2003: Starting with Foreign Trade

Chapter 796 Adjustment of Investment Direction
A few years ago, Sun Tongyu joined Orange Technology.

His relationship with Sun Tongyu was rather complicated, and it was hard to say who was right or wrong. He just felt somewhat offended, as if a little kid had stolen his girlfriend away.

He made some minor moves, but didn't pay too much attention. He had absolute confidence in the online shopping field. It was just a small online shopping website without its own payment system, so it couldn't cause any trouble.

Orange Products, a platform specializing in brand flash sales, has developed quite well in recent years, increasing its market share to around 7%. However, it poses no threat to Taobao's market share of over 60%.
The upper limit for vertical flash sale websites is quite obvious.

However, over the past few years, especially since last year, Lao Ma has felt that things have become increasingly difficult because of this kid's involvement.

When Gaode, which they valued most, wanted to get involved, he had already become the largest shareholder. They originally planned to find another opportunity to get involved this year, but unexpectedly, he privatized Gaode in a lightning-fast manner.

Now there's absolutely no chance left. What's most infuriating is that he even contributed a portion of the money he spent on privatizing AutoNavi.

Aside from Gaode Maps, another app he valued, Kuaidi, was also snapped up by Tencent due to Tan Jincheng's involvement. He also unexpectedly invested in apps like Wandoujia and 91 Assistant.

He has invested in at least five independent software companies in the entire mobile application market, and it seems that acquiring any of them would inevitably involve contact with him.

It seems that all the companies that Ali wants to invest in or acquire have some connection with him. While Lao Ma was furious, he couldn't help but admire Tan Jincheng's vision.

One time is an occasional occurrence, but multiple times is not. From these companies, it can be seen that Tan Jincheng began planning the transition from the PC era to the mobile internet era at least as early as 2010 or even earlier.

Mobile app management software, electronic map navigation, and ride-hailing services are all traffic entry points in the mobile internet era. It's just unclear why he didn't invest in local services and food delivery apps; given his investment mindset, it's impossible that he didn't recognize this.

Frustrated as I am, the things that need to be done still need to be done. Ahri definitely can't do without its own navigation map. Although Mapbar's market share is too low, there are no better options left.

"Let's contact IDG first, and focus on negotiating with IDG."

The landscape of internet maps has been completely changed due to Tan Jincheng's involvement. After considering various factors, Lao Ma ultimately felt that Tencent posed the greatest threat.

Once Tencent acquires Tuba, its market share will be able to jump straight into the top three.

The two sides have too much overlap in terms of payment, traffic competition, and investment, which makes him quite worried.

Even if we can't buy it, we can't let Tencent buy it.

Although Baidu has also made statements, they haven't taken any action yet, and it's likely just causing trouble. As for Tan Jincheng, in Lao Ma's view, although he occasionally tries to outmaneuver him, the threat is relatively small.

More often than not, he poses no threat. Tan Jincheng has stated publicly on more than one occasion that he prefers physical enterprises, or rather, automobile manufacturing, and this statement does not seem to be false.

Although this kid's talent in the internet field is equally enviable, his vision and investment talent are no less than any top investor.

"Ah Li's chances are over, and Siwei's ambitions are not small either."

After several heavy drinking sessions, Cheng Wu led the way and met with Tan Jincheng again, this time to gather the information he had gathered.

He's been in a good mood lately. Without the pressure from major shareholders or financial reports, and with a new cash flow injection into the company, he's more confident about Gaode's future.

In addition, he has become much more adept at management. Previously, various shareholders, big and small, would give him pointers, but now, as long as Boss Tan is satisfied, he can do whatever he wants.

Is this the benefit of a one-man show?
"How to say?"

Tan Jincheng hasn't been doing anything lately. The photos of him having dinner with Chen Yizhou and Lei Jun that the reporters took were actually arranged by him. He probably never intended to acquire Tu.

