2003: Starting with Foreign Trade

Chapter 809 The Glory of the Top Stock on the ChiNext Board
On October 27, the 2014 rich list was released as scheduled.

The internet, real estate, and consumer sectors still dominate, with BAT (Baidu, Alibaba, Tencent) occupying the top three positions on the rich list. Jack Ma ranks first with a net worth of 1193.4 billion yuan, followed by Li Ka-shing with a net worth of 899.6 billion yuan.

Pony Ma ranked third with a net worth of 881.3 billion yuan.

The fact that BAT (Baidu, Alibaba, and Tencent) appeared together in the top three of the rich list for the first time drew tremendous attention to the list, highlighting the unparalleled prominence of the internet industry that year.

“Look at the changes in the list. Have you noticed that although there are quite a few people on the real estate list this year, their overall wealth is not as impressive as it used to be?”

"That's right, that's the change in the economic situation, the internet, new energy, and the consistently strong consumer goods."

Of the top ten, only Wang Xiaomu is from the real estate industry, four are from the internet industry, and if we include Dong Ge in 11th place, that makes five. If we also include Tan Jincheng, six of the eleven are from the internet industry.

"Yes, the annual rich list is actually one of the economic indicators."

"But what exactly is this thin-film solar energy from Li Hejun? And what does this 'mobile energy' mean?"

Gu Qingqing was an insider, and Wei Lai was also in the new energy industry, but she didn't quite understand what mobile energy meant, nor did she understand the role of thin-film solar energy.

Thanks to these two concepts, the stock prices of the listed companies controlled by Li Hejun soared, and he himself ranked fifth on the rich list with a net worth of 795.6 billion yuan.

"Haha, it's just stock price manipulation."

Tan Jincheng knew about this company; he knew about it in his previous life. Back then, it was incredibly popular, with overwhelming publicity and unrestricted gains in Hong Kong stocks. At one point, it even had the potential to become the richest man in Hong Kong.

However, hype is just hype. The photovoltaic industry has been in a period of transformation in the past two years. Dizi has shut down its business in this area, and Mr. Li's company went bankrupt a few years later.

Many photovoltaic companies have gone bankrupt like him.

Wei Lai set the listing date for November 3, perfectly avoiding the period of stock price increase. However, due to the IPO and the changes in the stock prices of listed companies such as Tesla, Tan's net worth could no longer remain at around 40 billion yuan as mysteriously as it had in previous years.

Just considering Tesla alone, Mr. Tan's shareholding is worth around 120 billion yuan. In terms of overall wealth, Mr. Tan ranks seventh with 619.77 billion yuan, ahead of him is Mr. Zong from Zhejiang Province.

The person ranked 8th behind him is his fellow townsman, the founder of Zhengwei.

This year, no public relations fees were paid, so this list is quite meaningful for Tan Jincheng.

The seventh person in the list has two sevens at the end of their net worth, and the person ranked after them is his fellow townsman, who is indeed a fellow townsman, as both of them are from Yicheng.

"The wealth of the rich has increased significantly this year, so we don't stand out much among them, thankfully."

Companies like BAT (Baidu, Alibaba, Tencent) and Richard Liu (Liu Qiangdong) have seen their net worth skyrocket due to their companies going public and stock price fluctuations. Even Xiaomi, which is not publicly listed, has seen its net worth soar to 556.9 billion yuan due to its valuation, ranking ninth.

A net worth of 619.77 billion yuan is definitely a little less, but it's not far off. Some assets that haven't actually been listed, as well as his personal and family assets, add up to a considerable amount, but it's not particularly large either.

"That's right, my growth rate is really nothing compared to other internet companies."

Tan Jincheng also saw Chen Weixin, Chen Wei and others on the list. They were also on the list because of the increase in the valuation of their respective companies. In addition, many companies went public this year, and the reshuffling of the rich list was very obvious.

The newly listed billionaires are numerous, and most of them do not engage in legitimate business operations, but rather increase their wealth in a very short period of time through mergers and acquisitions, investments, and IPOs.

Mr. Li, who works in thin-film solar energy, is the most obvious example.

To a certain extent, 2014 was a year of great change, with the entire economic system starting that year and rushing toward the path of capital.

