2003: Starting with Foreign Trade

Chapter 817 Huge Cash-Out
P.S.: I'm a little late today, sorry.

"The chairman has a firm grasp on the big picture, but there are bound to be some shortcomings in the details. This is where the CEO needs to fill in the gaps. I'm sure Mr. He is aware of this, so I don't need to elaborate."

Tan Jincheng's words are very clear: at UC, he is the CEO, responsible for the company's daily management.

Indeed, as Mr. Tan said, the responsibilities of the chairman and the CEO are different.

A simplistic and inappropriate interpretation would be that one is the company's boss and the other is the company's manager; the boss can do whatever he wants, but the manager cannot.

"If you want to run a company well, you have to play the role of CEO and participate in the company's daily operations; otherwise, it will be very difficult to do well."

"However, the initial setup should not be a problem, Mr. He can consider it."

"As for the investment, I've agreed. Just give me a call whenever you want to start investing."

Having just sold UC, He Xiaopeng and his startup team are certainly not short of money, so they probably don't need venture capital funding. If they did, it would be from their own team.

When they really need funding, it will be at least Series A or later.

"Okay, thank you very much, Mr. Tan. And thank you for your hospitality these past two days. We have benefited greatly and our team has a very clear goal."

"Haha, not at all. The UC team is excellent, and I believe you can achieve success in the automotive field as well."

All emerging brands face the risk of bankruptcy during their operations. While the internet mindset has its advantages, it also has significant weaknesses.

The biggest characteristic of the internet mindset is that it involves rounds of financing, and shareholders need to see results from each round of investment.

Going public in a short period of time has become almost standard practice for internet companies.

If a company cannot go public after multiple rounds of financing, its control will decrease. After going public, it will face pressure to perform. If it cannot achieve results in a short period of time, its stock price will plummet, and shareholders will not care about that.

If a traditional automaker manufactures new energy vehicles, at most a sub-brand will fail, but it won't lead to the company going bankrupt.

After seeing He Xiaopeng off, Tan Jincheng was about to head to Hangzhou.

At the beginning of the month, Didi secured $7 million in Series D funding from SoftBank, Alibaba, and Tiger Global Management. With this $7 million, Didi announced plans to further increase subsidies for drivers and passengers.

With its massive capital in hand, Didi is riding high, sweeping away the decline of Bumblebee after it was snatched away by Kuaidi.

They couldn't sit still either; they had already started discussing financing, but Didi beat them to it.

The competition between these two companies is truly unprecedented and quite outrageous.

Ultimately, it's Alibaba and Tencent's fault. It was a fierce battle to promote payment and make WeChat Pay and Alipay deeply rooted in people's hearts. In reality, no matter how fierce the competition, the market cannot be monopolized by one company.

Even with Didi dominating the market, there are still dozens of ride-hailing apps of varying sizes. Just the Gaode Map alone integrates quite a few ride-hailing apps, a fact that Chen Wei and Chen Weixin both know.

This is what entrepreneurship driven by capital is like: seemingly glamorous, but actually full of helplessness.

Kuaidi has already found its funding partners, all of whom are connected to Tencent: Temasek, Sequoia Capital, and Tencent itself. Didi is in its Series D round, while Kuaidi is in its Series C round, making it slightly better in comparison.

In order to follow Didi, Kuaidi plans to raise $6 million this time, and Tan Jincheng went to Hangzhou to cash out his 8% stake.

Although Kuaidi's market share is higher than Didi's, its valuation is still lower. This is partly because Kuaidi is still in its Series C funding round, and partly because Tencent led the previous rounds of funding.

The investment institutions are either Tencent itself or have a deep relationship with Tencent, so the valuation cannot be raised.

However, regardless of the circumstances, it would be extremely difficult for Mr. Tan to cash out his 8% stake.

With a conservative valuation, cashing out over a billion US dollars shouldn't be a problem. That money can then be used to invest in other things, such as Pinduoduo, Xiaopeng, etc.

