"If we're going to swap shares, then we need to talk business,"
Tan Jincheng's attitude became serious.
"Naturally,"
Zhang Xupeng also said with a serious expression.
Now that the company has developed to this point, it's certainly different from the makeshift team they had at the beginning.
Back then, as long as neither of them objected, any distribution was fine.
As the two became serious, the atmosphere in the living room instantly grew a little heavy.
Even Tan Jinyue, who was playing on the floor, sensed it, looking at everyone with her curious little eyes.
"Then let's go, let's talk in the study."
"What study? Just talk here, I'll listen too. Is there anything shady?"
Zhang Suzhi interjected.
She was genuinely curious how her son conducted business, especially how he discussed it with this good friend he grew up with, and how he "talked business" in business terms.
She wanted to hear his approach to "talking business."
However, once her son became serious, his demeanor truly changed; there was a sense of pressure.
No wonder he never acts formally when he's at home.
"Haha, then let's listen to Aunt Zhang. There's really nothing shady between us, nor is it a secret,"
Zhang Xupeng laughed.
"Alright then,"
Tan Jincheng also smiled.
Deep down, Tan Jincheng wasn't too keen on maintaining too much distance from Jinpeng.
After all, this was the business he started in this lifetime, and he had some emotional attachment to it.
Furthermore, he had put a lot of thought into the investment and establishment of the GXG brand.
The apparel industry is also a labor-intensive enterprise, with its own supply chain and sales channels.
Building a brand is not difficult.
In recent years, the profit margins in the apparel industry have been quite high.
Although competition will become fierce later, as a fast-moving consumer goods industry, it's still good to maintain it.
"You understand what a subsidiary means; it holds at least 51% of the shares. So your stake in Jinpeng will need to be reduced to 49%, meaning you'll need to transfer 21% of your shares."
"If it's a share swap, your 21% stake won't convert to much of my parent company's shares."
Zhang Xupeng nodded:
"I know that."
"Knowing that is enough. Let's use the simplest benchmarking method: Jinpeng Trading benchmarks against my Jinyi Industrial, and GXG benchmarks against my Shanchi Technology. Any objections?"
"No objections, in fact, I'm getting a huge bargain. Shanchi is already so big, and GXG is just starting,"
Zhang Xupeng continued to smile.
Although Jinpeng Trading's export volume is greater than Jinyi Industrial's, what Zhang Xupeng said is true.
Exports of electronic products are a popular export industry comparable to apparel.
As for GXG, it currently cannot be benchmarked against Shanchi Technology's electric vehicle business.
"Good, as long as you agree with that. My positioning for the electric vehicle business is at the tens of billions level, and GXG's positioning is the same. So these two businesses alone will offset all your advantages. As for the rest, I won't mention cars for now, because they account for a smaller proportion."
"What I want to talk about is the battery industry. Currently, I value the battery industry the most. Although it's not yet profitable, I've positioned it as a hundred-billion-level enterprise. Don't doubt my vision."
Tan Jincheng's understated words were met with expressions of shock from Gu Qingqing and Zhang Suzhi.
"A hundred billion?"
Zhang Xupeng asked, equally shocked.
"Yes, the application scenarios for lithium batteries are very wide. They can be used in our electric vehicles, in future mobile phones, and also in cars. Dongfeng already has an electric-powered car; you'll know if you look into it."
A hundred billion is actually an understatement.
CATL has a market capitalization of a trillion yuan, and there are many other domestic lithium battery companies besides CATL.
BYD's Blade Battery, if spun off and listed for financing, would certainly not have its current market value.
This is a trillion-level market, and getting a piece of it would be extremely profitable.
"Alright, a share swap really offers no advantage. Your two companies completely overshadow Jinpeng, not to mention your expectations for batteries,"
Zhang Xupeng said helplessly.
Tens of billions benchmarking against hundreds of billions means that 21% of the shares cannot be exchanged for many shares of the parent company.
"Your situation is different from Beicang Chengtou. They're paying directly. On one hand, I'm short on cash right now, and on the other hand, their resources can help me. So, converting to parent company shares won't give you much. Additionally, a portion of the clothing factory's future profits will need to be invested in lithium batteries so that your shares won't be diluted later."
Beicang Chengtou exchanged 100 million in cash and a piece of land in Chunxiao for a 5% stake this time.
The price wasn't high, but these were things Tan Jincheng urgently needed, so in principle, both parties got what they needed, and it wasn't a huge bargain for anyone.
Chengtou has a lot of land.
By maintaining a cooperative relationship with them, Tan Jincheng can more easily obtain more resources, and they can also assist Shanchi Technology with bank credit.
With 100 million in cash, Tan Jincheng can initially use it to acquire Bafang Electric.
As for the investment and construction of the Tianjin factory, Shanchi Technology's existing cash and loans can be used.
Based on the initial investment of 80 million yuan for Xinri's first phase, this amount is easily manageable.
