2003: Starting with Foreign Trade

Chapter 818 Buying a House in Shanghai
Shen Nanpeng's sense of smell is indeed very sensitive, but Tan Jincheng is not stupid either.

Venture capital funding? You're dreaming.

If capitalists don't make money, whose money will they make?

"Didn't you complain that our company didn't have a decent branch office? That's why I went to Shanghai to find a location to buy a building and cash out, isn't that what I did?"

"That's it?"

Shen Nanpeng still couldn't quite believe it.

"That's true. But if you're talking about investment, there is some, but it's not in the capital, it's in Guangzhou."

The $11.86 billion cashed out belonged to ByteDance, not Weilai. However, as the actual controlling shareholder of Weilai, he has an obligation to resolve the problems of his company.

Shen Nanpeng is right; Wei Lai, or rather, the companies under his control, still don't have a decent branch.

Flashpoint and Orange Technology are both headquartered in Beicang, and their factories are located throughout the country. The same is true for Weilai. The base in Luzhou is larger, but it cannot be considered a branch.

As companies grow in size, remaining confined to a corner of Ningbo is no longer suitable.

Even before Shen Nanpeng complained, he had already been considering this matter. Going to the capital was too far, but buying a building in Shanghai and giving his companies a foothold there seemed to be a more suitable approach.

Buying it under the name of ByteDance and then leasing it to the three core companies, namely Weilai, Flashpoint, and Orange Technology, is a pretty perfect solution.

In 2014, Shanghai's housing prices were already so high that most people couldn't afford them, but for ByteDance, it was nothing.

Furthermore, with a large amount of cash and equity in hand, it seems unreasonable for ByteDance not to acquire some fixed assets.

"What happened? Tell me. Is it He Xiaopeng?"

In terms of news, Sequoia Capital is definitely not bad. He Xiaopeng sold UC and started a new company in Guangzhou, supposedly to manufacture cars. This news has already spread in the internet circle.

Like Jia Yueting, He Xiaopeng's foray into car manufacturing is also a novelty, but he keeps a low profile, unlike Jia Yueting who goes around proclaiming that he is the world's first internet company to engage in car manufacturing.

And sure enough, LeEco's shareholders loved this kind of thing. On the day Jia Yueting made the announcement, LeEco's stock price hit a T-shaped pattern, with a total trading volume of 10.11 billion yuan. The previously declining stock price also stopped its downward trend.

Believe it or not, Tan Jincheng really wanted to buy some LeEco stock. Although he didn't trade stocks in 2015, he still knew about the famous LeEco. Its stock price soared to around 180, with a market value of over 1500 billion.

Currently, its market value is only around 300 billion yuan, so a five-fold profit margin is still quite promising.

This old guy is really good at conning people. From ordinary stock market investors to celebrities, everyone is completely fooled by him. Even after he returns to China next week, he will still have many followers.

That alone makes it incredibly impressive.

However, he can't use the publicly known account on ByteDance's advertising platform anymore. He has to use an unknown pseudonym to buy up their company's stock at the bottom. Tan Jincheng doesn't want to accidentally buy into the front row, which would be considered indirectly supporting them.

"Yes, he visited our company before, and started preparing after he went back. If you're interested, you can talk to him."

So, are you going to vote or not?

"Of course I invested, but they don't have a venture capital round yet. You know they're not short of money, not to mention our CEO Lei is there too."

Lei Jun, a fellow townsman a few years younger than him, has been very supportive, so it's impossible for him not to invest in Xiaopeng Motors.

Furthermore, they cashed out nearly two hundred million US dollars this time, which is more than enough to invest in Xiaopeng Motors.

Shen Nanpeng nodded: "Okay, then I'll go talk to President He and see if he's willing to accept our investment."

To be honest, Tan Jincheng cashed out nearly $12 billion today, and I was a little envious. In just two years, his 2% stake in the company is not to be underestimated. After the battle between Express and Didi, his 2% stake will rise again.

Based on Didi's current valuation, this 2% stake is conservatively worth at least seven or eight hundred million dollars.

"Go ahead, they'll definitely be happy to go. Who wouldn't want money? They have the mindset of internet car manufacturing, and they should be listed on the US stock market in the future."

Going public overseas definitely requires the help of institutions like Sequoia Capital, and He Xiaopeng has no reason to refuse Sequoia's investment unless he has better channels.

