2003: Starting with Foreign Trade

Chapter 805 "Someone else's company!"

A large IPO is like a gathering of peers and investors, and also an excellent opportunity for employees to cash out and improve their lives.

Institutional major shareholders hold a large number of shares, making them a target for many. Similarly, employee stock ownership plans are also a focus of attention for many.

Take Zhang Yong and Yu Liguo as examples. Before the IPO, they each held 1600 million shares of Weilai. After the listing, they had a three-year lock-up period, but it was still possible for them to cash out a small amount before the listing.

The same applies to the shares of other executives. Take Zhang Xuhui, for example. This time, he cashed out 300 million shares, mainly to distribute to his network of connections in Luzhou, and also to improve his own asset structure.

As a veteran of the company, Zhang Xuhui has enjoyed high salaries and benefits over the years. He owns a house and a car and has everything he needs. He is certainly worth tens of millions, but he certainly doesn't have much savings.

They are at least not as good as Lin Yumin and Sun Yuming.

There was no other way; he had been transferred from the Flash series to the capital to coordinate with the Institute of Physics long ago, and then went to Luzhou to be in charge of the establishment of the power battery company. However, the listing of Weilai this time made up for all the efforts he had made over the years.

The IPO of Weilai Group has created several billionaires, multi-millionaires, and millionaires once again. Zhang Xuhui's net worth has exceeded 100 million yuan.

The cash generated from selling just 300 million shares is an astonishing figure.

Large IPOs have always been a wealth-creating myth and a process of distributing profits, but they are also a process of company development. The acquisition of B&P is a case in point; without so much support, it wouldn't have been so easy.

Bangpu is a company in Guangdong Province. Founded in 2005, it is a leading domestic enterprise in the recycling of waste batteries.

The pre-disclosure period for companies listed on the ChiNext board is generally three to five months, which can be somewhat misunderstood as a public announcement period. During this period, if any unexpected events occur, the listing may be revoked.

During this period, inquiries from buyers continued to rise, and the capital market was very enthusiastic. It can be said that we caught a good time. Although the Shanghai Composite Index has been around 2000 points for a long time, the investment atmosphere in the primary market is not low.

Just look at the subsidy war between the two ride-hailing companies to see that the investment atmosphere in the primary market in 14 was, strictly speaking, irrational, with companies willing to pay any price to grab some good resources.

This also reflects the decreasing number of good projects, so people naturally wouldn't miss the opportunity to get involved in a good project.

Everyone can see the market prospects of new energy vehicles. Weilai's performance in the new energy vehicle market with its two models has been recognized by everyone, and its advantages in the field of power batteries have also been recognized by the market.

The completion of the ecosystem following the acquisition of BNP gives WILRA a dominant position in the power battery field, an advantage that is irreversible for a long time. Even if more battery companies join, they will not be able to challenge WILRA's market position in the short term.

If more and more automakers release genuine new energy vehicle models in the future, causing Weilai Auto's market share to return to normal, instead of its current half-capital, then...

As more and more electric vehicle models are released, Xuanwu Battery's shipments will only increase, which will be a major highlight for Weilai Auto's performance.

What is the most important thing about stocks?
That is expectation.

Weilai has high expectations in the new energy vehicle sector, and the company is of good quality. Buying into it now in the primary market is a sure-fire way to make money, which is why Weilai is so popular.

"Goodness, it seems we were too timid. We should have raised more funds."

During the World Cup, Zhang Xupeng, who had bought shares in Weilai, would come to Tan Jincheng's office whenever he had time to chat about football. He also paid close attention to Weilai's IPO process, saying he wanted to learn from it so he might be able to use it in the future.

Before we knew it, it was the 2014 World Cup. The two were approaching 30 and were no longer the naive young men they once were. Their passion for watching football was not as strong as before, and they mostly learned about it from the news.

Spain suffered a humiliating 1-5 defeat to the Netherlands in their first group stage match and then lost 0-2 to Chile in their second, becoming the defending champions to be eliminated the fastest in the group stage.

With seven goals conceded and only one scored in two matches, it seems to echo Germany's 7-1 victory over Brazil later on. This World Cup has really been quite unpredictable.

"That's right. If we had raised six or seven billion back then, I think we could have easily secured it. What a pity, tsk tsk."

"Forget it, 5 billion is enough. It's enough to start both projects at the same time."

If too much money is raised, the China Securities Regulatory Commission (CSRC) might not approve it. They also need to consider whether the secondary market can handle it. 50 billion yuan is enough, even if Liyang and Lingang start construction at the same time.

The original shareholders were all cashing out, and as the largest shareholder and actual controller, Tan Jincheng could not help but accept some exchanges of benefits. Like Sequoia Capital, he also transferred 5% of his shares before the listing.

