2003: Starting with Foreign Trade

Chapter 726 The Merger of Jinxin and Weilai
"Uncle, I know you're in a hurry, but don't rush."

"I guess it's because the people below don't have any martial ethics. It's just that our research institute is still in the process of being established, and the personnel department may be trying to make a good impression. I'm not really sure about the specifics, let me ask first."

The boatman was so angry at Tan Jincheng that he laughed. This kid was really shameless. He made the call just to complain a bit, but who knew that this kid would deny it to the death.

Damn it, what company would start a new company just to poach someone? Would the HR department go to such lengths without your permission?
Moreover, such a professional approach—who else but someone as lowly as you, who dares to hand out business cards at Tencent headquarters, could come up with this?

"Stop talking nonsense. I wouldn't dare be your uncle. You poached 40 of my battery technology talents at once. Aren't you being a bit too ruthless?"

It's unavoidable for companies to poach each other's employees, but he still feels heartbroken to see so many technical talents leave at once.

They're poaching people with three to five years of work experience, who have already been trained and don't have long work experience. The cost of poaching them is also low, which really is what he always talks about as cost-effectiveness.

"Uncle, you can't say that. We don't even know if we did it or not. Besides, even if we did, it just means everyone has their own agenda."

I'll just deny it to the death, no matter what you say. What if you ask me for something if I admit it?
You're a senior, what can you do if a few of your people are poached?

"He seems like a young man, and everyone has their own ambitions. Oh well, Wei Lai has done quite well this year. Are there any difficulties in setting up the research institute?"

The boatman smiled wryly. Besides complaining, he also wanted to get some benefits from the call. As long as he could get Tan Jincheng's verbal approval, he would definitely get something in return.

But this kid is really cunning; he'll never admit it, even if it kills him.

"It's still early. The land has only just been approved, and the construction period is still there. There's no use in rushing it."

These days, demolition and relocation are very lucrative, and demolition usually means getting rich overnight. Although the research institute has thousands of acres of land, the demolition is not difficult. In addition, with the cooperation of the government, the work is progressing very smoothly.

Speaking of Beicang, it has developed very quickly in recent years. With various demolitions, many areas that used to be rural have been transformed into wealthy places by these demolitions. However, very few of them have managed to hold onto their wealth.

In general, there are people who set up scams in demolition areas, some even starting several years in advance. In his previous life, Tan Jincheng often heard news about people losing all their demolition compensation or being scammed.

"Hey, you've got some skills. You recruited General Manager Yu from BAIC and also got Director Hu from Longchuang. This research institute is something else."

Yu Liguo is a well-known figure in the automotive industry, and his official debut at the Beijing Auto Show confirmed the previous rumors. However, what was unexpected was that Hu Zhengnan, the design director of a well-known independent design studio in China, also joined Weilai Automotive Research Institute and was appointed as the vice president.

Longchuang Design has collaborated with BYD many times, and has participated in the design of popular models such as the F3. I have also met Hu Zhengnan, and my impression of him is that he is very capable.

Sigh, why didn't we think of poaching him back then?
"Haha, luck, luck, maybe my luck has come, anyway, I'm quite lucky."

Tan Jincheng was quite proud of this. He had poached 40 technical talents from Dizi, and now he had a leader. In addition, with the existing R&D personnel from various subsidiaries, the initial estimate for the Weilai Automotive Research Institute should be more than 2000 R&D personnel.

This scale will be nothing in 10 years or so, but among domestic brands today, it is already considered a pretty impressive car company. Dizi's current automotive engineering research institute has only more than 3000 R&D personnel.

Of course, there is more than one research institute of their kind; Wei Lai only has one.

"Alright, alright. If you really need help, we can help you, but don't try this trick again. Your uncle has been having a terrible headache lately, so don't make things worse for me."

Denying everything, he couldn't get anything out of Tan Jincheng, so the boatman didn't want to continue arguing with him. But he had to remember this.

"Uncle, stop focusing on the lower and middle levels. Your company is in a lot of trouble right now. Take a closer look at the upper management."

"Oh, right, let me make this clear first, I don't mean to say I'm trying to poach your top executives, I'm just offering a friendly reminder."

BYD shares, which saw a surge in stock price last year and formed a double top this year, have been declining for nearly a month since the beginning of April. The "Boatman Brothers" family and executives all have plans to reduce their holdings.

This is a process that almost every listed company has to go through when its stock price soars and it becomes eligible to exercise its options, not to mention the huge trouble that Dizi is currently facing.

It's understandable that the executives had other ideas; Xia Bing was poached by Boss Ying after the incident.

Weilai Auto's current business doesn't conflict with Dizi's. The Automotive Engineering Institute only has about 3000 people in total, and they poached 40 people at once. They will definitely continue to poach people in the future. This is indeed quite unethical.

