The welcoming dinner in the evening wasn't very lively.
Wang Qinghua was preoccupied and not in the mood to encourage drinking.
Moreover, it was widely rumored in the electric vehicle industry that CEO Tan wasn't a good drinker, so Wang Qinghua certainly didn't dare to press him too much.
He had already laid out his intentions on the first day, asking for controlling stake in Bafang Electric.
He really valued efficiency, not willing to waste any time.
However, if the controlling stake was handed over, could it still be considered his own company?
It was only because Wang Qinghua had long planned for cooperation; otherwise, someone unprepared upon hearing about handing over the controlling stake of their company would probably have flipped the table, even if Tan Jincheng expressed it subtly through storytelling.
After dinner, Wang Qinghua, in the spirit of a host, wanted to arrange a second round, but Tan Jincheng declined.
Tan Jincheng had no other intentions; he simply wasn't interested.
These kinds of venues no longer appealed to Tan Jincheng, but in Wang Qinghua's eyes, this seemed to carry another meaning.
"Does this mean if we can't agree, then forget it?"
Wang Qinghua frowned.
From the information gathered in today's conversation, Wang Qinghua could discern that Shanchi Technology had no plans to build a factory but was more inclined to directly acquire.
If an agreement couldn't be reached with Bafang Electric, Shanchi Technology could perfectly choose other suppliers for negotiation.
Technology could be overcome, but time waits for no one.
Having technology doesn't mean everything; the market won't give you much time to adapt, nor will it give you much time to adapt.
If Bafang Electric's products were consistently used only by small manufacturers, a breakthrough would be impossible.
What should be done?
Troubled and unable to sleep all night, Wang Qinghua met Tan Jincheng again the next day with dark circles under his eyes.
There was no other way; a motor company like Bafang Electric, established for just a few years, was abundant, not to mention in the entire Su Province, but even in Gusu Industrial Park.
It would be incredibly easy for Tan Jincheng to buy such a company; it would just take a little more time to adapt it to Shanchi's electric vehicles.
Bafang Electric held little advantage in the negotiation process.
This wasn't Wang Qinghua's first venture.
Previously, he would always seek help only when his business was failing.
Although it was frustrating, it was always full of hope.
But now, Wang Qinghua felt the helplessness of the weak.
In the face of absolute power, you have no ability to fight back.
One must become strong!
"What's wrong, Mr. Wang? Didn't sleep well last night?"
Tan Jincheng also noticed Wang Qinghua's dark circles.
"Mr. Tan, with that story you told yesterday, I'd be damned if I could sleep well,"
Wang Qinghua said, looking at Tan Jincheng with a hint of resentment.
Tan Jincheng smiled,
"Rest is still important. When the sky falls, there's a taller one to hold it up. Getting good sleep is very important for your health; however, Mr. Wang, you misunderstood. I told that story not because I wanted your company."
"What do you mean by that?"
Wang Qinghua asked, puzzled.
He admitted that this negotiation had put him completely on the defensive.
If he wanted to regain the upper hand, unless he truly had the courage to tell Tan Jincheng that they didn't need his orders and would absolutely not sell the company!
But Bafang Electric couldn't do that.
Shanchi Technology's strategic significance to Bafang Electric was more than just a big client.
It was Bafang Electric's ticket to penetrate the high-end brand market of electric vehicles.
"I didn't mean to acquire Bafang Electric. Although my friend reduced his shares to 49%, he still manages the company, and Shanchi won't interfere with the company's operations. Furthermore, he also holds a certain amount of shares in the parent company."
"Holding over 51% is merely for future strategic needs. Additionally, if Mr. Wang is uneasy, I can sign a concerted action agreement with you. The company will still be your company; we will merely be strategic investors."
This move was learned from Xiao Mage: investing in related companies, becoming strategic joint venture partners, and then letting the original team operate.
When necessary, QQ could provide certain resources.
Shanchi Technology could do the same for its suppliers: providing certain funds, allowing for technical R&D cooperation, and under the guarantee of Shanchi Technology's orders, Bafang Electric could also develop other clients, completely without interfering with Bafang Electric's operations.
QQ provides traffic support to strategic partners, helping them develop, and Shanchi Technology can also feed back into its invested companies through orders.
The model is similar; there won't be a situation where companies invested in by Lao Matou all go bust.
The reason Tan Jincheng wanted so many shares in Bafang Electric was actually a very important one: Tan Jincheng knew that this company would go public in the future.
To get more shares, he would earn more then.
Otherwise, like Mingcheng Industry or distributors, just a small stake would suffice.
Tan Jincheng was unsure which year this company went public, but at least it was listed before he entered the market.
The reason he remembered was because the company's shares were very good at the time, reaching a peak of around 300 yuan.
