2003: Starting with Foreign Trade

Chapter 827 There's a sequel
Since 2013, one word has been repeatedly mentioned.

That is the anti-FU (anti-corruption) policy. A large part of the reason for the sluggish stock prices of high-end liquors such as Moutai is this. Even during the period when the Shanghai Composite Index rebounded significantly in 2014, Moutai's overall increase from its lowest point was only about 25%.

The liquor sector is one of the few sectors that has not outperformed the index during this major rebound, with Moutai being just one example.

Now this trend has reached the automotive industry. Starting in March, major state-owned automotive companies such as FAW and Dongfeng have experienced a large number of personnel changes. Some were directly dismissed, some were publicly criticized, and others were directly imprisoned.

The sluggish car market in the first quarter was not largely due to a lack of car sales. Sales of SUVs and new energy vehicles still showed decent growth rates, while other types of vehicles, such as sedans, maintained stability.

The upheavals caused by leadership changes in large enterprises have largely affected production capacity.

Another very important point is that small-displacement vehicles, which were very popular last year, seem to have suddenly become difficult to sell, with dismal sales in the first quarter.

This is a significant blow to automakers whose main products are small-displacement vehicles, as there are not many small-displacement models selling well in the future.

Going public is also a great publicity channel. In March, stimulated by the annual report, Weilai's stock price soared, making it a hot topic in the stock market. Weilai, which set a record for continuous high trading volume, became one of the centers of attention.

Furthermore, starting in March, back-end statistics show that Weilai's sales began to rise slowly from the 1st, indicating that the Weilai brand has gradually shaken off the impact of the sluggish car market.

"You want to make money? You're not short of money, are you? Besides, do you even have the time or energy for it?"

Ten years have passed, and the little kid I first met when I returned to my hometown, with his shorts askew and half his butt sticking out, and his arrogant eyes, is now 20 years old.

He knew that Tan Jin'en didn't like studying. His younger cousins ​​were all quite interested in studying, but he was the exception. It was hard for him not to remember things.

However, over the years, Tan Jincheng has arranged for all his younger siblings, regardless of their academic performance, to get a degree in Ningbo. Even Tan Jin'en, who doesn't like studying, was arranged by him to get a degree here.

Today, Tan Jin'en came to his office, saying she wanted to find something to do; reading seemed to be just so-so to him.

"I'm just bored. My school isn't a very good university, and I'm not planning to take the postgraduate entrance exam. I'm just thinking of making some money."

Tan Jincheng smiled and said, "So, what area do you want to start with? Just saying you want to make money is nonsense."

It seems that the power of mass innovation and entrepreneurship is still very strong. Even a slacker like Tan Jin'en is thinking about making money. He doesn't object to his younger siblings having any ideas. Having some practical experience during college is better than just studying.

"That's definitely not just empty talk. Actually, I have several ideas. Could you give me your opinions?"

He was lucky to have meat to eat if he followed his older brother. Since he went to university, his family had moved to Beicang. Over the years, he often visited his uncle's house and overheard some of his brothers and sisters-in-law's conversations.

They have more experience than the average college student.

"Of course, I definitely need your help to make money, brother. I certainly can't do it on my own."

With a smirk, Tan Jin'en chuckled as he pulled a few sheets of printed paper from his backpack.

"You're quite capable; you even know how to make a business plan."

Tan Jincheng was also somewhat surprised. He took the few sheets of printed paper from Tan Jincheng's hand. The plan was very rough, and some of the words were not even grammatically correct. It was obvious that he had written it. The lack of vocabulary of such a poor student could not be concealed.

"Wow, you didn't aim too high, that's commendable."

There are three options in total. Two are for opening online stores, and the investment scale is not large. Only one requires a larger investment, but this job seems a bit shady.

The two online store plans are one for cultural and creative products and the other for children's clothing, which will be sold through Taobao, WeChat and other channels. In 2015, although the competition for opening an online store was already very fierce for ordinary people, it was still something that could be done to some extent.

