"Where are you going next?"
"Yongkang."
"What are you going to Yongkang for?"
"To strategize against an opponent, of course."
After resolving matters back home, on the way back to Yicheng, Zhang Xupeng asked Tan Jincheng about his next plans.
He plans to arrange a visit to France as soon as possible to secure the domestic operating rights for GXG, but this does not affect the garment factory's investment and construction plan.
Currently, Jinpeng Trade has already signed relevant agreements with Wangjiang County.
Within the next five years, Jinpeng Trade will invest in and build a large-scale garment factory in Wangjiang County, covering an area of 240 mu, with a factory building area of 200,000 square meters, and will establish a living area, capable of solving employment issues for 3,000 to 5,000 employees at maximum.
It's the same land acquisition strategy as Shanchi Technology; anyway, where land prices are cheap, acquire as much as possible, even if it's land in undervalued areas.
As for whether the employee employment issue can be resolved, this will only be known in three to five years. Maybe even more?
The investment amount is also a very considerable figure.
In three to five years, calculated based on Jinpeng Trade's current annual net profit of nearly 80 million yuan, investing in and building a medium-to-large garment factory really won't be a problem.
As for Tan Jincheng, the next thing to do will be very important.
That is to officially put the already acquired intangible automotive assets of Anda Car into operation.
To build a factory and manufacture cars, two procedures are essential.
First is to report to the National Development and Reform Commission and obtain approval for passenger car project construction.
This way, a factory can be built, but having a factory does not mean cars can be manufactured.
The corresponding brand needs to obtain approval from the Ministry of Industry and Information Technology, and products need to be listed in the MIIT's new vehicle catalog to be legally launched and sold.
This is often referred to as "dual qualifications," and among these, the MIIT's approval conditions are the most stringent.
Therefore, what is usually referred to as a "birth permit" in the automotive industry is more often based on the MIIT's production qualifications.
Acquiring a company with core MIIT production qualifications and getting its new vehicles listed in the MIIT's new vehicle catalog is the simplest and fastest way to enter the car manufacturing market.
Companies that perform poorly, are on the verge of bankruptcy, or have already gone bankrupt are naturally more popular.
Anda'er is such a company.
Anda'er, which went bankrupt in 2003, has been nearly three years since then.
Originally, automotive production qualifications were a high-quality asset, and even if the company went bankrupt, they could still be sold for a good price.
In three years, it went from various companies making inquiries to no one showing interest, leading to him getting a bargain.
Why this happened, Tan Jincheng indeed felt somewhat confused.
One must know that after acquiring production qualifications, the brand name can be changed, and the production address can be relocated.
Some regions or companies that want to manufacture cars, after purchasing these assets, can completely rename the brand and relocate; there is no such thing as working for others' benefit.
After the official acquisition was completed, Tan Jincheng also made inquiries.
It was initially because Yicheng was asking too high a price, and the buyers were state-owned enterprises like FAW.
They were not lacking in automotive qualifications and could not meet Yicheng's demands.
This thing is a treasure for private enterprises, but for state-owned enterprises, it's still very simple to obtain.
Yicheng clearly didn't find the right buyer.
Some private enterprises contacted later all required the other party to remain in Yicheng, which they naturally were unwilling to do.
The second aspect, according to Tan Jincheng's understanding, is that in recent years, the domestic brand landscape in the fuel vehicle market has basically taken shape, with brands such as Geely, BYD, Chery, and others like Lifan, JAC, etc.
Coupled with the impact of foreign brands, the fuel vehicle market has missed the best entry opportunity, and big players are unwilling to enter at this time, which has led to a situation where automotive qualifications, though rare, have essentially created a market with a price but no trade.
Any commodity, as long as there is no suitable buyer, cannot be sold for a price.
Another reason that cannot be ignored is information asymmetry.
In any era, those who first made large profits were those who had some information advantage.
In this life, the reason Tan Jincheng rose to prosperity so quickly was also because he mastered information advantage.
In an era where even corporate industrial and commercial information could not be found online, entrepreneurs who wanted to get rich and expand their business could only rely on their own connections and information circles.
This is how people doing information broker business came about.
Early on, the asking price was too high, missing the best selling time.
Later, they couldn't hold on anymore and could only rush to deal with it.
Otherwise, they wouldn't have dared to negotiate a price of 800,000 yuan, just to get an unlikely promise.
That electric vehicle company in Taizhou, with a registered capital of only 1 million yuan and an annual output value less than one-tenth of Shanchi's, where did it get the ability to manufacture cars?
This is like people who trade stocks, unwilling to sell at the high point, wanting to wait a bit longer when it just started to fall, then it continues to fall, and then one day something happens at home and money is needed, they can only be forced to cut losses.
First return to Beicang, register a new company, inject Anda'er's qualifications into the new company, then change the name, and then go find the currently troublesome Zotye to see if there are good cooperation methods.
If it's just lending Anda'er's production qualifications to Zotye, a large sum can be earned.