In just over two years, the ride-hailing market has grown into a behemoth, making early players incredibly wealthy. Of course, this is only what you see on the surface; countless apps have gone bankrupt behind the scenes.

For example, Sequoia Capital previously invested in Yaoyao, which was once the number one market share in the capital market but is now on the verge of bankruptcy. The money was essentially wasted.

That's how venture capital works. Out of 100 investments, 99 might fail, but if just one succeeds, you can make back the money from the other 99.

Speaking of Shen Nanpeng, he is really frustrated in the ride-hailing industry. Several companies he invested in were wiped out. Only the one that he invested in with the help of Tan Jincheng grew rapidly. Otherwise, they would have lost everything in this field.

The lively year of 2014 is almost over, but those remaining days are anything but quiet.

Jia Yueting's LeEco launched the SEE plan with great fanfare, aiming to become the world's first internet company to manufacture cars. When it comes to vision, Jia Yueting certainly doesn't lack anything.

His ecosystem system wasn't wrong; Xiaomi's later full ecosystem was somewhat similar to his.

In addition, Zhou Hongyi, who had been battling with Lei Jun for many years, was also unwilling to accept Xiaomi's success. In December, he founded Qihoo and prepared to launch 360 mobile phones to compete with Xiaomi.

When Tan Jincheng went to Hangzhou, Lei Jun also sent an investment manager to handle his shares in Kuaiche; she was his wife.

Speaking of Lei Jun's investment company, it's also very impressive. Usually, his wife manages it most of the time. The couple is very low-key in their investments, keeping a low profile. If you don't pay attention, you wouldn't know that they've invested in so many listed companies.

For a long time, Lei Jun's wealth was associated with Xiaomi in the public's mind. Little did people know that even without Xiaomi, he could still have a place on the wealth list.

Tan Jincheng's model is similar to his; his most obvious public identity now is the chairman of Weilai Group.

His current identity is that of a car manufacturer. Zhang Xupeng is in charge of the external image of Flash Motors. As for ByteDance Engine, as an investment company, no one outside the industry would know that it is Tan Jincheng's company.

If it weren't for the continued popularity of rich lists these days, Tan Jincheng's wealth wouldn't be widely known.

"Sister-in-law, what are your plans regarding the shares?"

Tan Jincheng and Lei Jun are considered good friends. Tan Jincheng has visited Lei Jun's home more than once, and their families know each other. This middle-aged woman, who has accompanied Lei Jun from school to adulthood, is extremely low-key.

There isn't even a single photo on the internet that can definitively confirm it's her. It has to be said that Lei Jun is really good at protecting his family.

Unfortunately, Tan Jincheng's wife was the CEO of Orange Technology back then. Although she has been out of the position for a long time, it is very difficult to erase the traces she left behind. Many photos from public events cannot be erased.

“Your brother told me to follow your lead and do whatever you decide.”

Zhang Tong smiled as he looked at Xiaomi's second-largest shareholder. He had helped a lot in the establishment of Xiaomi, and many other investments were also facilitated by him. He was known in the industry as a Midas touch, and any project he personally oversaw was bound to be a star project.

Even DJI, which was previously ignored but rose to prominence this year by entering the consumer drone market, surprisingly found his wife's name when checking the shareholder list.

It's absolutely outrageous. How did he even notice this small company that nobody had ever seen before?

That said, Zhang Tong still feels somewhat grateful to Tan Jincheng. The news of Tan Jincheng standing up for her husband at the Internet Conference is still being talked about by netizens even though more than half a month has passed.

People in the industry think this kid is a bit impulsive and arrogant, but he is indeed very loyal. You know, the host who was rendered speechless by him is no ordinary host.

Besides, he also criticized Apple executive Bruce. Although he didn't offend him, it didn't leave a good impression.

I was left speechless after being confronted on our first meeting.

