2003: Starting with Foreign Trade

Chapter 831 Seeking Change Amidst a Slump (Seeking Monthly Tickets!)
P.S.: Double monthly votes, please give me a guaranteed monthly vote!
After the family finished shopping, Tan Jincheng suddenly suggested that Li Yaohui go to visit his cousin Tan Jinen's company instead.

The small office was divided into three single rooms, with two or three staff members, which was somewhat similar to the original Jinpeng Trading style.

"Brother, sister-in-law, what brings you here? Hehe, how's my place?"

"I just stopped by to take a look."

The other two employees in the office stared at Tan Jincheng and his family in shock.

Tan Jin'en usually kept a low profile at school. His classmates only knew that his family was somewhat wealthy and that he had some connections in Beicang. However, there were too many rich people in Ningbo, so not many people cared.

"Holy crap, is President Tan really your brother?"

One of the two employees was his classmate and also his partner. Back in school, people had teased Tan Jin'en about his name.

Another girl, shocked, took out her phone to take a picture.

"Hello, I'm your boss's cousin. It's fine if that beautiful lady wants to take a photo, but please don't include the children in the picture."

"Really, Mr. Tan? Don't worry, we all know the rules, and the children definitely won't be in the picture."

After taking a few group photos, we went to Tan Jin'en's office.

It's not very big, and there aren't many fancy things around it; it seems quite practical.

"It's alright, there was no extravagance, which is commendable."

With the investment of family funds, Tan Jin'en's entrepreneurial journey was much smoother than that of ordinary entrepreneurs. He only needed to run the company well and play the role of CEO well, and others would take care of everything else for him.

However, as an investor, Tan Jincheng does not want entrepreneurs to squander money after receiving investment.

Zhang Yiming, a shrewd and meticulous entrepreneur, is the kind of person he admires, someone who spends money wisely.

"Show me your order-taking system."

Unlike private companies, car rental companies have set up a platform system similar to Gaode Maps, which centralizes order taking and then distributes them to company drivers, earning a commission from each order.

In addition, the car is rented to them, and a rental fee is charged every month.

The actual operating model is just the same old taxi company + internet model, nothing new. They don't make much money from the drivers, and they mostly make money from subsidies.

"You guys are a bit slow. Are all your orders genuine?"

After observing for a while, Tan Jincheng quickly discovered the problem.

"Huh? What do you mean 'all orders are real'? Bro, are you talking about fake orders?"

College students are so honest. They want to earn the subsidy money, but they still honestly take orders.

Tan Jincheng hasn't resorted to underhanded tactics much in recent years, but that's a fundamental skill. Looking at entrepreneurs from humble backgrounds, none of them are unaware of such tactics.

"Borrow two programmers from your sister and have them write a program for you. Just keep an eye on Uber's subsidies; it can be written for passengers as well, not just drivers."

Gu Qingqing chuckled: "You only teach bad things."

"There are no clear legal boundaries. As long as we keep the area isolated, what could possibly happen?"

10 billion RMB versus 10 billion USD seems like a huge difference, but Didi has the advantage.

Uber's founders were completely ignorant of the Chinese market, thinking they could simply buy their way in with money. In reality, they lost miserably. The huge subsidies they received, and those that followed, were not only being paid off by private individuals and small companies, but also by people within the company themselves.

Very few of them have actually been implemented.

Why not use it if it's free? Tan Jincheng not only uses it at his brother's small, run-down company, but also at his own car rental company, just like Uber is paying them a salary.

Uber's fundraising ability is indeed undeniable, but if they hadn't ultimately partnered with Shuzhijia, their business in China would have been utterly devastated by Chen Wei.

Even their global business will be affected. Tan Jincheng learned during his shopping trip that Chen Wei is currently engaged in a subsidy war with Uber in China while also planning to raise funds.

The purpose of the financing was to acquire Uber's biggest competitor in the US, directly targeting their domestic business.

"Is it really okay to do this?"

Gu Qingqing was still a little worried.

"It's okay, don't worry. But don't target Didi. Just keep an eye on Uber and try to take advantage of their offers. They won't work."