Upon hearing this, Shen Nanpeng understood.

He nodded and said, "Okay, then I'll transfer to Guangzhou. You go to Shanghai by yourself. But if there's anything good, you have to let your brother have a turn. You have such good taste, it's like you're on a winning streak."

"Oh, by the way, I'm indebted to you this time."

"Easy to say."

He was in charge of Hongshan Zhongguo, but if he invested heavily in a particular sector within the internet industry, which he was most skilled in, and suffered a complete defeat, he would have a hard time explaining himself, and at the very least, he would lose face.

With the competition between Express and Didi reaching this point, the founders and management of the companies may not necessarily be happy about the merger, but as investors, they all tacitly understand each other's intentions.

That means there's only one way out: merger.

Continuing to fight like this will not benefit either side; neither can sustain the damage.

Furthermore, investors have realized that the ride-hailing market is different from social networking or online shopping; it is also related to government and people's livelihoods. This year, it has been suspended by local governments several times, and the app was even temporarily removed from app stores.

Before the laws and regulations are formally perfected, they must try to occupy a leading position in the market.

Once the merger is complete, Sequoia Capital will have a place in the ride-hailing sector, and in addition to its presence in the local services sector, they have also made investments and achieved remarkable results.

Tan Jincheng couldn't care less about these things.

In the ride-hailing industry, his mission is accomplished, and the remaining shares are up to fate. It is highly unlikely that he will sell them, given that there will be some future collaborations between the two parties.

As far as I can remember, Didi in its previous life eventually wanted to build its own cars, and even designed the cars, but I don't know why it was never launched.

In 2014, spending 10 billion US dollars to buy land and buildings in Beijing was quite an astonishing thing, wasn't it?
Mr. Wei, the boss who previously built a lithium battery base in Lingang, has once again come to Shanghai to stir up trouble, this time by buying property.

The news of the express car's financing has not yet been announced to the public. In addition, according to the agreement between the parties, only the amount of financing and which companies led and followed the investment have been announced. Nothing else has been disclosed.

It's highly unlikely that the outside world will know about the news that Tan Jincheng cashed out $11.86 billion, but it's not impossible that these individuals leaked the information.

After all, only in this way can a sensational effect be created for the company.

Tan Jincheng, who brought one billion US dollars to Shanghai to buy a building, was once again received by various parties, just like last time. However, this time, Tan Jincheng did not plan to place the branch office headquarters building in Lingang.

It's not just for Wei Lai's family to use; placing it in Lingang isn't quite appropriate.

After much deliberation, we decided to purchase a plot of land in the core area of ​​the Caohe District Development Zone to establish a branch office.

Tan Jincheng originally planned to buy a building, but there are no suitable properties available at the moment. Although building it himself would take longer, it would still be more cost-effective.

At least there are certain preferential policies regarding the land.

It's actually cheaper when you calculate it all.

"Even if it's cheap, the land still cost 8 million."

Back in Ningbo, Tan Jincheng chatted with Huang Ming and Cheng Linfeng with a smile. He mentioned that this was also a major investment by ByteDance, and they were part of it. This year, the building was rented to several companies, including Wei Lai, and they received a considerable amount of rental income every year.

The plan is to build a 9.8-square-meter branch building on this plot of land for the branches of several companies.

Especially for Weilai and Orange Technology, if necessary, TiMi Studio may relocate entirely to Shanghai.

Beicang is no longer big enough for the current FlashCar Group, and some assets will be transferred out. The reason for choosing TiMi Studio is that it is more down-to-earth in a big city.

In addition, TiMi Studio will be contacting some esports teams to organize competitions next year, and it will be more convenient to do so in Shanghai.

"Haha, we can say we have a family heirloom now."

The two of them hold a small number of shares in ByteDance's advertising platform, but even that small amount is enough to ensure their financial security for the rest of their lives. Moreover, ByteDance's reputation in the industry is already comparable to that of Shunwei Capital.

Tan Jincheng didn't feel he lost out at all about the shares offered by ByteDance's advertising platform.

Over the years, the major policies and profitable projects, such as Xiaomi, ByteDance, and Kuaiche, seem to have been decided by Tan Jincheng, but Huang Ming also played a significant role in them.

Investing in a company isn't about throwing some money at them and then ignoring them.

