2003: Starting with Foreign Trade

Chapter 696 Finance Supports Industry
While it's impossible to calculate investment returns in the primary market for a given year, the returns in the secondary market are readily available.

Even Tan Jincheng, who was already mentally prepared, was still shocked.

He grinned and said, "Damn it, we're just playing around. Those short-selling and long-selling institutions on Wall Street have made a fortune during this subprime crisis."

This is probably the greatest allure of finance.

Ride-hailing and food delivery apps have burned through hundreds of billions or even trillions of yuan, and new internet car manufacturers have invested hundreds of billions of yuan and are losing billions or even tens of billions of yuan every year.

Recently, founders have been losing tens or even hundreds of billions of dollars in assets.

You lost money, I lost money, even Ma Huateng and Ma Huateng became the richest men in China. Where did all the money go?

So many companies, especially internet companies, are willing to go public even at great personal cost, and countless companies have committed fraud to go public, all because there are huge profits involved.

"It's definitely profitable. I doubt Flashpoint Technology's profits this year will even be this much."

Gu Qingqing asked this question.

"Haha, what profit margin is that much? Having this sales revenue is already incredibly impressive, okay? You still want profit? Last year, FlashTech only made a few hundred million."

This is a closed-door meeting, so Tan Jincheng doesn't need to be so reserved in his speech. They're all on the same side, and they wouldn't spread rumors around; there's no benefit in it for them to do so.

The 50 colleagues at ByteDance's advertising platform are all highly educated and experienced, and are undoubtedly excellent. In addition, from the perspective of training costs, the employee costs of ByteDance's advertising platform are also much higher.

However, the fact that the revenue generated by 50 people can be so different from that of several thousand people still made people like Tan Jincheng, who are in the business of manufacturing, feel a bit distorted.

"If you can't refuse it, then you can only embrace it; finance supports the real economy."

Huang Ming could tell that the boss was somewhat uncomfortable with these profits. This discomfort wasn't about the company's profits, but rather about the serious gap between different industries.

The idea that finance should support the real economy often sounds like a joke.

However, this is indeed the case when it comes to ByteDance's advertising platform. The money that ByteDance has earned over the years has been basically invested in real industries, and the incubation of Welai Auto is the best proof of this.

This achievement alone is enough to vindicate ByteDance's advertising platform.

Tan Jincheng laughed and said, "Ha, no need to comfort me. We'll still make money as we're supposed to. I don't have any moral fastidiousness."

It's just a sentimental remark. Without the massive data engine as a harvesting machine, Flash Group's development wouldn't have been so smooth. Being able to reap profits in the financial market is also a manifestation of Flash Group's capabilities.

A qualified group company must have the ability to raise funds in the financial market, which has nothing to do with whether it is listed or not.

"Alright, let's base it on 50 billion yuan and set the tone for investment in 2010."

"In 2010, we mainly focused on investing in new energy power battery systems. You should all know about the project that Jinshidai is cooperating with BMW."

Huang Ming and Cheng Linfeng had virtually no say in the company's strategy, but with the company making so much money, they easily amassed fortunes exceeding 100 million yuan.

Huang Ming at least gave up some resources in the early stages, but Cheng Linfeng was just incredibly lucky. He got some shares when the company expanded, and it's fair to say that Tan Jincheng gave them to him for free.

If you're just following along and expect to win without effort, then talking about strategic influence is just being ungrateful.

"As Mr. Huang said, our goal is to use finance to support the real economy. We have already incubated a successful company like Weilai Auto. Next, the main task of ByteDance Engine is to help Jinshidai grow."

Flash Group, Weilai Auto, and ByteDance Engine appear to be three independent entities, but through equity penetration, these companies are actually intricately connected.

Orange Technology is also part of this system, and the ultimate controller of these major systems all points to Cheng Yue Co., Ltd., an offshore holding company.

There are actually quite a few people who have benefited from the entire equity transfer process. For example, Jinxin Times, which seems to have nothing to do with ByteDance Engine, would not have been invested in by Tan Jincheng if there was no connection at all.

This doesn't make business sense.

"Mr. Huang worked hard throughout 2009 and has a certain understanding of the battery industry. This year, we will allocate 30 billion of the 50 billion to the primary market. Of course, not all of this 30 billion will be invested in power battery systems. If Mr. Huang has any other projects he is interested in, he can also invest in them."

"The remaining 20 billion yuan will still be placed in the secondary market, but we can focus on Hong Kong stocks and US stocks, and reduce our investment in the domestic stock market."

The repayment cycle in the primary market is too long, and it is impossible to use all of the 50 billion yuan in the primary market, as this would be detrimental to the company's cash flow.

