2003: Starting with Foreign Trade

Chapter 772: Another blockbuster!
P.S.: It's the 1st, could you please give me some guaranteed monthly votes?

Once you find the right direction and achieve a technological breakthrough, how simple is it to do one thing?
To put it another way, it's like a man transforming from a boy into a man, or like opening the door to a new world after visiting a club.

Since successfully completing the BMW battery project in cooperation with BMW, the technological evolution of the former Jinshidai, now the battery division of Weilai Group, has been like a complete transformation.

In the same year, the restructured Weilai Group signed a strategic cooperation agreement with BMW Group on the battery project.

The battery packs needed for BMW vehicles will be supplied by the battery division of the Weilai Group. Weilai's battery brand, named 'Xuanwu', will appear in BMW's electric vehicles in the future.

I don't know when it started, but making batteries seems to be like giving birth. Ten months of pregnancy is not difficult for everyone, but naming them is a real headache, and the names are all kinds of things.

BYD's batteries don't even have a proper name yet.

Since Weilai's batteries already have a major client like BMW, it seems a bit unreasonable not to have a brand. Everyone had a headache when it came to naming it.

In terms of form, it doesn't have the blade-like shape that BYD will have a few years later. In terms of a set of technical data, it overlaps with mainstream naming conventions, which makes it confusing not only for consumers but also for industry professionals.

This is very detrimental to brand marketing; naming is both an art and a skill.

After a long discussion, Jiangling Motors relaunched the Kirin brand, so Tan Jincheng decided to use "Xuanwu" to define the battery brand name for Weilai.

Xuanwu, in the Five Elements, corresponds to water, is not afraid of fire, and also symbolizes longevity, making it a perfect fit for a battery brand.

After the battery gained fame, their luck seemed to improve as well.

Last year, based on the technology mastered by Weilai, the world's largest Zhangbei energy storage demonstration project took the initiative to invite Weilai Group to participate. This was the first project of the "Golden Sun Key Project" jointly launched by the Ministry of Finance, the Ministry of Science and Technology, the National Energy Administration and the State Grid in 2009.

It is also the only power supply project among the smart grid projects, with a total investment of over 10 billion yuan.

Being able to participate in such a large-scale key project is itself an affirmation of the company's technical strength; starting this year, Weilai has welcomed a new key customer, namely Yutong Bus.

Although the number of customers is not large, they are all very well-known. BMW needs no introduction, and Yutong now has a considerable market share in the domestic bus industry. In addition, in the past two years, the company has mainly promoted new energy vehicles for the public sector.

In addition, car companies like Zhongtai and Lifan are also currently using Weilai batteries, but they are using very small quantities.

Although Weilai mainly focuses on ternary lithium batteries, it has also developed lithium iron phosphate batteries. Hybrid vehicles use lithium iron phosphate batteries, while pure electric vehicles use ternary lithium batteries, which are two different sectors.

BYD was truly amazed after disassembling the ES6.

If we're talking about advantages in terms of exterior and interior design as well as service, the Qin's exterior design is also quite good. Consumers have different preferences when it comes to aesthetics, so the overall difference isn't that significant.

However, it is remarkable that Weilai has now mastered battery technology, one of the three core technologies of new energy vehicles, and has reached a leading position.

"I always thought that you were just like those other small manufacturers, trying to scam some subsidies. After all, your Yuechi A1 sells so well, there's no need for you to invest in new energy vehicles. But now it seems you're serious."

It's not that Brother Boatman doesn't believe it, but everyone is doing it now, even though Tan Jincheng has repeatedly and publicly announced that he will invest heavily in the new energy vehicle sector.

Every business owner has boasted at some point.

Dizi will also face various doubts, and few people believe him. In addition, even large companies like Dongfeng and Changan will be questioned. FAW and SAIC have hardly made any significant moves in the field of new energy vehicles.

Therefore, it seems that Tan Jincheng's desire to acquire Nvidia shares is not just hype, but a real and tangible fact.

After the end of April, news that Tan Jincheng intended to acquire a 10% stake in Nvidia, the world's 18th largest semiconductor company, for $10 billion had already spread within a small circle.

On Wall Street, after several communications with Shen Nanpeng, Sequoia Capital agreed to help Tan Jincheng get things done with the U.S. Department of Commerce.

The reason why Red Shirt was willing to help was simple: it was profitable for them. As of April 30, 2012, Nvidia's stock closed at $13, with a market value of just over $8 billion.

Tan Jincheng acquired the shares at a 25% premium, and Sequoia Capital sold some of its shares, making a fortune.

In addition, Tan Jincheng promised that even if the investment failed due to rejection by the U.S. Department of Commerce, he would still pay Sequoia $2000 million in consulting fees.

Capital operation is all about sharing the spoils and profits equally, which makes it much simpler to operate.

