2003: Starting with Foreign Trade

Chapter 933 Changes in People's Hearts and Didi's Large Order
Yang Zhijie's proposal was a groundbreaking move for the management of Yangzi Motors.

"Goodness, you really are something. No wonder you think I'd be happy or not."

After listening, Zhu Pei smiled wryly. It was indeed a solution that only someone who was deeply immersed in technology could come up with. Yang Zhijie's suggestion was to merge Yangzi Automobile into Xinyuechi, which meant persuading the parent company to sell Yangzi Automobile as a package to Xinyuechi.

"Just tell me if it's okay."

As a veteran of state-owned enterprises, how could he not know what this suggestion meant?

Yangzi Automobile was sold as a whole to Yuechi Automobile, turning from an independent subsidiary into a department of Yuechi Automobile. This was a significant demotion in terms of administrative rank. Zhu Pei, who was previously able to lead a group and enjoyed the treatment of a vice president in the parent company, became a department manager in Yuechi Automobile.

Although they are still doing the same job as before, it goes without saying what this means. After enjoying the benefits of power, few people would make such a decision.

He himself was the same, but Yang Zhijie didn't value these so-called rights very much.

Of course, he didn't believe that everyone hadn't thought of this aspect, and there could be various reasons why no one had brought it up. Even he himself had his own ulterior motives for bringing it up. No one can be selfless, and he could never be that kind of person.

Secondly, there's Yangzi Automobile, whose annual output accounts for 10% of Langya District's GDP. It's a well-known enterprise in Chuzhou, and being a homegrown company, Yangzi Automobile's ability to rise from the ashes is of extraordinary significance to Langya District and even the entire Chuzhou.

Before Weilai Automobile took over, Yangzi Automobile had been sold twice. It can be said that throughout its life, Yangzi Automobile has always been on the road to being sold. After a decade or so of stable life, the company reached its peak since its establishment.

The entire Yangzi team initially disapproved of Tan Jincheng's aggressive layoffs and the elimination of the Feiyang brand series upon taking office, but now they feel only gratitude towards him.

As businesses thrived, personal incomes rose, and even the local government developed certain inexplicable feelings towards them.

However, ten years have passed, and both people and things have changed a lot. Yangzi Motors is also seeking change.

"Your suggestion makes some sense, but this is not much easier than an IPO."

Zhu Pei frowned slightly. The idea of ​​selling oneself to survive was a psychological shadow for all the people of Yangzi. How could Zhu Pei not have thought of this? But no one present brought it up, because they didn't want to discuss this possibility.

But now that Yang Zhijie, that simpleton, has brought it up publicly, we have no choice but to seriously consider it.

He manages the company, but the core positions are held by the boss's cronies and informants. If he doesn't even consider such an important proposal, then when it reaches the boss's ears, his career is over.

To be honest, Yangzi Motors' current business model is indeed insufficient to support a car company. The reason it still exists is twofold: firstly, it has a strong background, and secondly, it is due to historical issues.

The establishment and development of Weilai started with Yangzi Automobile. In the early days, the boss gave Yangzi Automobile a lot of preferential treatment in terms of resources, streamlined the organization, improved workers' treatment, and recruited more R&D personnel in professional departments.

In the early days when Yangzi Motors was unable to shoulder the heavy responsibility of research and development internally, they worked at the Ningbo headquarters for a period of time, and Yang Zhijie was stationed there for a long period of time to work and study.

Perhaps that's why the old man brought it up. Zhu Pei knew that Yang Zhijie probably didn't have any bad intentions, but he was still somewhat unhappy.

"It's really not easy, especially convincing the district and city governments that we clearly have the opportunity to go public."

The Science and Technology Innovation Board will be launched this year, and the registration system is also planned to be launched. From a policy perspective, the A-share market is inclined to expand. The background is entirely favorable for Yangzi Automobile's listing. As long as the parent company is convinced, with the boss's background, listing on the A-share market is not difficult at all.

Yang Zhijie smiled and shook his head, admitting that after a few years of good times, everyone had their own little schemes.

