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Chapter 127 - Chapter 127 The Industrial Path Is Not Easy

Long business trips are a tough job, especially driving across major cities.

This was 2005, not 2023, an era when the transportation network was not so developed.

After being reborn in 2003, Tan Jincheng had considered working in the internet industry, flying around for business trips everywhere, even going abroad from time to time to discuss high-end topics with multinational capital.

How glorious that would be.

However, after observation and research, he discovered that the internet at that time was not something ordinary people could do.

It was possible to find investors with creative ideas, obtain startup capital, but it was not certain that the company would still be yours after the entrepreneurial results emerged.

Because you didn't have the ability to hold onto it.

Even Adong, who is still selling CDs today and is hailed by the internet as a model of starting from scratch, had powerful backing to support him after his entrepreneurship.

One must know that Chen Dong initially only wanted to open a chain restaurant, but even that was scammed into bankruptcy by his employees.

Moreover, even if he managed to secure several million in startup capital from investors, at the current internet bandwidth speeds, Tan Jincheng's ideas, which were more suited for more than a decade later, would burn through the money in just a few months.

Investors aren't fools; endless burning of cash is only because there is hope to be seen.

Without hope, even knowing it's a good project in the future, it's impossible to keep investing money.

In this era, engaging in real industry, setting up factories, and doing import and export business was the king's way, the most profitable business, and the best opportunity for ordinary people to climb upwards.

Using hundreds of thousands to get into the internet would most likely lead to losing everything and ending up in debt.

But using hundreds of thousands to open a trading company would at least leave a few computers, and subletting the office could save a few thousand yuan.

But engaging in real industry also means hard work.

This is precisely what Tan Jincheng is experiencing now, on a difficult business trip, heading to Gusu this time.

After the negotiations with Boneng Power concluded, Tan Jincheng and Zhang Xupeng parted ways.

Zhang Xupeng, with two salespeople supported by Tan Jincheng, rushed to Zhili Town, Wuxin District, to investigate the children's clothing business.

After the investigation, Zhang Xupeng would return directly to Yongcheng Beicang.

This was Zhang Xupeng's first solo business trip to develop the market.

To be honest, he was still very nervous, which was one reason Tan Jincheng provided him with two salespeople for support.

Another advantage of going to Zhili is that almost half of the garment factories in Zhili are from Yicheng, their hometown.

Zhang Xupeng just needs to be a bit thicker-skinned, recognize fellow townsfolk, and it shouldn't be difficult to gather information.

Everyone has a first time.

If Zhang Xupeng can explore the children's clothing market in Zhili Town this time, open up a new business channel for Jinpeng Trading, and maintain it, it would mean that Zhang Xupeng can truly stand on his own.

By then, Tan Jincheng wouldn't mind transferring a large stake or even the entire equity of Jinpeng Trading to him, because he would have earned it.

Ever since that day on the way to visit the workshop at Boneng Power, when Zhang Yunhua learned that Tan Jincheng was not yet 20 years old, his attitude changed considerably.

Zhang Yunhua, who had truly participated in factory management, knew that it was very difficult to be involved in factory management at less than 20 years old, let alone be a founder.

As the boss's son, a second-generation factory owner, his legitimacy is unquestionable, right? But there are countless instances where they can't control their subordinates.

Factory management involves all aspects.

Employees rooted in the factory, except for some high-level staff, are relatively simple-minded.

There isn't much power struggle, nor are there many intricate schemes.

If labor and management don't respect you, they just don't respect you.

At worst, they'll quit, never caring who you are.

Therefore, factory management requires strong capabilities.

You can fire all those who don't respect you and hire sycophants to manage for you, but someone still needs to do the work, right?

Zhang Yunhua could see from Sun Yuming's eyes that when he mentioned the boss's age, his eyes were full of pride, as if he was talking about himself.

Other employees also looked proud.

Although the employee previously introduced as Zhang Xupeng casually pursed his lips, from the series of conversations in the office, Zhang Yunhua could tell that among Tan Jincheng's group, the most convinced of Tan Jincheng was undoubtedly him.

Pursing his lips didn't mean anything.

Didn't President Tan also raise an eyebrow at him before? Or perhaps their relationship was unusual.

After learning Tan Jincheng's true age, Zhang Yunhua not only did not show contempt but instead paid more attention to the subsequent itinerary and explained the products more meticulously.

He even thought about whether to inform his boss in advance.

"A youth without fuzz on his mouth is unreliable in his deeds"; but it also depends on the matter.

How could a young man who can establish a medium-sized factory at less than 20 years old be so simple?

Once a factory enters the supplier selection and procurement stages, it has already ensured its capability for formal production, meaning all preliminary preparations are basically complete.

It's hard to imagine that this is something a young man under 20 could do? His ability is undeniable, but what about his background?

During the subsequent tour, due to Zhang Yunhua's change in attitude and more diligent explanations, Tan Jincheng also benefited greatly throughout the process.

It was precisely Zhang Yunhua's thorough explanation that strengthened Tan Jincheng's determination to launch both 60V and 48V models.

