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Chapter 2646 A Secret Maneuver

After visiting the Japanese automakers, Suning originally planned to fly back to Beijing the next day.

That very evening, the managing director of the Japan Automobile Manufacturers Association personally visited the hotel. “Mr. Su, several senior business figures have heard that you have come to Japan and would like to meet you. They have prepared a banquet and would be honored to have you attend.”

Suning immediately understood that the car company's invitation to visit was just an appetizer; the real main course was just being served.

So Suning immediately told his assistant, "Change the flight tickets and stay a few more days."

"clear."

Over the next few days, Suning's schedule was packed with various banquets.

The hosts are no longer minor players like Toyota, Honda, and Nissan, but rather key figures from established conglomerates like Mitsubishi, Mitsui, and Sumitomo.

These people carry more weight in the Japanese business world than the presidents of car companies.

After all, they don't just own a single factory, but rather an entire industrial chain spanning finance, real estate, manufacturing, trade, and energy.

The venues for the banquets were increasingly elaborate, ranging from top-tier kaiseki restaurants in Ginza and ryotei in Akasaka to private clubs in Odaiba. Each of these places was not open to the public, and ordinary people might not even be able to get their hands on the door.

The seating arrangement at each banquet was extremely meticulous. Suning was always invited to the guest of honor seat, and the person sitting opposite him was always the leader with the highest status that evening.

Each dinner was of a very high standard.

The host and guests each sit on one side, with the number of people limited to five or six to facilitate in-depth conversation.

Each dish was served with exquisite care, and the sake and red wine were all vintage collectibles.

But the people at the table were clearly not focused on eating and drinking. When the heads of those conglomerates spoke to Su Ning, their attitude was almost humble, and they used the highest level of honorifics.

Even when translators relay information, they need to slightly lower their tone of voice to avoid sounding too obsequious.

An elderly chairman with white hair held a sake cup and bowed slightly to Su Ning. "At such a young age, Mr. Su has founded a world-class enterprise like the Tianchao Group. There is no other example like him in the history of global business. This achievement is truly admirable."

Another key figure in the consortium chimed in, “That’s right! The speed and boldness with which Chinese automakers have entered the global market and competed head-on with Japanese automakers in just a few years has surpassed the trajectory of Toyota and Honda’s rise. It took Toyota thirty years to establish itself in the global market, while Chinese automakers only took three years. Su Sang has redefined the image of Chinese entrepreneurs.”

Su Ning sat upright in the host's seat, his face indifferent. He accepted all the praise without making any real promises in his words.

After a few rounds of drinks, the white-haired sect leader across from them finally got to the point.

The other party put down his wine glass, leaned forward slightly, and said earnestly, "Mr. Su, the Japanese industrial sector has accumulated over a century of technological expertise and still maintains a leading position globally in materials science, precision machining, and quality management. Tianchao Group possesses irreplaceable brand appeal and distribution network in the Chinese market. If both parties can join hands to establish a deep cooperative relationship at the capital level, it will truly achieve complementary advantages and be a historic opportunity for both."

"We hope that Susan can consider allowing Japanese industrial capital to enter the Tianchao Group as strategic investors. They do not need to hold a controlling stake or participate in daily operations, but simply hold an appropriate percentage of shares as partners, so that the two companies can form a long-term and unshakable alliance."

After listening, Su Ning picked up his sake cup and slowly took a sip. "I am deeply grateful for everyone's recognition of Tianchao Group. However, Tianchao Group has always adhered to one bottom line since its inception: we do not accept any foreign investment. This is not directed at Japanese companies, nor at any of you seniors present here. This bottom line applies equally to all foreign investment. German capital has come, and American capital has come, and I have rejected them all. So, what I am saying to you today is the same."

"Su-san, why did Alibaba bring in SoftBank Capital?"

"Alibaba brought in SoftBank's investment because that's Jack Ma's company, not Tianchao Group's core project. Moreover, Jack Ma is building an internet platform economy, and his model needs the support of global capital to grow faster. Tianchao Group's core is in automobiles and high-end manufacturing, two industries that are vital to the nation's economy, and there will never be any possibility of foreign capital intervening in its core operations. I appreciate everyone's kind invitations, and I'd like to toast you all, but there's no room for discussion regarding the shareholding."

