"Beicang District Chengtou Company has invested in Shanchi Technology with 150 mu of land resources (Daqi Block), 70 million yuan in funds, and a 200 million yuan interest-free loan, acquiring 5% of Shanchi Technology's shares based on an emerging manufacturing industry valuation."
"This 5% equity is non-dilutable, and Shanchi Technology must disburse annual dividends on time. Additionally, Chengtou Company shall not interfere with Shanchi Technology's specific operations and development strategies."
"The 270 million yuan fund is to be used for the construction of Shanchi Technology Beicang Industrial Park. Shanchi Technology and its actual controller shall not misappropriate it, and it must be used for its designated purpose."
On November 16, 2005, after more than 10 days of repeated consultations between both legal teams, both parties formally signed the contract.
Beicang District government officially intervened in the development of Shanchi Technology in the name of Chengtou Company.
"General Manager Tan, a pleasure to cooperate with you. The funds will be transferred to the designated account within 5 working days, please rest assured, General Manager Tan."
"A pleasure to cooperate. Thank you, General Manager Qin, and the district for your strong support."
"Not at all, it's a win-win cooperation."
"Yes, a win-win cooperation."
"We hope General Manager Tan will cooperate with the on-site signing ceremony for the cooperation agreement later."
"Certainly, it's my duty."
Even if he didn't want to appear in public and preferred to keep a low profile, some occasions were unavoidable.
For a groundbreaking ceremony for an industrial park like this, Tan Jincheng still needed to make an appearance.
150 mu of land resources are currently valued at approximately 30 million yuan.
Plus the 70 million yuan in cash, that's a total value of 100 million yuan.
100 million yuan for 5% of the shares implies Shanchi Technology is valued at 2 billion yuan.
A valuation of 2 billion yuan is truly not low for now.
Although non-dilutable, it indeed provides immense support, not to mention the 200 million yuan interest-free loan.
Tan Jincheng had not expected such a fantastic outcome.
The valuation of manufacturing companies usually doesn't go very high when they go public.
Aima seemed to have gone public in his previous life, what was its market capitalization?
However, if Shanchi goes public in the future, Chengtou Company will certainly make a profit.
Given the nature of A-shares, it's certainly no problem for original shareholders to earn double their investment.
Moreover, listing is still a long way off.
If the company operates well in these years, there will be substantial dividends.
Nevertheless, although the company gained a shareholder that cannot be easily offended, for Tan Jincheng, there were only benefits and no drawbacks.
After all, they provided genuine financial support and could also offer significant help in terms of resources.
With this relationship, wouldn't it be more convenient to venture into new energy vehicles in the future?
Many times, resources are often more important than money.
For manufacturing enterprises, foreign capital investment is not very significant.
Instead, local resources are more advantageous.
With government support, your path will be much smoother.
Tan Jincheng carefully put away the contract, thinking,
"This should count as the so-called Series A financing, right?"
The angel round shouldn't count.
The so-called angel round is about investing in a company when it's still in its infancy.
Shanchi Technology's angel round should be himself.
Series A financing, on the other hand, means the business model has been basically verified and is feasible.
From the current situation, Shanchi Technology should have completed its Series A financing.
As for Series B and C, that's for when the company enters a rapid growth phase, and that's for later.
What remains after that is probably the IPO.
For internet companies, when they reach the IPO stage, a founder with more than 20% equity is already incredibly impressive.
However, manufacturing is different; it doesn't require as much financing, and it's common for founders to hold over 50% of the shares at the time of an IPO.
"If I have time, I need to enroll in a class to learn some financial knowledge. Otherwise, I won't understand valuation and it'll be hard to operate in the future."
And get a diploma in passing.
I wonder if Wan Province University would still accept me now?
Following General Manager Qin, he exited the lounge and arrived at the already prepared conference center.
There weren't many people in the room, some of whom were holding cameras and looked familiar—they were likely the same group of reporters from the last inspection.
General Manager Qin of Chengtou Company and Tan Jincheng each delivered speeches on stage.
These were all formal remarks, with scripts prepared in advance, simply needing to be memorized and read aloud.
Zhang Xupeng and Gu Qingqing sat below the stage, watching the spirited Tan Jincheng, feeling as if everything was a dream.
The Canton Fair had long since concluded.
Jinpeng Trading Company still had good returns from this Canton Fair trip, with women's clothing business remaining stable and children's clothing business achieving significant breakthroughs.
Zhang Xupeng was originally a bit smug.
He had commanded the entire process this time and had intended to show off to Xiao Tan upon his return.
Unexpectedly, upon his return, Xiao Tan first welcomed the inspection of a high-ranking leader, followed by today's scene.
He was invited to attend the ceremony today.
He could understand Xiao Tan's feelings.
In Yongcheng, besides his uncle and aunt, Zhang Xupeng was the closest person to Xiao Tan; of course, now there was one more person.