"You're right, going public isn't difficult, but what happens after that?"

"Also, have you forgotten that we should be considering not the district's thoughts, but the boss's thoughts?"

"Besides, what's so hard to persuade the district? Just keep the tax revenue locally, isn't that what's been done all these years?"

Yang Zhijie had his own ulterior motives. During his time at headquarters, he had a lot of contact with Tan Jincheng.

To be honest, he initially distrusted and resented that Yangzi Automobile had been taken over by such a young man. He thought that someone who had made a little money from electric vehicles dared to start a car business without any sense of proportion.

He was truly courting death, but during his time at headquarters afterward, his thinking underwent a significant change.

This small business owner has long-term goals and is not impatient in his work. He doesn't boast about his annual sales targets, but takes things one step at a time. He is also exceptionally good at marketing, but at the same time, he has not given up on investing in technological research and development.

Since 2014, Weilai has spent more than 5% of its revenue on technology research and development every year, with even more investment in research and development for some key projects, including Yangzi Automobile. The boss has never regarded Yangzi Automobile as a money-making machine.

In the boss's words, marketing is your ability, but technology is your strength. Using technology to drive the company's development will give you more confidence to boast.

His little scheme stemmed from this: with technology as the foundation, he would have more say, and he believed that even if Yangzi Motors became a department of Yuechi Motors, his position would not change.

At least that's how the boss sees it.

As for the changes in personal wealth brought about by the listing, it would be a lie to say that he was not tempted. However, Yang Zhijie is different from others; he was able to resist such temptations. Besides, he has made quite a bit of money over the past ten years.

"Don't just look at the present, look to the future too. Who told you that Yuechi Auto has no chance of going public?"

These words were quite blunt, but only someone like Yang Zhijie would dare to say them. However, they did serve as a wake-up call for Zhu Pei.

Yes, no matter how much we consider, in the end, it's still up to the boss to decide. No matter how much they think, it's useless. The boss is the core of Yangzi Motors.

Zhu Pei took a deep breath and said, "Alright, that's all for today's meeting. Everyone, please keep this confidential. Old Yang, you stay behind."

Everyone left with their own thoughts, while Yang Zhijie, who was left behind, looked indifferent. Power struggles happen everywhere, and those in technical fields also need to be able to do them. These were the words his boss had advised him when they first became acquainted.

Years later, Yang Zhijie still finds it somewhat laughable that he, having lived most of his life, is less insightful than his boss, who was in his early twenties.

If he had understood these subtle motives earlier, his life might have been much better.

"Old Yang, thank you."

"You're welcome. I'm glad you understand what I mean. I'm not targeting you at all."

"Yes, we are all blinded by self-interest, unlike you who see things clearly."

Yangzi Automobile is a subsidiary controlled by a privately-owned listed company. In essence, these people are no different from ordinary professional managers. Even if they leave the company, they still need to go out and find jobs and submit resumes.

The boss is their biggest support; it's not their place to be overly concerned with their own or the district's attitude.

"Given the boss's personality, if he intended to list Yangzi Automobile, he wouldn't need you to test the waters, and it's impossible that he wouldn't give a clear answer after you tested him. In fact, your proposal is simply not feasible."

"Also, is the boss the kind of person who mistreats his employees? You might as well try to see things from the boss's perspective."

From Tan Jincheng's perspective, he really didn't want Yangzi Automobile to go public independently. With a single business and a highly competitive niche market, going public would only bring him and the company no benefit other than raising money from shareholders.

For domestic automakers, 2018 was likely their last moment of glory in the Chinese market. Unsurprisingly, 2019 saw another large number of automakers go bankrupt or struggle with poor management.

Lifan, which was boosted by the joint acquisition of its business by Weilai and Wenjie, and Zhongtai, which went public through a reverse merger and became popular with its Porsche Tai, are among the small and medium-sized car companies that will once again fall into operational difficulties in 2019.

Independent listing is not a good thing for Yangzi Automobile, which is a very small company. Once listed, it will be an independent company with no relation to Weilai, and Weilai will not be able to use its resources to support Yangzi Automobile.

