2003: Starting with Foreign Trade

Chapter 923 Pinduoduo Goes Public

"Oh, they're all finally back."

"Yeah, come back, look how tanned you all are, haha, you've all gotten quite dark, but you've also gotten quite muscular."

"That's how it should be. Kids these days are too spoiled. It's definitely necessary to send them out to broaden their horizons. Xiao Tan's idea is pretty good."

"It's a pity that Xiao Tan isn't home, otherwise she would be happy to see her younger siblings back."

On July 26, a relatively secluded townhouse in a residential area in Beicang District was bustling with activity. This residential area belongs to Wei Lai, but the townhouses are inhabited by some of Tan Jincheng's direct relatives.

Usually, there are relatively few people here, and it's quite quiet. Tan Jincheng had also instructed these relatives to keep a low profile and not to make too much noise that would disturb other residents.

The saying "When one person attains enlightenment, even his chickens and dogs ascend to heaven" perfectly illustrates this.

Among these relatives were Tan Jincheng's uncles and maternal uncles, all of whom were quite close. In the past, these rough men preferred to stay in their hometown, but as their children grew up, they all came to live with them.

Of course, there are also those who stay in their hometowns and are unwilling to come. Tan Jincheng doesn't try to persuade them. Those who come are provided with a house to live in, and if there is a need for work, he will also try to arrange some.

As for these houses, the property rights still belong to Wei Lai. They are just being lent to them for living. If they want to buy them, they can do so by paying for it themselves.

The relatives who came to stay with Tan Jincheng were mainly placed in Wei Lai or Shan Chi's businesses. Gu Qingqing also had relatives who came to stay with her, and these people were generally placed in Cheng Zi's subordinate businesses.

The two should be clearly distinguished to avoid unnecessary conflict.

Of course, Tan Jincheng and Gu Qingqing didn't need to arrange these things themselves. It was usually quite difficult for these relatives to see the couple, but the younger siblings who came back today were indeed arranged by Tan Jincheng himself.

"It is indeed very meaningful. I don't know how my brother came up with this idea. I don't think he suffered much hardship when he was a child."

The speaker was Tan Jin'en. He wasn't the oldest among his younger siblings, but because he had started his own business and interned at Weilai, he was considered the most knowledgeable among them. He was in charge of this event.

The activity was actually quite simple: Tan Jincheng arranged for them to conduct some social surveys so that they could learn more about the current economic situation and national conditions before officially starting their jobs, thus avoiding any outlandish remarks.

The social survey covered a wide range of areas, from cities to rural areas, almost encompassing every aspect of Tan Jincheng's work. Over the course of half a year, they traveled to almost half of China, from the Yangtze River Delta to the Pearl River Delta, from the Northeast to the Southwest, and even including places like Xinjiang and Xinjiang.

In this massive social survey, Tan Jincheng did not provide much help to these people. Apart from arranging for people to secretly ensure the safety of their younger siblings, they had to rely on themselves for everything else.

Among this group of younger brothers and sisters aged between 22 and 25, Tan Jin'en understands her eldest brother's thoughts the best.

When these younger siblings start their formal jobs, whether they join their eldest brother's company, take the civil service exam, or start their own businesses, they will have a huge advantage over most others.

Putting aside everything else, just hearing his name and seeing his resemblance to the world's youngest billionaire is enough to guess the connection between the two.

This will undoubtedly bring great convenience to their work and life, but at the same time it will also bring more covetousness. At this time, a mature mind is very important.

The older brother did this simply to expose his younger siblings, who were about to enter society, to various kinds of people and things, so that they would not fall into all sorts of traps specifically designed for them in their future work and life.

It can be said that they put a lot of thought into it.

His job has been settled. His previous car rental company was acquired by Wei Zizhi's self-built car rental company, and his job will start at Wei Zizhi's self-built car rental company, which was reorganized and renamed "Weiling Travel".

Weiling Travel's business mainly focuses on high-end business travel, self-driving travel, and short-term urban rentals, which is somewhat different from his previous car rental company, but it is still an industry he is familiar with.

