2003: Starting with Foreign Trade

Chapter 563 To Bet or Not to Bet?
"What? Pledge your shares? Is it that urgent? You should at least wait seven trading days before talking about it."

The next day, Tan Jincheng met with Shen Nanpeng to ask if their institution would be interested in accepting his pledge. This left Shen Nanpeng feeling quite helpless, as the stock had only been listed for one day and they couldn't even calculate the seven-day average price.

"I'm just discussing this with you. If you're not interested, I'll go back to China and ask the banks and investment institutions there."

"I'm definitely interested, but I thought you invited me here to ask about car brands," Shen Nanpeng said with a smile.

Sequoia Capital China also deals in equity pledging. With such guaranteed interest income, there's nothing they wouldn't do.

Upon hearing this, Tan Jincheng was pleasantly surprised: "Oh? You found it already?"

Since Shen Nanpeng could say that, he must already have a target. Sure enough, this kind of capital has a strong ability to collect information. In just two or three days, he found out the information he wanted.

"Yes, there are a few companies that can do it but are about to go out of business. Simply put, they are short of money. The method you mentioned, which involves obtaining a license, is indeed feasible. Although it's a bit underhanded, it should have a chance of success."

"As for which company you choose and how to negotiate, that's up to you."

After saying that, Shen Nanpeng took out a thick file folder from his backpack, which showed that he had prepared a lot.

"Thank you so much, Mr. Shen, you've been a great help to me." Tan Jincheng thanked him repeatedly.

Shen Nanpeng collected all this information voluntarily. He was so attentive and quick in obtaining it, so we owe him a huge favor.

"Don't just thank me verbally, remember to think of me if you come across any good projects in the future."

Through intermittent contact, Shen Nanpeng also discovered that although Tan Jincheng liked to take advantage of small things, he was very principled in doing business and had a strong sense of contract. His equity ideas were also very compatible with investment institutions.

This is quite different from most domestic entrepreneurs in the real economy.

In addition, he has all sorts of ingenious ideas, is extremely talented in business, and is also very lucky. Whenever he wants to gamble on something, he always manages to win. It would be incredibly satisfying to work with such a lucky entrepreneur.

"That's for sure. If there's anything I need to invest in in the future, you'll be the first person I think of. Actually, there's an opportunity right now. I need a lot of money to build cars and power batteries. If you're interested, you can participate. You can invest in either of the two companies."

Shen Nanpeng laughed: "You mean your Hangxin Era and Weilai Motors?"

"Yes, those are the two companies. If you're interested, I'd be very happy to have you."

“I know about Hangxin Technology and have some understanding of it. Currently, there isn’t much output in the field of power batteries. The company is basically supported by Dexian Electronics’ mobile phone battery business and 3C business, right?”

In retrospect, the snow disaster actually helped this kid, but it also had to do with his own audacity. It's crazy that a company in Shenzhen would dare to use the highest standards for snow disaster prevention.

As a result, no one expected that Guangdong Province would actually be hit by a snow disaster. Countless businesses in Shenzhen had to stop work due to the snow disaster, but because they had prepared in advance, they were overwhelmed with orders.

This immediately put the newly established mobile phone battery business on the ground floor.

I heard from friends in Shenzhen that Dexian Electronics has been operating at full capacity since after the Lunar New Year, with the company producing 24 hours a day and hardly taking any holidays. With the resumption of transportation, their cooperation with SF Express has given them an advantage in logistics and transportation over other electronics factories in Shenzhen.

They're making so much money they can't keep their hands off the market. If it weren't for the need to cover the losses in Jinsheng New Era's power battery business, they could have already planned to go public.

Power batteries are an important part of China's 863 Program. Developing new energy is a global trend. With Obama taking office, the US has also introduced corresponding policies, which naturally piqued Shen Nanpeng's interest.

"Yes, that's Hangxin Technology. It would be even better if President Shen knew about it, so I wouldn't have to explain. Although we can't compare to the four major domestic battery companies and we are still losing money, we are not bad either. It's not an exaggeration to say that we are in the second tier."

Shen Nanpeng nodded. He wasn't exaggerating. Compared to the four giants, Hangxin Technology, which collaborates with established battery companies like Guoxuan and Dongfeng, has made rapid progress in power battery technology.

"We've also started the mobile phone battery business. Not to mention car batteries, the growth rate of the domestic mobile phone industry alone is enough to guarantee our cash flow. Not to mention our demand for lithium batteries for electric vehicles, which is something the four giants can't match."

Although traditional lead-acid battery giants have increased their investment in lithium batteries, they are constrained by their mindset and other factors, making it difficult for them to achieve any breakthroughs. Large electric vehicle companies are also unwilling to be controlled by them.