The white-haired sect leader's smile remained unchanged, and he nodded slightly, saying, "I understand."

Then, another representative from the consortium, seated to the side, probed from a different angle: "Mr. Su, if equity investment is not feasible, joint ventures to build factories or co-construct supply chain systems are also second-best options. China's automotive industry is growing very rapidly in the Southeast Asian market, and we have an existing parts supply network and logistics infrastructure in Southeast Asia. Our interests overlap in many ways. Could we consider cooperating on a specific project first, even if it's just a vehicle platform or the joint development of a key component?"

After listening politely, Suning still didn't budge: "Tianchao Auto's supply chain system has been independent from day one of its establishment, with no overlap with any foreign capital, and this principle will not change. Joint ventures would involve complex issues of technology spillover and intellectual property protection, which are not feasible under current conditions. As for joint development of parts, Tianchao Auto currently develops all three major components—engine, transmission, and chassis—in-house, and its supporting supplier system is already in place. There is no need to introduce external partners at the moment."

The entire room fell silent for a moment.

They had been praising the young man in front of them for days, thinking they had created a harmonious atmosphere where both host and guest would be happy. They believed that by entertaining guests with the most prestigious ceremony in this top-tier club, and by setting the stage with decades-old vintage wines and Michelin-level kaiseki cuisine, they could surely open a loophole at the negotiating table.

However, the other party's attitude remained flawless from beginning to end, consistently maintaining a gentle yet impeccable stance.

Finally, the white-haired sect leader raised his glass first, smiling as he said, "Since Su Sang insists, let's put this topic aside for now and discuss it again when the time is right."

Suning also raised his glass and clinked it lightly, "Thank you all for your understanding! The Tianchao Group is still too weak right now. We need to clean up our own house first, and then we can consider welcoming and entertaining our guests."

But Suning knew better than anyone that the time would never be right.

Suning agreed to SoftBank Capital's investment in Alibaba because Alibaba's core assets are platform data and merchant relationships.

The competitive advantage of these products lies in their operations rather than their technology, and Suning has already calculated that it will sell them off and exit the market at the right time.

In other words, after Alibaba goes public, Tianchao Capital can consider gradually exiting, and the investment returns will be enough to build several more super factories.

Therefore, Alibaba has never been the core of the Chinese system; it is a golden egg in Suning's hands, which they can nurture and then sell.

However, the foundation of Tianchao Group's real industries, such as Tianchao Automobile, Kunyu Shipping, and Mingju Real Estate, was built by their own vision and resources in the spatial world. Any dilution of equity is like planting a time bomb for the future of Tianchao Group.

Japanese conglomerates want to infiltrate the company as strategic investors. Even if they only acquire a few percent of the shares, with the patience and strategic planning abilities of these Japanese wolves, they can gradually expand their influence by finding various loopholes in the company's governance within three to five years.

Therefore, Suning would never do something so foolish; the Tianchao Shangguo Group will always be purely domestically produced.

After the banquet, the heads of the conglomerates personally escorted Su Ning to the door, bowing respectfully as they watched his car leave.

Watching the Suning limousine drive away, a conglomerate tycoon said dejectedly, "What a pity! This is a formidable opponent."

"I don't think the Tianchao Group will go far! After all, this Su Sang is too resistant to foreign investment."

"We shouldn't give up! First, we need to show Susan the strength of Japanese companies."

"Sadossner! We really need to show our strength."

……

Suning's trip to Japan originally only included visits to car companies and a few dinners.

As a result, the Japanese conglomerates couldn't hold back and stepped in, so Suning had to revise its itinerary.

The publicly released itinerary was made for the Japanese side to see.

The list neatly arranged included visits to Toyota's Motomachi plant, Nissan's Yokohama plant, Honda's Saitama plant, a meeting with the Japan Automobile Manufacturers Association, and several corporate dinners, making it appear to be a standard corporate exchange visit.

But Suning has a completely different timetable in mind.

While the heads of those conglomerates lined up at restaurants in Ginza and Akasaka to invite him to dinner, Su Ning had his accompanying Tianchao Capital investment team quietly do something even more important—go on a shopping spree.

The target is certainly not those glamorous giants, nor Mitsubishi Heavy Industries, nor Kawasaki Heavy Industries, nor any star company listed on the Tokyo Stock Exchange's main board.

