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Chapter 106 - Chapter 106 Stocks and Dividends

As the major shareholder and legal representative of a trading company, business trips and future overseas travel are inevitable.

Regarding permits and passports, Tan Jincheng certainly had them all processed long ago; to not even think of this would make him unworthy of being a reborn person.

Going to Hong Kong on business was not a difficult task for Tan Jincheng.

Last year, there was a plan to go to Hong Kong during the Canton Fair because there was also a decent-sized exhibition there.

Later, because the Canton Fair went well, the trip didn't happen.

Now, it seems necessary to make the trip!

However, the purpose is obviously not for import and export trade, but for QQ shares.

Opening an account domestically is possible, but the procedures are relatively complex.

Since he's already in Yangcheng, it's more convenient to go directly across the border to open an account and buy shares directly.

The most important thing right now is naturally to raise funds.

It's impossible to take over the entire company with a few million, and even if it were all given to Tan Jincheng, without capital support, it couldn't be sustained.

But raising enough funds would allow him to acquire more shares in the primary market.

Buying and selling stocks is legal and compliant, so there's no need for taboos, as long as you have enough money.

Raise money, then go to Hong Kong to buy stocks, buying as much as possible when the stocks are cheapest.

Tan Jincheng probably knows clearer than Ma Hua what kind of scale QQ will become in the future.

If he truly had such great confidence in the future, he wouldn't have planned to sell the company for a few million.

He isn't short on this money!

The key is that a few million couldn't even sell it; no one wanted it.

It's said that the Sohu boss only offered a few hundred thousand, which sounds quite fantastical, but in the current market, it seems to be true.

After researching for so long and reading so many news articles, Tan Jincheng now seems to understand the problem QQ is facing: Fetion.

Fetion belongs to China Mobile, and there were problems with the cooperation with China Mobile.

The strategy of aspiring to become a virtual telecom operator was blocked at the beginning of this year, and the wireless value-added services it relied on for survival are also being cleared by China Mobile.

The company is facing numerous problems such as being unable to monetize traffic and finding new profit outlets.

The internet is a winner-take-all industry.

Ahead, Shanda was at its zenith, and the three major portals still dominated the mainstream market.

Behind, the behemoth China Mobile was encroaching on the market.

It was truly like being caught between a wolf in front and a tiger behind.

Under such circumstances, the idea of selling the company is understandable.

Later, it should be about using games to break the deadlock.

Tan Jincheng doesn't know the specific operational details, but he understands the general direction.

Only after finding a new profit model did QQ truly successfully transform and complete its metamorphosis.

Take QQ Zone, which just started its internal testing this month.

In the future, a small game will explode in QQ Zone, and that is "Farmville," from which a series of versions will later derive.

This thing wasn't originally created by them, but due to QQ's social network, it was truly popular for a time.

Tan Jincheng and Zhang Xupeng, who were still selling lunchboxes back then, would "steal vegetables" after closing their stalls.

They even added many unfamiliar netizens just to "steal vegetables."

"Heh, Little Ma Brother is really having a tough time these days. If it's just about surfing the internet, even Mop.com is more popular than him these days."

Tan Jincheng chuckled while browsing the news.

2005, an era of change, for Tan Jincheng, everything was just right.

Coming back too early, the timing was insufficient, and he had no money.

Coming back too late, he would only be able to drink some soup.

But this year is different.

According to Tan Jincheng's current company size and connections, without touching the Jinpeng Trade shareholder dividends, he can't say how much more, but getting a million or so is relatively easy.

Two houses can be mortgaged.

Although the car is under the company's name, as the legal representative, Tan Jincheng can also mortgage the car.

Various other odds and ends can also raise some money for buying stocks.

Getting a million or so is definitely not a problem.

At worst, he can get four to five hundred thousand.

And once the electric vehicle factory is built this year, even more money can be obtained then.

After clarifying his general thoughts, Tan Jincheng put away his computer.

Next, he would wait until the Canton Fair ended, then return to Yongcheng to raise money to buy stocks!

In addition, Tan Jincheng currently holds 3,000 shares of Moutai Distillery.

He made up for the shares he didn't buy in the months leading up to the New Year.

Tan Jincheng also impulsively used the prize money he won from the Milan Derby a few days ago to buy Moutai.

He wished he had kept it.

Currently, Moutai's share price has reached around 53 yuan, and his holding cost has also risen to 42.78 yuan.

He earned 30,000 yuan in half a year, a 20% profit.

In terms of efficiency, current stocks are not as fast as doing business.

However, this is long-term and provides a safeguard for the future.