Chen Yizhou is essentially a pure businessman. All his actions are aimed at selling things. He has no intention of building a business. Given the current situation, how could he not ask for exorbitant prices?

The valuation of companies in the internet sector is actually very mysterious. Being third in market share sounds good, but unless it's a special period, they can't get a good price at all.

The top-ranked company could be valued at 10 billion, the second-ranked company might only be worth 100 billion, and the third-ranked company might be worthless.

Of course, this description is a bit of an exaggeration, but that's the gist of it. How could Tan Jincheng possibly let him rip him off so badly for a market share of less than 10 percent?

His idea was simple: to cause trouble and muddy the waters.

Of course, if Chen Yizhou had given him a normal offer, he wouldn't have been unable to accept it, but unfortunately, Chen Yizhou was unlikely to do so.

"Haha, NavInfo actually wants to develop a vehicle networking system. They used to focus on B-end users, but in recent years the B-end has become increasingly difficult, so they also want to develop C-end customers. They haven't given up on Mapbar yet."

NavInfo, which has a Class A surveying and mapping qualification and was established with various accolades, may not be well-known among the general public, but it is among the top in terms of both background and technical strength.

Furthermore, they are a publicly listed company, so they are not short of money.

With both control and ambition, Siwei is unwilling to give up Mapbar. After the ambiguous period of cooperation, Siwei wants to deepen its cooperation with Mapbar and expand the company's business.

This is also one way to boost stock prices.

"It seems like there's no chance, unless Old Ma also acquires Siwei."

After hearing Cheng Wu's explanation, Tan Jincheng laughed. Although Lao Ma loved to show off and was very arrogant, he hadn't gotten to that point at this stage. Obviously, a company like Siwei couldn't be acquired just because he wanted to.

As long as 4D doesn't want to give up, then no one else has a chance. Mapbar's technology all comes from 4D. Without 4D's support, apart from large companies like AutoNavi, Baidu, Tencent, or Google, no one else can make it work.

Even Ahri can't do it; they simply don't have the technological expertise for it.

Chengwu nodded in agreement. Obviously, the idea was unrealistic, but he was still quite impressed with his boss's unconventional approach. Indeed, there were many tricks in the internet industry.

This kind of disruption at the capital level is far more terrifying than market competition, and the boss, even at a young age, already understood this principle well.

No wonder he was able to sell the two software programs for such high prices.

"I don't have much of a chance either. Chen Yizhou is a very shrewd man. If he offered two or three hundred million, I would have bought it. But he asked for 10 billion. If it weren't for Lei Jun's sake, I wouldn't even bother with him."

"Haha, he really dares to dream. Baidu only asked for $6 million, which is only a little over 30 billion."

Although Gaode's valuation increased significantly to $15 billion during the privatization process, that was just the result of various parties raising prices. Cheng Wu was certainly aware of Gaode's actual value, and Baidu's offer was the normal value.

He's only third in market share, barely third, yet he dares to ask for such a high price. Who gave him the nerve?

"Yeah, so we only had a few meals together and it was all just idle chatter. I didn't even have the interest to haggle anymore. Let him go and rip off Old Ma. Our family business is too small to play with him."

"Haha, boss, you're being modest. Everyone knows you have plenty of cash flow these days; it's just that we don't need to."

They made a profit of 2 billion US dollars in one go. Although 70-80% of it was spent on Gaode Maps, it is just the tip of the iceberg for the cash flow of the boss's entire industrial chain. According to the interim reports released by Orange Technology and Flash Technology, the combined cash flow of these two companies is more than 8 billion.

This is only a small part of the boss's businesses. Jinpeng and Jinyi, which are also engaged in clothing trade, are also major cash flow producers. Although Weilai shares have made huge investments, their cash flow should not be too bad.

In addition to these, there are also some smaller peripheral businesses such as Leichi. Ali claims to have $50 billion in cash on hand, and if you include all of the boss's businesses, the total is probably not much less.