There's no way you'll get any benefits, but a well-intentioned reminder can certainly earn you some.

According to Tan Jincheng, Boss Ying had already started contacting Xia Bing last year or even earlier. Xia Bing, who single-handedly created BYD's best-selling model F3 and later worked at Zhongtai, is known as the "King of Measuring Tapes".

You can say he only knows how to copy, but such executives are really useful to the company. The F3 and the Porsche Tai are both lifesavers. Without these two cars, BYD would not be BYD, and the company probably wouldn't have survived until it was time to cash out.

Hehe, I wonder if Brother Boatman will prevent Xia Bing from switching jobs after he got his warning. If so, will Zhongtai go bankrupt ahead of time?

As fellow Zhejiang-based automakers, if Zhongtai can't sustain its vehicle manufacturing business, it will inevitably return to the parts business, which will only benefit Weilai.

There was a moment of silence on the other end of the phone, and after a long while, the boatman said, "Thank you for reminding me."

Tan Jincheng said he wouldn't target their senior executives, but he didn't take it seriously. However, he believed Tan Jincheng's words.

Regardless of this guy's reputation, the two companies have completely different styles. This time, he's only poaching talent related to batteries, not those related to gasoline vehicles.

But as he said, other companies may not be so lucky, and stabilizing senior management is indeed something he must do now.

"Uncle, you're too kind. I just wanted to say something. I'm sure you've already thought about this. Let's leave it at that for today. We'll get together again when I go to Shenzhen."

"Don't come here, I'm afraid you'll come here to hand out business cards."

"Uncle, you've really wronged me. I really didn't know anything about this."

"You're really something, this stubborn refusal to admit anything is definitely the makings of a boss; alright, that's enough, I'm not going to argue with you anymore."

Although he didn't gain anything, the boatman felt a little better after hanging up the phone. His life had been a bit depressing lately, and chatting with a colleague who was 20 years younger than him and changing the subject did help to relieve his stress.

Silent all night.

The next morning, Zhang Xuhui arrived at the company early and discussed the reward plan with Lü Ruifeng. He then mentioned the merger between Jinxin New Energy and Weilai Automobile.

"merge?"

Lu Ruifeng was somewhat surprised. His personnel records were still with the Institute of Physics. In addition to being the technical director of Jinxin New Energy, he also had another identity: a director of Jinxin New Energy.

This represents the Institute of Physics, which holds a 12% stake in Jinxin New Energy. To be honest, Lü Ruifeng admires his small boss quite a bit. Jinxin New Energy has been investing and losing money ever since it started as a small design studio in Beijing.

It's rare to see a private company persisting for so many years despite the losses.

Private enterprises are more profit-driven and invest very little in continuous research and development; it's unclear how many years they will persist.

However, Lü Ruifeng was also rational. The reason he hadn't transferred his personnel file to Jinxin New Energy was mainly because he was afraid that Tan Jincheng wouldn't be able to hold on due to the continuous losses.

"Yes, I met with the boss last night. He said that continuing to lose money like this is not a solution, so he plans to merge Jinxin and Weilai and use the profits from Weilai Auto to conduct battery research and development."

"Weilai Auto is already profitable? That's amazing!"

Lu Ruifeng's thought process was a bit slow to catch up. Weilai Auto had only been selling cars for a few months, which was only about half a year in total. How could it be profitable so quickly?
"Haha, not counting the orders from April, we've sold over 49,000 Yuechi A1s. If we include this month's sales, it should be close to 60,000. We should be able to make a profit."

They didn't know about Weilai Auto's financial situation, but Zhang Xuhui knew that the break-even point for Yuechi A1 was 50,000 units; selling more than 50,000 units would generate a profit.

It's only April, and there's still more than half the year left. The boss merging the two companies at this time might not be without the intention of increasing profits.

Eight months! Selling 60,000 cars shouldn't be a problem, right? If we calculate a gross profit of 10% to 15% per car, that's at least 600 million! Wow.

"Awesome, haha, I'm definitely in favor of the merger. To be honest, the company atmosphere is great. I was really worried that we wouldn't be able to keep going because of the losses. Now I don't have to worry about that anymore."

Lu Ruifeng finally realized what was happening.

"However, I need to report this to the institute. I can't make the specific arrangements for the shares yet."

His role as a director was simply to relay messages; he couldn't actually make the decision on whether or not the merger would take place. But that didn't matter; the Institute of Physics would certainly take Lü Ruifeng's opinion seriously.

“Okay, it’s good that you agree, Mr. Lü. We still have to have a meeting in a bit, and the boss will be coming over soon too.”

