2003: Starting with Foreign Trade

Chapter 626 The Ruthless Side of Tan Jincheng

Monday, April 3th.

FlashTech opened at 14.82 yuan, a 2.28% increase, buoyed by positive earnings news. Trading volume increased significantly during the pre-market session.

"With two consecutive days of high trading volume, it seems that the previous adjustment and accumulation of shares was all for these two days."

Cheng Linfeng stared at the K-line chart of Flash Technology and explained to Tan Jincheng with a smile.

Since the price limit was lifted, FlashTech has undergone a series of adjustments, with fluctuations exceeding 50%. These huge fluctuations have wiped out many retail investors who were previously trapped in the stock.

Institutions seeking to accumulate shares employ ruthless tactics, driving up prices and causing volatility. Even though this method is quite common, few retail investors can withstand such volatility.

"That's why the stock market isn't a place for the poor. Today they see positive news and good fundamentals, but they can't hold onto it."

One person breaks even, seven lose, and two make money. This doesn't mean they don't understand anything, but the stock market tests human nature more.

After being reborn and involved in behind-the-scenes investments, Tan Jincheng was better able to understand the tricks of the stock market. He had never engaged in insider trading, but it was impossible to say that he had not benefited from the secondary market.

The biggest advantage is the information gap; ordinary stock investors simply can't compete with it.

FlashTech opened higher, and after only half an hour of fluctuation, its stock price began to rise sharply. At 10:00 AM, FlashTech was trading at 15.66 yuan, up 8.07%, a new high since the resumption of trading, with its market value approaching 8 billion yuan.

"No need to look further, it should be a sure thing for it to hit the daily limit today."

Cheng Linfeng watched the trend for half an hour and was basically able to make a judgment. Today's limit-up price was 15.94 yuan. Based on the current share capital, FlashTech's highest market value could reach 81.29 billion yuan today.

With a market capitalization of 81.29 billion yuan, it is enough to surpass the highest market capitalization in 2008, and the stock price has returned to the level of January 2008. Today's stock price is already at the 6000-point level relative to the Shanghai Composite Index.

Shareholders who bought Changfeng Group at 6000 points and held on until now would have broken even.

Excluding the speculative stocks that were originally listed in 2008, FlashTech after its name change was the first stock to return to its peak after experiencing a sharp decline.

Time and life.

At 11:00 AM, FlashTech hit its daily limit, closing at 15.94 yuan, with its market capitalization reaching a new high since its listing. However, the limit-up structure was not very good, and according to Cheng Linfeng, it should open again in the afternoon.

But that doesn't matter anymore; today is destined to be a day of brilliance for FlashTech.

Changzhou.

"Mr. Tan, congratulations! FlashTech's market value has reached a new high."

During the luncheon, a leader from Changzhou in charge of investment promotion, along with Chang Zeyu and others, offered their congratulations to Tan Jincheng.

The leader had mixed feelings and also expressed sympathy for his predecessor. If it weren't for that incident, FlashTech would most likely have settled in Changzhou. He could sense Tan Jincheng's goodwill towards Changzhou from his attitude.

An entrepreneur who doesn't like a city will absolutely not invest in it.

"President Tan's net worth increased by nearly 4 million today. He can treat us to a late-night snack tonight," Changze Yu joked.

It must be said that Yu Nagasawa adapted to local customs very quickly; he even knew to treat people to meals when he saw that he had made money.

"Late-night snacks are easy to arrange, haha, but market capitalization is all fluff, and we in the real manufacturing industry don't need to pay too much attention to it."

Tan Jincheng said with a touch of pride.

"Haha, Mr. Tan is so young yet so calm and composed. I admire you."

Yu Nagasawa laughed heartily. A market value of seven or eight billion yen is nothing to Mitsubishi. According to the current exchange rate, 1 yuan is about 12 to 13 yen. FlashTech's market value is nearly 100 billion yen.

Any Mitsubishi company could easily reach this scale, but this is only a company that has been established for less than four years.

The young man in front of me has a net worth of nearly 500 billion yen just from his shares in Flashpoint Technology, making him much richer than me.

"If the stock market performs well this year, Mr. Tan's net worth will easily exceed 10 billion."

There were many compliments at the scene. FlashTech's surge today has brought the market value of its shares to over 40 billion. In addition, Orange Technology has also performed quite well recently, with its market value exceeding 12 billion US dollars again.

However, due to exchange rate fluctuations, the market value of Tan Jincheng's shares is only 26.6 billion yuan. But the sum of these two is already over 60 billion yuan. If the stock market performs well, a net worth of 100 billion yuan would be too easy.

According to the 2008 rich list, a net worth of 100 billion yuan would put you in the top 50. Even with some changes this year, making it into the top 100 is definitely not a problem.

Faced with these compliments, Tan Jincheng smiled but didn't say anything. It was indeed a good thing that his net worth had increased so much. It would definitely be much less trouble for an entrepreneur who was at the top of the rich list to invest in a certain place.

Just like how people are judged by their clothes.

But is FlashTech really worth 80 billion? According to Tan Jincheng, at least for now, it isn't. FlashTech and Xinri were listed among the 500 most valuable brands in China by the World Brand Lab last month. Xinri Electric Vehicles, which was also included in the list, had a brand value of 37.25 billion yuan, while FlashTech's brand value was defined as 52.13 billion yuan by the lab at that time. It's unclear how they calculated that.