In his previous life, he had read a news report about the subsidy war between Didi and Uber, in which the total amount of financing for both sides reached 200 billion US dollars, while the Americans in the Gulf states had only spent 600 billion US dollars.

That's enough for these two teams to fight three times.

"Hehe, is it really okay? I won't go in, will I?"

Tan Jin'en's eyes lit up, but she also looked a little scared. College students like excitement, but they are also quite timid.

"It's okay, once you're inside, your brother will bail you out. He's the one who came up with the idea, so he has to take responsibility."

"Alright, there's nothing major going on here. Overall, things are going well. Keep up the good work, pay attention to the financial structure, and you can still keep going even without subsidies."

Ride-hailing services will remain popular for a few more years. Even if they become less lucrative later on, they are still a legitimate profession and a fallback option for the unemployed. This car rental model is a good choice for those who cannot afford to buy a car or are only planning a temporary transition.

Any business can be done as long as there is market demand and room for growth; you don't necessarily have to be in a high-profit industry.

"Okay, I understand. So, when can I come to see you, sister-in-law?"

"Here's a name tag. Go find your sister Yan Ning and tell her what you need. I won't get involved myself."

"Okay, thank you, sister-in-law."

At this moment, Tan Jin'en is full of energy, and the passion of starting a business for the first time is fully reflected in him.

After seeing off her elder brother and sister-in-law, Tan Jin'en inevitably faced a barrage of questions from her two colleagues.

Wow, I never imagined that the owner of such a small shell company would have such a powerful background.

"Don't gossip about it at school. My brother doesn't like us being too high-profile. You guys keep this to yourselves. Now you don't have to worry about me not being able to pay salaries, right?"

"Haha, don't be afraid, I've never been afraid before!"

"Tch, that's not what you said before; I'm not going to argue with you guys anymore, I'm going out to find someone, you guys stay home and keep watch, if a driver comes to apply, just verify them according to the requirements."

He couldn't wait a moment longer; once he got Gu Yanning's business card, he planned to go straight to her door.

There is a huge gap in the ride-hailing market, but the car market in May was surprisingly disappointing.

"It turns out that once sales of some products decline, even price reductions are of no use."

On June 8, based on the latest data from the China Association of Automobile Manufacturers, the senior management of Weilai Group held an expanded collective meeting to discuss the situation the company faces this year.

Since last year, Weilai has shifted its resources toward the new energy industry, but the sales target of 50 vehicles still needs to be supported by gasoline vehicles. However, the gasoline vehicle market in the first five months of this year seems to have encountered a cold wave.

Prices dropped across the board in April, and growth was still acceptable. However, in May, with the May Day holiday, both production and sales declined.

In May, China produced a total of 196.42 million passenger vehicles, down 5.56% month-on-month and 0.58% year-on-year, and sold 190.38 million vehicles, down 4.55% month-on-month and 0.40% year-on-year.

Both production and sales fell back to below 200 million, marking the first negative growth since 2015. This was an extremely unusual off-season, especially considering that even during the Chinese New Year period, sales maintained positive growth.

"Although SUVs and new energy vehicles are both maintaining an overall growth rate, we are under pressure due to the poor overall market performance."

The reason is simple: sedans aren't selling well, but the SUV market is performing well. This will inevitably lead to more manufacturers entering the market, each taking a share, which will naturally have a significant impact on the leading companies.

"That's right. It's fine for us to brag a little before the company goes public, but it's not so easy to brag after it goes public, especially now that the stock market is so hot."

Tesla said last year that it expected to sell 3.5 vehicles, but it only sold 3.13. To be honest, that's a pretty good result, but the capital market didn't recognize it.

If expectations aren't met, the stock price will plummet right away.

Today's stock market can be described as a stark contrast: the Shanghai Composite Index surged to 4131 points, while the ChiNext Index has fallen for three consecutive days after hitting a record high of 4037 points on June 5.

Today it plummeted by 181 points, and has fallen by more than 300 points in three trading days. The three consecutive days of decline with high volume at high levels are becoming increasingly obvious signs of a market top.

