2003: Starting with Foreign Trade

Chapter 830 Familiar Recipe, Different Tactics (Seeking Monthly Tickets!)
P.S.: It's the end of the month, the last day! Gentlemen with monthly passes, don't waste them! Please give me your monthly passes!

Several years later, another cross-border acquisition by a domestic independent brand.

The official announcement by Weilai Group triggered a collective rise in the new energy concept sector.

Unfortunately, Weilai Co., Ltd., the main player at the center of the incident, had already suspended trading after the market closed on May 15. Before the suspension, Weilai's stock price closed at 125.92 yuan.

Based on the private placement price of 109.05 yuan, it is roughly a 87% discount.

However, this discount is 10% of the average price of the previous 20 trading days, which is somewhat different from the current stock price, but not by much.

After the share issuance, Weilai's total share capital reached 21.76 billion shares, with Baoteng holding only a small portion of them.

This also shows that Weilai did a good job of keeping the acquisition confidential. As of the trading day before the official announcement, Weilai's stock price did not rise significantly.

In the A-share market, which is as sieve as a sieve, it's impossible to remain completely unknown about a backdoor listing and a subsequent acquisition.

All Tan Jincheng could do was to make the company's response mechanism as fast as possible, not giving too much time to react to those institutions and individuals who had prior knowledge of the information, so as not to harm the interests of too many existing shareholders.

Is there any way to extend the suspension period?

Malaysia is very hot, but no matter how hot it is, Boss Tan can't just quit. There are many things that need to be handled by him staying here.

He was asking about Zhao Xinyi.

"Huh? Boss, how long do you want to suspend trading?"

Upon returning to her position as a secretary, Zhao Xinyi seemed to rediscover the passion she had when she first started working. While Tan Jincheng found the weather in Malaysia uncomfortable, she felt that the weather here suited her perfectly.

"If the suspension can be extended as long as possible, then it's better to resume trading as soon as possible if the suspension can't be extended."

The Shanghai Composite Index is currently hovering around 4500 points, but in fact, the most important sign of the peak in this bull market appeared as early as April 20.

Following the merger of CNR and CSR, CRRC's stock price hit the daily limit of 39.47 yuan on April 20, but was quickly sold off, almost reversing its upward trend throughout the day. The trading volume of 317.3 billion yuan in one day set a new record for single-day trading in the A-share market.

The price of CRRC rose from around 5 yuan at the end of October 2014 to nearly 40 yuan. After the merger, CRRC experienced a sharp decline with massive trading volume, which was a clear sign that the bull market had ended.

In particular, a series of subsequent social news stories pushed this stock to the forefront of public attention.

Zhao Xinyi didn't quite understand her boss's thought process. Normally, the suspension period for acquisitions like theirs is about a week, and it can be extended if it involves cross-border acquisitions.

"With the stock market rising so dramatically, the risks have clearly accumulated to a very serious level. If we continue to suspend trading, it will not be good for our shareholders."

Tan Jincheng knew how badly the stock market crash in 2015 was.

If trading is suspended for an extended period, a continuous series of limit-down days will inevitably occur when a stock market crash occurs, and the systemic risk at that time will be far greater than during normal trading.

In this era of rampant capitalism, it's not just retail investors who are going crazy; many shareholders are also going crazy, pledging their shares through various means to make money.

The 2015 bull market was dubbed a "leveraged bull market" because of this; during a continuous decline, pledged shares were very easy to be liquidated.

This is not a good thing for listed companies.

Especially after Mr. Jia invented the pledge-based share reduction method, things really went into chaos. As a well-known company, Tan Jincheng did not want this kind of thing to happen to their company.

"If possible, try to resume trading within a week; otherwise, suspend it for a longer period."

The ChiNext index is currently around 3300 points, and it should peak in early June. The Shanghai Composite Index may peak a week later, but that only applies to the index. Individual stocks are already showing signs of peaking.