This 5% stake is mainly allocated to car companies that have cooperative relationships with Weilai, such as SAIC, Dongfeng, Geely, BMW, and Tesla, etc., so that the cooperation between the two parties can be more stable through cross-shareholding.

The transfer price was the same as that of Shen Nanpeng, both at 6.66 million yuan.

June 30th, the last working day of June.

The asking price for Weilai Group has reached 24 yuan, and the market generally predicts that the final issue price of Weilai will be around 25 yuan. On this day, all Weilai employees (except those holding shares) received a red envelope in their salary accounts.

"Hey, wow, 888 yuan, the boss is really bleeding money again."

"Haha, I guess it's another celebration for the company's IPO, but the boss is quite generous."

Boss Tan is known for his generosity and love of giving out red envelopes, which is well-known in his companies. Although the pre-listing period is not the full listing period, as this year's star listing project, it is only a matter of time before it goes public. There is no way there will be any problems with the IPO.

It is unavoidable for listed companies to distribute dividends in a rush before going public; some companies even distribute several years' worth of profits before listing.

Weilai had ample cash flow and symbolically distributed a dividend of 2 million yuan before the IPO, as a way of giving the old shareholders an explanation, since there had been no dividends for so many years.

Before the IPO, Tan Jincheng held a 62.56% stake. Of the 2 million yuan cash dividend, he received more than 1.2 million yuan. However, Mr. Tan has never been a stingy person.

After deducting various expenses, as soon as the funds arrived, he immediately distributed red envelopes to all employees of Weilai. Excluding those who held shares, each person received a cash red envelope of 888 yuan.

As of the end of the second quarter of 2014, the total number of employees of Weilai Group was approximately 70,000. Excluding a small number of shares held by the company's shareholders, the total amount of cash distributed by Mr. Tan this time was approximately 60 million yuan.

"I'll send out a red envelope to make everyone happy."

Although this might seem like an early celebration and a bit unethical, Boss Tan didn't care. Since the funds had arrived, he figured he might as well just finish it now and avoid having to go through the hassle again later.

The company is expanding rapidly and the number of employees is increasing. Although there is an employee stock ownership plan, only a very small number of employees can actually get company shares. Whether it is R&D or grassroots employees, most people still cannot get company shares.

When a company goes public, it shouldn't just make employees happy; they need to feel involved. Giving out red envelopes is the simplest, most direct, and most convenient way to do this.

There's nothing more exciting than suddenly finding extra money in your paycheck after get off work.

As for the employees who hold company shares, they don't care about a few more. Having both shares and bonuses inevitably makes others envious and affects company unity.

Tan Jincheng's act of distributing red envelopes to all employees before the official listing of the company has sparked heated discussions in the market and generated a lot of buzz. Employees from Weilai posted screenshots of the red envelopes on social media.

"That's a company that everyone admires!"

These were the trending topics on social media that day. Some of Boss Tan's past lavish spending was brought up again: FlashTech rewarding its employees, Orange Technology giving everyone stock options when it went public, and this time, another 6000 million yuan in bonuses.

Over the years, Mr. Tan has always been good at employee treatment. The compensation of his directly affiliated companies has always been higher than that of the industry average. Even the electronics factory with the worst compensation, Dexian Electronics, has seen a significant increase in compensation after it was acquired.

In addition, some suppliers spoke up for Boss Tan, saying that Wei Lai and Shan Chi's payment terms were very reasonable, they didn't use any financial tricks, they were straightforward, and apart from having high quality requirements, they were very generous with their payments.

"Hehe, your money wasn't wasted. This is a great advertisement."

In July, the policy of exempting new energy vehicles from purchase tax was officially implemented.

On such a hot day, Tan Jincheng didn't really want to go out. He delegated what he could to Zhang Yong, and what he could to Li Xiang, and the same went for Yu Liguo. In any case, all the senior executives had been sent out.

He himself took advantage of this rare opportunity to stay at home for a few more days.

Speaking of which, the executives have been working very hard lately. Zhang Yong worked hard at Beiqi Foton for ten years, accumulating a lot of personal connections and work experience, but the money he gained was limited.

Lai Weilai has worked here for several years, and the shares he holds are now worth about 400 million yuan, which can be considered a reward for his hard work over the past half-life.

Regarding cashing out, Zhang Yong didn't cash out much. Apart from some favors, he retained most of his shares. Yu Liguo and Hu Zhengnan did the same. As the highest-ranking executives of Weilai Automobile, they needed to maintain the company's image.

Gu Qingqing fiddled with her phone, scrolling through comments on social media, finding it quite interesting.

She wasn't wrong. During the listing period, the company's executives couldn't give media interviews or make any big statements, but Boss Tan used this tactic to give the company a huge advertisement.

Besides winning people's hearts, the advertising effect, which is spontaneously generated by grassroots employees and spreads in multiple locations, is truly worthwhile.