Take Xiaomi as an example. Tan Jincheng is still one of Xiaomi's directors. Although he has no right to interfere with some of Xiaomi's important policies and strategies, he still has the right to know, as well as the financial audit. Tan Jincheng simply doesn't have the energy to manage these details, and he has invested in more than just this one company.

In addition, several companies founded by Tan Jincheng himself, including Weilai and Orange Technology, also require audits from ByteDance's auditing services in areas such as finance.

This requires Huang Ming to mediate the operations. It can be said that Huang Ming is Tan Jincheng's chief steward in primary market investment, and even provides considerable assistance in the operation of several core companies.

Huang Ming is just as busy as Tan Jincheng. He travels the most during business trips at ByteDance, spending almost half of each month on airplanes.

However, he seemed to enjoy it.

Huang Ming, who, along with Dr. Zhang and Lao Ding who raises pigs, belonged to the first generation of internet entrepreneurs, missed the golden age of the first wave of internet entrepreneurship and performed only moderately in the second wave.

However, since transitioning to a full-time investor, his reputation has soared.

Tan Jincheng doesn't like giving interviews. For any events where ByteDance shares its investment experience, Huang Ming usually takes the lead. In front of the media, he is a well-known investor like Shen Nanpeng.

As for Cheng Linfeng, it goes without saying that he controls almost all of ByteDance's cash flow health in the secondary market.

These two important figures would probably have left long ago if they weren't tied up in shares. With their current abilities, Cheng Linfeng could easily become a well-known private equity investor.

If Huang Ming were to do his own investments, he might not be that bad.

"Haha, you could say that. If we all go bankrupt, then this building will be our retirement home."

This land, which cost 8 million yuan, was acquired through bidding. ByteDance's advertising platform needs to start construction within 12 months of acquiring the land, with a total construction period of 60 months.

However, for a company as well-funded as ByteDance, there was no need to wait 12 months to raise funds. Tan Jincheng announced the search for design solutions as soon as he returned from the Shanghai Stock Exchange.

Money is not an issue, as long as it can be completed as soon as possible.

"Haha, bankruptcy is unlikely. It's impossible for all of our companies to run into trouble. Boss, you're really joking."

"That's hard to say. Don't be fooled by how great things are now; they might not last forever. Look at the internet industry this year, it's like it's gone crazy, especially ride-hailing services."

Huang Ming pondered, "Is this one of the reasons you cashed out, boss?"

"Yes, that's part of the reason. It's a huge deal, but a bubble is still a bubble. Didi is worth more than our Weilai now. Isn't that ridiculous?"

This is what Tan Jincheng can't understand the most. Damn it, Xiaomi still has phones to sell, but Didi and Kuaidi are just app platforms.

"That makes sense. Their valuations are inflated too much. Other internet platforms aren't that exaggerated. If they go public, I definitely won't buy their stock."

Cheng Linfeng, who works in the secondary market, also agrees with Tan Jincheng's opinion.

If Didi can go public after its Series D funding round, that would be great. But it's clear that Didi is in no position to go public in its current situation. That means there will be Series E, Series F, and even more funding rounds. If they keep raising funds like this, when will it end?

When it comes to the time of IPO, the original shareholders will definitely drive up the market value to a high level in order to cash out, leaving very limited room for the secondary market.

"So we have to be especially careful when investing in internet companies in the future. There has been too much hype in the past few years. In fact, this is really the fault of BAT (Baidu, Alibaba, Tencent)."

Today, the three of them gathered, and Tan Jincheng mainly conveyed the future investment direction.

ByteDance's advertising platform isn't afraid of its investments going down the drain. With just these few key investments, it's already invincible and can make a living.

But you can't be a sucker.

Aside from the Pinduoduo project, Tan Jincheng plans to no longer participate in large-scale investments in the future. The real golden age of investment has passed in the last few years, and as for artificial intelligence and AI in the future, it is still a bit early.

By the end of 2014, ByteDance's advertising platform had nearly 500 employees.

As a large investment company with nearly 500 employees, it is certain that it will continue to work on projects, and Huang Ming will also need to find new hot topics to add more honors to his personal investment career.

"So, boss, how did your chat with Mr. Huang from Seeking Dreams go?"

Tan Jincheng stayed in Shanghai for almost half a month this time, not just to buy land, but also to meet with Huang Zheng.

