting price of 1.8 yuan, was heavily promoted and even exported overseas, presented as gifts to Pakistan and other developing countries, achieving a status comparable to the Wuling Hongguang in later generations.

After acquiring Fiat, ZTE did not choose to produce the Prado, but instead began researching its first acquired model, an MPV, which is currently under development and production and is expected to be launched by the end of this year.

With two best-selling entry-level models and an independently developed MPV, Zhongtai was clearly still ambitious at this point.

Tan Jincheng did not hide his ambition. Such a private conversation was unlikely to be made public. If a leader cannot even control his mouth, he obviously would not be in his current position.

There are advantages to not hiding it, namely, it makes the leaders realize that their ambition to build cars is not a fleeting impulse, but something they have had for a long time, which will lead to greater support.

Basically, it's about using every controllable rule to maximize your own advantage.

If everyone has a benefactor in their life, then Leader Gu must be Tan Jincheng's benefactor. Without his support, Tan Jincheng would probably still be working on his two-wheeled electric vehicle right now.

It will take at least several years for things to develop, so it's best to be honest with those in positions of influence.

For the first time, Mr. Tan, who had always kept quiet, candidly revealed his dream of building cars. He started with foreign trade and even mentioned buying lottery tickets, all with the aim of making money and getting his first pot of gold.

After accumulating initial wealth, one can then expand their business, as long as it's in an industry that guarantees cash flow and growth, whether it's electric vehicles, the internet, or even investments and stocks.

Making money is all that matters, as long as it ensures cash flow and keeps the company healthy, thus gaining a greater advantage in car manufacturing.

After hearing this, Leader Gu remained silent for a long time.

"This is the first time I've felt your sincerity. I used to think you were a bit sly, always holding back something, which made you seem a bit slippery."

Of course, they didn't find this slickness a protective shield for Tan Jincheng, but it made him lose some of the unique feeling of a young person, making him seem like a middle-aged person talking to himself.

It's rare to hear someone share their entrepreneurial experiences over the past few years so sincerely. Even CCTV's "Face to Face" program wouldn't dare to be this candid.
"It's not that I'm being dishonest, you know I don't have any connections. The only way I've gotten this far is to be cunning and careful."

Leader Gu nodded in agreement. Indeed, competition in the business world is fierce. Things have gotten a bit better in recent years. For young people like Tan Jincheng from the 80s and 90s, it would have been virtually impossible to build a business this big without any major setbacks.

Sometimes, they even come to his door. Even in this relatively safe era, this guy always has bodyguards with him and takes great care of his family.

His girlfriend also has a female bodyguard. His mother and sister live a secluded life and rarely appear in public. Even his sister, who has a daughter, has never had a photo of her face in the media.

As for his father, there's even less to worry about. He's a state-owned enterprise employee living in his hometown, and he has such a large investment there. If he can't even protect his family, that would be a bit unreasonable.

In addition, we must guard against the reach of some underhanded forces, such as the attack on FlashDrive last year.

"I can understand your approach. It's truly not easy for you to have built such a large company."

It's somewhat poignant to think that two young people, without any help, are venturing into a foreign land, facing all sorts of seasoned veterans and competing with them. They inevitably have to wear masks on to some extent.

Otherwise, they might just devour us alive.

"However, you still need to handle the equity of Zhongtai properly. Try to cooperate as much as possible, since you are still very weak and need the help of some senior peers."

"Okay, I understand."

In terms of car manufacturing, Flash should actually learn from Zhongtai and acquire as many other brands as possible through capital operations. Mr. Ying did a good job in this regard.

However, he went a bit astray later on, or rather, he lost interest in building cars.

(End of this chapter)