Huang Renxun's side had no objection to the cooperation with Tan Jincheng. The Chinese market has always been a major market for chip consumption, occupying a huge market share in the world.

In 2022, Nvidia held 85% of the global GPU market share, highlighting its dominant position.

Ten years ago, in 2012, Nvidia's market share in China was not even that high. Huang Renxun also coveted such a large market and entered China through Weilai Auto, which was also profitable for Nvidia.

The world's 18th ranked semiconductor company, that's pretty impressive, isn't it?
But that's not actually the case at all. If the internet is a monopolistic industry, then high-tech industries like semiconductors are far more monopolistic than the internet industry. It's definitely a winner-takes-all industry.

Why do American capitalists love investing in high-tech industries like chips and biotechnology? It's not because they're so great and want to drive world progress, but because there are huge profits involved.

Which capitalist wouldn't be tempted by an industry where the absolute winner takes all?
18th place sounds impressive, but it's actually nothing special. Coupled with Huang Renxun's capricious style, Nvidia is practically on the verge of bankruptcy at any moment. Sequoia Capital and a host of other investment institutions have invested for so many years, and although they have made considerable profits, they have ultimately failed to make any waves.

At this critical moment, facing the transformative era of mobile internet, no one knows how Nvidia will perform in the future, and they urgently need a new investor to join them and share the risks.

Tan Jincheng, with his Chinese background, is not the best choice, but he is certainly a good one. In addition to helping them share the risks, he can also open up the Chinese market.

The most important point is that Tan Jincheng is willing to pay a premium of 25%.

On May 4th local time, Madison Square Garden welcomed a special guest.

"Seriously, you actually watch NBA games? How do you have the time for that?"

Shen Nanpeng, who accompanied Tan Jincheng into the venue, still couldn't quite believe what had just happened.

Due to the time difference, NBA broadcasts in China are mostly on weekday mornings, which is when Tan Jincheng should be at his busiest. Logically speaking, Tan Jincheng should not have had any time to watch the games.

Shen Nanpeng had originally prepared some materials and lines for Tan Jincheng to say when facing the media, but the guy didn't need them at all. He knew the games Lin Shuhao played during his crazy period like the back of his hand.

He even called Carmelo Anthony "Melo"!
He even remembers Cameron's classic games during his time with the Nuggets very clearly, saying he is a Cameron fan!

This sounds absurd no matter how you look at it. He couldn't be sure if he was a fan or not, but he was certain that Tan Jincheng was known as a workaholic and definitely didn't have time to watch games frequently on weekdays.

How did he know this?
Unlike Tan Jincheng's operations in China, after Sequoia Capital took on this deal, they went on a massive campaign to promote Tan Jincheng on Wall Street. It's the American Dream, after all; they are best at creating personal idols, especially business idols.

People like Bill and Zuckerberg always boast about how hard they worked and how talented they were, but they never mention the backgrounds behind them.

In truth, Factory Manager Ma is one of the most exemplary figures of the American Dream. His journey is quite inspiring, even though he was originally an illegal immigrant.

Before Tan Jincheng came over, he did tell him that he would be watching an NBA postseason public appearance, but he didn't say which game it was, let alone the Knicks. Was he really that well prepared?

"Of course, I grew up watching Melo play. If you ask us who we support in the NBA, it would definitely be Yao Ming and Yi Jianlian. But everyone has their own favorite stars, so don't worry."

Haha, Shen Nanpeng is right. He really doesn't have time to watch the NBA right now. And given his current status, he can't openly express any hobbies he might have. Unlike in the US, businessmen in China are better off being more reserved.

But he wasn't lying. People born in the 1980s don't have many forms of entertainment. Games and sports occupy most people's time, with football and basketball accounting for the largest share of sports. The small business owner in his previous life wasn't very busy, and he still had time to watch a game occasionally.

Among NBA stars, he does indeed like Melo; his sharp offense is a pleasure to watch.

As for why it wasn't LeBron James?

"The Knicks have had a bad year. They can't beat the Heat. Melo's prime is over. Sigh."

With a roster full of injured players, including Carmelo Anthony, who was previously named one of the top 10 surprises of the 11-12 season by the American media, Linsanity has also missed the season due to injury. He is currently sitting on the bench in a suit, cheering the team on.

When he entered the venue, Lin Fenghuang even came over to greet Tan Jincheng, who was sitting in the VIP section.

"You actually watch the game? Don't forget why you came today. Remember to say hello when the camera pans over."

"I know, I know, it won't interfere with either of them."

Opportunities to watch an NBA game live are rare, making this a unique experience for Tan Jincheng.

The Knicks faced off against the Heat's Big Three, with several of the best rookies of 03 making their appearances, generating a lot of buzz. However, as far as I remember, the Knicks still lost.

