At this moment, the boss, Cao Dewang, was receiving people from Tiangong Technology Company.
"Fuyao Glass is doing quite well right now. I wonder if Mr. Cao intends to increase investment in product research and development?" Fan Boming picked up his teacup, took a sip, looked at the owner of the automotive glass company sitting upright opposite him, and asked with a smile.
Cao Dewang smiled and said, "Of course, Fuyao Glass has always attached great importance to product research and development, which is why we have been able to make achievements in the field of automotive glass."
Fan Boming laughed and said, "It seems that Mr. Cao is different from others. I have met many factory owners, and they value marketing more, thus neglecting product research and development."
Cao Dewang said, "If the product quality is not good, no matter how much marketing you do, you will not succeed. Car companies are not stupid. Why would they buy poor quality glass? Fuyao strives to improve the level of Fuyao Glass production technology by learning and absorbing global automotive glass production technology and production management experience."
"For the same quality glass, foreign companies sell it for at least 20% less, which allowed us to quickly secure a large number of orders. Initially, foreign companies didn't trust our glass, thinking that our company was Chinese, technologically backward, and of poor quality. However, Fuyao Glass ultimately passed their tests and gained their approval thanks to its superior quality!"
As he finished speaking, Mr. Cao smiled.
Fan Boming nodded slightly. It was precisely because Fuyao Glass Company had great development potential that he took the initiative to visit them.
"Mr. Cao, has Fuyao Glass Company considered venture capital? The purpose of my visit today is to invest in Fuyao Glass Company. I wonder what your opinion is?"
Upon hearing this, Cao Dewang pondered for a moment and did not hastily agree to accept the investment despite his own need for funds.
He weighed the pros and cons, and thought that Tiangong Technology Company was already a well-known automobile manufacturing company in China with great influence in the automotive industry. If Fuyao Glass accepted Tiangong Technology's investment, it would be able to obtain stable glass orders from Tiangong Technology Company in the future.
However, Mr. Cao decided to ask for clarification first.
"Mr. Fan, how much money does Tiangong Technology plan to invest in Fuyao Glass, and how many shares do they want to acquire?"
Fan Boming replied, "I will invest 100 million RMB and hold 40% of the shares."
Fuyao Glass has already gone public, with revenue of approximately 200 million RMB last year. However, its current stock price is very low, at only 0.12 RMB. The reason for this low price is that Fuyao Glass established Green Banyan Glass Industries Co., Ltd. in the United States this year, officially entering the US market. Everyone at Fuyao Glass was overjoyed, but reality has dealt them a heavy blow.
Upon entering the US market, Fuyao was immediately subjected to an anti-dumping investigation by the authorities. Faced with a massive investigation and deliberate provocation from the other party, it's no wonder that Fuyao Glass's stock price plummeted.
At this critical moment, Tiangong Technology Company extended a helping hand by investing in Fuyao Glass Company, which can be described as providing timely help.
Cao Dewang frowned slightly. Tiangong Technology Company wanted too many shares. If he agreed, Tiangong Technology Company would hold more shares than he did, thus causing him to lose control of the company.
“I don’t agree to giving up 40% of the shares; 20% is the maximum,” Cao Dewang said firmly.
Fan Boming didn't insist; 20% it was, he immediately agreed.
Tiangong Technology's goal is to support the development of these automotive-related industry chain companies, not to seize power.
"Alright, then let's do as Mr. Cao says. I wish us a pleasant cooperation!"
Fan Boming stood up, smiled and said, then extended his right hand to shake hands with Cao Dewang.
Cao Dewang smiled and said, "Yes, I wish our two companies a pleasant cooperation!"
...
Across China, many auto parts companies have received investment from Tiangong Technology. While not every investment has been as successful as the investment in Fuyao Glass, Tiangong Technology is unlikely to lose money overall. As long as a few companies are successfully invested in, it can reap substantial profits.
Moreover, Tiangong Technology's goal is to promote the localization of automobile production, so even if it incurs losses, it can afford them. In the past month or so, it has only spent nearly 12 billion RMB.
Domestic automotive peers have taken notice and are full of praise and admiration for Tiangong Technology.
Meanwhile, more auto parts companies were eager for Tiangong Technology's "favor," and they all sent people to contact Tiangong Technology, keeping the people in Tiangong Technology's automotive investment department extremely busy.
...
...
At this time, as Tiangong Technology Company entered the automobile manufacturing industry, Wujiang Group's demand for steel became increasingly strong.
In order to save costs, some senior executives within the group have suggested investing in the establishment of a steel company.
Zhao Ye readily agreed to the suggestion, and then had Liu Yinyin send someone to register Yinhe Mining Group, whose business scope covers a variety of resource exploration, mining, mineral processing, smelting and product processing.
After the successful registration of Galaxy Mining Group, Zhao Ye immediately issued an order.
"Recruit talent immediately to strengthen Galaxy Mining Group."
"Then comes the purchase of mines, not limited to iron, copper, molybdenum, vanadium, aluminum, tin, phosphate, tungsten, and rare earth..."
Nowadays, foreign companies are buying up domestic rare earth resources in large quantities at rock-bottom prices, and they keep hoping that China's rare earth exports will be "the more the better," to your utter delusion.
Rare earth elements are a group of typical metallic elements that are exceptionally precious, not only because of their scarcity, non-renewability, and the difficulty in separation, purification, and processing, but also because of their wide application in agriculture, industry, military, and other sectors. They are an important support for the manufacture of new materials and a key resource for the development of cutting-edge defense technologies, and are known as "the earth of a thousand kinds".
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