With 20 billion in the secondary market, even if there are losses, we can quickly reduce our holdings to replenish working capital. "Okay, should we continue with the previous holdings from Hong Kong Company?"

"Yes, you can buy more Apple products. Their iPhone 4 will be released this June. You've all used the 3GS, so you should be able to feel the appeal of this phone."

"Traditional mobile phone businesses like Nokia and Motorola will definitely be greatly impacted; the era of smartphones is coming."

"I am very optimistic about Apple iPhones, and ByteDance's investment platform can heavily invest in Apple."

苹果的股票已经从2009年1月份最低的78美刀涨至现在的210美刀以上，算是美股科技股反弹最快的那一批，股价在发布3GS之后就进入了快速上涨的通道。

Tan Jincheng believes that Xiangjiang Jinqing Investment's cost basis is around $120, but even with the current share price of over $210, he still thinks it's worthwhile to continue adding to his position.

Strictly speaking, the iPhone 4 was the first Apple phone to officially enter the Chinese market, and it was this phone that sparked a revolution in the domestic smartphone market.

Before the iPhone 4, there were already several smartphones in China, such as the Meizu M8 released on February 18 last year, which used the M8 operating system based on the Windows CE 6.0 kernel, which was independently developed by Meizu.

In the era before Android became popular, this phone, which received high praise from Microsoft, can be said to have changed the landscape of the domestic mobile phone industry.

The Meizu M8 was also known as the king of domestic mobile phones, and it caused a huge sensation. However, Tan Jincheng still gets a toothache whenever he thinks about Huang's attitude.

Just wait, once Lei Jun visits your company, you'll be crying.

However, it must be said that the M8 was indeed a successful model. Huang (Huang) was truly insightful in terms of foresight. The M8 can be said to have made domestic mobile phone consumers truly understand what a smartphone is.

That said, although Mr. Huang rejected Tan Jincheng, he still used batteries from Dexian Electronics, specifically 1200mAh lithium batteries manufactured by Dezi Electronics, which were much cheaper than BYD's quote.

Comparing the quality of the two mobile phone batteries, Dexian Electronics' battery is not much weaker than BYD's; the quality difference is not significant, but the cost is much lower.

In the field of smartphone batteries, Dexian Electronics snatched a lot of orders from BYD. At that time, BYD may not have realized how fast the changes in smartphones were happening, and their battery focus was on major customers such as Nokia and Motorola.

Dexian Electronics can be said to have a well-thought-out strategy, coupled with its technological accumulation, making it relatively easy for them to win orders from these 'small manufacturers'.

"You're adding to your position at over $200? Looks like you're really bullish on Apple."

Tan Jincheng has a requirement for the senior executives of companies with internet-related businesses: to buy the latest mobile phones on the market. This is the case for companies like Orange Technology and ByteDance.

Cheng Linfeng and his group each had several mobile phones and tried them all, but in terms of experience, smartphones were still the best.

"That's right, I have high hopes for this company. If the iPhone 4 can enter the domestic market, it will cause a huge sensation, even greater than the M8."

Tan Jincheng also bought the M8. To be honest, he really couldn't get used to using a Windows system phone, but it has to be said that it is currently the best smartphone in China.

However, there are indeed many problems. What truly made Meizu accepted by the public was its phones after switching to the Android system.

The people in the meeting room exchanged smiles. Apple has a high profile and its products are quite good, but the boss said that he could challenge mobile phone giants like Nokia and Motorola.

In other words, it was a closed-door meeting. If it were held in a public setting, it would definitely cause a lot of controversy.

However, none of the people in the conference room questioned Tan Jincheng's judgment. The cash and stocks lying in the ByteDance account alone left them no room for doubt.

"Alright, that's enough, go ahead and make the arrangements. I have other things to do, so that's all for today."

There were no objections, so let's proceed.

"Oh, right, let's work on this year's reward plan. Our entire system has had a bumper year, so let's make it a bit more exciting at the end of the year. But as I said before, ByteDance's advertising platform must keep a low profile."

"Haha, I get it. There are dozens of us here, each of us is a millionaire or more. If things really escalate, we'll definitely attract a lot of hatred."

Not only from the outside world, but also within the entire FlashDrive system, he is somewhat hated. Orange Technology's employee benefits are good enough, but they are simply not enough in the face of ByteDance's massive engine.

Therefore, the treatment of employees at ByteDance's advertising platform is kept confidential. Anyone who crosses this line will face serious consequences.

"Alright, that's all for now. I'll be going now. You guys keep going."

(End of this chapter)