In terms of influence among ordinary people, neither Flash, Weilai, nor Orange Technology can match Ali's influence. However, in terms of economic contribution, the businesses under the boss's name are no less significant than Ali's.

"Alright, stop flattering me. I'll head back now. I'll leave things here to you."

Gaode's headquarters remain in Beijing, where it works with Horizon Robotics to build the entire FlashCar ecosystem's industrial structure. This high-tech industry aligns with Beijing's industrial positioning, which is something that Tan Jincheng and his superiors are happy to see.

In addition, FlashTech also has an electric vehicle production base in Tianjin. This means that FlashTech's industrial layout in the north is basically complete. Centered on Beijing and Tianjin, it can radiate to the entire North China and Northeast regions.

As the new energy base of the entire system, Luzhou forms a triangle with Ningbo and Changzhou, radiating throughout the southeast and central-southern regions.

As for the southwest region, Tan Jincheng plans to use Xiangcheng as a hub and may establish a new industrial base in Sichuan Province or Chongqing in the future. However, this is not urgent and will be discussed after the foundation in the southeast is stabilized.

"Is the boss going to the Guangzhou Auto Show?"

The company was founded in Ningbo, but Guangzhou was actually where Tan Jincheng's career started. From the Canton Fair to the Guangzhou Auto Show, each event holds special significance for Tan Jincheng.

According to rumors in the automotive industry, Mr. Tan's favorite place to go is the Guangzhou Auto Show, and the Guangzhou Auto Show is coming up again soon.

"We'll see. We don't have any new cars launching this year, but Tesla will be exhibiting, and I'll go if I have time."

Tesla's booth this year is right next to Weilai's, and BYD is also in the same hall as Weilai. The main models on display are new energy vehicles, and Tesla's Model S is not considered a new model.

There are no new models from Weilai this year, but BYD does have some. They launched a DM version of their S6, as well as the B-segment car Sirui and a facelifted M6.

Compared to the frenzied launches of multiple models at once in previous years, BYD has noticeably toned down its approach. However, BYD's strategy is quite effective. With the BYD S6 selling well, they launched a DM (Dual Mode) version, attempting to further boost sales. This practice is quite common nowadays; most automakers with a successful model will release a DM or pure electric version, essentially just a simple modification to capitalize on the new energy vehicle trend.

I don't know how many we can sell, but we can earn some subsidy money.

There were similar suggestions within Weilai to modify the Yuechi A1 into an electric car, but Tan Jincheng rejected them all.

It's pointless. Consumers aren't stupid; they won't buy into this kind of simple modification. It's embarrassing to be caught trying to get subsidies, and it's also a waste of production line resources.

Other manufacturers have surplus production capacity, but Weilai does not; it has always been in a tight spot. This is similar to when Flash Technology was first established, where sales forced the expansion of production capacity.

However, starting next year, Weilai will no longer be subject to production capacity restrictions, and will not be subject to such restrictions for at least five years.

The capacity expansion plan, which began at the beginning of the year, has progressed smoothly after 10 months of intensive construction, thanks to the cooperation of all parties. While Luzhou was working like crazy, Ningbo was not far behind.

Tan Jincheng secured a battery contract worth a total of 40 billion US dollars for Luzhou, which made Beicang extremely envious, as this accounted for one-fifth of Beicang District's export quota.

After several months of technical exchanges, the Luzhou factory officially passed Tesla's battery customization standards and successfully met Tesla's requirements after the trial production. It officially entered mass production after the National Day holiday.

In early November, Tesla released its third-quarter revenue figures, with total revenue of $4.31 million and sales of 5500 vehicles, which brought Tesla's stock price to its highest point of $194.5 on the last trading day of September.

Starting from the first trading day of January, after a lackluster first quarter, Tesla's stock price began to soar, surging by 470.92% by the end of September!

However, Tesla's stock price also experienced a significant correction in October, falling by more than 17% for the month. Even with the positive third-quarter earnings report in November, the stock price still failed to stop its downward trend.