As for how far he will go in the future, to paraphrase what his elder brother often says this year, "the world is just a giant makeshift operation," the abilities of some company executives don't need too much hype, and Tan Jin'en may very well be able to reach a high position.

The premise is to remain humble, to learn, and to always have a clear understanding of things, and not to let one's status make one feel superior.

Even a pig can take off if it's standing in the right place at the right time, but the most crucial thing is how to land safely. There is such a good older brother, and these people are like pigs in the right place at the right time. If they have ambitions, it's easy for them to take off.

What did you gain from this trip?

Tan Lihua is now undoubtedly the patriarch of the Tan family. After years of living a life of ease and comfort, Tan Lihua, who is 58 years old this year, shows little sign of aging. On the contrary, he has become more and more authoritative in managing some businesses over the years.

Compared to when Tan Jincheng's business was just starting to pick up, Tan Jincheng has improved a lot. Back then, he liked to show off and would occasionally interfere with his son's business, but he would never do that now.

"We gained a lot. The world is completely different from what we imagined. Our older brother told us to take a look at the lives of ordinary people, and we really saw something different."

The southwestern Anhui region has mountains, rivers, and fields. Their parents have all gone out to work or do business, so the conditions of each household are not particularly bad. These post-90s may not have seen much of the world growing up, but their lives are not bad either.

Especially the Tan family, where the eldest uncle works in the city, and several other uncles and elders also work or do business in the city. The family is also quite united, and they will help each other if any family has any difficulties. Even without someone as extraordinary as Tan Jincheng, their lives are still passable.

In reality, although the local development of Yicheng is not very good, the local people are doing quite well. For example, in Tan Jincheng's hometown, after joining the WTO, the vast majority of people in the county chose to work in the garment industry.

Many people work diligently and earn enough to support their families and achieve a comfortable life. Some even become small business owners with a knack for business. There are quite a few small business owners in the clothing industry throughout Wangjiang County.

In addition, those in the decoration industry also made a lot of money during the years of rapid real estate development.

Of Tan Jincheng's uncles in his previous life, apart from Zhang Qingliang, whose family was slightly impoverished due to an accident, the others who were in the decoration industry all became contractors and made money during a good era.

In addition, a neighboring county has even sold a steamed bun business that has become a listed company. There's a joke in the Yangtze River Delta region that people from Yicheng go home for the holidays and don't even have breakfast to eat, which is referring to this group of people.

"It's good that you understand. Your older brother and sister-in-law are usually very busy with work, so it's almost impossible to get them to really help you. Now it's not so easy for me to even see them."

"But because of your status, you will definitely have a good year. As long as you don't do anything reckless and work honestly, you will definitely have a bright future."

"Of course, it's fine if you don't want to work hard. Just get a job and coast through life. I won't force you to improve, but you must behave yourself and not cause trouble. Otherwise, you'll be the ones who suffer."

“These are your eldest brother’s exact words, not something I, as an elder, casually said.”

For young people, this way of talking is a bit serious, but they think it's pretty good. At least they don't have to face that legendary older brother. Before they have officially entered society, it is really hard for them to face Tan Jincheng's aura.

They chose to come back today because they found out that their eldest brother wasn't in Ningbo. Otherwise, Tan Jincheng, who has been busy dealing with the independence of Yuechi recently, would have had to come and see his younger brothers and sisters who he had "sent away" back, no matter how busy he was.

Although my eldest uncle has become increasingly authoritative, he is still much more amiable than my eldest brother.

"Really? Big brother, do you really say that?"

The person asking the questions was my cousin from my uncle's family. She had just been admitted to graduate school this year and should have been busy with her studies, but my older brother forced her to participate in this social survey.

My cousin has always had a slightly darker complexion, and after suffering for more than half a year, she looks even darker. Wearing glasses, she looks somewhat comical.

"Why would I lie to you? Your older brother said that young people have their own way of living. He doesn't force you to do anything. It's just that your identities are special, and there are some things he has to do. Otherwise, he definitely wouldn't have arranged it this way."