Instead, they are small and medium-sized technology companies hidden deep in industrial areas across Japan, with inconspicuous laboratory facades, but holding hard-core technology patents.

These companies generally fared poorly after the bursting of Japan's economic bubble...

Banks are withdrawing loans, major customers are cutting orders, the younger generation is unwilling to enter the manufacturing industry, the founder is getting old and cannot find a successor, and the company's cash flow can only last for a few months.

But their accumulated technological expertise has not been devalued.

High-precision servo control algorithms in the field of motors, miniaturized precision reducers for industrial robots, high-purity target material preparation processes in the materials industry, and solid-state battery electrolyte formulations in the field of new energy...

In Suning's eyes, these patents and technical teams are far more valuable than the aged sake served at those conglomerate dinners.

Suning instructed Tianchao Capital's Japanese office to begin due diligence.

So the head of the office, along with several investment managers, visited most of Japan's industrial zones under various pretexts, from small factory clusters in Tokyo's Ota Ward to the precision machinery industrial zone around Nagoya, from chemical materials research institutes in Osaka to university laboratory-derived companies in Kyoto, screening out small and medium-sized technology companies across the entire Japanese archipelago that met the acquisition criteria.

The selection criteria were threefold: high technological barriers, financial difficulties, and a founder's willingness to discuss. The final list included twenty to thirty companies, covering four key areas that Tianchao Group aims to focus on developing next: motors, industrial robots, new materials, and new energy.

Suning highlighted the core patent abstracts and technical team backgrounds of each company on the list in red.

……

After a dinner party, Suning did not return to his hotel to rest.

He changed into casual clothes, took off his tie, and looked like an ordinary technical engineer.

He only brought a translator and two investment managers from Chinese capital, and took the Shinkansen to Nagoya overnight.

There weren't many people on the Shinkansen, and the carriage was very quiet. He leaned back in his seat and closed his eyes for a while. After arriving at Nagoya Station, he took a taxi directly to his hotel.

The next morning, he appeared in the meeting room of a small company that manufactures precision speed reducers.

The company president is a nearly 70-year-old engineer who looks like a stubborn, unlucky guy with no successor.

The walls of the reception room are covered with various patent certificates from the 1970s to the 1990s; some of the papers are yellowed but are carefully framed.

However, past glories cannot change the company's current difficulties.

The company's order volume has been declining for several years. Its largest customer was snatched away by a German company, and several young technicians left. Only he and a few old colleagues are left to keep the company afloat.

When the president saw that Suning was so young, he initially thought he was just an ordinary salesman sent by China's capital to go through the formalities. His attitude was polite but not very warm.

Just as the translator was about to make the introduction, Su Ning waved his hand and exchanged a few pleasantries in fluent Japanese.

Then he picked up a disassembled reducer sample from the table and examined it closely. It was the company's flagship product, a precision planetary reducer used in the joints of industrial robots.

Suning turned the input shaft with his hand to feel the smoothness of the gear meshing, then looked at the backlash control structure at the output end, and looked up to chat with the old president about a few technical details.

Sure enough, the old president's eyes lit up when he talked about technology. He stood up, walked to the workbench, and enthusiastically explained how efficient this precision reducer could be, what level of noise control it could achieve, and what its rated service life was.

When talking about these data, the old president didn't need to look at any materials; every number seemed to be engraved in his mind.

After listening, Su Ning put the sample back on the table. "President Okamoto, I'm familiar with your company's history. You've been making speed reducers since 1973 and hold numerous core patents, three of which have been licensed in the US and Europe. The problem you're facing now is a market issue, not a technical one. Tianchao Capital is willing to acquire you outright, retaining the entire technical team and the original brand name, and will increase R&D investment after the acquisition. We don't need you to move the company to China; the factory and research institute will remain in Japan, the employees here will continue working here, and the products will be prioritized for supplying Tianchao Auto's industrial robot production line."

The old president was silent for a moment before looking up at Su Ning: "Su-san, I've spent my whole life studying machinery, but I don't understand business. When the market is good, banks chase after me for loans; when the market is bad, they treat me like a plague, refusing even to answer my calls. Why would you buy an old workshop that even the Japanese look down on?"

"Because I value what others look down on."

The old president took a deep breath, stood up, and firmly grasped Suning's hand. "Okay. I accept Tianchao Capital's acquisition offer."