By the end of November, the stock price had retreated by more than 20% again, but compared to the more than fourfold increase throughout the year, the pullback in these two months was nothing.

However, it's still quite exciting that the total market value of the company dropped from $18 billion to $12 billion in just two months.

Massive Engine.

"Everyone did a good job with the tasks this month. Let's keep up the good work next month."

At 6 p.m., during the post-market debriefing meeting, Cheng Linfeng looked at the stock holding reports that were being handed over and felt very satisfied.

今天是11月29日，也是11月份的最后一个交易日，自打六月份大盘指数跌至2008年10月份以来的新低1849点位之后，老板就重启了A股二级市场投资计划。

Cheng Linfeng, who had been relatively idle since last year, is finally able to get moving again and make a big splash.

With his boss's approval, he specially established several new funds, some focusing on the automotive sector, some on the healthcare sector, and some on the liquor sector, and unusually, he launched a fundraising campaign for investors.

The previous main funds of ByteDance Engine have achieved quite good returns, and have consistently ranked among the top private equity funds since their inception, but they rarely raise funds from investors.

To put it bluntly, ByteDance's private equity fund raising funds from ordinary investors is essentially giving out benefits; of course, not everyone can receive these benefits, and there must be some conflicts of interest behind it.

At the beginning of the fund's establishment, Cheng Linfeng's social engagements suddenly increased significantly. Although the A-share market has been performing poorly in the past two years, the private equity fund, which raised funds on a small scale, still attracted a lot of attention due to the trust in Tan Jincheng and ByteDance's investment capabilities.

After raising the funds, Cheng Linfeng quickly formulated a stock-building plan. According to the boss's example, Moutai had fallen to around 130 yuan, so what was there to choose from? Just buy all the first and second-tier liquor brands.

In addition, for the automotive sector, ByteDance has an absolute advantage in terms of information sources, and it's even simpler to find stocks first.

According to the boss, by the end of June next year at the latest, all the company's available cash should be invested in A-shares. During this period, costs can be reduced or shareholdings can be increased through day trading. Cheng Linfeng is in charge of the specific operation.

In addition, the primary market investments overseen by Huang Ming have begun to shrink across the board. Shares that are not desired or do not conform to the company's plans can be transferred through the primary market to recoup funds.

At the end of 2013, the capital market became increasingly frenzied, BAT (Baidu, Alibaba, Tencent) expanded unrestrainedly, food delivery apps and ride-hailing apps fought fiercely for market share, and even the salaries of celebrities in the entertainment industry gradually moved in an irrational direction.

The best investment opportunity, or rather the best period for starting a business, has passed. The next ten years are also crucial for the entire FlashCar ecosystem.

After decades of rapid development since the reform and opening up, society has entered a certain stage. Whether it is good or bad is a matter of debate, and Tan Jincheng cannot comment on this. However, from the perspective of his career, it is imperative to hold back and build up strength for a future breakthrough.

The automotive and battery industries are high-investment, long-term industries. To maintain a leading position, companies must ensure cash flow.

Investment is a crucial source of cash flow for Weilai. By shifting away from the primary market, where investment returns take longer, and focusing on the secondary market, Tan Jincheng is preparing for Weilai's future.

In addition, Tan Jincheng also holds some of that cryptocurrency. Unfortunately, it was officially declared illegal in China this year and can no longer be traded domestically. Tan Jincheng has placed this asset in Hong Kong.

Tan Jincheng is widely regarded as very wealthy, and his performance on the 2013 rich list reflected this. Among the top-ranked companies, which were real estate and related industries, the internet, and the automotive industry, Tan Jincheng ranked ninth after Jack Ma with a net worth of 420 billion yuan.

However, the financial statements of Weilai Group this year are not good, mainly because the investment this year is too large.