Weilai shares have also been sluggish recently, currently falling to around 105 yuan. Baoteng is really unlucky, already in a loss-making state before the share issuance is even completed.

This is partly due to the overall decline in the ChiNext market, and also due to the extremely sluggish car market in May.

Unlike gasoline-powered cars, which suddenly stopped selling well, new energy vehicles have seen explosive growth.

According to the Ministry of Industry and Information Technology today, based on statistics from vehicle production certificates, a total of 1.91 new energy vehicles were produced in May, a three-fold increase year-on-year. Among them, 9922 passenger vehicles were produced, also a three-fold increase.

The production of new energy vehicles from January to May reached 5.36 units, which is only one month's production capacity compared to the whole of last year.

From January to May, Weilai maintained an absolute advantage in the new energy vehicle sector, especially in pure electric vehicles, where it occupied almost 50% of the pure electric vehicle market.

From January to May, Weilai New Energy Vehicles delivered a total of 17524 vehicles, accounting for 35.95% of the market share.

An average monthly sales volume of 3500 vehicles is quite good, but it is still not enough to meet the full-year expectations, especially given the sluggish car market in the first half of the year.

"Given the current sluggish domestic market, it's unlikely to improve in the short term without new policies. Therefore, we need to accelerate our expansion into overseas markets and increase exports as much as possible to ensure our sales this year."

The acquisition of Proton is still in the transition period, and the financial report for this year will not be consolidated for the time being. However, through Proton's channels, the Southeast Asian market can be developed as soon as possible, especially in countries such as Malaysia and Thailand where Proton has a high market share.

"We need to speed things up. Exports are still mainly gasoline-powered vehicles. How's your research institute doing with the engine technology that Proton has brought back?"

Tan Jincheng was asking Hu Zhengnan. As the vice president of the Weilai Research Institute, Hu Zhengnan was mainly responsible for fuel vehicles, while engine research and development was his responsibility.

"We're already analyzing the data and have brought back a few sets of engines for research, but it will be difficult to improve the efficiency of our own engines in the short term." Li Chunrong's efficiency is really impressive. The acquisition was completed in May, and even the equity transfer is not yet fully completed. Tan Jincheng doesn't know how he managed to get Proton's engine data back by the end of May.

We also brought back Proton's range-extending technology, which is pretty impressive.

"Hurry up and find a way to improve the quality of our engines, otherwise with the current engine technology, we can only use Proton's engines for export, which will increase the cost."

There are many parameters for evaluating the quality of an engine, among which the most important one is thermal efficiency. The higher the thermal efficiency ratio, the better the engine.

Consumers often perceive engines as fuel-efficient, even if the thermal efficiency ratio is higher. While this assessment may not be entirely accurate, it does highlight the importance of thermal efficiency for engines.

Currently, the best engines in the world are still from Nikon, and this has been the case for a long time. This is also why their cars sell well worldwide.

Japanese engines currently have a thermal efficiency of approximately 39% to 40%, while domestically produced engines average around 35%.

Don't underestimate these few points of difference; they represent a gap of ten or even decades. It will be a very long time before domestically produced engines reach a level of over 40%.

Weilai claims that its self-developed engine has a thermal efficiency of 37.1%, but this is actually unrealistic. However, compared to the 39% or even 40% claimed by some companies, Weilai is much more honest.

"It will take some time, but we will do our best to use our self-developed engines for export business as soon as possible."

The boss gave the order, so what could Hu Zhengnan do but sign a pledge?

"Mr. Li, why don't you work with Mr. Yu to research the range-extending technology? We're planning to develop a smart SUV equipped with range-extending technology, and you can participate in the design."

Li Xiang ONE, haha, it's interesting to let Li Xiang himself participate in the Li Xiang ONE event.

"Ok, no problem."

Li Xiang caught the fleeting cunning in Tan Jincheng's eyes, which puzzled him, but he didn't think much of it, assuming that his boss was up to something again with the competitors.

He has always been involved in the product design of Weilai, and he even holds the title of product manager.

"Oh, and in a few days, Mr. Hu and Mr. Li, you'll be coming with me on a business trip to the UK. I'm planning to reintroduce Lotus to China."