"Haha, of course I agree. We have made breakthroughs in power battery technology. In terms of technical strength, we are already among the top in China and even the world. I'm really worried that the company will run out of funds and have to go out of business."

"Haha, that's right. In fact, most people in the company have this concern. Our company's biggest problem is funding."

Jinxin New Energy is not under much financial pressure at present. With the cash flow and loans from Dexian Electronics, plus the backing of Shanchi Group, it will not be short of money in the short term.

But everyone in management knows that, according to the boss's plan, Jinxin will be a money-devouring beast in the future, and the boss even wants to buy mines.

Zhang Xuhui is under less pressure. If Jinxin really can't hold on any longer, he'll definitely be transferred back to headquarters thanks to his connections. But the other managers don't dare to even consider that. In reality, everyone is under considerable pressure. If it were a state-owned enterprise, losses wouldn't matter, even if they lost money until retirement, because there would be government support. At worst, their benefits would just be slightly worse.

By the time Tan Jincheng arrived at the company, Zhang Xuhui had already distributed the meeting notice.

In addition, Lü Ruifeng also informed the two project teams about the 200 million yuan reward. The project teams consisted of a total of 20 formal experts, excluding some interns.

The amount distributed among each member ranges from a few thousand yuan to tens of thousands or even hundreds of thousands of yuan, which is considered a considerable income in Luzhou.

"Hi, Tan, thank you for your generosity."

Thomas was very lively; he greeted Tan Jincheng as soon as he saw him from afar at the entrance of the laboratory.

Yesterday I said the project team would be rewarded, and I didn't expect it to be arranged today. The speed is truly amazing.

Thomas received 10 RMB, which, when converted to Euros, is only a little over 1 Euros. It's not a lot for Thomas, but he's still very happy. After all, he's not going back to China for the time being, and 10 RMB still has considerable purchasing power in China.

"Haha, that's only right, as long as everyone's happy."

"Hehe, Tan, since you're so generous, I'll definitely find you an excellent designer when we get back."

The tall Thomas patted Tan Jincheng on the shoulder and whispered furtively.

"Haha, that's great. Remember to find me someone with a high profile, or even better, someone like your company's design director."

Tan Jincheng winked at Thomas. Foreigners are quite direct in this regard; there's no need to hide anything.

Thomas was clearly serious. After thinking for a moment, he said, "Hey, Tan, now that you mention it, I do think of someone who fits your requirements. I just don't know if they're interested in you guys."

"Oh? Tell me more. Come on, let's go inside and talk."

Goodness, Zhang Xuhui really put in the effort. Tobas has only been in China for less than three months, and he actually managed to pull some strings for him. Having an insider referral is much more reliable than coming to someone yourself.

“He is Chris Thomas from our company. He previously worked at Ford and was involved in the design of the Gulfstream G650. He is currently on leave.”

Chris Thomas was involved in the design of a motorcycle for BMW, as well as the BMW i8. The preliminary design work for this model has been completed, and it is just waiting for mass production. Since it has not yet been launched, he cannot say much.

Chris, who had finished the design, went on vacation. In Thomas's opinion, the designs that Weilai Auto has released so far are somewhat consistent with Chris's design language, which is why he made that statement.

"Chris? Oh, I've heard of him. His designs are amazing. Thomas, could you really introduce me to him?"

"Haha, I can't guarantee that, but I can mention it to him and show him the design works your company has published. If he's willing, you can sit down and talk."

"Thank you so much! If Chris agrees, I can go to Germany. Thomas, you have to treat me to some German beer when you go."

"That's no problem, but I heard that you, Tan, have a low alcohol tolerance. You even got drunk yesterday."

"Haha, that's not important. The important thing is that everyone is happy."

"Tan, you're right. As long as everyone's happy, that's fine. Okay, then let's leave it at that for now. I still have work to do. I'll give you an update once I've contacted Chris."

"OK, then I won't disturb your work any longer. I wish us a successful collaboration."

Tan Jincheng originally wanted to say that he wouldn't be staying in Luzhou for more than a few days, but after thinking about it, he didn't say it. In addition to today's internal meeting, Tan Jincheng also had to meet with shareholders such as Luzhou City Investment, the Institute of Physics, and Sequoia Capital to promote the merger of the two companies.

The shares in Sequoia Capital are easy to handle; he holds 10% of the shares in both companies. Similarly, he holds shares in both companies, one at 5% and the other at 10%, but overall, the situation is quite manageable.

The most troublesome one is Luzhou City Investment, and the Chuzhou City Investment is not easy to deal with. The most difficult one should be the shares of the Institute of Physics, which holds 12% of the shares in Jinxin New Energy.

