The market is unpredictable.
After entering May, as if to catch up with the peak sales season, major manufacturers in the industry all accelerated.
Whether it was coastal cities with complete industrial chains or ordinary inland cities, news of a new factory being built came out almost every few days.
However, most of them were relatively small in scale.
For example, a factory like Laiwu, which invested 12 million yuan and had an estimated annual output of 100,000 electric vehicles, was considered medium to large scale.
"It feels like an arms race," Tan Jincheng said with a smile to Wang Qinghua.
In the past few days, Tan Jincheng's phone had been ringing non-stop.
After several days of fermentation, after its restructuring, Flash Speed Technology once again received 100 million yuan in investment from Beicang Urban Investment.
In addition, the acquisition of Bafang Electric used a cross-shareholding method, actually only costing 20 million yuan in cash, which was no longer a secret.
Coupled with Flash Speed Technology's consistently praised cash flow, and after the restructuring, a trading company in Tan Jincheng's hands, which held a large amount of cash and even foreign exchange, also surfaced.
With assets, cash, and business, such enterprises were particularly welcomed by local governments everywhere.
Regardless of their connections, those who could get Tan Jincheng's phone number called to sound him out and invite him for a local visit.
In addition, some venture capital firms had begun to notice this rapidly rising physical manufacturing enterprise, which seemed to have a completely different operating model from traditional physical enterprises.
"On the surface, Flash Speed Group's core business is electric vehicles, but haven't you noticed that this company is multi-faceted, involved in import and export trade, end products, and even the internet?"
"Yes, their self-developed batteries are actually lithium batteries, similar in research direction to that ATL Technology Company in Shenzhen. In addition, they also have an automotive business; although it doesn't account for a large proportion, Zhongtai Motors has been selling very well in the past two months, and it will also be a very profitable point in the future."
"Haven't you noticed that the technical team in his Orange Technology all came from General Ding's company? The leaders are not low-ranking either, but I don't know why it wasn't incorporated into the entire group."
"I know about this. I contacted Beicang Urban Investment, and their explanation was that the investment directions of the urban investment company and Orange Technology were different, so they suggested that General Tan of Flash Speed spin off Orange Technology."
"That explanation makes sense, but we currently don't know Orange Technology's financial status or what projects are under development. Let's find someone to inquire further."
"Additionally, the projects on their main company's side, besides import and export trade, should all have investment value. We can send someone to contact General Tan of Flash Speed to see if there's an opportunity to meet and chat."
"Will they accept? So far, General Tan values his shares highly. Besides Beicang Urban Investment and his friend who got some shares, the only other way outsiders have obtained shares is through this cross-shareholding with Bafang Electric."
"I don't think so. Judging from Flash Speed's cooperation with Bafang Electric this time, General Tan doesn't value shares as much as rumored. Your so-called high regard is just an appearance. The key is to see what giving up shares can bring him; if it brings him nothing, he naturally won't give them to you."
Flash Speed's shares exchanged for Beicang Urban Investment's resources and cash, which was key to Tan Jincheng's success.
With Bafang Electric, it exchanged for a successful strategic joint venture partner.
As for his entrepreneurial partner, putting aside personal connections, Flash Speed also didn't suffer a loss.
That was also a trading company with very abundant cash flow, which was very important for supplementing Flash Speed's cash.
"Then I'll try to contact them?"
"Hmm, try contacting them. Even if cooperation isn't successful, it's fine to make a friend. To be honest, I'm quite keen to get to know this young founder."
Dong Mingyuan graduated from overseas, had an international background, and had worked in an international investment bank.
Seeing development opportunities abroad, he returned to China to found his own venture capital firm, which, unlike other VC firms, did not focus on the internet.
He was also a second-generation factory owner; his father owned a sizable factory.
Dong Mingyuan had a certain interest in investing in physical enterprises, and in his opinion, investing in physical enterprises at this stage was no less profitable than the internet.
Furthermore, the risk was much smaller.
There was a fixed dividend ratio every year, and if a company could go public, he would make a fortune.
Currently, Dong Mingyuan had invested in several emerging physical enterprises, all of which were operating well.
Such small investments carried minimal risk for small businesses in their startup phase and for VC firms like theirs.
He couldn't afford internet-style investments that easily exceeded a hundred million yuan.
Dong Mingyuan had been quietly following Flash Speed for a long time.
From the first time Flash Speed appeared in the public eye last year, Dong Mingyuan noticed that the company's founder was very innovative and did marketing exceptionally well.
Hiring celebrity endorsements and conducting nationwide marketing campaigns to break through the siege, aiming for the entire country right from the start, showed a clear difference from the operational mindset of ordinary small factories.
Once product sales channels were opened, even the disadvantage of insufficient production capacity could be leveraged by him.
Originally, Dong Mingyuan intended to approach Flash Speed Technology for investment and acquire a certain stake when it needed money after its expansion this year.