The idea isn't outdated, there are still some opportunities, the investment isn't too large, and besides, because of him, Tan Jin'en isn't exactly an ordinary person.

Don't let his low-key demeanor at school fool you; he's got some money to his name. He often tries to curry favor with his sister-in-law for red envelopes during holidays.

The last proposal that he mentioned needing Tan Jincheng's help with should be the one he mentioned.

"The first two sets were normal, but how did you come up with the last one?"

"Hehe, I found out this while chatting with the taxi driver during the ride."

"The idea is interesting, but it's a bit unfair. You probably prefer the last one, right?"

"Brother, how did you know?"

"It's very simple. This is a quick way to make money, and it doesn't require much cost, or rather, I will cover the cost."

Tan Jin'en scratched his head, a little embarrassed. That was indeed what he thought. The plan was indeed not very fair, just as Tan Jincheng said. That was because the kid had his eye on the taxi subsidy market.

After a year of competition, Didi and Kuaiche announced their merger before the Chinese New Year and officially entered a transition period in early March. The new company will still be named Didi, and the Kuaiche brand will continue to operate during the transition period.

Both Chen Weixin and Lü Chuanwei had the idea of ​​cashing out and exiting, so there were no obstacles for Didi to take over the management. Tan Jincheng's shares had not been sold yet and he still held them. The management and VC institutions all hoped that he would not sell them.

After thinking it over, Tan Jincheng gave up his plan to sell off all his shares. It was only a little over one percent of the shares, and he wouldn't make much money from cashing them out. He figured he was just doing the VC firm a favor.

The reason why VC firms don't want Tan Jincheng to completely sever ties is quite simple: in addition to owning a car company, Tan Jincheng also effectively controls AutoNavi, currently the largest map provider on the internet.

Nowadays, more and more users are choosing to hail a ride on Gaode Maps. The significance of map resources to ride-hailing companies is self-evident. In the early days, the reason why Gaode Maps was more user-friendly than Didi was largely due to its accurate location services.

Just this month, when Didi announced its transition plan, Uber's founder and CEO, Kalanick, personally flew to Beijing to meet with Chen Wei and have a meal together.

Very arrogantly, Kalanick gave Chen Wei a choice: either accept Uber's investment and join them, giving Uber a 40% stake, or go to war head-on and kill Didi.

Chen Wei isn't stupid; how could he possibly agree to such an unreasonable request?

He then bluntly said, "Let's have a fight then, since you can't beat me anyway."

The meal ended badly, and after leaving, Kalanick told the media bluntly, "This meal was terrible."

This single negotiation clearly demonstrates Uber's inability to adapt to the domestic market; Kalanick's thinking is nothing more than 'asking for an exorbitant price and then settling for a lower one.'

But in reality, this kind of threat should not be used.

You've already threatened me. I'm not so weak as to be completely useless. What's the point of talking to you? Let's fight. It's not like I can't afford to fight.

Currently, Didi and Express are still offering subsidies, but they have been unified, and the fierce competition of the past is gone. Tan Jin'en's idea of ​​setting up a small car rental company with a few cars, specializing in taking orders and receiving subsidies to make a quick buck, is not bad.

By hiring taxi drivers themselves, they provide a stable job for those who cannot afford to buy their own cars, and they can even earn some extra money. This operation is somewhat similar to MSN's recruitment of live streamers.

"The idea is good, and it can make some money, but to make big money, we have to start with subsidies, and this business won't last long."

If it weren't for Uber's interference, these subsidies would have ended quickly. Also, there are policy-related issues; ride-hailing groups that operate as car rental companies still face some policy risks.

It's not impossible to do it in the long run. It will take several more years for the ride-hailing service to become truly saturated. In addition, these few years are indeed the golden period for ride-hailing to make money, and also the golden period for passengers to take a ride.

The battle between Didi and Kuaidi was fierce, but both sides still held back some tactics, after all, they were in the same market.

When they were fighting Uber, they didn't hold back like that. If it weren't for the intervention of the Tree Branch family, Uber would have been completely defeated by Chen Wei and forced to leave the game in disgrace. Chen Wei's abilities are beyond doubt.