Tan Jincheng was somewhat surprised: "Huh? You trust me that much?"

"Yes, your brother said that investing in Express was just a coincidence, it wasn't part of the plan, and besides, we don't have many shares."

"Haha, okay then, we're planning to cash out this round, so you guys go first."

Tan Jincheng's 8% stake, aside from some dilution, certainly cannot be fully cashed out. The maximum amount that FastCar is preparing to raise in this round of financing is only 6 million US dollars.

Unless he reaches an agreement with Tencent and other major shareholders before or after the negotiations, allowing them to take over his shares.

However, transferring such a large share entirely is not so easy. It's worth over a billion dollars, while Lei Jun's shares are different.

According to Tan Jincheng's plan, after this round of financing, he wants to reduce his shareholding to around 5%, and the lowest possible percentage would be best.

Zhang Tong nodded: "I understand then. Let's agree on this later."

"By the way, I haven't seen Qingqing around lately. It seems like TiMi isn't managing her much."

TiMi Studio also took advantage of the buzz following the World Internet Conference to launch numerous activities, with its key project, Honor of Kings, receiving fervent promotion. Live streaming platforms like Orange Live also heavily promoted Honor of Kings through its streamers.

By December, the number of Honor of Kings users had reached a breakthrough of 3000 million.

Since TiMi Studio is an independent studio, the revenue of Honor of Kings can only be glimpsed from Orange Technology's financial reports. No one knows exactly how much money they have made, but judging from the popularity of this flagship game from TiMi, it must have been quite a lot.

"We're currently trying to conceive; we're planning to have another child."

Tan Jinchuan is already four and a half years old. From preparing for pregnancy to giving birth, by the time the second child is born, this boy will be almost six years old and can be sent to school. In terms of time, we can make time for him.

Zhang Tong glanced at Tan Jincheng and said, "You two are quite an unusual couple."

Getting married, even among ordinary people, isn't considered late, and neither is having children. Now, instead of the one-child policy, they're talking about having two children, and these two are planning to have a second child. It's as if everything is happening right on cue with the policy. It reminded her of Tan Jincheng's first interview on CCTV, and it really was just as he described.

"Hehe, we can afford to raise them. Having another one is no big deal. If the eldest doesn't live up to expectations, we'll have a backup."

Having lived two lives, Tan Jincheng is not so extreme about marriage, nor does he think there is anything good about marrying and having children late.

In their early twenties, when they can't earn much money, if two people support each other after getting married, their small family can quickly get on track, and their parents can also lend a hand. This way, their middle age will be a bit easier.

As long as you don't overspend or push yourself into a desperate situation because of mortgages or similar debts, you can generally withstand risks, even during an economic downturn.

On the contrary, those who get married in their thirties tend to have a harder time, as they have to balance work and family.

Another point is that ordinary single people simply cannot save money!
Even if you get married in your early twenties, you have more opportunities to correct mistakes if you encounter something unsuitable. But once you're in your thirties or forties, you won't have that kind of courage.

Of course, this only applies to ordinary people.

For Tan Jincheng, he was lucky in terms of marriage. He met the right person when he was just starting out and making his career. If he had waited until after the success of Flash Chaser, he probably would have had a hard time meeting someone like that again.

"Haha, that's a novel idea of ​​yours; let's go, we can talk about this later, let's go to the conference room."

In the conference room, Chen Weixin, Lü Chuanwei, and representatives including Shen Nanpeng, Tencent, and Temasek were present.

Kings don't meet, and the headquarters of Express Car is in Hangzhou. Unless absolutely necessary, Pony Ma will not come to Hangzhou. However, he is quite proud of investing in Express Car and being able to insert a needle under Pony Ma's nose.

In Hangzhou and even the Zhejiang province market, Alipay reigned supreme. Before that, WX Pay had virtually no market share, even less than Orange Pay.