"Okay, I'll contact the securities department and ask them to do some public relations to try and get the China Securities Regulatory Commission to approve it as soon as possible."

"Okay, go ahead and contact them."

The stock market crash started in June, which isn't long ago. Tan Jincheng probably can't remember exactly how badly the market fell in 15, but there were several market rescue efforts.

The stock prices of Weilai and Shanchi will definitely not be able to hold up under the influence of the stock market crash, and we will have to prepare funds for a buyback.

With that in mind, Tan Jincheng dialed Cheng Linfeng's number.

How are the stocks in the A-share market being handled?

Since 2013, ByteDance's main investment focus in the secondary market has been on the A-share market, buying up many stocks at bargain prices, including relatively stable performers such as liquor and banking stocks.

There are companies like BYD and Great Wall that have investments in the same industry, as well as companies that have invested in Apple's supply chain, and of course, there are also some purely speculative investment targets.

For example, with LeEco, Tan Jincheng had previously tried playing around with it using an alternate account, and the return was quite good.

"It's almost done. Most of the speculative targets have been dealt with, and what's left are those that we plan to hold for the long term."

When a certain newspaper declared 4000 points as the starting point of a bull market, Tan Jincheng instructed Cheng Linfeng to begin disposing of the stocks he held, selling off all speculative ones and deciding on stocks in the industrial chain depending on the situation.

Companies like Luxshare Precision, OFILM, and Changying Precision, which invested in Apple's supply chain at the time of their IPO, are strategic partners with each holding 5% of the shares. However, they can still reduce their holdings through announcements.

Firstly, it allows them to recoup their costs, and secondly, it puts them in a safer position.

Once the shareholding ratio is reduced to below 5%, there will be much more room for maneuver in the future.

"Okay, if things are mostly resolved, then stop all activity now. Stop trading and keep all accounts in a silent state."

Cheng Linfeng was somewhat bewildered by what his boss had said.

"Huh? Why not even do intraday trading? Our overall position in A-shares is still around 50%, so there's still a lot of room for maneuver."

"There's no reason why, just listen to me. Some employees can start taking leave now. Find a reason to give them leave, whether it's team building or private travel, just make it up yourself."

It was the same familiar routine again; Cheng Linfeng felt as if he had returned to 2008.

Based on some rumors circulating in the market, Cheng Linfeng seemed to sense something. The boss often referred to himself as a novice investor, but the stocks he recommended were all quite promising.

In 2008, they sold at the peak, but this time the boss's actions were somewhat incomprehensible to him.

If you clearly sensed that the market had peaked, why didn't you move the remaining positions?
But since the boss had said that, he had nothing to say.

"Okay, I'll arrange it right away. When will you be back, boss?"

"It'll be around the end of the month, you can arrange it yourself. You can also take a break. You've been busy enough these past few years, it's rare to have such an opportunity."

In 2008, ByteDance's stock market was still in its infancy, and the financial mechanisms at that time were not yet fully developed. No one cared about those who sold at the top and exited the market.

But now, Juliang, or rather, he himself, is different. His every move is under scrutiny, and at this point, one has to consider the bigger picture.

Some money shouldn't be earned. If you dump shares before a certain team, you might not get the same treatment as someone in a white coat, but you'll definitely be labeled as unruly. You still have to survive in the capital market, and having that kind of impression is very troublesome.

Having a powerful background doesn't mean you can do whatever you want.

In terms of background, Xiao Mutou's background is much deeper than his, but as long as you don't follow the rules, you'll still suffer a lot.

"That's great, haha. Come to think of it, I haven't had a proper rest in all these years."

Since October 2014, the A-share market has been on an upward trend almost every month, and Cheng Linfeng, who manages the entire ByteDance secondary investment, has not had a proper rest.

Large institutions don't buy stocks in the secondary market like individual investors do; they buy a stock they like in a few seconds.