After the merger, Tan Jincheng was naturally unwilling to let the Institute of Physics become the second largest shareholder of the new company. Moreover, as of now, apart from Dexian Electronics, Jinxin New Energy has no valuation to speak of.

In any case, it can't compare to Weilai Auto, which is already profitable.

Goodness, back when they first raised funds, Jinxin raised 5 million yuan for a 20% stake, while Weilai Auto only raised 1.8 million yuan for a 30% stake. After this merger, the valuation systems of the two companies have completely reversed.

The meeting went smoothly. Merging with Weilai Auto was like cozying up to a powerful company, and the executives, who had been losing money for many years, had no objections.

"Jinxin will later be renamed Weilai Luzhou Branch, and will be merged with the factory project currently under construction. The power battery project will become a department under Weilai Automobile. Does everyone agree with this?"

This was the first time Tan Jincheng had seen Zhang Xuhui chair a meeting. Zhang Xuhui, sitting in the middle of the office, was completely different from the jovial figure he had been at the barbecue stand the night before.

Indeed, mature men have more than one face.

"To add to that, after the merger, Weilai Automobile will also be restructured and transformed into Weilai Group. Although the power battery will be merged into an independent department, its status will be the same as that of the automobile."

Tan Jincheng was in charge of listening in, but he still managed to interject a sentence during the break.

Zhang Xuhui remained silent, only looking at the group of senior executives, including Lü Ruifeng.

They could tell whether the boss's words were true or false, and they didn't need to doubt the position of power batteries in the group's business. The reason he said it in public was just to reassure them.

What opinions could there be? It's better than the company running out of money and going out of business. With the financial support of Weilai Auto, whether it's financing, loans, or cash on hand, things are much better than they are now.

If there are no objections, then let's get started.

Zhang Xuhui was in charge of finding an auditing department to audit the finances, and Zhang Yong made the same arrangement.

He received a call from his boss on the day of the meeting. Zhang Yong also supported the merger of the two companies. In fact, like Tan Jincheng, he had the idea of ​​establishing a research institute as soon as the idea came to him.

It would be much more convenient to merge the two companies, with the research institute as the main body, to jointly research power batteries and new energy vehicles.

"Okay, then I'll also have the auditing department expedite the audit of the company's finances."

Then Zhang Yong added, "Oh, right, boss, there's one more thing. I need to go to Jingmen."

"Going to Jingmen? You can go, you don't need to report this to me."

Tan Jincheng was a little confused. There was no need to tell him about a normal business trip.

"Hehe, our marketing director, Mr. Yang, introduced me to a manufacturing manager. I have to go and check him out myself."

Yuechi A1 can sell more than 10,000 units this month. Weilai's production capacity is becoming more and more saturated. Zhang Yong felt that he had to find a strong manufacturing manager to share the pressure.

In terms of vehicle models, Great Wall Motors is the best target.

Tan Jincheng looked down on Didi, Geely and other design and manufacturing departments, but he admired Great Wall Motors. Compared to Didi, Geely and the other two companies, Great Wall Motors used solid materials and had decent workmanship.

"Haha, we've made enemies on all sides. The CEO of BYD even called me last night to complain about it."

Goodness, Zhang Yong personally went to Jingmen to poach the manufacturing manager of Great Wall's Jingmen branch. This guy must be pretty good, otherwise he wouldn't have gone to such lengths.

"Huh? Is that so? Haha, so what did the boss say?"

"Of course I'll deny it to the death; by the way, after May Day, some of the employees poached from BYD will be assigned to work in Ningbo. Since the research institute isn't finished yet, they'll be temporarily placed in Meishan. Keep an eye on it then."

The boatman already knows, so what's there to be afraid of? We'll just take it to Ningbo openly and honestly.

"Okay, no problem. I'll keep an eye on it. If I don't come back, I'll have the HR manager make arrangements personally."

He knew that his boss had poached thirty or forty people from BYD, and now he was going to poach people from Great Wall Motors, and then Mr. Yu jumped ship from BAIC.

Haha, it's not quite making enemies on all sides, but Weilai Auto, which is expanding, has indeed put a lot of pressure on its peers, especially those in sectors that share the same vision as the boss. They really don't hold back when it comes to poaching them.

The engine research team at the Luzhou factory has poached many relevant talents from Chery.

"Haha, I wonder what kind of person would be worthy of Zhang Yong's personal visit?"

Zhang Yong didn't mention his name, but Tan Jincheng was quite curious. Whoever could get Zhang Yong to come in person must be a well-known figure in the automotive industry in his previous life. It was truly something to look forward to.

"Let's go to the headquarters of Luzhou City Investment Group."

Zhang Xuhui had already made an appointment with the general manager of Luzhou City Investment Group in the morning, and he and his boss were going to have lunch together at noon.

(End of this chapter)