However, with the full rollout of ride-hailing services in Zhejiang Province, WX Pay has also gained a significant market share in the province.

In 2014, the size of the third-party payment sector was approximately eight trillion RMB, of which mobile payment accounted for nearly six trillion RMB, representing a 391.3% increase compared to 2013.

Alipay still holds the top spot with a market share of approximately 49.6%, a position that remains unshakeable. However, Tenpay, including WX Pay, has also gained a 20% market share, a significant increase compared to 2013, 2012, and earlier.

WX Pay is growing very rapidly, with more than half of Tenpay's payment transactions completed through WX.

Leveraging their social network and expanding into local lifestyle services such as ride-hailing, group buying, and food delivery, Tencent has achieved a remarkable turnaround in the payment sector.

If we're talking about who's been the most successful in the internet sector this year, it's undoubtedly Ali, who relisted and propelled himself to the top of the rich list. But if we're talking about who's the biggest winner, it's definitely Tencent.

In the food delivery sector, the current leader is not Wang Xin's Meituan, but Ele.me. In the group-buying sector, Tencent has Dianping, which can also compete with Meituan. In the ride-hailing app sector, Kuaidi is the absolute market leader after completing its acquisition of Dahuangfeng.

"Hello, Mr. Zhang, hello, Mr. Tan, we've been waiting for you."

Everyone in the conference room stood up. Shen Nanpeng looked at Tan Jincheng with some surprise: "Why did you come by yourself? I didn't hear you mention it."

Tan Jincheng laughed and said, "You came by yourself too. I have some business to attend to in Shanghai. It's just a short trip."

"Haha, I'm different from you. I specialize in investment, and I personally oversee the projects I handle."

Shen Nanpeng wanted to ask Tan Jincheng what he was doing in Shanghai, but this wasn't the right occasion.

There's not much to say about the specifics of the financing. The $600 million will get them a certain number of shares. This was all agreed upon beforehand. Tan Jincheng is just here to sign a contract. He wants to transfer his shares and wants to see which company can take them over.

This is a great opportunity to cash out; the next opportunity to cash out will have to wait until the two parties merge.

"You want to transfer your shares?"

Red Shirt is not short of money and will definitely follow suit. However, Shen Nanpeng was still somewhat surprised that Tan Jincheng wanted to cash out. From a long-term perspective, Tan Jincheng has always been the kind of person who rarely cashes out.

"Yes, I've recently come across a new project, but I'm a bit short on cash and would like to cash out some of it. I was wondering if you guys are interested."

Tan Jincheng didn't want to say he was too lazy to play with them anymore. Even if they were to merge, the two companies would definitely have to fight before the merger, and after the merger, there was Uber behind them, trying to take advantage of the situation.

After the merger, who will take the lead? Even with his current 8% stake that hasn't been diluted yet, he doesn't have much say in the matter.

Even though Chen Weixin and Lü Chuanwei both highly praised him, their words no longer carried much weight in the face of such enormous capital.

I'm not playing with you guys anymore. Anyway, the new energy vehicle market has already opened up, and I've achieved my goal. You can try to outsmart me yourselves.

The Temasek representatives didn't say much. They were brought in by Tencent to make up the numbers and incidentally help Express open up the Southeast Asian market. The number of shares they held wasn't important. However, Sequoia Capital wanted to gain more profits, so they were very interested in the shares held by Tan Jincheng.

Tencent was definitely the most interested. Chen Weixin and Lü Chuanwei didn't say anything. Tan Jincheng had already communicated with them by phone before he wanted to cash out. Although he was a little disappointed, he expressed his understanding.

Besides, even if they wanted to buy back the shares, they couldn't afford to buy them all. Valuation is valuation, and net worth is net worth.

Despite the soaring valuations of Didi and Kuaidi, when it comes to actual wealth, Chen Weixin and Chen Wei are still considered 'poor' compared to people like Tan Jincheng.

"The same goes for our shares."