This is also why VC firms are more willing to support him.

"That's why I came to you, brother. If it were just about opening an online store, I could have asked my wife for help."

Tan Jincheng smiled and said, "Didn't you ever think about doing both things at the same time?"

Tan Jin'en shook her head firmly: "I haven't thought about it. Firstly, I'm still a student and don't have much time. Secondly, I don't think I can do two things well at the same time."

After a pause, he added, "Just like you, brother, you've been doing one thing after another."

"I see you have some self-awareness; alright, I'll help you with this, but I'll give you two choices."

"Firstly, we are also preparing to set up our own car rental company, which is currently in the preparation stage. You can intern at this company to see how a formal company operates and learn some company operation experience. Whether you start your own business or find a job in the future, you will have experience."

"Secondly, I can personally sponsor you a few cars so you can get a batch of accounts to engage in gray-market activities and profit from subsidies. However, this is risky. If something goes wrong, you might not end up in jail, but you might have to give back all the money you've earned."

Tan Jincheng's words were obviously meant to scare him. The reason why the gray industry is called the gray industry is that there are no clear legal boundaries. If you have connections, you can make your first pot of gold by playing around. If you don't have connections, it's okay to play around on a small scale. But if you play around too much, you'll become a little demon in Journey to the West.

Referring to the experience of a real estate tycoon who transported corn from Northeast China to Guangzhou, he likened that to his first pot of gold when he started his own business.

But what was that thing called back then?
In March, Wei Lai's car sales were quite good due to the stock market performance, which also allowed Tan Jincheng to implement his previous plans. New energy vehicles were being produced in large quantities, and providing a few for his cousin shouldn't be a problem. Currently, the delivery time for the Aion S and ES6 is still somewhat long. Tan Jincheng's ideal scenario is that regardless of whether it's a gasoline car or a new energy vehicle, and regardless of how many units are sold in a year, delivery should ideally be completed within a week.

Consumers are no longer bothered by the hassle of car delivery and can get their desired car within a week. This experience is much better than the joint venture brands where there is a markup and delivery takes several months.

Only in this way can they expand their market share, but the corresponding inventory will have to increase, which will also increase the pressure on dealers. At present, it is still okay for fuel vehicles, but it is a bit difficult for new energy vehicles.

Weilai's gasoline-powered cars sell well and have always been popular in the market. In addition, their after-sales service is quite good, and their resale value is among the highest of domestic cars, making them very popular in the used car market.

Tan Jin'en was bewildered by the choice his older brother made. In the end, he was just a college student with average experience. He didn't think much about the future. He just thought that since he was idle anyway, he might as well find something to do and start a business to show off.

He can also get extra credits at school. Nowadays, college students are encouraged to start their own businesses. His grades aren't that great to begin with, so getting extra credits means he won't have to worry about attending classes.

“Go back and think about it. There’s no need to rush this. Wait until you’ve thought it through before making a decision. Doing something isn’t that simple. You need a long-term plan, even if you only plan to do it for a few years.”

Tan Jincheng looked at his bewildered cousin and suddenly realized that in the blink of an eye, his cousins ​​had all grown up and were now daring to come to him to talk about starting a business.

My cousin has already graduated. During his university years, he worked at two companies, Flash and Orange Technology, rotating through various positions. Now he works in the logistics department of Orange Technology.

This cousin is hardworking, cheerful, outgoing and easygoing, making him a good choice for a position where he interacts with grassroots employees. Now he is thriving in the logistics department of Orange Technology.

Most of the remaining cousins ​​are still in school. The oldest cousin was born in 1993 and is about to graduate, but just like in her previous life, she has decided to continue her studies for a master's degree.

However, overall, in two years Tan Jincheng will no longer be without employees. He has no intention of developing the company into a family business, but placing a few younger brothers and sisters in the company will not conflict with the operation.

"Okay, I'll come see you in two days."