"Haha, I knew the employees would post it online, but I didn't expect so many people to post it. But this should be credited to the public relations department. I've been having them keep an eye on the internet."

During the era when Weibo was all the rage, companies like Weilai contributed significantly to his business performance.

This is especially true during this wave of IPOs. Negative comments need to be dealt with, while positive comments need to be promoted. Needless to say, today's trending topics were definitely bought by the public relations department.

However, they did a pretty good job buying this keyword. It's like other companies are doing something else – promoting themselves without being too ostentatious.

"Zhang Li will be over in a bit. Let's have some noodles at home. We'll have noodles for lunch today."

"I know, it was all arranged a long time ago."

Gu Qingqing answered casually, her eyes fixed on her son. Tan Jinchuan, who had just turned three a few days ago, was riding a small toy car in the living room. Its design and function were different from those on the market. It was specially made by Flash Technology and was not sold on the market.

Chun Chun was a sudden idea that Zhang Xupeng had while inspecting the workshop of Flash Technology one day. He also had a son and was immersed in the joy of becoming a father.

This thing was a token of his appreciation as an uncle, but Tan Jincheng always felt that he was using Xiao Jinchuan as a test subject. If it performed well, he would prepare one for his own son.

Three-year-old Tan Jinchuan was completely different from his aunt when she was three years old.

Tan Jinyue had a large vocabulary and was very lively, but overall she was quite well-behaved. Tan Jinchuan, on the other hand, was full of energy and mischievous, sometimes turning the house upside down.

Tan Jincheng also noticed his son's movements. He didn't think much of it since boys are energetic, but sometimes it still gave him a headache.

Especially when he's working from home, that brat will turn off the computer when you're not looking, which is really annoying.

"What do you think? Should we have another one?"

Gu Qingqing was taken aback, then she understood.

"Let's wait another two years, until Jinchuan is a little older and can go to kindergarten. What if it's another boy? Wouldn't that be even more of a headache for you?"

"That's true, let's talk about it again in two years."

Although the two-child policy has not yet been implemented, there has been almost no promotion of the one-child policy in recent years, and experts have also begun to pay attention to population issues.

It's estimated that the two-child policy will be implemented soon.

Mr. Tan didn't have any particular opinion on the number of children. Strictly speaking, he wasn't a rural person, but his father, Tan Lihua, was. In the rural areas of his father's generation, having more children was hard work, but it did have advantages.

The Tan family has quite a few uncles and elders, and they live in a relatively harmonious relationship, at least when dealing with outsiders. They are truly capable when trouble arises.

Those who don't have many brothers, especially only children, really suffer. When I was a child, I saw some families in the village with few brothers living extremely miserable lives.

Of course, this kind of thing isn't popular anymore. Having more or fewer children depends entirely on personal wishes and family circumstances. Tan Jincheng can afford to raise as many children as he wants, but having only one would be a bit risky.

"Why did you invite Zhang Li to your home? Production in Weilai should be very busy right now."

After the purchase tax was abolished, orders for the Weilai ES6 surged. The new energy vehicle market, which had been rather sluggish in the first two months, began to boom on July 1.

Sales that had been suppressed for the previous months exploded starting in the early hours of July 1st.

On the Weilai APP, 117 new orders were placed in less than an hour after midnight. With subsidies and exemption from purchase tax, plus subsidies from the local government and the company, the Weilai ES6 can be priced as low as just over 20 yuan.

It's worth noting that the Weilai ES6 is positioned to compete with models in the same class as the BMW X3.

Based on this expectation, the ES6 is expected to achieve monthly sales of over 1,000 units this month, and 2000 units is not impossible.

"Haha, I want to get closer to Zhang Li and see if I can poach his wife."

Zhang Li is very capable and manages the production and manufacturing work of Weilai in an orderly manner. Back then, after Tan Jincheng recruited him, Boss Wei complained about him a few times when they met on some occasions.

However, Tan Jincheng shifted the blame onto Zhang Yong, and Zhang Yong is right to take the fall, as he personally went to persuade Zhang Li to join the company several times.

After the IPO, Zhang Li held 15 shares of Weilai stock, of which 5 shares were stock options. Tan Jincheng also generously exercised all of his options. Based on the market's expected issue price of 25 yuan, the 15 shares were worth 375 million yuan.

Zhang Li is quite capable, but unfortunately he has an even more impressive wife, so he himself has no charisma. His biography barely mentions him, and he's only briefly mentioned as Wang Fengying's husband.

As one of the few female executives in the automotive industry, Zhang Fengying, who has received numerous honors, is extremely well-known in the industry and is considered to be the number two figure at Great Wall Motors.

Her marketing strategy for the H6 was to maintain a competitive relationship with the Yuechi series, which had already established a strong reputation and a large user base after its initial market launch. The fact that their sales were roughly equal demonstrates her capabilities.