Who would have thought that only four months into 2006, Flash Speed Technology had already expanded to such an extent?
Its low-end and mid-range products each had their own spokespersons, it secured Olympic entry tickets, developed its own batteries, and acquired one of its main motor suppliers.
Bargain hunting was no longer possible; even if you approached them for investment, they might not even want your money.
Flash Speed Technology truly wasn't short on cash.
Indeed, Dong Mingyuan's investment style was "bargain hunting," taking advantage of promising companies facing cash shortages to proactively approach them for investment, acting as a strategic investor, not interfering with company operations, and simply waiting for dividends.
When necessary, he could also provide some networking assistance.
"It's a pity. Now it seems that before October last year was the best opportunity to invest in Flash Speed Technology. At that time, Tan Jincheng must have been truly short on cash, otherwise, he wouldn't have drained Jinpeng Trade's funds."
Dong Mingyuan stared at the documents in his hand and said softly.
Gusu.
"Mingyuan Investment? A venture capital firm?"
Tan Jincheng looked at Zhao Xinyi with some doubt.
"Yes, the company is in Hangcheng. Their boss wants to meet you and asked if you have time for a chat,"
Zhao Xinyi nodded, handing the documents sent by the other party to Tan Jincheng.
Zhao Xinyi and Zeng Jixiang now had clear divisions of labor.
Zhao Xinyi was more responsible for external liaisons of this kind, while Zeng Jixiang needed to deal more with government departments.
How to put it, in Tan Jincheng's view, men dealing with government departments tend to suffer fewer losses.
Women, when facing absolute power, often feel somewhat timid or even reverent.
Men were relatively better in this regard, and thus safer.
"Don't you know if I have time? We're going to Tianjin in a few days. How could I have time to chat with a venture capital firm right now? Let's talk about it later."
However, Tan Jincheng still took the documents handed by Zhao Xinyi.
The founder had an overseas background, and surprisingly, all his investments were in small physical enterprises, which was uncommon.
Tan Jincheng had never dealt with venture capital firms, nor had he planned to raise funds from them when he started his business.
No venture capital firm was benevolent; if you approached them with your ideas without your own capital,
they would demand a large number of shares.
In the physical enterprises invested by Mingyuan Investment, the shareholding ratios were relatively large, with some as high as 40% and as low as 15%.
With just a quick glance, Tan Jincheng knew the company's strength.
"They don't have much strength. They're a bargain-hunting VC firm; they can't afford to invest in us, so no need to bother with them."
Each investment was only a few million yuan, clearly preferring to use small capital for big returns.
The boss might have some assets, but probably not much.
If it were Flash Speed Technology in October last year, he might have tried, but now with Flash Speed Group, he couldn't afford to invest in any of its companies.
With just a few million yuan, which company did he think he could invest in?
"Okay, also, General Zhang and General Jin from Boneng both called, asking when you'd be back in Beicang. They'd like to visit Beicang then."
Flash Speed's acquisition of Bafang Electric still caused quite a stir among component suppliers.
Some suppliers, after learning about the valuation offered by Flash Speed, were already restless; in plain terms, they also wanted to sell, and among them was Zhang Mingcan of Mingcheng Industrial.
Currently, Zhang Mingcan held 72% of the shares in Mingcheng Industrial, and he also wanted to transfer a portion to cash out some money.
Losing control didn't matter; after all, he was still running the factory.
Besides, while Zhang Mingcan might be worth tens of millions, his personal disposable cash was truly limited, as his wife managed the company's finances.
The Audi A6 he had long desired was still purchased in the name of Mingcheng Industrial.
If it had been his previous plastic factory, given his wife's personality, he wouldn't have even thought about it.
Dropping from 72% to 49%, 23% of the shares, surely enough to cash out for a villa, right?
Among Flash Speed's component suppliers, the most important was Boneng Environmental Power, which supplied batteries.
Their current status was quite sensitive.
Flash Speed Technology's self-developed battery direction was lithium batteries, and it had also signed a five-year supply guarantee agreement with Boneng.
He didn't have to worry about orders, and Jin Chuanling, unlike other company bosses, didn't wish for Flash Speed Technology to take over.
The supply guarantee agreement was indeed signed for five years, but it was only applied to Flash Speed and some Fengchi Feiyi series electric vehicles.
Additionally, production capacity was guaranteed based on an annual output of 200,000 electric vehicles.
Boneng also wanted to take on the excess production capacity.
Furthermore, Jin Chuanling recently received news that large brand battery suppliers like Chaowei had been actively contacting Flash Speed Technology, hoping their batteries could be used in the upcoming Fengchi Guanneng series.
Compared to industry famous brands, Boneng's Yazhen series batteries, they internally dared to say, were not inferior in quality, but unfortunately, the other party was a famous brand.
This was also why Jin Chuanling and Zhang Yunhua were eager to meet Tan Jincheng.
(End of chapter)