“That’s right. My older brother said something to me before, but I didn’t realize it then. Now I understand it much better.”

"Tan Erfu knows how to talk."

When the topic turned to "lying down," the atmosphere became less serious. Since they were all brothers and sisters and had spent a long time together, they felt no qualms about teasing Tan Jin'en.

The nickname "Tan Erfu" originated from the acquisition of his travel company by Weiling Travel.

Although ride-hailing is not as profitable as before, small-scale travel companies can still make money due to previous accumulation and decisive downsizing. When he was preparing to join Weiling Travel, he was thinking about how to handle the company.

After learning of his idea, Tan Jincheng used some maneuvering to get Weiling Travel to acquire his travel company for a hefty price of 2000 million yuan.

Of course, this 2000 million yuan was not given to Tan Jin'en alone. No matter how much Tan Jincheng abused his power for personal gain, he would not give such an exaggerated figure to his cousin, otherwise he would give others something to criticize.

The reason for offering 2000 million yuan was simply to have Tan Jin'en's travel company conduct some financing-related operations to make the company appear worth that price.

Not all of the investments made by Weilai and ByteDance's engine have been profitable. For example, Dingding and Gaode were in a state of long-term loss before being merged into Orange.

He doesn't care about projects that don't make money but have strategic intentions, but other investors and executives are different. They're also following Boss Tan, but other investors are making a fortune while they're left with nothing.

This can't go on for long, so Tan Jincheng definitely needs to appease these investors and executives.

However, to appease him, the money certainly cannot come from him personally. Using this restructuring and shareholding method, and then using the listed company as the main body to acquire it, is a way to appease him.

It's common for executives of listed companies to leave and start their own businesses, only to have their former employers acquire them, and then the executives rejoin the company. That's the kind of dynamic that plays out there. Tan Jin'en's travel company also has some assets. It's not uncommon for listed companies to acquire companies founded by investors or executives, or even shell companies like consulting firms.

There are also cases where listed companies invite a senior executive to join them and receive equity in the company that the executive is not doing well, such as Lu Weibin of Xiaomi.

To put it in a more emotionally intelligent way, this is similar to a transfer fee, except that this "transfer fee" is paid by the listed company and its shareholders.

Of the 2000 million yuan, only 200 million yuan ended up in Tan Jin'en's hands. The rest was used to appease the shareholders and executives of the unprofitable projects. This bizarre move left Tan Jin'en speechless. However, his other brothers and sisters were unaware of the inside story and only knew that his company had been acquired at a high price.

He didn't dare to reveal the ins and outs of the matter, but among the brothers and sisters present, he was indeed the richest, and it wouldn't be an exaggeration to say that he was worth tens of millions. The nickname "Tan Erfu" was certainly fitting.

The other families were essentially renting out these townhouses, but his family bought them, and he paid for them.

Tan Jincheng and Gu Qingqing's philosophy is to take care of their relatives appropriately, and if they need help, they can provide them with a job that matches their skill level and can support their family. If they want to start a business, they can come up with a plan and go to their father.

As for getting a large sum of money or a house, that won't happen. If you want those things, you have to earn them yourself. At most, you can give bigger red envelopes during holidays.

"That's enough. You're all home now. Do you still want to spend my money? Go back to Weilai and work on screws, or come work for our company as a taxi driver."

"Don't be so stingy. How about this, we won't spend much more. How about you treat us to a nice meal today? It's really hard to find good food outside."

Tan Lihua and the others were in a good mood watching the younger generation play around. Their family had always been relatively harmonious. Although there were some minor disagreements when conditions were poor, they were not serious.

There were no "bad apples" in the family, but as Tan Jincheng became successful, they were quite worried that these young people who had just come of age and entered society would go astray. After all, life now was completely different from 10 years ago.

Fortunately, they seem to be doing well so far, and that's good enough. One amazing person in the family is enough.

"Alright, it's my treat today. As your uncle, I'll treat you to a good meal. Just tell me what you want to eat."