The business world is unpredictable; a sudden bankruptcy someday is not uncommon, and even a reborn person cannot absolutely guarantee that such a thing won't happen.

For example, what if someone takes a fancy to your factory, right?

So, backup plans must be kept.

For example, Moutai Distillery and the soon-to-be-purchased QQ are his future fallback options.

At worst, he can be a rich idler, ensuring a lifetime of peace and security.

However, Moutai's stock price has been rising continuously recently, so it cannot be bought with a dollar-cost averaging strategy.

Buying 500 shares every month would cost nearly 30,000 yuan, which is not advantageous for capital utilization.

It would be better to wait until a big dip and buy it all at once.

Although Moutai's stock performance has always been relatively stable, there are always periodic large drops, and that would be his timing to buy in.

Before the stock market peaked at 6,000 points in 2007, he could buy during any big dip and sell it at 6,000 points.

Then buy back during the 2008 stock market crash and earn a price difference, how sweet.

With light steps, Tan Jincheng moved through the crowd, heading towards his own booth.

After a while, he arrived at his booth area.

Zhang Xupeng saw Tan Jincheng walking towards them from afar and asked with a puzzled look,

"Why were you gone for so long?"

Tan Jincheng had been sitting there for over two hours; it was almost lunchtime.

"Nothing, just found a way to get rich. How was your morning?"

Tan Jincheng replied with a smile.

"We received an order this morning, not bad. What way to get rich?"

"I won't tell you. Get the computer; I'll go buy your lunch. I'm treating today, brother."

"Whose brother are you? Get some spicy food, something with a kick."

"Got it, be careful not to get heaty, it's scorching hot."

In the afternoon, Tan Jincheng did not participate in taking orders.

Aside from occasionally helping with translation and introducing samples, he mostly watched from the side.

After a wave of guests left, Tan Jincheng would also point out the shortcomings in Zhang Xupeng and the other two's conversations with guests.

For the next few days, it was mostly this rhythm.

To help Zhang Xupeng grow quickly, Tan Jincheng intentionally or unintentionally gave up the initiative, letting Zhang Xupeng make decisions on various matters at the exhibition.

Two or three days later, Zhang Xupeng also realized that Xiao Tan was preparing to withdraw from Jinpeng Trade and cultivate his own authority.

Zhang Xupeng readily accepted this.

The Canton Fair was very important.

Taking charge himself would certainly affect the order volume, but it was also an excellent opportunity for training.

He had also chatted with Xiao Tan about his new company.

From Xiao Tan's plans for the new company, he seemed to have much grander ambitions than just trade, as he had previously said.

He actually wanted to set up a factory directly, and one that produced two-wheeled electric vehicles!

The investment in producing such a thing is not small.

From standardized factory buildings and equipment to labor and parts procurement, it's a huge expense.

Even as Xiao Tan said, calculating at a daily output of 100 units, the investment for just one production line like that would be several million yuan.

Good heavens, the first time he started a company, he invested 100,000 yuan.

The second time, it directly multiplied tens of times.

If it couldn't get a foothold, millions would be wasted.

If it did get a foothold, he would need to increase investment, expand production capacity, and invest in new production lines.

Isn't this like buying an old hen, selling the eggs for money, then using that money to buy more old hens?

In the end, the business grows bigger and bigger, but the accompanying risks also increase.

His net worth might skyrocket in the process, but his personal assets seem to be very little?

Just listening to the plan, Zhang Xupeng worried for Tan Jincheng; the risks involved were imaginable.

Therefore, Zhang Xupeng fully understood Xiao Tan's eagerness to transfer control of Jinpeng Trade to him.

Having dealt with suppliers and managed logistics, Zhang Xupeng knew that an electric vehicle is not comparable to a piece of clothing.

From a large battery to a small screw, the procurement of various large and small parts would consume enormous energy.

Once the factory was formally built and ready for production, even if Xiao Tan wanted to attend to Jinpeng Trade, he wouldn't have the energy.

"Hey, what are you thinking about? I'm going to Hong Kong in a few days. Do you need anything brought back?"

Seeing Zhang Xupeng standing in a daze, Tan Jincheng nudged him.

"What are you going to Hong Kong for? Business development?"

Zhang Xupeng asked with some curiosity.

Having visited many countries, even without in-depth tours, Zhang Xupeng wouldn't be overly excited hearing the words "Hong Kong."

He was just curious why Xiao Tan was going to Hong Kong.

The company did have two clients in Hong Kong, but their procurement scale was not large enough to warrant a special visit.

If it were a special visit, he should first go to the US to see James, who was currently the company's top client.

"Not for business development, it's a personal matter. If there's anything you need me to bring back, write me a list after I return to Yongcheng."