Even if it's code recommended by the boss, they still need to analyze, research, and go through other procedures before establishing a position. After establishing a position, it's not as simple as just holding and waiting; there must be tracking and other necessary steps.

Cheng Linfeng's days are also filled with endless meetings and paperwork. He earns a lot of money, but he has very little time for himself and his family.

"Is that so? Then prepare well. Also, tell the employees on vacation to keep a low profile and not to spread rumors online."

"clear."

Tan Jincheng spent half a month in Malaysia, during which he immersed himself in Proton's technical department and workshops, gaining a detailed understanding of Proton's product structure.

In 2015, Proton and Lotus may not have been well-known in China, but many Chinese consumers would certainly know about Lotus sports cars.

As the parent company of Lotus sports cars, Proton has suffered losses year after year in recent years, and its revenue has dropped to around 5 million US dollars, but its technical strength is still very good.

This is what Shen Nanpeng's Red Shirt team values ​​most.

As early as 1996, Proton's one millionth car rolled off the production line. In the new century after 2000, their engine technology was greatly improved based on Lotus's experience.

In 2008, Proton's 300 millionth car rolled off the production line, and a new logo was launched in the same year. The following year, a global sales network was established, but unfortunately, the financial crisis hit.

"The two financial crises had a significant impact on this company; otherwise, they wouldn't have ended up in this situation."

During this period, Li Chunrong accompanied the boss to learn more about the company.

The 1998 Southeast Asian financial crisis and the 2008 global subprime mortgage crisis happened to coincide with the company's expansion phase. Once a company grows big, it's not something you can just stop at will.

"It can only be said that Malaysia's state-owned assets management committee has been a bit unlucky. There have been two major financial crises in the past few years, and they were caught in both of them."

Tan Jincheng was both amused and exasperated. "That's right. Sometimes luck really plays a big role in business. But the fact that they managed to survive shows that this company has a solid foundation. The Malaysian State-Owned Assets Supervision and Administration Commission is probably also unwilling to give up control for this reason."

Tan Jincheng nodded. Proton's engine was originally derived from Mitsubishi. After two or three decades of development, it is now considered to be quite excellent on a global scale. In Li Chunrong's words, at least for now, it is better than the engine developed by Wei.

In addition, Tan Jincheng also values ​​another technology of Proton the most.

In 2009, Proton launched an MPV that gained widespread recognition in Thailand and was named one of the top ten modes of transportation in Thailand by the Bangkok Post.

After several years of iteration, this model has also developed new energy powertrain versions, and the method they used is the secret to Li Xiang's success: range extender.

This MPV was rated the best range-extended electric vehicle at the London Motor Challenge, demonstrating Proton's impressive technology.

"We'll try to bring this range-extended model to China when we have the opportunity. I think it has a market potential if we make some changes to the interior."

"Is Mr. Tan very optimistic about range-extended technology?"

"It's alright. Range extender technology is a great supplement to electric vehicles and can effectively solve users' range anxiety."

Li Xiang's first car, featuring range-extending technology, a refrigerator, a color TV, and a comfortable sofa, was heavily criticized, but it actually sold very well. It was with this model that Li Xiang opened up the market.

From its launch to its discontinuation, it seems that nearly a million vehicles were sold in just a few years.
Tan Jincheng doesn't remember the exact figures, but it must have sold very well; hundreds of thousands of vehicles were sold.

This is a large SUV with a starting price of 35 yuan. The fact that so many units were sold shows how popular it was. There are many reasons why it was discontinued, but ultimately it is because this car has completed its historical mission.

"Alright, I'll start making arrangements as soon as I take office."

The core of Weilai is new energy, a fact that Li Chunrong is well aware of, and he also knows his responsibilities.

As the first CEO of Proton appointed by Wei Lai, Li Chunrong's core responsibilities, in addition to opening up Wei Lai's market in Southeast Asia, were to integrate Proton's advanced technology into Wei Lai in China.