"Pleasant to work with."

……

After leaving that company, Suning visited three more companies in Nagoya without stopping.

One company develops ultra-thin ceramic coating technology for new energy battery separators, which can significantly improve the safety and thermal stability of lithium batteries.

One company manufactures miniature torque sensors for industrial robot joints, with an accuracy reaching several decimal places in the Newton-meter level.

Another company produces high-purity sputtering targets, which are essential consumables for semiconductor and high-end coating processes.

The three companies are in similar situations: they have outstanding technology but are facing a funding crisis, and they are like people holding a golden rice bowl but begging for food.

Some companies were burdened with debt due to overexpansion during the bubble economy period, some suffered from a sharp drop in orders due to market contraction, and some faced a lack of successors due to the founder's poor health.

The investment director of Tianchao Capital spent the whole day running around after Suning, his legs were almost broken, but he still signed one acquisition intention letter after another in his briefcase.

With each signed agreement, the investment director silently added weight to Tianchao Group's future competitiveness.

……

At a new energy materials research institute in Kyoto.

Suning has seen the latest experimental data on sulfides in solid-state batteries.

The experimental equipment is small in size but extremely precise, with the scanning electron microscope and X-ray diffractometer being state-of-the-art models.

There were only five researchers, led by an elderly professor who had just retired from Kyoto University. He had messy hair and was wearing a white lab coat, sitting in front of a computer looking at data curves.

The due diligence report from Tianchao Capital mentioned that the ionic conductivity parameter of this sulfide has reached a world-leading level.

However, it is still some distance from industrialization, mainly because the issues of mass production technology and cost control have not been resolved.

Suning chatted with the old professor for a long time.

The old professor was initially very wary, thinking that the Chinese company's acquisition was just an attempt to steal his technology and then kick him out.

Su Ning didn't rush to explain. Instead, he sat down and listened to the old professor talk about his research findings, from the ion conduction mechanism to the stability of the electrolyte interface, for almost an hour.

Suning listened attentively while asking questions, all of which were on the key points.

The old professor gradually lowered his guard, and his tone of voice changed from cold and hard to relaxed.

Finally, Suning proposed an agreement: Tianchao Capital would acquire the research institute in full, inject funds to establish a joint laboratory in Beijing, upgrade all equipment, allow the senior professor to continue serving as chief scientist, and share the patent rights of the research results with Tianchao Group and the Beijing Institute of Technology, with industrialization taking place in China.

The old professor remained silent for a long time before nodding slightly: "The lab here hasn't had a liquid nitrogen supply for two months. I'm no longer worried about who owns the patent; I just don't want this data to rot in a drawer."

Suning nodded slightly and extended his hand: "It won't break. Your data will be turned into batteries and installed in millions of cars."

"Then we'll wait and see."

……

Throughout the entire trip to Japan, these secret acquisitions were carried out with seamless cooperation between foreign trade and Chinese capital.

During the day, Suning nodded and smiled at the production line at Toyota's Motomachi factory, and at night, back in his hotel, he reviewed the acquisition intention letters that China Capital had signed during the day.

Suning personally reviewed the contents of every letter of intent. For some targets, he glanced at them and put them aside, pointing out the key issues: "The technical content is insufficient, or the price is too high, or the core team members have all left."

After reviewing some of the bids, he would pick up a pen and add a note next to the amount: "No price negotiation, settle as soon as possible."

The longer this technology is left on the market, the greater the risk of it being discovered by competitors.

The day before leaving, Tianchao Capital's investment department presented Suning with a progress report.

During this trip to Japan, I met with nearly twenty small and medium-sized technology companies, eighteen of which have signed letters of intent to acquire me, covering four sectors: precision machinery, industrial automation, new materials, and new energy.

These 18 companies hold a total of over 600 patents, many of which are core process patents that are leading globally.

The size and skill level of the technical team enabled Tianchao Group to fill the gap in its technological accumulation in core processes all at once.

After reading the report, Suning wrote a few words on the last page: Complete the handover as soon as possible, include the technical data in the research institute's confidential database, and implement the personnel resettlement plan within three months.

Finally, the report was returned to the investment director, with the addition: "These technologies are our bullets for going head-to-head with the giants in the global market over the next decade. So, every bullet must be polished."

...(End of this chapter)