According to the current market conditions, for manufacturing cars by borrowing qualifications, generally 400 to 500 yuan is charged per passenger car, and 1,000 to 2,000 yuan is charged per bus or truck for the certificate usage fee.
Borrowing qualifications can achieve a considerable profit, bringing a new business point for Shanchi Technology.
It can be said to be a sure-win business, but apart from increasing cash flow for Shanchi Technology, there doesn't seem to be much benefit.
Cash flow is something Shanchi Technology lacks.
So far, the electric scooters produced are still in short supply.
Although there is a layer of distributors, the profit margin has decreased, but correspondingly, monthly shipments of tens of thousands of units can still ensure not too much inventory pressure.
As of the end of February 2006, Shanchi Technology's shipments in the first two months had already reached 35,000 units.
This was also affected by the Spring Festival holiday; otherwise, the shipments in the first two months could have directly exceeded the entire previous year's total.
It can be said that the Shanchi and Fengchi series, especially the highly cost-effective Shanchi series, have not yet fully released their potential.
Coupled with a short collection period, Shanchi Technology genuinely does not lack money.
Simply cooperating with Zotye for money seems unnecessary.
What Tan Jincheng truly wants is Zotye's shares!
In 2001, Chery, in order to obtain the "birth permit," transferred 20% of its shares to SAIC for free.
However, different periods require different perspectives to view problems.
Chery at that time was not strong enough, having been established for only four years.
Furthermore, SAIC's strength is obvious to all.
Transferring 20% of the equity to SAIC also falls under the category of "leaning on a big tree for shade."
Therefore, this deal was actually not a loss for Chery.
It was precisely because of SAIC's technology and the policy support from the WH City Government that Chery was able to achieve rapid take-off in the early stages.
Tan Jincheng wants to replicate this model: in the early stage, use Anda'er's automotive production qualifications to achieve equity investment in Zotye, and wait until later when Zotye finds it difficult to sustain itself, then achieve a merger or acquisition, using Anda'er and Zotye to indirectly enter the fuel vehicle market.
Borrowing production qualifications is clearly not a long-term solution.
Neither Zotye nor other car manufacturers are willing to be controlled by others for long.
Not knowing how much money can be earned from manufacturing a car, they have to pay others four or five hundred yuan in licensing fees; just thinking about it is sickening enough.
Today's Zotye, forced by circumstances, wants to use this method to temporarily overcome difficulties.
But when the right time comes, it will inevitably acquire some bankrupt car manufacturers to own its own automotive qualifications.
One must know that although the automotive industry is very prosperous now, there are countless bankrupt or nearly bankrupt automotive companies like Anda'er.
And Zotye's current parent company, Tieniu Group, has already achieved backdoor listing; what they lack least is money, they just need a good opportunity.
Utilizing this time difference and having what they need in hand, investing in Zotye is indeed a feasible solution.
However, Tan Jincheng cannot accomplish this alone.
The automotive industry is a very large project for local governments; if there were not truly no other way, no local government would give it up.
Not to mention Zotye itself, even the Yongkang Government would not agree.
When a thriving automotive industry is taken away by an outsider, they would surely be furious.
Yongkang is known as the City of Hardware and is part of Zhejiang Province.
Tieniu Group's registered capital even exceeds 100 million, and Zotye's car manufacturing also has the support of the Yongkang Government.
Neither side lacks money, so relying solely on Tan Jincheng now to take down Zotye is no different from a fool's dream.
Therefore, this matter still needs to find people from Beicang District or even Ningbo City to step in and coordinate, to see what way to achieve cooperation between the two regions.
Tan Jincheng only needs to tell the Beicang District Government that he has automotive production qualifications and reveal some subsequent ideas.
This, I suppose, can be called a rare commodity worth hoarding?
"Beicang, Imperial Capital, hometown, and now Yongkang again. Your business is getting bigger and bigger; perhaps in the future, it'll be hard to even meet you."
Zhang Xupeng also didn't ask which opponent Tan Jincheng was strategizing against in Yongkang.
However, judging from having a goal after acquiring Anda'er Car, it should be related to the automotive business.
Does Yongkang have any car factories?
Speaking of which, Xiao Tan's current business network is already very large.
His companies and companies he has invested in cover import and export trade, garment processing, plastic product processing, electric vehicle complete vehicle assembly, batteries, and now the automotive business.
The categories of finished products he operates include electronic products, apparel, and electric vehicles.
Oh, by the way, Xiao Tan also has large tracts of industrial land and hundreds of residential units.
Among these four aspects of life: clothing, food, housing, and transportation, he has ventured into all except for food.
And in these industries, except for the automotive business and battery business which temporarily show no profits, all others are very profitable.
Indeed, just as Xiao Tan said before, rich people will only get richer.
Xiao Tan is like this, does this also mean his own future career will be the same?
Thinking of this, Zhang Xupeng no longer hesitated about opening his own factory.
"Must secure GXG's operating rights!"
(End of chapter)