2003: Starting with Foreign Trade

Chapter 585 An offer that is hard to refuse

"They are such a perfect match, I didn't really notice them during the day."

Li Jianxin looked the two people up and down. He hadn't paid much attention to them during the day when he was distracted.

Looking at the handsome man and beautiful woman in front of me now, they really are a perfect match, at least in terms of appearance.

"Mr. Li, you flatter me. This is my invitation. If you have time on October 1st, you are welcome to come for a drink." Tan Jincheng handed over the invitation with both hands.

Li Jianxin accepted it with a smile: "I'll definitely be there. Mr. Tan didn't call me here just for this, did he?"

His smile was somewhat forced. To be honest, he hadn't been in a good mood all day. Tan Jincheng had drunk too much at noon, and so had he, though he was suspected of drowning his sorrows in alcohol.

Li Jianxin has a deeper affection for Changfeng Group than anyone else, having transformed an abandoned JUN factory from a tire manufacturing plant into a listed group company.

Now that he's being put on the table to talk about being acquired, he doesn't even have the power to decide.

During the day, he could sense Tan Jincheng's disdain during the conversation, and he could also sense that Zhou Kai was genuinely tempted by the conditions Tan Jincheng had proposed.

"Of course, this was just a side note. The main reason I invited Mr. Li here was to discuss matters concerning the Changfeng Group."

Li Jianxin pursed his lips. Old Li was also a little upset. He had never been looked down upon like this before.

"President Li, please don't mind. That was just a negotiation tactic. I personally have great respect for you. My parents are both state-owned enterprise workers, and I understand your feelings for Changfeng Group."

"Stop talking nonsense. You understand, so why are you still like this?"

“That’s different. I understand, but business is business. We’re talking business. To be honest, selling Changfeng to me wouldn’t be a bad thing for you or Changfeng Group.”

"Hey, you came here to steal my stuff and you're saying it's for my own good; come on, let me hear how you're doing it for my own good."

Li Jianxin was so angry he laughed. These young people nowadays are really something else; they can say anything and they dare to say it.

"First of all, from a personal perspective, you are already this age. After selling Changfeng Group, whether you want to retire peacefully or start a new business, you will have no more constraints. I think this is a good thing for you. Of course, whether you think so is another matter. It's a matter of opinion."

"Secondly, the fact that Changfeng Group has become our controlling shareholder does not mean that all of its businesses will be moved out of Hunan Province. The industries that should be here will remain here. However, with our financial and technical support, the risk of bankruptcy will be eliminated."

"What kind of technology do you have? Is it an empty shell car company or your electric car company?" Li Jianxin couldn't help but retort.

"Haha, Mr. Li underestimates us. Weilai Auto is not an empty shell. First of all, it is a company with formal automobile production qualifications. Secondly, we are not lacking in technology either. Before and during the founding of Weilai Auto, I paid great attention to the accumulation of technology. You will know this later."

During this period, Tan Jincheng also integrated the automotive industry chains that he had previously acquired and invested in.

Several industrial design institutes merged to form Weilai Zhixing Co., Ltd., and the equity investments in the parts and components industry chain were merged into Weilai Technology Co., Ltd. In addition, Weilai Trading Co., Ltd. was also registered.

The legal representatives of these companies are all Gu Qingqing, while the actual controllers are the family trusts controlled by Tan Jincheng and Gu Qingqing.

In addition, there is Sering Automotive (China) Co., Ltd., whose legal representative and actual controller is Tan Jincheng. The assets here are, of course, the global usage rights of the Sering brand and some technology patents.

From an organizational perspective, Tan Jincheng's automotive business is already quite well-established.

There is one automobile factory that is already in operation with an annual output of 5 vehicles, and another automobile factory under construction. They have their own industrial design institute and shares in an engine company that they are cooperating on.

In terms of car brands, there are three high-end sports cars, including the Serenity Camaro, Mustang, and S7, as well as the Weilai Auto brand, which is dedicated to new energy vehicles.

In addition, there are Yangzi and its own registered pickup truck and SUV brands.

Our product line has achieved full coverage from high-end to low-end.

It's not the shell company that outsiders imagine. At least Yangzi Automobile has new cars to sell, while Changfeng Group doesn't even have new cars to sell in the civilian vehicle market. In this respect, Yangzi Automobile is better than Changfeng Group.

"Stop with the nonsense. What haven't I seen in this old man? Tell me your real conditions for asking me out. I want to hear how you convinced me to agree to your acquisition plan."

Gu Qingqing couldn't help but laugh. She had seen Tan Jincheng chatting with investors like Shen Nanpeng.

To the average person, it's just pure bragging, both sides are just bragging, doing whatever it takes to show off, but they all believe it, and sometimes they actually invest because of the bragging.

However, for people like Li Jianxin who get things done, mere boasting is definitely not enough.

"Alright, let's get down to business. I don't want much in this acquisition plan."