Regardless, they definitely contributed to the market capitalization. That's just how unreasonable listed companies are; they don't need any reason at all when they're speculating on premiums.

With limited shares available for trading in the secondary market, institutions can easily influence stock prices once they have shaken out a large number of retail investors.

If they can get the cooperation of FlashTech and release some information from time to time, they would dare to speculate on 80 billion, let alone 280 billion.

Isn't that why many companies seek to go public?
Today is the first day of Tan Jincheng's inspection tour in Changzhou. Because of the record-breaking market value of FlashTech, everyone had a lot to talk about, and the atmosphere was very good.

This was Changze Yu's second visit to Changzhou. After his comprehensive inspection last time, he was quite satisfied with Changzhou's geographical location and infrastructure, and he also greatly admired Tan Jincheng's vision.

Yuya Nagasawa had heard that Flash had previously been selecting factory sites across the country and had even been rumored to be collaborating with Changzhou, so it must have been after a thorough investigation.

The man is affectionate, and the woman is willing.

Both parties were interested in reaching this cooperation agreement, and the subsequent negotiations proceeded smoothly.

“Liyang and Wujin both have large areas of industrial land, and the High-tech Zone also has a lot of construction land. In terms of land demand, the Changzhou government can make the greatest concessions.”

“We can also provide preferential loans. In addition, we have a complete industrial chain. Although our industrial chain in the automotive sector is somewhat weak, these are not problems. We hope that you will seriously consider our terms.”

Land, preferential loans, and a workforce in the industrial chain are all essential for setting up an automobile factory. Changzhou is determined to transform its industries. In an era where GDP is the top priority, small and medium-sized enterprises are no longer sufficient to support the local economy.

Besides real estate, it is essential to attract large enterprises, with multinational automakers like Mitsubishi being the top priority.

There are many benefits to cooperating with foreign brands. There are various preferential policies in terms of land and taxes. For example, the land for the factory construction on Meishan Island has already been fully returned to the Flash Group by Beicang District.

It's like giving away land for free. In addition, there are preferential tax policies starting from 5 years. Many factories that set up factories locally do not pay taxes even before they become profitable.

Although the preferential conditions offered by Changzhou did not explicitly state that the land would be used for free, that was the practical meaning behind them.

It's definitely useful because it's branded with Mitsubishi.

"If we want to place it in the High-tech Zone, that's fine too. I remember that Weilai Automobile has some businesses in Changzhou, right?" Changze Yu asked in a low voice.

"Yes, Nagasawa-kun is well-informed, but we don't need to consider that when choosing a factory location."

Damn, there's a reason why these multinational corporations are so successful. They can get information very quickly, much faster than some local governments.

The company that Yu Changze mentioned, Weilai Automobile, is affiliated with Huanghai Automobile, which is a sub-brand of Shuguang Automobile. The Huanghai Automobile Changzhou Industrial Park, covering an area of ​​486 acres, has an annual production capacity of 6000 large and medium-sized buses.

ByteDance, with its deep pockets, has been buying up a large number of automotive stocks since the end of October last year, including companies like BYD, SAIC, and JAC in Hong Kong.

Of course, Shuguang Auto's stock is a key focus. Shuguang Auto, whose total market value fell to a low of 800 million yuan, experienced a takeover bid by ByteDance starting in November last year, with ByteDance holding 8.2% of the shares.

Due to ByteDance's acquisition of a stake in Shuguang Auto, the company's market value has risen from a low of 8 million yuan to the current 16.4 billion yuan, significantly outperforming the broader market.

The 8.2% stake has alarmed the management of Shuguang Auto, given that the company's shareholding is very dispersed, with the founding team, who are the actual controllers, holding only 14.49%.

No one knows what Tan Jincheng, the actual controller behind ByteDance, intends. If he forcibly acquires Shuguang Auto in the secondary market, how should Shuguang Auto respond?

ByteDance is now the second largest shareholder of Shuguang Automotive. Acquiring another 6.3% of the shares would be enough to take control of Shuguang!
The corresponding cash required is only around 1 million yuan, which is nothing to ByteDance's advertising platform.

In a panic, the management of Shuguang Automotive immediately contacted Tan Jincheng, wanting to ask him what he was trying to do.

It was pointless to contact Cheng Linfeng. The boss had only told him to buy things, and the official explanation was equity investment. You couldn't get any information out of him at all.

“Weilai Auto wants to make some industrial layout. If your company can transfer Huanghai Auto in Changzhou to Weilai Auto, the shares held by Juxing Engine can be transferred to your company free of charge.”

"In addition to shares, some cash compensation can also be provided."

Huanghai Automobile has the capacity to produce 6000 large and medium-sized buses per year. These things are extremely expensive, and most of them are mainly used as local public buses. Bus companies buy thousands of them at a time, making it a lucrative business.

With the joint venture factory located in Changzhou, how could this business opportunity possibly fall into the hands of Shuguang?

Tan Jincheng is often described as a gentleman with a down-to-earth business style, but the management of Shuguang Automotive has witnessed his ruthless side.

MD, ByteDance's acquisition of an 8.2% stake cost only 1.12 million yuan. To think that 1.12 million yuan could buy an industrial park with an annual production capacity of 6000 large and medium-sized buses is a huge loss, even if it were just a cash compensation.

What's the difference between this and blatant plunder? Should they accept it or fight back? Shuguang Auto's management was caught in a dilemma.

(End of this chapter)