From now on, it will become increasingly difficult for real businesses, and the social atmosphere will become more and more frivolous under the influence of capital.

The internet trend will continue for several years.

Can Wei Lai become a breath of fresh air among them?
Will Weilai avoid being controlled by capital after going public? Everything remains to be seen.

Since May, some changes have been quietly taking place in the A-share market.

From May to October, over a period of six months, the Shanghai Composite Index quietly recorded six consecutive monthly gains, with an increase of nearly 20%, climbing from around 2000 points to over 2400 points.

The ChiNext index, which started ahead of the Shanghai Composite Index, also performed exceptionally well. After reaching a historical high of 1571 in February this year, it quietly returned to above 1500 points after several months of downward consolidation.

The only downside was that the ChiNext index closed down for the entire month in October, which the market attributed to the impact of the massive IPO of Weilai Automobile.

"Mr. Tan, congratulations!"

On the morning of November 3, Tan Jincheng, dressed in a suit and tie, became the focus of attention when he appeared at the Shenzhen Stock Exchange. Flashbulbs kept going off, and people, both acquaintances and strangers, came forward to congratulate him.

I've attended two Nasdaq bell-ringing ceremonies and one Shanghai Stock Exchange bell-ringing ceremony; now I'm only missing the Hong Kong Stock Exchange bell-ringing ceremony to complete the collection.

"Boss, congratulations! We've finally made it this far."

Zhang Xuhui, also dressed in a suit, attended the bell-ringing ceremony. As the person in charge of the initial planning of the power battery project, Zhang Xuhui may not understand the technology, but he has made great contributions in management and operation.

Zhang Xuhui was in charge of overseeing the expansion project that began last year, and his abilities have been honed over the years.

"Yes, it hasn't been easy for us all these years, but we've finally made it through."

Along with Zhang Xuhui, Lü Ruifeng also stepped forward. As the technical head of the power battery business segment, Lü Ruifeng knew how difficult things had been over the years. In the early stages, Jinshidai was just a shell company.

But even a shell company needs to spend huge sums of money to survive. Every year, there are massive R&D investments, but not much business, not to mention the mineral resources the boss bought overseas, which cost a fortune.

To be honest, Lu Ruifeng, who came from a professional research institute, really admires this young boss. If he didn't work on power batteries, he would be living a very comfortable life right now.

This young boss has made contributions to the emerging new energy industry.

"Haha, it was indeed not easy, but it's all in the past now."

Launching a power battery project is, to some extent, more risky than a car project. As long as a car isn't made too badly and has a reasonable design, it can always be sold, since there is real market demand.

In the past few years, there were really no buyers for power battery projects. They were all targeted at B-end customers, and the demand was very small.

Even now, the power battery business cannot guarantee self-sufficiency, as there are still too few major customers like Tesla.

We'll have to wait another two years to achieve real profitability.

In addition to Zhang Xuhui and Lü Ruifeng, Zhang Yong also attended the bell-ringing ceremony, along with several car reviewers and outstanding workers from the Luzhou Power Battery Factory.

Before the market opened, Tan Jincheng and the guests rang the listing bell together.

Compared to the elaborate displays by foreigners, the bell-ringing ceremony for A-shares is much simpler: a red carpet, a backdrop, and a bell.

The A-share market's first day of gains was no surprise, with a 44% increase.

However, they still had to put on a show. After the pre-market auction ended, the opening price of Weilai Co., Ltd. was fixed at 30.17 yuan. Then, within one minute after the official opening, it rose to 33.19 yuan, an increase of 31.11%.

As is customary, the Shenzhen Stock Exchange temporarily suspended trading of N Weilai due to its excessively rapid increase in share price. After a half-hour suspension, at 10:01 AM, Weilai shares closed at 36.20 yuan, a gain of 43.99%.

"Congratulations, Mr. Tan! With a market capitalization of 786 billion yuan, you are the top-weighted stock on the ChiNext board."

"Haha, congratulations to you all."

With a market capitalization of 786 billion yuan on its first day of trading, and given that newly listed stocks typically experience at least three consecutive days of limit-up gains, it's almost certain that Weilai Shares will reach a market capitalization of over 100 billion yuan after four trading days.

After attending the post-market celebration banquet today, Tan Jincheng rushed back to Ningbo overnight.