Li Jianxin was unwilling to get involved, and Tan Jincheng also became serious. "If Flash Technology goes public through a backdoor listing, the name of the listed company will definitely be changed. I will return the name of Changfeng Group to you. In addition, the off-road vehicle business that your government purchased will also be abandoned, and the corresponding Jingmen base will also be given to you."

"You can still use the Cheetah brand on off-road vehicles, but you shouldn't use it on the civilian vehicle market anymore."

If possible, the Yongzhou base is also negotiable, but Tan Jincheng didn't say that. He can't possibly reveal all his cards; he has to get some benefits out of it.

"You're even giving us the Jingmen base for the off-road vehicle business?" Li Jianxin was somewhat shocked.

ZF procurement is the core business of Changfeng Group. Without this business, Changfeng Group would just be a car company facing bankruptcy with no new cars to sell.

What makes it a top 10 domestic enterprise? Like many acquired state-owned enterprises, it's practically worthless except for its brand name and some equipment.

This is equivalent to taking over the loss-making businesses of Changfeng Group and then returning the most profitable businesses to Changfeng Group.

"Are you sure?" Li Jianxin was still somewhat skeptical and asked again.

"Of course, Mr. Li should know that I would never joke about something like this. What I need is your support for my acquisition of Changfeng Group."

Li Jianxin fell silent after being attacked.

The terms of retaining Changfeng Group, divesting its off-road vehicle business and Jingmen industrial base, and granting them the right to use the Cheetah brand are undeniably very generous.

Not to mention that in the process of Flash Technology's backdoor listing, not only Xiangcheng City Investment, but also Changfeng Group could obtain excess profits.

Li Jianxin remained silent, but Tan Jincheng ignored him and continued, "Changfeng Group's core business is actually still in the off-road vehicle sector, but off-road vehicles are a niche market after all. It's true that President Li wants to open up the civilian vehicle market and expand the company, but it seems that it has clearly failed now."

"Therefore, my suggestion is to temporarily reduce the scope of business, stockpile resources, and delay declaring dominance."

"I don't ask for much. I just need Mr. Li and the board of directors of Changfeng Group to support my acquisition plan. If I get what I want, everything else is negotiable."

What does Tan Jincheng want? Shell company resources, technological accumulation, and a cooperative relationship with Mitsubishi. As for an industrial base, he doesn't really care.

The Xiangcheng Industrial Base and the Yongzhou Industrial Base have been working on this for several months but haven't produced a new SUV yet. The technological upgrades required after acquiring the vehicle will be substantial, and it's not much cheaper than building our own factory.

In addition, the SUVs produced at the Xiangcheng industrial base have a notoriously bad reputation, which has almost ruined Changfeng's reputation for quality. This speaks volumes about the management and the workers' attitudes.

Once it's back in my possession, another major upheaval is inevitable.

Tan Jincheng is willing to raise workers' wages and doesn't mind that the overall wage level of workers is higher than that of the industry average, but he cannot accept workers who take advantage of the situation and ruin the quality of the industry.

"That's all I wanted to say. Mr. Li, you can consider my opinion. We'll be leaving now."

The conditions have been laid out; whether Li Jianxin can accept them depends on whether he can accept reality. According to the normal course of history, if they don't sell this year, they'll have to sell at a bargain price next year, and then they won't have any other choice.

In fact, the terms offered by Tan Jincheng were quite favorable.

By returning the off-road vehicle business, Changfeng Group can continue to make money steadily, generate revenue for the local government, and resolve some of the employees' emotional issues.

In addition, they promised to build an electric vehicle factory in Xiangcheng, which would solve some employment and tax revenue issues. Neither of these seems like a free lunch.
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Li Jianxin did not attend the welcome banquet organized by Xiangcheng City Investment Group that evening.

The proposal that Tan Jincheng presented today was quite impactful for him. Giving up sales of more than 2 SUVs a year was indeed very tempting.

However, he was somewhat unwilling to change his attitude and persuade the board members to fully support the merger plan.

"Did Mr. Tan meet with Mr. Li this afternoon?"

The welcome banquet was a buffet, and a number of suppliers and other unrelated people also joined in, all in an effort to build relationships and meet more people.

Tan Jincheng didn't care. If you, the host, don't care, why should I? Every place has its own style.

"Yes, I had tea with Mr. Li this afternoon. He said he wanted to attend my wedding last time, so I sent him an invitation."

Zhou Kai smiled noncommittally. "You're kidding me. You sent an invitation and now the person can't even attend the banquet in the evening? We were just agreeing to get this annoying brat drunk together at noon."

"Don't worry, I didn't do anything malicious. Cooperation and win-win has always been my attitude. However, Mr. Li, please arrange the negotiations as soon as possible. This is my personal suggestion to you, and it will definitely be beneficial."

If you keep dragging this out, the subprime crisis in the US will fully erupt, and then I really wouldn't mind putting more pressure on you.

(End of this chapter)