Tan Jin'en hadn't expected there to be so many intricacies involved. However, since his older brother had given him two choices, he had to consider them carefully. In fact, he had been interning in Weilai's workshop during his winter and summer vacations since last year.

Starting from grassroots positions and letting his younger siblings come into contact with real workers and the real society has always been Tan Jincheng's requirement.

The same applies to my own sister, son, and unborn children in the future.

It may not be completely useful, but it's better than doing nothing.

Tan Jincheng wasn't actually worried about not having enough people. With Wei Lai's current status and reputation, there were plenty of outstanding talents coming to him. From the very beginning when Jin Peng was recruiting even a junior college student, to now being able to get into top-tier universities through campus recruitment, there were also management trainees. There was really no need to worry about not having enough people.

As for the succession plan, that's utter nonsense. He's only 30 years old; even if he wanted to retire, someone would stop him.

However, he is still very happy that his younger siblings have all grown up and have their own ideas.

Weilai's price surge only lasted for two trading days, but it still saw a decent increase on the third trading day of March. This surge brought Weilai's highest share price since its listing to the 110 yuan mark.

With a peak market capitalization of 2389.2 billion yuan, it has approached the market capitalization of Kweichow Moutai. Kweichow Moutai, which is the most remembered stock by retail investors, was not really a hot stock during the bull market of 14-15.

Even if Weilai no longer hits the daily limit, it is still one of the most popular stocks in the A-share market, with its daily trading volume ranking among the top in the A-share market.

On March 20, at the close of trading, another A-share listed company under the actual control of Tan Jincheng, Flash Technology, also released its official annual report, with operating revenue of 64.29 billion yuan and net profit of 7.072 million yuan, which is enough to prove the company's excellence.

There is only one listed company in the industry. Ordinary shareholders cannot know the specific financial data of other competitors through normal channels, but they can tell how excellent this electric vehicle company is just by looking at the simplest data.

With operating revenue of 64.29 billion yuan and net profit of 7.072 million yuan in 2014, the net profit ratio is incredibly impressive in the fiercely competitive electric vehicle industry. In addition to its debt-to-asset ratio, what is also enviable is the 9.61 million yuan in cash it had on its books as of December 31, 2014.

Oh, this company also participated in Meituan's Series C funding round in 2014, acquiring 1% of Meituan's shares for $30 million. At that time, Meituan was valued at $3000 billion.

Just a few months after its investment in Meituan in 2015, Meituan launched another round of financing, and its valuation had soared to $70 billion. This investment, which caused great controversy and a short-term drop in stock price, doubled in less than six months.

The $70 million Series D funding round for a certain group, valuing the company at $7 billion, silenced the analysts who had criticized Zhang Xupeng for neglecting his duties. In reality, Zhang Xupeng was just a scapegoat.

This kind of investment is not his business; it was all arranged by Tan Jincheng and Wang Xin, and he was the one to handle it.

Flash's investment in a certain group is more about bringing in major clients. The so-called $3000 million is just an entry fee. Without this kind of cooperation, why would they make large-scale customized purchases of your company's electric vehicle products?

During an economic upswing, companies that can release their earnings reports in advance are generally good. These days, there's no shortage of profitable companies, and companies that can go public before IPOs are widely liberalized are usually of high quality.

While Flash's performance is indeed outstanding, what has attracted the most attention is its 10-for-10 stock split plan announced in its annual report. This is Flash's first stock expansion since its backdoor listing in 2008!
Prior to this, they had never even conducted a private placement.

It has to be said that having a powerful major shareholder is a great advantage. As an industry leader, FlashTech has never had to worry about money since it established its market position.

This is something that companies like Yadi, Xinri, and Aima envy. Although they also have good cash flow, they are helpless because their backgrounds are not as strong as Tan Jincheng's. Being in the automotive industry means you can get protection and support, and even other industries benefit from it.

Although Boss Tan is no longer involved in the two-wheeled vehicle circle, he still maintains normal contact with his elder brother Dong Jinggui and Zhang Congxun, and they meet a few times every year to reminisce about the past.