The scene reflected this, with Carmelo Anthony playing with an injury and having a mediocre performance, while the Big Three were incredibly dominant.

But for him, business is the most important thing. Watching the game is just an opportunity to make a public appearance and build momentum for himself. He still needs to be very careful about what he says and does.

This match was also broadcast live in China, marking Tan Jincheng's first public appearance and publicity campaign during the acquisition of Nvidia.

The bustling city of New York is a paradise for the wealthy. In the US, if you have money, the treatment you receive is incredibly good.

When the camera panned to Tan Jincheng, he greeted the audience openly and generously, regardless of whether they recognized him or not. Following this game, numerous media outlets in New York broadcast footage of Tan Jincheng at Madison Square Garden, followed by extensive interviews with him.

These are all basic tactics used by Wall Street to 'create stars'.

"Haha, not bad. Actually, you don't need to be afraid of anything. Your reputation with Old Mi is actually quite good."

After the camera panned away, Shen Nanpeng chatted happily with Tan Jincheng. The noise in the arena was so loud that the two of them had to raise their voices as well. Despite the Knicks being behind, the atmosphere in the arena was still very enthusiastic.

Watching a game live is a completely different experience from watching it on TV. Even watching a national football team match live is a completely different feeling.

"How is your reputation good?"

"You became famous at a young age, and you did it all through your own hard work. If you were in America, you would definitely be an idol and a Wall Street tycoon."

"Haha, you flatter me. Actually, we are all driven by the times."

You're just bragging. If I were on the American side, I might make a small fortune, but I definitely couldn't do this much, not even as a reborn person.

Mr. Ma's previous entrepreneurial projects were all acquired in the end, especially PayPal. Did he not see any future in it?

The environment in China is much more relaxed than in the US; at least in the US, you wouldn't dare evade taxes.

Ningbo.

"See that? That's your dad."

Tan Jincheng flashed across the TV screen, and almost two-year-old Tan Jinchuan ran to the TV, babbling as if he recognized him.

Today is a workday, but the Tan couple don't have that concept anymore. Tan Lihua, who is 50 years old this year, has gradually gotten used to retirement life.

Besides, his eldest son found him some things to do, so he wasn't particularly bored.

"Jincheng's business is getting bigger and bigger. He must have something important to do in the US this time, right?"

We have a guest at home today, it's Tan Lixin.

Tan Lixin originally ran a steel business, but in recent years, due to the development of the real estate market, the prices of construction commodities, including steel, have risen significantly.

For small business owners, rising commodity prices do not necessarily mean making money; on the contrary, they face extremely high risks and the possibility of bankruptcy at any time.

They differ in terms of capital and understanding, just like when buying stocks. They also lack the futures hedging capabilities of large companies. If they hoard goods at high prices, they will suffer significant losses when the market declines.

In his previous life, Tan Lixin had also had a tough few years, facing immense financial pressure and borrowing a lot of money from loan sharks. Tan Jincheng had even lent him some money back then.

However, his business has become much easier in this life. He owns an electric vehicle shop, which earns him a lot of cash every year. In addition, everyone in Yicheng knows about his relationship with Tan Jincheng, making it much easier for him to talk to banks.

Tan Lixin has been working hard for many years and his business has grown bigger and bigger. He is definitely a good person who knows how to handle things. Even though Tan Jincheng is his nephew, he can still put aside his pride after he becomes successful. He is definitely not like some relatives in his hometown who like to act like elders in front of Tan Jincheng.

However, as Tan Jincheng's business grew bigger and bigger, it became increasingly difficult for him to see Tan Jincheng. But that didn't matter, because after all these years of interaction, he had become quite familiar with the Tan family.

Tan Lixin was one of the few relatives who could frequently visit the Tan family villa. He would visit the Tan couple whenever he had a reason.

However, he did come here today because he needed Tan Lihua's help.

After getting married, Hu Xiaoyong, the brother-in-law's younger brother, became much more stable. In the past few years, the two of them have jointly opened several Shanchi dealerships, and Hu Xiaoyong has started to seriously manage the electric vehicle dealership business.

See? You're surrounded by tycoons. It's hard for you to just lie down and relax. Hu Xiaoyong, who used to only think about having enough to eat and drink, has now developed ambitions.

The Flash store was doing well and making a good amount of money, but in terms of social status, it was lacking. He didn't dare to act recklessly using Tan Jincheng's name, since the two weren't really related.

Hu Xiaoyong, who had developed ambitions, gradually developed the idea of ​​opening a 4S store after seeing the hot sales of cars under Weilai.

The Yuechi A1 is very popular in Yicheng, a third-tier city.

In April, the Yuechi series sold a record-breaking 21124 units, a precipitous lead over the second place (17417 units). Among them, the Yuechi A3, which was launched in its first month, sold 5117 units.