Having recovered his health, Huang Zheng has gradually resumed work. After his career transition, he has begun testing his Pinduoduo project, which is currently in the internal incubation stage.

Tan Jincheng looked at it and realized it was indeed somewhat similar to the grocery shopping groups that some shop owners in a neighborhood used in later generations.

The advantage of this model is the timeliness of information; what goods are in the store and what prices are available are immediately clear.

Huang Zheng's idea was to expand this model nationwide through WeChat official accounts and other means. To this end, he selected 20 core members from Xunmeng to form the Pinduoduo project team.

Huang Zheng calls this the C2B model, which, simply put, means that consumers connect directly with businesses, eliminating middlemen and allowing prices to be as low as possible.

They have a WeChat official account, a website, and an app, and initially, they continued to focus on fruits and agricultural products.

"Haha, Orange Technology can help with that. You can discuss it with Mr. Sun yourself. Also, once your company receives a large amount of funding, Orange Technology can transfer this part of the business to you."

Huang Zheng has essentially latched onto a powerful company. In China right now, if we're talking about which internet company has the most experience in cold chain logistics for fruits and agricultural products, it has to be Orange Technology.

Orange Technology, which is willing to invest money, started early, and jointly developed a cold chain transportation system with SF Express, has gone from frequently damaging fruit packaging in its Happy Farm days to now having a complete transportation chain system.

Huang Zheng told Tan Jincheng about his ideas and, after showing Tan Jincheng the still immature internal incubation system, expressed his demands.

He used to work on adult games, but now he doesn't have as many agricultural resources as Orange Technology.

"Sell it to us? Why?"

Huang Zheng was somewhat puzzled. This business was excellent, and Orange Technology was doing a good job.

Tan Jincheng shook his head: "It's not that he's bad, it's just that our Orange Technology's core business is Orange Products Club right now, and doing these things would be a bit out of place."

Enterprises need to constantly explore and adapt to change during their development process.

Orange Technology started with social games, and its involvement in helping farmers was more about mitigating public criticism of Happy Farm and providing a protective shield for Tan Jincheng and Gu Qingqing.

However, the current development direction is completely different from the initial one.

In the future, Orange Technology will gradually divest its assets from the 'Happy' group, and its main business will be Orange Products Club. If we were to add another one, it would be Orange Payment.

As for the gaming sector, we will gradually shift to a work-based approach led by TiMi Studio. The Happy series games are already declining, and we will sell them if we can, and gradually shut them down if we can't.

The same applies to selling off the agricultural products business segment.

As for talismans, Tan Jincheng and his group no longer need them, or rather, this project can no longer be considered a talisman.

After a moment's thought, Huang Zheng understood what Tan Jincheng meant.

"That sounds good. Or you could use this business segment to invest in us, Mr. Tan, what do you think?"

Buying it with money is definitely not an option. Every penny must be spent wisely. Will the price of such a good resource be the same whether we get it now or in the future?
"Okay, let's both send people to assess the value. We can discuss how much Dream Seeking equity we can get in return later."

This thing is quite valuable; you could say it's worth several Dream Chasers.

However, investment cannot be calculated in this way. Although Xunmeng's main business is adult games, the cash flow from these games can ensure that Pinduoduo can be launched smoothly and even fully rolled out.

Obviously, Huang Zheng wouldn't be foolish enough to take out a large portion of his assets to exchange for it; otherwise, what kind of business would he start?

Orange Technology is a listed company, and it's impossible for them to claim that your company has unlimited future prospects and then exchange this part of the business for a portion of your shares based on this pie in the sky. If they did, the shareholders would be furious with Tan Jincheng.

Nasdaq might even have to launch an investigation into Tan Jincheng.

Tan Jincheng didn't agree immediately because of this. In the end, he estimated that he would still use a combination of equity and cash to exchange for the shares. As for how much cash and who would pay for it, that was another matter.

Tan Jincheng glanced at Huang Zheng as he thought about it, and couldn't help but smile.

He knew at least a few people who were willing to pay for this guy; he was really lucky.

2014 is about to end, and 2015 is coming. Huang Zheng and his past life with Pinduoduo are about to begin.

I wonder if WX users can accept the fear of being slashed.
It's infuriating! In my past life, I hated this thing the most, but now I'm actually investing in it. Life is truly unpredictable.

(End of this chapter)