Then, Tan Jincheng seriously said to Zhang Xupeng,

"Also, there's another matter I want to discuss with you."

Seeing Tan Jincheng's serious demeanor, Zhang Xupeng straightened up and immediately asked,

"What is it? Tell me."

"You also know I'm very short on money recently. I'm thinking if it's possible, we could distribute the profits from last year and the first quarter of this year first. Also, how about I transfer 10% of my shares to you in exchange for cash?"

Whether it's setting up the electric vehicle factory or buying stocks, these things cannot be delayed.

The factory needs to race against time, and so do stocks.

Buying later makes them more expensive; just look at Moutai Distillery, which was less than 40 yuan when he first bought it.

What's more, stocks can be pledged.

When he previously inquired about loans, the bank staff told him they also accept such assets.

After buying stocks, he could pledge them to the bank and use the cash to continue investing in the factory.

By the end of the year, he could just repay it with Jinpeng Trade's dividends.

This kills two birds with one stone, and the risk isn't very high.

Playing these kinds of tricks really requires professional persuaders.

It seems that in the future, when he has more assets, he'll need to hire a professional financial advisor.

These words plunged Zhang Xupeng into silence once again.

His eyes slightly narrowed, and his eyebrows subtly raised—Tan Jincheng was very familiar with these movements.

He was pondering what he had just said.

Tan Jincheng, lying on the bed, saw this, picked up the remote control, and lowered the TV volume.

Zhang Xupeng was indeed thinking about this issue.

The profits from last year and the first quarter of this year.

The exact figures would require checking the financial statements, but Zhang Xupeng knew the rough amount, approximately 3 million yuan.

Because of the support from advance payments for subsequent orders, the company didn't need to keep too much cash on the books.

Aside from advance payments to contract manufacturers and other suppliers, Jinpeng Trade's usual operating expenses were not very large.

Distributing the full profits from these two quarters was not an issue.

Xiao Tan's share was 57%, and his own was 43%.

Without calculating taxes, Xiao Tan would get about 1.7 million yuan, and he would get about 1.3 million yuan.

All of this was fine.

Zhang Xupeng was mainly considering the 10% stake.

From Xiao Tan's attitude, after returning, Jinpeng Trade would definitely be under his full management.

With this 10% equity, it would be even more legitimate.

To be honest, increasing the company's equity from 43% to 53% was undeniably tempting.

It's important to know that the company's biggest profits this year would start from May.

The profits from the first quarter were insignificant compared to the revenue in the second half of the year.

Take James's contract, for instance.

The 6 million US dollar order starts from May this year.

Calculated at a 40% profit margin, Xiao Tan's 10% share of dividends alone would be around 2 million yuan, and this is just for one order.

2 million yuan, not 20,000 yuan.

How could he not be tempted? But Zhang Xupeng really couldn't do this.

Accepting Xiao Tan's 10% equity at this time would be taking advantage of someone's difficult situation.

If it were someone else, even a relative of his own, Zhang Xupeng wouldn't mind.

But it was Tan Jincheng.

No matter how tempted he was, he had to restrain himself.

Zhang Xupeng was very clear that without Xiao Tan's miraculous performance over the past six months, he wouldn't have received 1.3 million yuan in dividends from two quarters.

"Dividends are fine, but let's forget about the share transfer. If you really want to transfer, let's talk about it a year from now."

Seeing Tan Jincheng about to say something, Zhang Xupeng waved his hand and said,

"I know you're short on money, and the dividend money certainly isn't enough, so you're thinking of transferring shares. But I can't take advantage of you. Accepting your shares now would be taking advantage of the situation. If we're brothers, don't say that again."

"As for you being short on money, that's open for discussion. Didn't you want to distribute dividends? I calculated that I can get about 1.3 million yuan. I'll lend you 1 million yuan, and I'll keep 300,000 yuan to buy a house. How about I also ask Uncle Qingliang to decorate it for me?"

"That's not good, 1 million is not a small sum. Why don't we still go with the share transfer method?"

"I said, if we're brothers, don't mention shares again. 1 million is certainly not a small sum. You definitely have to pay some interest, just as a gesture. Let's go by the bank's interest rate, how about that?"

Xiao Tan was short on funds, and he couldn't accept a share transfer, so he might as well help him again.

He currently had no major expenses himself; his usual living expenses were well covered by his salary, and entertainment costs were on the company's tab.

The Passat would be his after he returned.

He could use the leftover dividend money to buy a house.

This way, he would have both a car and a house, and he wouldn't lack for pocket money.

What else was there to say?

(End of Chapter)

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