This would harm the interests of all shareholders of Weilai. Tan Jincheng is the owner of a listed company; he would never do such a thing.

Without the support of Wei Lai, and lacking both technical and financial backing, Yangzi Automobile, with its singular business focus, will only gradually become one of the many companies exploited by retail investors after its IPO.

"With revenue declining year by year, financial reports becoming worse year by year, the end result is losses or even delisting due to ST status. This is basically the future of Yangzi Automobile that I can see after it goes public separately."

In mid-January, Zhu Pei, after being enlightened by Yang Zhijie, returned to the Yongcheng Weilai headquarters.

At the Meishan factory, Zhu Pei met with Tan Jincheng, who was inspecting the factory. The negotiations between the two parties were progressing well. With little external interference, Boss Tan had been busy with the integration of several major parts companies and Yuechi Automobile.

Wei Lai's reforms to the internal supply of auto parts have attracted great attention in the industry. Allowing major auto parts companies to maintain a certain degree of independence is quite bold and reflects Tan Jincheng's great confidence.

Among domestic car companies, Weilai is the first to dare to do this, but soon there will be a second one, namely BYD. Just like Weilai, BYD has recently registered a large number of subsidiaries with names starting with "Fodi".

In an interview, Boatman praised Weilai's reforms and said that BYD is also working on similar reforms, which are similar to Weilai's model.

While they are indeed similar, the underlying logic of the two companies is different. Dizi has fundamental differences from Weilai in its treatment of suppliers, payments, and payment terms. Yes, Dizi's reforms are more like those of an auto finance company.

However, Weilai's approach to dealing with suppliers is completely different.

"What's the point of such a listed company for me? Do I need to exploit retail investors through Yangzi Motors?" At best, Yangzi Motors' listing will only be comparable to Jiangling Motors, which is currently listed on the A-share market. At the end of 18, Jiangling Motors' market value was only over 70 billion yuan. Even if it more than doubles, it will still be less than 160 billion yuan. Considering that Yangzi Motors' business is not as diversified as Jiangling's, its market value after listing will be at most around that size.

"What the boss said makes me feel ashamed. We did have some ulterior motives."

Zhu Pei, who was more than ten years older than Tan Jincheng, was scolded so badly that he felt ashamed. Indeed, for a boss of such a small size as Yangzi Automobile, it was really not worth it for him to be accused of ripping off customers.

Currently, there are two A-share listed companies controlled by the boss. Although the stock price of Flash Technology has not risen significantly in recent years and even experienced a severe drop in 2018, compared with other companies, since its backdoor listing in 2008, Flash Technology has never allowed its boss to be accused of exploiting retail investors.

Firstly, Flashpoint Technology's performance has been consistently stable. There aren't many highlights, but there's nothing to complain about either. Secondly, Flashpoint Technology distributes dividends every year, with the dividend payout ratio remaining at around 3% annualized.

In recent years, regulators have emphasized that listed companies should distribute dividends to all shareholders. Some companies that have not paid a single cent for more than ten years since their listing have been publicly named as negative examples, while FlashTech has been a positive example since its listing.

The first batch of investors who invested in Flash Technology's stock during the backdoor listing process have generally outperformed the CSI 300 Index over the past decade if they hold on, making it a very high-quality private listed company.

As for Weilai Shares, there's nothing to say. Although the dividend payout ratio is only around 1% on average, its stock price performance is excellent. At the time of its IPO, it was valued at just over 500 billion yuan, but now, in just a few years since its listing, it has gained a lot of returns from its stock price.

Not to mention that during several stock market crashes, the boss used large sums of cash to buy back shares to save the market. This time, both companies have once again put forward buyback plans to boost market confidence.

"These may be a hollow title for me, but they represent a significant loss for many ordinary people. It's true that businesses make money, but if they knowingly commit evil deeds, then they might as well not make that money."

“I can see your dedication to the company’s development, but there’s no need for an IPO. As for your idea of ​​merging into Yuechi Auto, that’s a good one, but you can discuss the specifics with Mr. Wang yourselves.”