After the corporate restructuring, Jinyi Industrial's cash flow can circulate more effectively among its various subsidiaries.
It's not ideal for this money to just sit in the bank.
"So, looking at it this way, I really won't get much. 21% of the shares for 2.1% of the parent company's shares wouldn't be bad,"
Zhang Xupeng mused.
He was still thinking of comparing whose business was bigger with Xiao Tan, how could he possibly compare now?
"Yes, that's about the most it can be, but I can give you 3%. Think it over carefully. If you have money, I can even give you a bit more; I'm short on cash right now, the more the better,"
Tan Jincheng smiled.
"Goodness, anyone who didn't know would think you're bragging, talking about tens of billions and hundreds of billions at the drop of a hat,"
Zhang Suzhi recovered from her shock.
"I'm not bragging. Our electric vehicle business could potentially reach the tens of billions level, and the apparel business could also reach the tens of billions level. As for the hundred billion I mentioned, that's just an expectation; it might even be more, or it might amount to nothing. That's how business is."
"Yes, Aunt Zhang, Xiao Tan is right. Although I don't understand batteries, the apparel and electric vehicle industries are clearly visible. Achieving a tens of billions level is not a problem if done well,"
Zhang Xupeng added.
"So you need to think carefully. Your investment might not be very cost-effective for you. You'd lose absolute control of Jinpeng, in exchange for an uncertain future, at most gaining my connections. However, if you usually need my connections, I wouldn't say no to helping you."
"You mean you're betting on the future?"
Gu Qingqing smiled.
"You can see it that way. The investment in batteries is enormous. Almost all the money I earn later will be poured into it, betting on a future. If it succeeds, I might become Yicheng's richest person. If it fails, I'll have nothing."
"Of course, it's not 'nothing'. Life certainly won't be worse than it is now. You and Mom can rest assured on that,"
Tan Jincheng added.
"It's alright, even if you lose the bet. We still have Orange Technology, and your 100 apartments,"
Gu Qingqing also smiled.
"Right, and I can be a landlord, haha. Then you'll be a landlady."
It's more than that.
I also have stocks.
The returns from Tencent, Maotai, and SAIC stocks alone couldn't be bad.
Losing the bet would just mean losing the business; my personal life would still be excellent.
"So his meaning is that he's gambling, betting on the future of the battery industry. If you put Jinpeng into it, you might also succeed in the gamble or lose everything, just like him,"
Gu Qingqing looked at Tan Jincheng and explained for him.
"Yes, Peng Ya, do you want to reconsider?"
Zhang Suzhi also roughly understood and advised Zhang Xupeng.
Zhang Xupeng laughed,
"I had already thought about it before coming here. If Xiao Tan dares to do it, why shouldn't I? Especially since I'm gaining an advantage."
"Even if it's only 2.1% of the shares?"
Tan Jincheng retorted.
Rolling his eyes at Tan Jincheng, Zhang Xupeng replied,
"Do you think I'm stupid? Is 21% of tens of billions the same weight as 2.1% of hundreds of billions?"
Quantitative changes lead to qualitative changes.
Take working, for example: earning 5000 yuan at a large company versus 5000 yuan at a small company—the benefits are definitely different.
This phenomenon is especially evident in capital.
A company at the tens of billions level might quickly collapse if it makes one misstep in the face of market impact.
However, a company at the hundreds of billions level can last much longer, and it's even possible to turn danger into safety.
This is what it means to rely on a big tree for shade.
"Alright then, if you've decided, that's fine. If there are no issues, we can sign the contract after I return from Gusu. I'll still give you 3%."
The risks have all been discussed.
Jinpeng merging into the group company, with its better cash flow, is a beneficial move that Tan Jincheng has no reason not to make.
"Okay, contact me when you get back. Aren't the financials being audited? I heard that Beicang Chengtou also audited the financials of your various companies."
"There's nothing to audit between the two of us. Besides, I'm also a shareholder of Jinpeng, right? Checking the accounts would be a matter of minutes for me."
"You're right. Then we can team up again, haha. To be honest, it's really hard for one person to support an entire company. I used to be a bit unconvinced by you, but now I truly admire you."
"Did someone from your hometown come to you asking for favors?"
Tan Jincheng smiled.
"How did you know?"
"It's understandable. When they recruited you, you were a guest, but once you've truly settled, you become a local enterprise. And since you're a local enterprise, it's quite reasonable for local people to want some benefits, right?"
"So what do you think should be done?"
"For small matters, just turn a blind eye. Doing business can't be smooth sailing everywhere. For major issues, ignore them, refuse when you should, and avoid monetary transactions."
Maintaining good relationships and keeping a distance can happen simultaneously.
Even in Beicang, Shanchi Technology usually prepares some shopping cards and also makes occasional donations.
But if anyone is too greedy, Tan Jincheng won't be polite; at worst, he'll just quit.
(End of chapter)