Mr. Wei is a very pragmatic person, but sometimes, how should I put it, his vision or personality is a bit unrealistic. To a certain extent, it was thanks to Wang Fengying's oversight that Great Wall was able to develop so rapidly.

Most importantly, this person is known for his iron-fisted methods. In his previous life, after joining Xiaopeng, he quickly reorganized Xiaopeng's production line, enabling Xiaopeng, which was almost falling behind, to stand up again.

On the other hand, Great Wall Motors, after losing Wang Fengying, has become increasingly confused about its product line.

Gu Qingqing was a little stunned: "Isn't this too difficult? This is the number two person in the Great Wall. The difficulty is no less than recruiting three Xia Bings."

"Haha, Xia Bing is indeed very outstanding. He left such a legacy to Zhongtai after only half a year at the company, but his style is not suitable for us."

Speaking of this kind of family infighting, driving away excellent professional managers is really short-sighted. However, this situation is quite common in family businesses, so it doesn't matter if Zhongtai is one of them.

After pausing for a moment, Tan Jincheng continued, "The difficulty is undeniable. Last year, Great Wall Motors was number one among domestic brands, and the H6 was a product they meticulously launched. But how will we know if we don't try? Besides, I'm not trying to recruit her right now."

Strictly speaking, Tan Jincheng was preparing a backup plan for his future as a lieutenant a few years later.

Going public can bring huge resources and much-needed funding to Weilai, but everything has its advantages and disadvantages. Going public creates a bunch of financially independent R&D personnel and executives, which will definitely affect the atmosphere in Weilai.

The performance of FlashDrive Technology in its first year after its IPO serves as a cautionary tale.

It's natural to lose motivation after achieving financial freedom. How to motivate people who have achieved financial freedom is something every controlling shareholder needs to consider, and each controlling shareholder has their own approach.

With FlashTech, Tan Jincheng, based on his absolute control, could berate them harshly at the board meeting, and then promote Zhang Xupeng to the top position, using his own people to manage the group company.

At Orange Technology, his approach was even simpler and more direct. The internet industry is volatile and has a high turnover rate, with everyone thinking about starting a business. So, he incubated businesses within the company and used professional managers to run the company, while he himself stepped back from the front lines.

If a professional manager can manage well, great; if not, he can simply reduce his holdings of Orange Technology's stock, or even sell it outright—it doesn't matter.

Wei Lai is his current business focus, and it's a high-risk, high-investment industry, so it's impossible to deal with it in such a simple and crude way.

The only solution Tan Jincheng could think of was the "catfish effect." He certainly couldn't recruit Wang Fengying now, but what about a few years later?
Through Zhang Li's connections, a seed was planted in Wang Fengying's heart.

Since she was able to get a job at Xiaopeng, she has the opportunity to get a job at Weilai.

Zhang Li, who arrived under the scorching sun, was also full of doubts. He didn't understand why his boss would invite him to his home. He could vaguely guess what was going on, and couldn't help but smile bitterly.

When he was at Great Wall, many people thought he got the position of manufacturing manager of the branch company through nepotism, and there were a lot of rumors.

Since joining Weilai, Weilai has entrusted him with important responsibilities. The vibrant young company has allowed him to find enjoyment in his work and, incidentally, prove his abilities. Under his leadership, Weilai's automobile production and manufacturing are impeccable.

"Mr. Li, welcome to my home. Please come in."

Tan Jincheng opened the door to welcome the guest and saw Zhang Li carrying fruit, looking conflicted.

"You're too kind, boss."

"Haha, don't be shy, come in, it's hot enough outside."

In summer, Ningbo is unbearably hot and humid on days without typhoons, and frankly, it's not exactly a livable city.

"Let's have some cold noodles for lunch today to cool down in the heat. Let's go sit in the study first."

Tan Jincheng saw Zhang Li's conflicted expression and quickly understood the reason. As a man, he could understand this feeling.

If they were in different situations, Qingqing would be far more outstanding than him, and much more famous. Moreover, he works in the same industry as his wife, which makes him feel somewhat frustrated.

"It's too hot, and I'm a bit too lazy to move. Besides, I've been traveling around a lot lately and haven't spent much time with my naughty son and sister. So I thought I'd like to invite Mr. Li to come over and have a chat, mainly about the production capacity of new energy vehicles."

Zhang Li calmed himself down and then smiled, "I've noticed the pre-orders on the Weilai APP. This is quite unexpected. It seems that simply increasing the sales of the Aion S is far from enough. We also need to increase the production capacity of the ES6."

Aside from the surge in orders in the early hours of the morning, orders for the ES6 continued to pour in as Zhang Li was on his way, and the activity level of the Weilai APP was also constantly increasing.

(End of this chapter)