After Wang Fengying officially joined the company, Tan Jincheng had already stepped down as the general manager of Yuechi Automobile. Now he is assisting Wang Fengying in managing the newly established branch. Wang Fengying will discuss specific decisions with him, but the instructions are signed by Wang Fengying.

Yuechi Automobile's acquisition of Yangzi Automobile is indeed a good idea.

SUVs, hardcore off-road vehicles, and pickup trucks—there are currently popular racetracks, as well as promising "internet celebrity" racetracks, and niche racetracks. The three complement each other, and because they share common technologies, they can play a very good role in promoting each other.

For Yuechi Automobile, this enriches its industrial structure, while for Yangzi Automobile, it means finding a powerful partner that will allow the company to survive sustainably.

He already knew about Zhu Pei's trip back to the meeting, but he hadn't made a statement because he was waiting for Zhu Pei to come to him.

As the company has grown and expanded, it's normal for its subsidiaries to have their own agendas. In recent years, he has paid less attention to Yangzi Automobile, which has led to some ambitions growing within the company, with some even considering the feelings of the local government more than his own.

He could understand all of this; that's just human nature. But he couldn't accept it.

Large corporations have their own sense of social responsibility, a responsibility to generate tax revenue and employment for local governments, and an obligation to consider the needs of their employees. He has done all of these things, but if you say that these things are more important than the company's future, then he cannot understand it.

Sustainable development is the foundation of win-win cooperation. Going public is just one part of a company's operations, not the ultimate goal. But clearly, some people in the current management and the local government do not think this way.

Perhaps it's because Yangzi Motors has been doing quite well in recent years, achieving its best sales and revenue in history in 2018, that some people have become a bit arrogant.

"Okay, then I won't bother you any longer, I'll go find Mr. Wang myself."

With a wave of his hand, Tan Jincheng said with a smile, "Go ahead, see if you can negotiate a good price."

Zhu Pei nodded and turned to leave. After exiting the factory gate, Zhu Pei felt that his back was a little wet.

Although the boss didn't say anything and his attitude towards him remained as amiable as ever, Zhu Pei felt a sense of relief, a relief that extended to both himself and Yangzi Motors.

"Hey, Old Yang sees things clearly."

Zhu Pei muttered something and couldn't help but smile bitterly again. It had only been half a month since he met with the boss to report on his work, and he had met with the boss three times in total, including one meeting and today.

These three times put him under unprecedented pressure, even greater than when the boss first took over Yangzi Automobile.

It's true that over time, people tend to forget that this was someone who, at just over 20 years old, dared to acquire most of Changfeng Group's automotive business and its listed financing platform through a backdoor listing with the resources of a small fish swallowing an elephant.

He was certain that if Yangzi Motors submitted a spin-off listing plan to its parent company, the parent company would definitely approve it. However, what followed was not the support from the parent company after raising funds, nor did it lead to Yangzi Motors entering a period of rapid development.

Instead, after the sales restrictions were lifted, the parent company gradually cashed out and abandoned Yangzi Automobile, eventually withdrawing completely.

"They seem to be quite lucid now."

Watching Zhu Pei's departing figure, Tan Jincheng smiled at Zhang Li beside him. Zhang Li chuckled but didn't dare to reply. He knew some of the inside story, but he didn't dare to say anything more.

It's just a pickup truck. It's not like we don't have the technology ourselves. BYD can make electric pickup trucks, and so can we.

The current lack of production is merely a way to leave resources and room for survival to the subsidiaries. If the subsidiaries do not understand the parent company's good intentions, then they should not blame the parent company for being impolite.

As Zhu Pei thought, if Yangzi Automobile submits its listing plan to higher authorities, he will indeed sign it and even cooperate in pushing it forward.

However, the moment the plan was officially handed to him was the moment when the Yulai (Yuechi) self-owned brand pickup truck was put into the proposal.

"What do you mean? Isn't going public a good thing?"

Tan Jin'en, who was following behind Tan Jincheng as his little follower, muttered to himself that he had officially started working in the Weiling Travel Department. Tan Jincheng did not put him in any high-ranking position from the beginning, but instead had him take turns working in various departments.