"Mr. Zhang and Mr. Zeng, please remember to have the marketing department cooperate well in the publicity."

With actual control of Lotus and global sales rights for Serena, Weilai now has a solid foundation in the sports car industry.

"Hey Thomas, could we build a pure electric supercar? Something like a concept car?"

Weilai has never had its own concept car. In recent years, Weilai has had plans for its own concept car, but due to development reasons, it has been delayed.

Weilai, which has ranked first in the world in new energy vehicle production capacity for three consecutive months, has also entered the top three in the world in the rapidly developing power battery business. If it doesn't produce a decent concept car soon, it will be a bit embarrassing.

Tan Jincheng remembered that Wei Lai in his previous life had a supercar concept car called EP9, which looked pretty cool.

I wonder if Thomas can get him out?
"I already have some design drafts. Tan, would you like to come with me to take a look after the meeting?"

Thomas is also an oddball. He said he studied Chinese desperately in order to integrate into the team, and he always used Chinese when communicating with Tan Jincheng and others.

To be fair, this guy has a decent talent for languages, but Tan Jincheng just couldn't stand his accent.

Therefore, in some professional expressions and important occasions and meetings, Tan Jincheng still requires him to use English.

"No problem, we'll go take a look in a bit."

Tan Jincheng gave an OK sign, and then said to Li Xiang, "President Li, please join us too."

This was the largest high-level meeting since Wei Lai acquired Proton. Even Li Chunrong, who was in Malaysia, joined the meeting via video to prepare for the full transition of Proton.

Zhang Yong is responsible for ensuring the opening of sales channels. He will be going to Southeast Asia on a business trip this month. Tan Jincheng is going to the UK, accompanied by Hu Zhengnan, Li Xiang and others. Yu Liguo will be in charge in China.

As the director of the president's office and Tan Jincheng's confidant, Zeng Jixiang remained in China to help him manage some affairs.

In addition, he is also the company secretary of Wei Lai.

With this setup, even though Tan Jincheng has been abroad for a long time, and even though Gu Qingqing is currently pregnant and not suitable for long-term work, it will not cause any changes in Wei Lai.

"Alright, that's the general arrangement. Everyone can go home now, except for Mr. Zeng, who will stay behind."

After Zhao Xinyi joined the company, Zeng Jixiang's workload became much lighter, but also more important. Now, Zeng Jixiang basically plays the role of Tan Jincheng's head housekeeper.

"As you can see from the current stock market situation, it has basically peaked. If there are any unexpected events in the stock market during my time abroad, and if official funds are used to rescue the market, please remember to contact me immediately."

The reason Zeng Jixiang was kept on was still the stock market. In 2015, almost no CEO of listed or unlisted companies could avoid this topic.

Even small business owners and sole proprietors might dabble in stocks.

On the ByteDance platform, the remaining positions are all from its own funds. During the previous fundraising, Tan Jincheng also asked Cheng Linfeng to redeem the shares of the clients who participated.

In other words, the subsequent stock market crash will be borne independently by ByteDance, demonstrating that Boss Tan has already done his best to make a significant impact.

As for what these clients do after reducing their holdings, or whether they will reinvest in the stock market, that's none of his business.

There were quite a few investors who entered the market at 5000 points. Currently, it's only about 40 points away from the legendary 5178-point level. The stock market has truly reached its peak.

"Does the boss believe there is a systemic risk?"

Zeng Jixiang also experienced the stock market crash of 2008, which was a terrible loss, but in terms of systemic risk, it was not as severe as the one in 2015.

“There will definitely be systemic risks. There are already signs of this. You’ll know if you take a serious look at it.”

It's already June 8th, and Tan Jincheng is no longer hiding anything. In fact, some professionals had already warned about it, but unfortunately, the market was too crazy and not many people really paid attention.

Just like at the peak of housing prices, there are some people he can't stop.

"The leverage ratio is too high, the daily trading volume is astronomical, and most importantly, the current stock market size and the speed of information dissemination are completely different from those in 2008."

What was the internet environment like in 2008? Many people didn't even have cell phones, and they didn't care how much the stock market was falling.