In a good mood, Tan Lihua waved his hand.

"Oh? Really? Uncle, aren't you worried about us? Let me tell you, we came back directly from the schools and areas that my brother in Sichuan Province sponsored. You should know a bit about the conditions there. We haven't had a good meal or a good night's sleep in ages."

"Alright, alright, treating you to one meal won't bankrupt me. Now go do whatever you need to do."

The incredibly powerful Boss Tan is currently in Shanghai, unaware that his younger siblings, whom he has thoroughly tormented, have returned. Today is also a special day for him.

Of course, this day is the most special for Huang Zheng.

“Since March, the old man’s unpredictable behavior has caused considerable trouble for ordinary people’s lives. This dispute is a huge test for most people and businesses, but it is an opportunity for Pinduoduo.”

For ordinary people, this dispute was initially only reflected in abstract concepts in the news. When ordinary people first heard terms such as lithography machine and 5G, most of them did not understand what they meant at all.

But as time goes by, its influence has permeated every aspect of daily life.

For example, some imported goods, such as fruits and cosmetics, have become noticeably more expensive. Although Apple phones have not increased in price directly, it seems that people around me are replacing their phones less frequently.

There are more slogans supporting domestic products in supermarkets, and alternatives have become a popular term on the Internet. In the Yangtze River Delta and Pearl River Delta regions, what workers hear most recently is that bosses complain that orders in some areas have decreased significantly, and some companies that rely on exports have begun to lay off or give employees leave.

Emotionally, while voices supporting the counterattack flooded Weibo, concerns about rising prices arose. People applauded Huawei's perseverance while also wishing phones could be cheaper.

This is a contradictory but not conflicting mentality. For ordinary people, this dispute is far from being a matter of "not being able to survive," but it is indeed like a bucket of cold water that makes people realize that the game is no longer just a distant narrative in the news.

It redefines everyone's cost of living, career choices, and even national identity, but in any case, widespread consumption downgrades have become a trend, much like the rise of new energy vehicles.

This presents a tremendous opportunity for Pinduoduo, which focuses on the lower-tier market.

"If we could, we would actually prefer this not to happen, but it's not something we can change."

For Pinduoduo's IPO, Huang Zheng surprisingly did not choose to go to the Nasdaq site in person, but instead chose to ring the bell via video link from the Shanghai Central Building. Pinduoduo also became the first company to be listed on both Nasdaq and Shanghai simultaneously.

Huang Zheng explained to the media that he had previously suffered from otitis media and was feeling unwell, but only his group understood his intentions, as the timing was somewhat sensitive.

When Pinduoduo went public, Huang Zheng invited many consumers to ring the bell in two locations. The consumer who rang the bell in Nasdaq was a lucky domestic consumer who won an iPhone X with just one cent, while the consumer who rang the bell in Shanghai was a family of five from Beijing who had successfully reduced the price of goods to 0 yuan multiple times.

Huang Zheng himself did not even attend the Shanghai Stock Exchange listing ceremony. It is hard to imagine that this is a decision made by the founder of a company that has only been established for three years and went public amidst controversy. This guy has really taken being low-key to the extreme.

"Old Sun, I have kept my promise from back then; of course, this is not my achievement, but the result of everyone's joint efforts. Thank you all, and I would like to propose a toast to everyone."

Not attending doesn't mean there's no celebration. Huang Zheng, Boss Duan, Ding Sanshi, Sun Tongyu, Shen Nanpeng, Little Ma, and Tan Jincheng secretly held a celebration ceremony in Shanghai.

It's quite rare to see such big shots gathered in a small tavern.

"Haha, it's rare for President Tan to take the initiative to raise his glass, we must give him this courtesy."

Sun Tongyu, who got up to clink glasses, was probably the happiest person besides Huang Zheng. Ten years had passed, and he had long forgotten about being kicked out by Jack Ma, but the inability to put his ideals into practice on Taobao remained a regret.