In a moment of life's highlight, not having family to share it with was indeed a difficult feeling.
He was actually the same.
Now that he had money, he didn't dare to show off too much to his parents.
According to his parents' understanding, earning a few hundred thousand or even a million yuan a year in business, while they might find it exaggerated, they could still accept it.
But if you said you earned tens of millions or even hundreds of millions a year in business, that would only scare them.
So Zhang Xupeng could only show off to Tan Jincheng.
Of course, Xiao Tan sincerely invited him to the ceremony today, but it didn't rule out an element of showing off.
Otherwise, why wouldn't he invite his uncle?
"Ugh, I did pretty well at the Canton Fair. I was just about to show off to your Xiao Tan, and then he pulled this on me,"
Zhang Xupeng complained with a wry smile to Gu Qingqing sitting next to him.
Gu Qingqing smiled at his words, ignoring Zhang Xupeng, her eyes fixed on Tan Jincheng who was speaking on stage.
Today, Tan Jincheng was dressed very formally, in a suit and leather shoes, his hair neatly styled.
His entire demeanor was markedly different from usual.
This was her first time seeing Tan Jincheng in a suit; he was truly handsome!
She was also invited to the ceremony today, but she didn't need to take time off; she had no classes today.
At the same time, she felt a little excited.
A few days ago, Tan Jincheng asked her which day she was free besides the weekend.
She had originally thought it was a date after he finished his work, but who knew it would be such a scene.
"Is it because I have no classes today that he specifically set the signing time for today?"
Although the probability was not high, it was not impossible.
After the cooperation was settled, what day the contract was signed didn't seem to make much difference, right? It wasn't like it was dragging on for a long time.
"5% of the shares, worth about 100 million. The district's valuation is 2 billion. What's the background of that kid on stage?"
"I don't know, but I've heard of their brand. It's strange though, it doesn't seem to be sold in Beicang yet."
"It's not strange that it's not sold in Beicang. Isn't Beifa the same? They're probably targeting markets outside the province or abroad. But can the electric scooter business really make money?"
"Making money is probably secondary. The district won't consider things so superficially. I know a little about the electric scooter business, and the industrial chain is not small. Think about how many parts are in one vehicle. If they are all produced in the district, how many employment problems would that solve?"
"That's right, a full industrial chain base, employment, taxes, and investment attraction are all major points. Making money is secondary. But why this kid? Does he have some background? I've never heard of him before."
"Didn't you do your homework before coming? You're not a very qualified reporter. Because of Super Girl, Shanchi can be said to be one of the hottest electric scooter brands this year. This guy is really uncanny.
Immediately after the Top 15 competition ended, he quickly signed Chun Ge. You know, at that time, the most popular was the runner-up later on, who was heavily promoted by Mango TV."
"Holy cow, my colleagues in the entertainment section talked about this. It was this guy, right? Everyone said he got lucky back then."
"Do you still think that's dumb luck now? Obviously not. He either has a deep background or strong ability to be favored. Also, they're about to launch a new brand and have invited another popular female celebrity this year to endorse it. The endorsement fee is said to have cost over 30 million yuan."
"I've heard about this too. The celebrity is already starting promotions, and there's news online. The entertainment industry is shocked."
"Indeed, I've also heard my colleagues complain that they work themselves to death every day, and a celebrity's single endorsement earns more than they could in dozens of lifetimes."
"Yes, it's Liu Yifei they invited. I'm her fan. I wonder if she'll come to Beicang to film the commercial. If she does, I'll have to find a chance to go see it."
"Damn it, you're a bearded, muscular man in your thirties, and you're still fangirling, liking young girls?"
"What's wrong with being in your thirties? A man's aesthetic is always consistent, alright?"
"Then that's not called being a fan, that's called being lustful."
The print journalists sitting in the back row had no interest in the speeches on stage.
They were already tired of these platitudes and knew exactly how to write press releases, so those who were familiar with each other occasionally discussed in low voices.
The information they received was truly astonishing; the general manager of Shanchi Technology was actually only 20 years old!
20 years old!
You're telling me a 20-year-old went from humble beginnings to having a net worth of over 100 million in less than 2 years, and in a traditional industry?
In the past few years, the internet occasionally produced news of sudden wealth, with some company listing creating hundreds of billionaires and millionaires, making everyone envious.
But those were internet companies, and after the internet bubble burst, their days were not easy either.
But this is a traditional industry.
Even his previous two trading companies had semi-traditional attributes.
Since when could traditional industries grow as quickly as the internet?
20 years old, from Yicheng, ordinary family, net worth over 100 million in just over a year.
Who would believe that?
"It's not that I can't keep up with the times; it's that the world is changing too fast."
Zhang Xupeng and Gu Qingqing exchanged glances, looking at each other.
Their seats were also relatively far back, so they could faintly hear some of the conversations of these writers.
Zhang Xupeng, who had originally wanted to continue complaining, immediately started cursing.
(End of Chapter)