It now appears that range extender technology was the first task Mr. Tan assigned to him.

Two weeks is enough time for Tan Jincheng to get to know a company well. Through these two weeks of understanding, he feels more and more that the hundreds of millions spent were well worth it.

"Let's find some time next month to fly to the UK together and visit Lotus's UK headquarters. You can decide on the specific dates."

"Okay, no problem. By the way, why does the boss call him Lotus?"

Why is it called Lotus? I translated it from a translation in my previous life. In China, it's actually called Lotus Sports Car more often.

"Let's change the name. I'm also thinking of optimizing the logo, repackaging it, and then introducing it to China. This would be our first high-end model."

Sailin only authorized Weilai to sell its products, so it cannot be considered Weilai's asset. Now that it has acquired Lotus, Weilai can be said to have its own high-end brand.

The three product lines, Yuechi/Aion, Tank/Weila, and Lotus, together form Weila's low, mid, and high-end product structure.

"To a certain extent, we only truly completed our product line layout after acquiring Proton. The boss was quite decisive in not clinging to that 0.1% stake."

Li Chunrong thought to himself, "Everyone says this young boss is obsessed with control, but in reality, that's not the case."

Although Li Chunrong had known Tan Jincheng for a long time, he did not know Tan Jincheng very well. In the few months since he joined the company, Tan Jincheng had been rotating through various positions and traveling on business.

The real contact only started last month.

5 month 27 day.

Tan Jincheng and his group embarked on their journey back to China, while Li Chunrong and others who stayed behind rushed to the airport to see them off.

Also accompanying them were representatives appointed by Mahathir and representatives from the Malaysian government. The cooperation between Wyman and Proton is not just about acquisition and investment, but also includes a comprehensive cooperation plan for joint ventures in Southeast Asia, China, and even Australia.

The Malaysian government also has high hopes for the young Wei Lai, the young richest man in China, and attaches great importance to the cooperation with him.

The acquisition of Proton by Weilai is also part of the Belt and Road Initiative.

Thank you all for seeing me off, and I look forward to our next meeting.

Their group still had to transfer in Kuala Lumpur. Li Chunrong stared at her boss, who was dressed in shorts, and couldn't help but smile and say, "Boss, it's time you got a private jet. With your current wealth, it wouldn't be surprising."

"Haha, we'll talk about that later."

Private jets? No need, although they're quite popular among the wealthy these days.

On the same day that Tan Jincheng returned to China, several securities firms, including Changjiang Securities and Southwest Securities, issued notices to adjust the conversion of some collateral securities and the scope of underlying securities.

On the same day, funds used for subscribing to large IPOs, including those from Guotai Junan Securities, began to be gradually frozen. The frozen funds are expected to exceed 8 trillion yuan.

Around noon that day, some media outlets reported that the People's Bank of China (PBOC) had recently conducted nearly 1,000 targeted reverse repurchase operations with some institutions. The PBOC's withdrawal of funds was interpreted as a change in market sentiment regarding the continued loose monetary policy.

Also on the afternoon of the 27th, it was reported that Huijin had reduced its holdings in ICBC and CCB by 16 billion yuan and 19 billion yuan respectively in the A-share market.

The A-share market, hit by four major negative factors, experienced a record-breaking plunge on the 28th, with the Shanghai Composite Index falling 321 points, a drop of 6.5%, while the Shenzhen Component Index and the ChiNext Index both fell by more than 5%.

The Shanghai and Shenzhen stock exchanges saw a total turnover of 2.6 trillion yuan during the day. More than 600 stocks hit their daily limit down, and more than 900 stocks fell by more than 9%.

Black Thursday was on full display today.

Weilai Co., Ltd. resumed trading on the 26th, and on the 28th, it also fell all the way down from the opening in the morning, and finally hit the daily limit down, with the stock price closing at 113.27 yuan.

The positive impact of the Proton acquisition was absorbed within just three trading days.