He no longer cared about how the stock price would change afterward.

The more than 50 billion yuan raised has been received, and Mr. Tan has promised not to reduce his shareholding within three years. The high price is just speculation in the secondary market.

In fact, there's quite a bit of room for speculation in Weilai's stock price.

As a leading company in new energy vehicles, power batteries, the largest weighted stock on the ChiNext board, the first listed unicorn company, and the largest IPO in the A-share market in 2014, Weilai, with its numerous accolades, perfectly fits all the elements of concept speculation.

In addition, in terms of liquidity, Weilai Co., Ltd., with a market value of 786 billion yuan, seems to be a very large company, but the actual number of shares in circulation is only about 10%. And if you want to leverage these 10% of the circulating shares, the actual amount of funds required is not too much.

It's quite easy for institutions to band together and manipulate the market by leveraging their resources.

Newly listed stocks almost always hit the daily limit up, the only difference being the length of the limit up. Weilai's limit up lasted for seven trading days, accumulating eight limit ups including the first day. On November 12, Weilai closed at 70.54 yuan.

With a market capitalization of 1532 billion yuan, Weilai Co., Ltd. has been propelled into the top 20 of A-share market capitalization, making its position as the leader of the ChiNext board unshakeable.

As of November 12, there were only 24 companies in the A-share market with a market capitalization of over 11 billion yuan.

"See? This is why everyone wants to go public."

In just eight trading days, less than half a month, a single stock caused Mr. Tan's wealth to surge by 506 billion yuan. Who wouldn't be bewildered by that?

If it weren't for the strong performance of Ali's stock price during this period, Boss Tan would have been able to briefly become the richest man in China.

It's important to know that the consecutive limit-up days after Weilai's listing not only led to Weilai's rise, but also caused a huge increase in Shanchi Technology during this period, even though the two have absolutely no business connection.

But that's the magic of the A-share market; when it gets hyped up, there's absolutely no logic to it.

"That's really an exaggeration. In the past ten years of our business, the gains in these eight trading days have equaled the wealth we accumulated in the previous nine years."

Zhang Xupeng holds 1.8% of Weilai's shares, and this single asset alone is worth over 27 billion yuan. It is no exaggeration to say that this is equivalent to his wealth over the previous nine years.

For unlisted companies, the annual valuation changes are actually not significant, especially for traditional physical enterprises. "That's not an exaggeration. Take the shares I currently hold, for example. Although I can't sell them, I can pledge them. With that money, I can do a lot of things."

With a shareholding of over 50%, Tan Jincheng has very strong control over Weilai Group, unlike internet companies like Ali, Tencent, and JD.com, where the founders hold the vast majority of voting rights.

However, in terms of shareholding, it is still too dispersed. If the founder makes a wrong decision, the major shareholders can easily influence the company's decisions through their shareholding.

Based on the market value on November 12, Tan Jincheng held shares in Weilai worth 786 billion yuan. Pledging one-third of them would easily net him over 20 billion yuan.

Actually, Boss Tan was also considering whether to pledge it out, as it was a pity to leave it like this.

With six months to go before the 2015 stock market crash, the ChiNext index could rise to 4000 points, leaving room for a further increase of 2500 points. In the next six months, it will definitely rise along with the crazy market.

He himself doesn't even know how much Wei Lai's market value will rise by then.

Whether it's the domestic or foreign stock market, once it enters a state of frenzy, it becomes completely illogical and irrational. The question is, what should he do with the money he cashed out through pledging?

On November 13, Weilai Co., Ltd. did not continue its limit-up streak. Instead, it opened at 72 yuan and quickly fell after reaching a high of 72.71 yuan since the start of its trading, entering a period of adjustment after the opening.

For small investors who participate in IPOs in the secondary market, this is basically the stage when they sell their shares. Calculated based on the high point of 72.71 yuan, the profit from winning one lot of Weilai shares is 23785 yuan.

Normally, earning 20,000 yuan from a single transaction shouldn't be a problem.

This return has far exceeded the expectations of small investors, especially considering that Weilai is a mega-cap stock.

The real hype began at this moment. Tan Jincheng was not worried about the stock price trend of Weilai. Whether compared with Tesla or BYD, Weilai was enough to support a market value of hundreds of billions.