Now, Weibo is full of so-called stock commentators who are trying to fool people. As long as you have a mobile phone, you will encounter these scammers. Even if you don't fall for their tricks, it's impossible to completely block out this information.

Similarly, when the stock market crashes, this speed of transmission amplifies panic.

"Today's surge in the Shanghai Composite Index was largely due to the resumption of trading in CRRC shares, but it's clear that CRRC can't continue like this indefinitely, nor can it return to its previous highs."

CRRC, which had been suspended from trading for a month, resumed trading today, with its stock price rising to 32.40 yuan with a limit-up opening. This seemed to give retail investors a chance to break even, but with all expectations met, today could be considered the best opportunity to sell at the top.

"That's true. Stock trading is all about expectations. Aside from its performance, CRRC doesn't have much to look forward to. So, boss, do you have any specific plans?"

Zeng Jixiang was no stranger to the term "market rescue" as he had also tried to rescue the market in 2008.

"Keep an eye on the domestic situation for me. If they announce a market rescue plan, then we'll launch a buyback program for both listed companies at the same time."

After a pause, Tan Jincheng added, "As for the repurchase amount, I can't define it for now. We'll talk about it later."

This bleeding is inevitable, especially since Flash Technology, which benefited from the hype surrounding high-dividend stocks, didn't see much of a drop in May, and its current share price is still around 40 yuan.

However, judging from the chip distribution chart, FlashTech's chips have become very dispersed, so it goes without saying who will take over.

"To be honest, FlashTech really ripped off a lot of investors. We launched the high stock dividend at the very beginning of the frenzy, so it would be unreasonable not to repurchase shares."

Zeng Jixiang had nothing to say to his boss's complaints.

Although it is a leading enterprise, a market value of 400 billion yuan is really too high for a manufacturing company with a single main business and limited technological content.

"If there are any changes that I can't keep up with, you can adapt to the situation or ask Mr. Gu for his opinion."

Zeng Jixiang nodded: "Okay, then I'll keep a close eye on the stock market recently."

It seems the boss takes this matter quite seriously.

Tan Jincheng's attention was validated the following day. As one of the most watched stocks in the two markets, CRRC opened at 35.64 yuan on the second trading day after resuming trading, still a limit-up.

The market capitalization of 9725.8 billion yuan has once again driven the market into a frenzy, and CRRC's trillion-yuan market capitalization is within reach!
However, just as retail investors using the "leading stock strategy" were fantasizing about how many limit-up days they would see after the stock resumed trading, an unexpected incident occurred, as expected.

At 9:30, trading officially began.

A massive sell order of 46.15 billion yuan directly drove CRRC's stock price down to 30.20 yuan.

In just a split second, investors who didn't have time to cancel their orders watched helplessly as CRRC's stock price plummeted from its daily limit to -6.79%!

"It's cold now."

Cheng Linfeng, who was on vacation, stared at the candlestick chart on his phone and muttered to himself.

Another stock experienced a dramatic reversal from limit up to limit down, and another record-breaking trading volume. The single-day trading volume of 497 billion yuan for this stock is enough to rank among the top three, even after 10 years of significant market expansion.

From the 10th to the 16th, CRRC, which had fallen for five consecutive trading days, maintained a daily trading volume of over 30 billion yuan. In the seven trading days after resuming trading, the stock price fell by more than 300%, with a trading volume exceeding 2000 billion yuan.

The main index also fell by nearly 300 points in two consecutive trading days after peaking at 5178 points on June 12. As for the ChiNext index?

On June 16, the ChiNext index had fallen more than 400 points from its peak, and the phrase "see you on the rooftop" was seen everywhere on the internet.

At this time, Tan Jincheng was already in Heather, Norfolk, in Daiying.

This city is most famous in the country not for Lotus, but for football. Coincidentally, Mr. Tan is a fan of one of the teams.

"The track looks spectacular, wanna take a lap?"

Located in Heysel, in eastern England, the climate is quite pleasant. Mr. Tan, whose first stop was the Heysel Circuit, couldn't resist the urge to drive a Lotus around the track.

(End of this chapter)