The price of 133.86 yuan that emerged on the 26th after trading resumed is more like a signal that the company has run away with the money.

"It's over. Running away now will at least protect your profits."

Lying on the sofa at home, Tan Jincheng shook his head as he stared at the sea of ​​green on his phone. To be honest, quite a few people had made money in this bull market, and many stock investors had directly become middle class due to leverage.

Unfortunately, not many people are able to preserve their profits; that's human nature.

One of the most popular sayings in 2015 was: "A group of people sold their houses and waved their cash into the stock market, while another group sold their stocks and waved their cash into the housing market. When they met, they secretly called each other idiots."

"You've already spread the news online about the mass layoffs of employees in the securities division of ByteDance's advertising platform. I had someone suppress it while you were away."

"There are no secrets in the world, but it's good to keep them under wraps."

There are some things that can be done but not said. Several funds under ByteDance's advertising platform have been among the top ten shareholders of some stocks for the past few years. Their collective reduction of holdings in April will definitely be reflected in the second quarter report.

However, it's best not to say anything too outrageous or spread rumors now.

"That's what I thought too, which is why I had Zeng use some public relations tactics."

"Hehe, you don't need to tell me all that. It's perfectly normal for you to exercise my rights when I'm not around. Come on, let's go out for a walk. It's rare to have some free time today."

When five-year-old Tan Jinchuan heard that he was going out to play, he immediately threw down the toys he was holding and hugged his father's leg, begging to be taken along.

Patting his son's head, Tan Jincheng smiled and said, "Okay, Dad will take you to the mall to play on the slide."

Seeing this, Gu Qingqing, who was five months pregnant, smiled and said, "That's good. It's rare for our family to have such an opportunity to go shopping together."

Lai Yiu-fai drove his ES6 slowly through the streets of Beicang. Sitting in the car, Tan Kam-ching looked at the street scene on both sides. In the sweltering summer heat, there were not many pedestrians on the street.

However, it wasn't long before Tan Jincheng noticed something was different.

"There seem to be a lot more private cars on the street now. What happened while I was abroad?"

"They've started fighting again, this time with Uber."

After rejecting Uber, a new round of ride-hailing subsidy wars is bound to begin. Chen Wei is piloting Yidao Express on the still-hot Kuaidi platform. With the experience gained from the previous battles, this time Didi will not expand city by city.

Instead, it launched in seven first-tier cities at once, and then quickly expanded into second-tier cities, announcing that it would invest 10 billion yuan in the express car business to subsidize drivers and passengers, thus taking the lead in the second round of subsidy war.

Uber, with its deep pockets, quickly followed suit and announced that it would subsidize $10 billion.

10 billion RMB vs. 10 billion USD? Who will win?
"Luckily, most of the shares have already been cashed out. Even capitalists can't afford this kind of behavior. Tan Jin'en has caught a good time. How's his so-called car rental company doing?"

“I lent him a few people and bought 20 cars. We started trial operation during the May Day holiday, and now he’s full of enthusiasm.”

"20 cars? That's a huge investment. Will they even make money?"

This investment must be at least five or six million yuan; the scale of a 'second-generation rich kid' starting a business is indeed extraordinary.

"Let him give it a try. I've calculated it. Even if it's difficult to make a profit, it shouldn't be a problem to recoup the costs."

The 20 cars are mostly Aion Ys, with a few ES6s and Yuechi A9s. They all use their own products and are supplied at factory price, so their costs are much lower than others.

The subsidy war in 2014 made many taxi companies and individual drivers very rich.

A new round of subsidy wars has begun, and drivers who have tasted the sweetness are eager to make another move. At the same time, small groups and individuals, such as Tan Jin'en, who are using the name of car rental companies but are actually after the subsidies, have also entered the game.

It remains to be seen what changes this wave will bring to the car market, which has been stagnant for the past few months.
(End of this chapter)