Today, Tan Jincheng is inspecting the Aion production line. Since making a name for itself at the Guangzhou Auto Show last November, the new generation Aion S has received more and more orders, and taxi companies in many cities have sent purchase requests to Weilai.

Having suffered a major setback in the public opinion crisis in 2018, Didi was no longer interested in pursuing the D1 project. Its priority was to stabilize its core business. In addition, Didi was already seeking an IPO at the request of its shareholders.

This kind of loss can't go on forever, and some shareholders are already thinking about running away with their money.

Without pursuing the D1 project, and with its self-operated business to continue, Didi issued a procurement request to Weilai for 10,000 Aion S vehicles, a customized version exclusively for Didi. This was a very large order.

Based on market prices, this is a huge order worth 14 billion yuan, making Boatman extremely envious. He thought it would be great if this order were given to Qin EV. Tan Jincheng also attaches great importance to this order.

"If you don't understand something, don't say anything. Just keep it in mind and digest and understand it slowly when you get back."

This is a customized model for ride-hailing services. Tan Jincheng suddenly decided to invite his cousin to come and take a look today, to learn what big companies require of their products. Weiling Mobility can't compete with Didi.

Even BAIC Car Rental and Cao Cao Mobility, both platforms operated by car manufacturers, are facing difficulties. However, as one of the B2C ride-hailing platforms, Weiling, backed by Weilai, also has a certain market position.

Despite frequent safety incidents involving Didi, the demand in the ride-hailing market remains strong. This presents more opportunities for smaller platforms with good reputations, and Weiling Mobility also has some development opportunities in the next few years.

"Oh, I know."

Tan Jin'en realized he had misspoke. He wasn't a clueless young man, and he regretted his words as soon as they left his mouth. This was a matter for the company's senior management, and it was already a rare opportunity for a lowly nobody like him to hear it.

"We still need to keep up with the current order delivery schedule, especially to ensure the delivery cycle of orders from major customers. The Chinese New Year is just around the corner, so we need to make proper arrangements."

The Lunar New Year is just two weeks away. Speaking of which, does Chen Wei have some kind of problem with him? The last large order was placed before the Lunar New Year, and this time it's the same. Goodness, this is causing a lot of difficulties for production.

"We can only say that we are producing to the best of our ability, but we will prioritize Didi's orders. If it is really impossible, we will have to postpone the orders of C-end customers."

Didi needed the order urgently, but even so, Weilai had to accept it. Currently, only Weilai and BYD in China are capable of taking on Didi's order. Any hesitation from Weilai would only give BYD an opportunity.

"Alright, that's all we can do for now. We still need to let everyone celebrate the New Year."

It is unavoidable that employees will have to take a holiday during the Chinese New Year period, resulting in a limited factory operating rate.

In addition to Didi's large order, another major policy this year is the "cars to the countryside" program. The official document will be released at the end of this month, but all major car manufacturers have already received the specific details.

The rural car subsidy policy also includes new energy vehicles. Vehicles with a range of over 400 kilometers can receive a subsidy of 25,000 yuan, while plug-in hybrid vehicles with a pure electric range of over 50 kilometers can receive a subsidy of 10,000 yuan.

There are also subsidies for gasoline vehicles. For the Yuechi A1, the maximum subsidy is 2.2 yuan. He is not worried about the production capacity of gasoline vehicles. What he is more concerned about now is the production capacity of new energy vehicles under the circumstances of great policy fluctuations.

This isn't something you can just produce as much as you want; you need to have a reasonable allocation of resources.

PS: Some people had some opinions about the previous chapter, but it was part of this reform series, including this chapter. Also, regarding the plan to finish the book, it will continue as originally planned, up to the era of the most intense competition in electric vehicles.

Of course, there are some things I can't write about between December 2019 and 2023, which I will avoid. In short, it won't be a bad ending; it will give everyone a good conclusion.

Thank you so much for the generous donation from Stephen Fenfen's godfather! It's been so long since I've received such a large donation, haha, I'm so happy!
(End of this chapter)