Seizing the opportunity before it fully developed, it was naturally better to acquire more shares.
As for a full acquisition, Tan Jincheng hadn't considered it.
Bafang Electric might not necessarily go public under his ownership; at most, it would be treated as a supplier for the electric vehicle business.
"Just investing, no interference in operations?"
Wang Qinghua's expression softened slightly.
"Of course, the company is still your company, and you are still one of the major shareholders with 49% stake, holding absolute rights over the company. Shanchi Technology will not make any operational interference decisions, except for assigning a director to monitor financial conditions. We have always maintained this approach with our partners."
Tan Jincheng was unwilling to do foolish things like Lao Matou, who would acquire a company, send in a task force, drive out the founders, and then see the company fail.
If you operate everything yourself, can you really manage it all?
Of course, the different natures of Lao Matou's and Xiao Mage's companies also determined their different investment styles.
Lao Matou needed other acquired entities to provide him with traffic, essentially bleeding them dry, while Xiao Mage could transfuse with QQ and WX.
Wang Qinghua hesitated.
He had already considered selling part of his equity, and after yesterday's aggressive push by Tan Jincheng and a night of torment, the situation had eased somewhat today.
Although he still wouldn't budge on the shares, after signing a concerted action agreement, the company would still be his own company.
It was just that he would receive a smaller share of the profits after development.
But those were profits after development.
Without Shanchi Technology as a high-end entry ticket, Bafang Electric would have to search for a new one, and it was uncertain when it could develop.
Moreover, wouldn't other big clients be like Shanchi?
This is an art of negotiation.
After realizing that the other party had guessed his intention, Tan Jincheng immediately presented a high-pressure stance, stating he wanted 51% of the shares but without mentioning other additional conditions, giving the impression that he was difficult to deal with.
It's like someone who has committed bad deeds their entire life suddenly does a good deed one day, and the outside world believes this person has changed for the better.
Conversely, if you always do good deeds, then you cannot do bad deeds.
"Besides the equity change, Bafang Electric will remain as it is. There's no need to move to Beicang, and you can still stay with the company. Additionally, Shanchi Technology will supply Bafang Electric with orders to the best of its ability, as long as you can handle them."
For every component, even a single screw, it's impossible to have only one supplier.
Whoever receives more orders will earn more and develop faster.
"Overall, Mr. Wang, besides earning a little less money during the company's development, you won't suffer too many other losses. Of course, if Mr. Wang is reluctant to part with equity and unwilling to pursue mutual benefit, then consider that I said nothing."
If calculated based on a 30% equity transfer, it truly is just a small amount of money less.
If Tan Jincheng genuinely wanted his company, there would be no need for such trouble.
He could simply acquire a small manufacturer or an existing supplier company outright, and then poach staff from Bafang Electric, which would pose no problem.
Wang Qinghua was aware of this.
With the conversation reaching this point, Wang Qinghua was already somewhat tempted.
However, he still wanted to fight for a little more for himself.
"Then, I wonder if I would have the honor of holding a certain stake in Shanchi Technology, like your friend?"
Cross-shareholding is also a form of cooperation.
This effectively binds both parties, making it more reliable than any concerted action agreement, as agreements can be revoked at any time.
Tan Jincheng readily agreed,
"For Shanchi Technology, yes, but Mr. Wang cannot be given too many shares, because Beicang Chengtou's stake in Shanchi Technology is only 5%. So, at most, I can give Mr. Wang 5% of the shares."
This was a contingency plan set beforehand: acquiring a well-operating company, and on the premise of gaining controlling stake, merely a financial cost would certainly not suffice.
Unless you intend to forcefully acquire it and drive out all of the founding team.
In fact, in Tan Jincheng's contingency plan, even a small amount of shares in the parent company would be acceptable, but Tan Jincheng would certainly not propose these himself.
These are negotiation chips; the other party must bring them up.
Now that the other party proposed wanting equity in Shanchi Technology for cross-shareholding, that was even better, as it meant not having to give away shares in the parent company.
"Okay, 5% is also considered a major shareholder, I have no objection,"
Wang Qinghua said with a smile.
This was the first time he had smiled so happily today.
"Then let's settle it this way for now. Actually, I've always had a win-win attitude towards partners. I'll just say one thing: Shanchi Technology has plans to go public within the next three to five years. Mr. Wang will then know that I am not stingy."
Wang Qinghua's eyes lit up:
"Oh, Mr. Tan's ambition is not small, but if Shanchi Technology develops smoothly, it can indeed go public within three to five years."
The word "listing" in 2006 was a high-profile term in any city.
Local governments took pride in how many listed companies they had.
What Tan Jincheng didn't know was that his unintentional "drawing a big picture" had planted a seed in Wang Qinghua's heart.
(End of chapter)