Subsequent negotiations regarding procurement went relatively smoothly.

Although there were countless price disputes in between, fortunately, both parties were committed to win-win cooperation, and eventually, the cooperation details were successfully finalized.

Shanchi Vehicle Co., Ltd. ordered Yazhen brand lead-acid batteries from Boneng Environmental Power Co., Ltd., models 60V20Ah and 48V12Ah respectively, with an annual procurement volume of no less than 40,000 sets for each model.

The purchase prices were 500 yuan per set for 60V and 300 yuan per set for 48V.

The supply period would start from July 2005 and last for one year.

Payment and delivery methods would be monthly settlements, with payment for the previous month's goods made within the first five working days of the second month.

This was a large order totaling 32 million yuan, and Zhang Yunhua was extremely excited.

This meant that starting from August, the company would have an additional 2.6 million yuan in monthly circulating capital.

What an additional 2.6 million yuan in monthly circulating capital means for a factory of nearly 400 people is self-evident.

To some extent, Boneng could even use this fund to embark on another expansion path.

The moment the drafted agreement was signed, a fleeting ambition in Zhang Yunhua's heart was somewhat suppressed!

Zhang Yunhua is Boneng's professional manager, but also one of its founders and partners.

He owns 5% of the company's shares.

Boneng's boss usually doesn't involve himself in day-to-day matters, handling some high-level socializing and providing funds, while the entire company's operations are managed by Zhang Yunhua.

"I need to inform the boss!"

Suppressing his excitement, Zhang Yunhua glanced at Tan Jincheng opposite him.

The young man opposite him smiled subtly, looking calm and composed.

"What composure, an order worth tens of millions, and he's so calm,"

Zhang Yunhua praised in his heart.

In reality, Tan Jincheng was thinking about how to get money.

The contract was signed, and there was no problem with funds for next month's operations and production, but where would the money for August come from?

And this was just for batteries; there were also motors, controllers, frames, wheels, plastic parts, etc., later.

The amount to be paid to suppliers each month was not small.

However, it was gratifying that the change in strategy had reduced the cost of Shanchi's high-end models by 100 yuan just for the battery component, and the cost of low-end models by at least 200 yuan!

This was a good start.

Other core components would also be adjusted according to this strategy later, and the total cost could surely be reduced to below 1,000 yuan, with low-end models possibly even falling below 800 yuan.

This would create a larger profit margin and give them a more proactive position in negotiations with retail terminals.

"President Zhang, it's a pleasure to cooperate. Also, may I borrow your company's fax machine? I'll fax the agreement back first to have my lawyer review it. How about we then sign the official contract?"

Tan Jincheng said with a smile, extending his hand.

"Of course, I also need to notify our boss,"

Zhang Yunhua also nodded with a smile.

At the same time, he gave Tan Jincheng a label of caution.

To be honest, people of their generation who started businesses had a very weak legal awareness; many were no different from legal illiterates, often suffering losses on contracts.

Only after suffering a few losses would one realize the importance of certain words in a contract.

Tan Jincheng had this awareness right at the beginning of his venture, indicating his extreme prudence.

This meant that Shanchi Vehicle's battery requirements for quality must strictly adhere to the contract standards in the future.

If there were significant differences in the defect rate or quality inspection, this young man would not hesitate to sue them.

At that time, during the production process, he would have to instruct his subordinates well to prevent them from being perfunctory on quality issues.

Subsequently, both parties discussed some details of the contract.

Tan Jincheng also met Boneng Power's actual controller for the first time, the boss referred to by Zhang Yunhua.

This boss's surname was Jin, and his given name was Jin Chuanling, a very peculiar name.

He appeared to be around 40 years old, with an unusual aura about him, sharp eyes, firm steps, walking with the imposing manner of a tiger and a dragon.

Before entering, he smiled before speaking, and his voice was loud when he opened his mouth.

He didn't look like a company boss, but rather like a retired soldier.

"Younger brother Tan, you are young and promising. Let's interact more in the future."

After the contract was formally signed, Jin Chuanling extended his large hands and laughed heartily towards Tan Jincheng, evidently very pleased with the smooth conclusion of this contract.

Tan Jincheng noticed that the address upon entering had always been "Younger brother Tan," not "President Tan" as Zhang Yunhua had used, further confirming his internal speculation.

"Absolutely, Big Brother Jin, if you have a chance to visit Beicang, we don't have much else, but seafood is plentiful,"

Tan Jincheng also extended his hand, responding with a smile.

"Good, good. Yongcheng is a great place, and your hometown Yicheng is also a great place with a long history and rich culture."

During their earlier conversation, Tan Jincheng had mentioned that he was just a young man from out of town striving in Yongcheng.

As for whether they believed it, that was up to them; this matter could easily be verified.

"That's natural. If we can't brag about other things, when it comes to history, we Yicheng people definitely have a lot to say."

"Haha, who doesn't love their hometown, right?"

(End of Chapter)

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