Stock investor Xiao Zhang is back online.

Since the bear market of 2008, thanks to his unexpected holding of FlashTech shares, he has successfully weathered both bull and bear markets. In six years, Xiao Zhang has gone from a small-time retail investor with only a few hundred thousand yuan in assets to a person with considerable wealth.

After six years of hard work and seizing several opportunities, Xiao Zhang's stock account now has over 200 million yuan in cash and market value.

A tenfold return is still very impressive in the A-share market, which lacks large-scale localized rallies; of course, its market capitalization growth is mainly due to its participation in the ChiNext market over the past two years.

He has already sold off all his shares in Flashpoint Technology.

He didn't get a share in Wei Lai's IPO, but as a professional stock investor, Lao Zhang has already learned to read some financial reports and prospectuses.

Technical proficiency is also a breeze for them.

Xiao Zhang had carefully studied Weilai's prospectus. Currently, Weilai's main source of revenue is still gasoline vehicles, specifically the Yuechi A1 and A3 models.

"Don't be fooled by Weilai's financial statements. Take a good look at its power battery business. That's probably why their company's stock code isn't Weilai Automobile, but Weilai Shares."

Before 2012, Weilai's power battery business was nothing, but after 2012, it grew very significantly, with customers including Tesla, Daimler, BMW, Volkswagen and other manufacturers.

Since last year, their sales have surpassed BYD to become number one in the world, and in 2014 their sales should be able to surpass Panasonic to become number one in the world.

According to the data in the prospectus, the company's expected sales of power battery systems for the next three years are 6.5GWh, 11GWh and 11GWh, respectively.

If this sales target can be achieved, Xuanwu Battery Power Systems will be able to firmly hold its position among the top three global power battery companies.

The landscape of the power battery system has changed since Wei took over BMW and then Tesla last year.

If given three years, Wei Lai will become an absolute giant in the power battery system industry, or even a minor giant in the current Wei Lai.

The fact that they easily defeated BYD and became number one in China is proof of that.

“Look at Weilai’s R&D investment in power battery systems. Although they face high R&D costs and enormous pressure by taking the path of independent R&D, once they form a technological monopoly advantage, it will be incredible.”

"That's right. This business alone can support their market value of over 3000 billion, not to mention their car brand business."

In terms of sales of gasoline-powered vehicles, Weilai is comparable to Great Wall Motors, so a valuation of 600 billion yuan is not high, right? This year, the intention to promote new energy vehicles in China is obvious, and Weilai's two major models have an absolute advantage.

However, Xiao Zhang is still unsure how to assess this market, but based on the hype surrounding the new energy vehicle concept and its leading position, it's definitely worth 400 billion.

According to Xiao Zhang's own analysis, his valuation of Weilai Shares is far more aggressive than that of securities firms.

A valuation of 4000 billion yuan translates to a share price of 184.16 yuan!
Furthermore, as a veteran stock investor with over six years of experience, I've witnessed the ChiNext index surge nearly three times and the Shanghai Composite Index rebounding for six consecutive months, clearly demonstrating its upward momentum.

If another bull market comes, Weilai shares may well reach a price of 200 yuan.

"Based on today's closing price of 66.55 yuan, that means there's still room for a threefold increase. How should we proceed?"

He only had a total of 200 million yuan in his hands. With many stocks on the ChiNext board soaring and speculative stocks frequently emerging, it was impossible for him to put all his money into Weilai Shares.

It would be a shame to miss such an opportunity.

Rather than trading speculative stocks for short-term gains, he prefers stocks like Flash Technology that have weathered bull and bear markets – perhaps that's what makes them his ideal stocks.

If it weren't for Flashpoint Technology's backdoor listing, he would be stuck in a factory tightening screws.

"That's easy. Just use your current money to buy shares in Weilai and open a margin account."

Unlike new stock market investors who simply use their phones and download an app to start trading, experienced stock market investors prefer to visit brokerage offices, where they can also exchange trading tips. Professional stock market investors also have their own circles.

Old Li, who always has a cigarette in his mouth, is the person Xiao Zhang has gotten along with the most in recent years. They often trade stocks together.

In the dead of night in Shenzhen, no one would know that the two casually dressed people sitting by the roadside eating barbecue were millionaires.