With shareholders like Flash and Yadi, two giants in the electric vehicle industry, Hangxin Technology naturally has a huge advantage in lithium battery cooperation.

"If that's the case, why invest at all?"

From the perspective of manufacturing power batteries alone, Hangxin Technology, supported by its mobile phone battery business, can proceed slowly without much investment if it doesn't take aggressive steps. With policy support and local government loans, it can indeed achieve its goals without much investment.

At least it doesn't need investment from investment institutions. Any funding shortages can be covered by local government financing vehicles. Since Tan Jincheng brought this up, it means he must have other ideas, and Shen Nanpeng really wanted to hear them. "Lithium batteries ultimately depend on upstream resources. Without control over certain upstream resources, it's actually not possible to grow a large scale, and the profits are not high. But with upstream resources, it's a different story."

Upstream resources, technological breakthroughs, and end customers are all necessary to form a complete lithium battery industry chain. Without a complete industry chain, a company can only be eliminated by the market or barely survive.

Unless, like BYD, their own electric vehicle shipments alone are enough to support their battery business.

"Ha, so you want to buy a mine? You've got quite the ambition."

Shen Nanpeng laughed heartily. Sure enough, this kid likes to turn everything he does into an industry chain. His electric vehicles are an example of this, and now it seems that his lithium battery business is the same.

"So, does that mean Weilai Motors will also be making new energy vehicles in the future?"

"That's right. Weilai Auto is also part of the lithium battery sector. In general, it's about creating a complete industrial chain so that the business can continue. So I suggest that if Mr. Shen wants to invest, he should invest in both companies, haha."

While a fake accountant can create PowerPoint presentations, Tan Jincheng also has his own advantages: he can make grand promises, and these promises have a high probability of coming true. This is why Tan Jincheng can easily secure investment.

After some discussion, Shen Nanpeng finally understood why Tan Jincheng was involved in car manufacturing. In fact, he hadn't quite understood why Tan Jincheng was getting involved in the automotive industry at this time, because it was clearly too late and not like his usual style.

Only now do I truly understand Tan Jincheng's business acumen.

Both power batteries and new energy vehicles are the future direction of development, but right now these are definitely not profitable or even lose money, requiring a lot of investment. Many companies can't afford to invest even if they see the potential.

Accumulate enough cash from businesses such as two-wheeled electric vehicles, foreign trade clothing, electronic products, and mobile phone batteries, and use this cash to guarantee investment in future projects.

It could even be said that Orange Technology was something he casually created by accumulating cash flow.

"You have a grand vision, Mr. Tan, but you're also gambling, betting on the future of new energy," Shen Nanpeng sighed.

All the money earned was reinvested in these industries. Although the current policy supports new energy projects, it is uncertain when it will stop. Tan Jincheng is betting on the future. Once the policy changes, all the investment will be wasted.

At that point, the seemingly thriving Flash Group will also be dragged down by these investments and fall into overall difficulties.

"Yes, I'm betting on the future. Anyway, I'm financially independent in this lifetime, so what if I lose?"

Shen Nanpeng stared intently at the spirited young man before him and couldn't help but smile.

Yes, so what if he loses the bet? At least he had his glory days, and it won't affect his and his family's quality of life. If an entrepreneur's company goes bankrupt, it would be a shame if he also went bankrupt.

“That’s ambitious. Thank you, Mr. Tan, for telling me the truth. I will seriously consider it when I get back. To be honest, I really didn’t understand why you wanted to make cars before, but now I understand.”

"Haha, right now we just need to get the stall up and running, survive in the market, and secure our place first."

Just like when FlashTech was founded, Weilai Auto also had its own five-year plan, which was to survive. In order to survive, Tan Jincheng even came up with the tactic of acquiring a luxury brand that was on the verge of bankruptcy and then promoting the full acquisition back in China.

"Alright, I'll be going now. I'll take a look at these documents when I get back. I might need some help from Mr. Shen then."

Shen Nanpeng nodded: "No problem."

Tan Jincheng left, but Shen Nanpeng remained where he was, ordering another cup of coffee from the waiter.

From a personal perspective, Shen Nanpeng admires Tan Jincheng's courage and vision. After making a lot of money, he had no intention of enjoying it, but instead reinvested in new industries to expand the company.

If this is indeed the trend in the future, then Flashlink, which has made early arrangements, will become a very large enterprise, and the influence of the company and Tan Jincheng personally will be immeasurable.

However, as an investment institution, Shen Nanpeng had to consider the overall picture and whether he should take the gamble with him.

It has to be said that Shen Nanpeng was indeed somewhat tempted.

"It seems we need to seriously consider his proposal to jointly acquire Land Rover."

(End of this chapter)