Orange Products, a vertical e-commerce platform, shares a similar philosophy with him, but ultimately it is not as large as Taobao. Not to mention that Mr. Tan's focus is on artificial intelligence, and Orange Products is just one part of that for him.

Joining Pinduoduo as an investor and providing behind-the-scenes advice and operations allowed Sun Tongyu to thrive.

Just as Mr. Tan said, the current dispute may be a problem for technology companies like Weilai, and even for Orange Group which is transforming into artificial intelligence, but it is an opportunity for Pinduoduo.

It seems that even God is on his side.

In the past three years, in terms of transaction volume, Pinduoduo has surpassed a number of vertical e-commerce websites such as Orange Products, firmly establishing itself as the third largest e-commerce platform in China. Currently, Pinduoduo has more than 3.44 million active buyers, and in the second quarter of this year, Pinduoduo's average monthly active users reached 1.95 million.

截止6月30日的12个月期间，拼夕夕平台交易额达到了2621亿元，活跃买家平均消费额从674元增至763元。

Throughout the IPO process, Pinduoduo raised 20 times more than its target price, but ultimately priced its offering at the upper limit of $19, raising $18.7 billion. This demonstrates that the capital market is very optimistic about Pinduoduo.

This was just the beginning for Pinduoduo, and it gave Sun Tongyu hope of defeating Taobao.

"Yes, there aren't many opportunities to get him to offer a toast; come on, let's all raise a glass to celebrate."

Little Ma also raised his glass to join in the fun. Everyone knows Tan Jincheng's drinking capacity; he usually avoids drinking if he can avoid it. It's rare for this guy to take the initiative today.

During Pinduoduo's IPO, Tencent and Sequoia Capital each increased their holdings by $2.5 million. Tencent's stake rose to 17%, with 3.3% of the voting rights, making it Pinduoduo's second-largest shareholder.

With JD.com, Pinduoduo, Orange Products, and some smaller e-commerce companies, Tencent has effectively surrounded Ali's e-commerce business. Pony Ma must be the third happiest person here today.

Sequoia holds 6.8% of Pinduoduo's shares and 1.3% of its voting rights, making it Pinduoduo's fourth-largest shareholder. As for the third-largest shareholder, it is Tan Jincheng.

Aside from the small portion he personally held, the remaining shares of Pinduoduo held by Tan Jincheng were transferred to the Orange Group through the acquisition of shares in ByteDance's advertising platform.

Besides freeing up cash reserves for ByteDance's advertising platform, this move is also more beneficial to Orange Group's AI strategy and can also enhance cooperation between Orange Products and Pinduoduo.

Tan Jincheng holds a total of 9.3% of the shares and has 1.8% of the voting rights in Pinduoduo. He and his Orange Group are also among the winners of Pinduoduo's IPO.

After more than an hour of trading, Pinduoduo's stock officially opened at around 11 p.m. Beijing time on July 26, with an opening price of $26.50, a 39.5% increase from the offering price of $19, and a total market capitalization of over $29 billion.

At the close of trading, Pinduoduo's stock price closed at $26.7, up 40.53%, with a market capitalization of $295.78 billion. Huang Zheng's stock holdings were worth more than $135 billion, making him wealthier than Dongzi.

Tan Jincheng's holdings on Pinduoduo are worth approximately US$27.5 billion, while his personal holdings are worth approximately US$2.45 million.

"Hey kid, you've got a lot of investment companies going public lately, haven't you?"

In the dead of night, a drunken Ma Ge put his arm around Tan Jincheng's shoulder and whispered something, but his eyes were crystal clear.

Including CATL on the ChiNext board and Xiaomi on the Hong Kong stock market, Pinduoduo is the third company that Tan Jincheng has invested in with significant stakes to go public this year.

One company listed on the A-share market, one on the Hong Kong Stock Exchange, one on Nasdaq, and more, including Wenjie and Meituan, from the internet to the new economy, these companies are all highly anticipated IPO projects this year.

Unbeknownst to many, ByteDance has become an entity independent of BAT (Baidu, Alibaba, Tencent).

(End of this chapter)