Another bestseller!
If the Yuechi A1 sold so well and people were still somewhat hesitant, then the performance of the A3 in its first month on the market makes it clear to everyone that Weilai Auto has absolutely established itself in the market.

In the SUV market, there are two blockbuster models that are practically invincible on the track.

As of April this year, the Yuechi series has sold a total of 74244 vehicles, with total sales exceeding 40 vehicles.

With sales exceeding 40 units in just three and a half years of mass production, no one expected Wei Lai's performance to be so outstanding. He has managed to make the most of the small SUV market.

Hu Xiaoyong is ambitious, and Tan Lixin also wants to leave himself a way out. The steel business is really exciting. If it weren't for his nephew's connections, it wouldn't have been so easy to do these past few years.

Tan Lihua did indeed have plans to develop new businesses. At that time, he was interested in real estate, but after listening to Hu Xiaoyong's advice, opening a 4S store was also a good idea, since it was an industry he was somewhat familiar with.

Having been in business for several years, Hu Xiaoyong was quite shrewd. He kept his eyes fixed on Tan Jinchuan, who was moving around in the living room, afraid that he might get sick.

"Stay for dinner tonight. I'll talk to his mother and ask her to ask Zhang Yong about it."

Tan Lihua didn't take on everything himself. He had heard his son say before that Weilai Auto had a complete system for its dealer network, and it wasn't something anyone could do, especially if they wanted to sell the Yuechi series.

A 4S store can easily sell over a hundred cars a month, and that was when they only had one model. Now that the A3 is selling so well, there are bound to be even more people who want to join.

He will definitely help relatives if he can, but he will never cause trouble for his son.

He could contact Zhang Yong directly, and Zhang Yong would definitely agree out of respect for the boss's father, but he couldn't just start this process casually.

It would be more appropriate for Gu Qingqing to handle this.

"Alright, then I won't stand on ceremony, brother. You have to get us some good seafood tonight. We can't get any in Yicheng even if we want to."

Tan Lixin laughed. Actually, dealing with Tan Lihua and his wife was easier for him, since he was the younger brother and it was normal for him to act like a younger brother. But he felt a little awkward in front of his nephew.

Hu Xiaoyong was the same; he could put himself on the same level as Tan Jincheng, but he was still very uncomfortable facing the powerful Tan Jincheng.

"No problem, we'll go to the market together in a bit, and you can buy whatever you want to eat."

Tan Lihua is generally very happy when people from his hometown come to visit. In most cases, he is happy to receive them. Moreover, this cousin is very good at interpersonal relationships. He hasn't been back to his hometown much in recent years, and his parents have received a lot of care from him.

April is a very important month for Weilai Auto. The performance of the new car's official launch and mass production will affect the production and sales plan for the following year.

Will the market accept the replacement of the Yuechi A1? And will the newly launched Yuechi A3 be able to maintain its popularity? Nobody knows.

In addition, April is not a peak sales season.

No one expected the newly launched Yuechi A3 to sell so well. Last year, the mid-size SUV BYD S6, which was launched at the same time, only sold a few hundred units that month. This one is much cheaper than the Yuechi A3.

In fact, including Tan Jincheng, everyone was quite surprised that the Yuechi A3 sold more than 5000 units in its first month. In terms of production capacity planning, Weilai has always been relatively conservative. In addition, given the limited market growth last year and this year, they didn't prepare much stock.

Preliminary market research did indicate that the Yuechi A3 was highly anticipated, but there was no reason to be so optimistic.

After the data came out in the first two weeks, Zhang Yong immediately gave instructions to manufacturing manager Zhang Li to ramp up production and ensure that delivery would not be affected by insufficient capacity.

Weilai's delivery time has always been commendable.

As a consumer, he feels he can tolerate even price increases as long as delivery is made as soon as possible, but he absolutely cannot tolerate a long delivery period.

Tan Jincheng had tried the scarcity marketing strategy before, but it was never excessive and didn't last long. He doesn't actually like the tactics used by companies like Apple and Lei Jun.

Tan Jincheng, who lives far away in the US, only learned today that the Yuechi A3 is selling very well; to be honest, he was a bit misled by the sales figures of the BYD S6 in the months before its launch.

As both are mid-size SUVs, although I have confidence in the Yuechi A3, it's reasonable to be conservative in the first month, right?
Who would have thought the market would go crazy like this? It seems the marketing tactics of the past two months have had some effect.

With total sales exceeding 40 units, 50 units is no big deal; the goal for the Yuechi series is to reach 100 million units.

In fact, while the Yuechi series was selling very well, there was another piece of data that was buried and not mentioned by the media.

That is the number of installations of the Weilai APP and the actual sales volume of ES6.

(End of this chapter)