They might be passing by each other's homes while on a business trip, or they might be spending half a day in each other's territory.

Among them, the deepest contact was with Dong Jinggui. When Jinshidai was being established, Shanchi was not strong and did not have much money. So they brought Yadi together. At that time, Yadi held 20% of Jinshidai shares and was the second largest shareholder.

Later, with the restructuring of Weilai, Jinshidai became a subsidiary of Weilai, and the corresponding equity also changed. Tan Jincheng repurchased 15% and 5% of the equity from Yadi and Luzhou City Investment respectively.

Currently, Yadi, Luzhou City Investment, and Guoxuan each hold 5% of the shares in this subsidiary and remain partners. Jinxin Times also provides some lithium battery solutions to Yadi and is considered one of Yadi's suppliers.

Don't underestimate this 5% stake. As Weilai's power battery business grows larger, even a 5% stake in a subsidiary can bring them unimaginable profits.

However, this is also what the three shareholders should receive. Jinxin Times was able to be established without the technical support of Guoxuan, as well as the policy support from the Luzhou government and the financial support from Yadi.

It wasn't until 2014 that Dong Jinggui finally understood why Tan Jincheng had risked ruining the entire FlashDrive business to launch the power battery business, which at the time had virtually no market.

In March, two companies under Tan Jincheng Group released their 2014 annual reports at the beginning and end of the month, respectively, and both companies' performance was outstanding.

FlashTech has changed its previous style by adopting a 10-for-10 stock split, taking advantage of the currently very popular high stock split concept.

Holding shares in FlashTech, I'm already imagining how many consecutive daily price limits FlashTech Technology will experience.

This isn't just wishful thinking on their part. Any stock market investor who has experienced the hype surrounding high stock dividends knows that these days, whenever a company decides to implement a high stock dividend plan, the stock price will inevitably hit the daily limit up as a sign of respect.

The most typical example is LeEco, which managed to stay afloat for a short time after its financial crisis by implementing several high stock dividend plans. Isn't that amazing?

Not long after Tan Jin'en left, his older brother went to the capital for a meeting. He waited for almost half a month, which made the young man very anxious. However, under the guidance of his sister-in-law Gu Qingqing, he made some serious plans.

"You've decided? You'll start doing it yourself?"

This time, the two met at home. There was a car show in April, and Tan Jincheng didn't have much time to deal with his trivial matters. It was also unrealistic to try to ambush his older brother at the company.

"Yes, I plan to do it on my own first, just to gain some experience. If it doesn't work out, I'll intern at your company after graduation and learn how to tighten screws properly."

It was Gu Qingqing who gave him this advice. Now he has the means and the time to squander it, but it won't be so easy after graduation.

"Alright, if you decide to do it yourself, then do it yourself. You can build your own team, and if you need money, ask your sister."

Gu Qingqing is currently resting at home during her pregnancy, so it would be nice to find her some small projects to play around with when she's bored. As for investments, Tan Jincheng plans to use funds from the family trust fund.

Tan Jincheng's previous plan to provide some start-up funds to his relatives will begin with this somewhat restless cousin.

If they can do it well, then they will have someone to carry on the legacy.

"Really? Thank you so much, brother and sister-in-law."

"Alright, go serve the dishes. I just got back and you rushed over. Do you have an inside man?"

"Haha, my sister-in-law told me you'd be back today. I've been staying at your house all day, and I've even been helping take care of the kids."

Tan Jin'en was very happy that his older brother and sister-in-law supported his idea. In particular, his sister-in-law encouraged him to do it himself, even if he failed, he would still learn from the experience, which gave him great encouragement.

Gu Qingqing waved her hand, sending Tan Jin'en to the kitchen to fetch vegetables. He was quite perceptive and immediately understood that his brother and sister-in-law wanted to have a private conversation.

"So, is there any big news from the capital?"

The publicly available information is what everyone knows, but there are also some private details that these people can learn in advance.

Tan Jincheng shook his head: "Next month won't be easy."

(End of this chapter)