Tan Jincheng has truly invested the 30 billion yuan investment plan set at the beginning of the year. In addition, he has received a 40 billion US dollar order from Tesla, which also requires a significant investment. Technology research and development, production line upgrades, and other related expenses are all huge costs.

Throughout 2013, the overall debt of Weilai Group increased by 17.54%, reaching more than 280 billion yuan by now. This is unprecedented given Tan Jincheng's strong cash flow capabilities.

The debt resulting from massive investments would likely negatively impact the stock price of a listed company, even with consistently strong sales.

The rise of Great Wall Motors propelled Mr. Wei to sixth place on the wealth list, but that's just Great Wall Motors. Its short listing period, clean shareholding structure, and the major shareholder's lock-up period are all reasons for the speculation surrounding Great Wall Motors.

Like Great Wall, there's also BYD, which had a secondary listing on the A-share market in 2011. Although BYD has performed well this year, it hasn't been as volatile as Great Wall. Last year, their A-shares were even in a downtrend throughout the year.

In December, Tan Jincheng returned to Ningbo by plane after concluding his trip to the Guangzhou Auto Show.

Ningbo in the winter months is damp and cold, quite different from the weather in Guangzhou.

Another year is almost over.

As he walked out of the airport, Tan Jincheng felt a little emotional. He had spent most of the past year flying around, like a frequent flyer.

To be honest, his daily expenses are not high, but travel expenses are a big expense. He doesn't travel alone. Although he tries to keep a low profile, it is still inevitable that he will be surrounded by people when he travels.

"Yes, another year has passed, and Ningbo is slowly getting colder."

Zeng Jixiang echoed, saying that from the time he graduated to now, when he has started a family and established a career, he has always been by Tan Jincheng's side, rising from a junior assistant to the current general manager of the president's office, making him a senior executive of the group.

He could make many decisions on behalf of Tan Jincheng in various companies.

In fact, most of the time he no longer needed to accompany Tan Jincheng on business trips. After all, he was a senior executive of the company, and there was no reason for him to always be the boss's follower.

However, he is still willing to accompany his company on occasions that are meaningful to the company or the boss.

"That's right. Let's go. We can relax a bit now. Those of you who need to go home should go home and spend some time with your families."

These people are not lacking in money or social status, including Lai Yiu-fai. As Tan Kam-ching's full-time driver for many years, he is not just a driver.

However, there is some regret regarding his family. His busy work schedule means he has less and less time to spend with his family. Mr. Tan's son is already four years old, but in the past four years, he has probably spent less than a year with his son in total.

The thought of having to wait at least 20 years for his son to come of age and be trained to take over the business made Mr. Tan feel somewhat desperate.

I still have decades to go.

Tan Jinyue? Come on, she's only ten years old. With that little one's personality, it's hard to say whether she'll even want to work in the future. She might just start sleeping in a bed.

Furthermore, Tan Jincheng didn't want to create any kind of feud among the wealthy families. His decision to divide his assets and businesses into separate parts instead of concentrating them together wasn't without this consideration.

After all, it's impossible for him and Gu Qingqing to have only one child.

Tan Jincheng's business is rather unusual compared to other companies, such as BYD, Tencent, and Xiaomi, where all their businesses are concentrated under a large framework. Many large companies across the country are the same.

His business is divided into segments, which makes it difficult for many people to know exactly how much he has. This also makes it easier to disguise and compress his assets on the rich list. The CEO of Great Wall Motors has a net worth of over 600 billion yuan, so how could he only have over 400 billion yuan?

If there really is a main entity, it would probably be ByteDance's advertising platform, which is distributed downwards through investment companies, each controlling its own industries. And above ByteDance's advertising platform, there are offshore companies that it owns 100%.

It is both separation and reunion.

Lai Yiu-fai grinned inappropriately: "Boss, you're too optimistic. We have a big project to do next month."

Goodness, just thinking about it makes him a little excited. This must be the first big thing to happen in Weilai in 2014, right?
(End of this chapter)