Zhang Tong followed suit with a smile. Shunwei Capital currently holds less than 1% of Express, and after this round of dilution, it will still have 0.97%, while Tan Jincheng's stake is 7.93%.

"Mr. Zhang, are you also transferring your business?"

Chen Weixin was somewhat surprised and confused, not understanding what had happened. Tan Jincheng had communicated with them earlier today, but Shunwei had not given any prior notice.

"Yes, we didn't play much of a role in it to begin with, and it would be a bit unfair for us to keep profiting from the valuation. Let's transfer it together with President Tan."

That's a bit of an understatement. At least the Kuaidi app that comes pre-installed on Xiaomi phones has brought a lot of users to Kuaidi, but overall, its impact is not as great as others, especially after integrating with WeChat.

"Don't be surprised, everyone. In the early stages, we can only offer limited help to the current Express. It is more beneficial for the company's development to withdraw appropriately. Don't forget that there is still a big battle to fight ahead."

To avoid embarrassment, Tan Jincheng spoke up.

"Alright then, in that case, Mr. Zhang, I'll take over your shares. What did Tencent say? How many shares do they want from Mr. Tan?"

Shen Nanpeng could roughly understand some of it, as he had previously communicated with Tan Jincheng about the relationship between Express and Didi.

"I can't make that decision myself; I need to ask our General Manager Ma."

The person who came from Tencent was an investment manager, a high-ranking one, but he still needed to consult with his superiors regarding such an unexpected event.

Tan Jincheng nodded: "Okay, I'll wait five minutes."

The valuation in this round is calculated at 200 billion US dollars, and Shunwei's shares are worth 1.94 million US dollars. Lei Jun can be said to have made a fortune in two years. Apart from investing a few million US dollars, he did nothing else.

Oh, right, they also received an advertising fee; they have to pay for the Xiaomi app to be pre-installed on the Kuaidi app.

The investment returns are undeniable; this is also the first investment return that Lei Jun (CEO of Xiaomi) has obtained by leveraging his relationship with Tan Jincheng.

Not long after Tencent's investment manager left, Tan Jincheng's phone rang; it was Pony Ma calling.

"Yes, just tell me how much you want."

Little Ma chatted on the other end of the phone for a while, pretending to be serious. How could Tan Jincheng not know what he was thinking? Tencent is open to any share offer, so what are you afraid of?

He can leave Express, but Tencent absolutely cannot, otherwise all his efforts over the past two years will have been in vain.

Little Ma laughed and said, "How about I save you two spots?"

He had already figured it out: the two apps couldn't keep fighting like this. Not only was this approach unsustainable, it was also likely to provoke resentment from higher-ups. After this round of financing, he planned to go to Jack Ma to discuss the merger of the two companies.

If Tencent can acquire more shares in KuaiChe, it will be able to take the initiative in merger negotiations. Even if the negotiations fail, it will still be able to better control KuaiChe.

"Sure, no problem. Have your manager come and sign the contract with me."

You can have it all, but you can't say that in this kind of situation, otherwise it would be a slap in the face to Chen Weixin and Lü Chuanwei.

A 5.93% market share, worth $11.86 billion!

Tan Jincheng's investment in express delivery vehicles netted him over 10 billion US dollars in two years. It has to be said that the internet bubble was truly insane, so insane that even someone like Tan Jincheng, who was used to investments of billions of dollars, was somewhat impressed.

At its peak, Didi was valued at nearly $2000 billion. Why?
It was thanks to the backing of these wealthy conglomerates that Pony Ma was able to not only acquire more leverage but also throw out billions of dollars.

Of course, our Little Ma is not short of money.

What are you going to do in Shanghai? Is there any investment you're making? Can you help me out?

After all the contracts were signed, Tan Jincheng, who had nothing else to do, was about to leave for Shanghai when Shen Nanpeng hurriedly caught up with him from behind.

(End of this chapter)