"Open a margin account? Weren't you against opening one before?"

There's a joke circulating at the beginning of a bull market: seasoned investors, scarred by past losses, become hesitant and cautious, while newcomers go all in. It's hard to say which is better, but in the stock market, survival is the most important thing.

Making money in the short term doesn't count as making money; what a professional stock investor should do is maintain a stable return every year.

When the market was down, Lao Li was firmly against financing. If you were not careful, the principal you borrowed could double, and it would be very difficult to recover.

"The market is different now. Look at the current market and the trend. I think another bull market is coming. Besides, it's been seven or eight years since the last bull market, which is in line with the cycle of bull markets in the A-shares market."

"We can put a large position in Weilai Shares, open a margin account to play around a bit, keep our hands on the action, and maybe we can make a small profit."

Old Li also agreed with Xiao Zhang's analysis. In addition, he had a good impression of Tan Jincheng. Although the growth of FlashTech in recent years has not been remarkable, it has definitely been worthwhile for investors.

Putting aside its annual dividends, FlashTech has never resorted to high-dividend-paying tricks to deceive people over the years since it was listed, which makes it a good stock.

If you honestly held shares in FlashTech from the very beginning of the backdoor listing, including dividends, the returns from FlashTech were truly substantial.

“Okay, given our current situation, opening a financing account isn’t a big deal. It’s just 50 yuan. Even if we lose it all, it won’t affect us.”

"That's right. We don't play those off-exchange games. We just get legitimate financing from securities firms. When the market is good, the risk isn't too high."

In fact, if Weilai hadn't gone public, Lao Li would have already opened a financing account. He didn't want to miss this opportunity.

"Okay, then let's open an account with the manager tomorrow. He's already told me this so many times, so we're letting him off easy."

"Haha, this guy has told me many times that a bull market is coming and he's even prepared to quit his job and start his own business."

"That old guy has some insight; he's given us a lot of guidance over the years."

Ordinary people who can make money in the A-share market, and consistently do so, may not have a high level of education or know anything, but they must have some exceptional qualities. At the very least, their decision-making and reaction abilities are quite good.

The next morning, the two rushed to the business hall, having already spoken with the account manager the night before.

Yesterday, on its first day of trading, Weilai's stock price plummeted by 5.66%. However, today the stock price stabilized, and Weilai opened higher and continued to rise throughout the day, with a maximum increase of over 7%. It closed at 69.19 yuan, up 3.97%.

"See that? It's incredibly strong. However, I estimate there will be some adjustment period. But as long as it doesn't fall below yesterday's low, then it's a good time to go all in."

Their shared account manager chatted at length. They had known each other for six or seven years and were considered friends. They often discussed stocks in private. As professionals in the industry, neither he nor his relatives were officially allowed to buy stocks.

But behind the scenes, these people have actually done a lot of private stock buying. This kind of thing is very difficult to control. As long as they don't go too far or offend anyone, most people will turn a blind eye.

"I'm already raising money, and I've already submitted my resignation letter. We'll work together then!"

"Holy crap! You're serious? I thought you were joking."

"Who's kidding you guys? I think the bull market is coming. I might as well quit this lousy job and take a gamble to turn a bicycle into a motorcycle."

"Awesome, awesome."

On November 19, 2014, Weilai Co., Ltd. surged 7.21%, closing at 74.18 yuan, with a market capitalization of 1611.19 billion yuan. During the trading session, it hit a new high of 75.55 yuan, setting a new record since its listing.

After Alibaba's stock price peaked at $120, it fell for five consecutive trading days, causing Ma Yun's wealth to decline slightly, but he still maintains his position as the richest man in the country with a net worth of 1386 billion yuan.

Tan Jincheng's wealth has soared to 1281.27 billion yuan due to the chain reaction brought about by the listing of Weilai, the sales increase of Orange Products during the National Day holiday, the recovery of Tesla's stock price, and the sharp rise of Nvidia's stock price.

"President Tan, you've been stealing the spotlight from President Ma lately. Be careful he doesn't try to sabotage you later."

As they entered the venue in Wuzhen, Xiao Ma whispered something in Tan Jincheng's ear, his smile carrying a hint of anticipation.

(End of this chapter)