"Samsung made a feint, and LG simply did not respond. Regarding the several requests made by Jinling, LG always said that they would seriously consider them.
Guangzhou? Let’s not talk about it. Previously, BOE’s first choice for production lines was Shanghai and Guangzhou. Only these two regions could provide enough financial funds for subsidies.
As a result, everyone knows that Sharp, relying on its technological accumulation in the field of LCD screens, has been luring others with its tenth-generation mother glass production line.
In fact, Shanghai, Guangzhou, and Suzhou have never received any production lines promised by Sharp. It hurts people's hearts once or twice, and this time is the third time."
Wang Dongsheng came very quickly without notifying anyone. Even Liu Xiaodong himself was notified only when he got off the highway.
They found a quiet spot near the highway intersection and held a secret negotiation among the six people.
BOE Chairman Wang Dongsheng, Feicheng Project Team General Manager Liu Xiaodong, and Financial Director Yao Xiangjun.
Li Zehua, Chairman of Qingyun Group, Guo Xinyi, Director and Executive President of Honor Electronics, He Li, Vice President of Honor Electronics and President of Roewe Business Unit and Offline Business Promotion Department.
Liu Xiaodong looked at his chairman who was hesitant to speak, and simply said, "Boss Li, if you really want to make a career in LCD screens.
Then you should stay away from the Yangtze River Delta and the Pearl River Delta. These are not the first choice for investment. They are more suitable for short-term, high-profit and high-return industries, or at the very least, labor-intensive industries.
Take the company's current 8.5-generation production line in Yanjing Yizhuang as an example. It was supported by the whole Yanjing government, including unconditional support from participating state-owned enterprises.
One of them even contributed its entire interest-free loan quota from the bank this year. Although it was only 2 million RMB, the 0.01% interest rate for ten years was almost like giving it away for free.
In Jiangsu, Zhejiang, Shanghai and eastern Guangdong, no state-owned enterprise or commercial bank can provide this.
They prefer to freely regulate based on the market economy and make as much money as possible while they can. Even if there is pressure from above, no one is willing to do thankless work.
The situation is similar for the Chengdu production line, with more than 30 billion yuan in social financing and commercial loans, with an interest rate of nearly 5%, but the Chengdu government provides full financial subsidies.
If such conditions were applied in economically developed regions, there would be endless resistance and wrangling from all sides.
Any unexpected changes in the middle may lead to the bankruptcy of a half-negotiated cooperation. Everyone can understand that compared with the preferential conditions offered by foreign manufacturers, their technology is also more advanced than ours.
The investment amount, financing pressure, payback period, and sales market expectations are far more advantageous than ours. In addition, some people with ulterior motives are trying to sow discord among us, so it is difficult to succeed. "
“We have to do it. The 4.5 generation seems to require a small investment and a quick payback period, but the cost per piece remains high. In normal market competition, there may be certain local advantages.
But compared with the 8.5-generation line that can cut more screens, its disadvantages are obvious.
To be honest with you, Pinxixi e-commerce is not satisfied with just being a sales force. One day, with the addition of Honor Electronics, we will gradually expand our living space to the upstream of the industry.
In other words, Qingyun Group must have the core say in the LCD production line.
Whether it is market competitive advantage or dominant position, the Group will not willingly be controlled by foreign manufacturers. "
Li Zehua first made clear his tough attitude, and then asked about the specific implementation details, "Since BOE already has the experience of building the Yanjing 8.5-generation production line.
I'm familiar with it, so I don't worry about it.
Next we just need to determine the cooperation partner. Mr. Wang, if it is convenient, could you please share the construction cost of Yanjing and the cooperation details?
If Shanghai government is willing to match, would you consider building this production line in Shanghai Pudong or Songjiang?
Of course, Jiangcheng and Xingcheng in Central China and Yangcheng in Eastern Guangdong can also be considered as alternatives.”
Thinking back to the details of the cooperation discussed with Gusu in the morning, Li Zehua no longer held out much hope.
Samsung's 7.5-generation production line conditions call for a total investment of US$22.5 billion, with Samsung assuming US$8 million in construction costs.
But Li Zehua vaguely remembered that in the end, Three Star refused to continue to perform the contract on the grounds that the Korean government had not approved it.
If this isn't a conspiracy, then what is?
Samsung is using this to cooperate with Suzhou and Kunshan, but the registered capital of the specially established company is only 800 million US dollars, which is only 1% of the promised investment amount. Can this even be called a commitment?
Later, when Samsung saw the booming smartphone market and was afraid of losing its market share in Tokyo, it hurriedly introduced obsolete production technology and obtained a wave of subsidies.
It was only reluctantly that it invested in building a new 7.5-generation production line in China, and its partner was still Suzhou.
“The construction cost is as high as $30 billion, and the market is saturated. The financial crisis has affected the market, and the payback period is far away.
Mr. Li, have you thought about it seriously? Once the investment fails, BOE will not be responsible for any aftermath, and cannot bear the corresponding aftermath responsibility. "
Wang Dongsheng always felt that all this was not so real, mainly because Li Zehua's tone was too casual. The self-raised funds started with 10 billion US dollars, not 10 yuan!
It feels as simple as buying a bottle of mineral water at a roadside supermarket.
“I can give you a hundred reasons to prove my foresight, considering the core needs of home appliance companies and the promising future of the smartphone market.
But that didn't make any sense. The main reason was that it was too easy to make money. I wanted to find a challenging career so that in thirty or fifty years people would remember my name when they talk about this industry.
What do you think of this reason, Mr. Wang? "
Li Zehua spread his hands and said, "I won't pretend anymore. I'm going to reveal my cards. All I want is to leave my name in history. So what?"
Wang Dongsheng was almost choked, and after confirming again and again that there was no problem with the source of funds, he continued, "I'm afraid I can't go to the Magic City.
Sharp has talked about this before, and I can guarantee that as long as you propose this plan, Sharp will come over. In addition, Taiwan’s economic department has also made similar proposals.
Sharp is preparing to set up 6.5-generation and above production lines in the mainland. Even if Sharp is just bluffing in Guangzhou, it has enough allies to play.
Given your long-standing friendship with the Magic City, I'm afraid it will be difficult to get out of this situation, and you will have no choice but to bargain with your competitors endlessly, wasting precious time bit by bit."
"Openly repairing the plank road, secretly marching through Chencang."
Li Zehua also has a plan for this. "Jiangcheng, Xingcheng, and Feicheng are all candidates. Even if Wu Xi can provide enough matching funds, we can discuss them at the same time.
As long as Shanghai and Jiangsu Province show a clear preference, we can immediately choose one of them to sign a contract and start the project.
As long as the blame is not on me, let him be."
Wang Dongsheng didn't expect him to play so wildly, "Aren't you afraid that the Magic City will have a different opinion of you in the future?"
"What can I think? We laid out the conditions at the beginning and learned from your strategy when you asked Feicheng. One is one, two is two, as long as Qingyun Group doesn't deliberately make trouble.
I believe the Magic City government will understand."
This kind of deep integration with local government offices has its pros and cons, but Li Zehua believes that with so many interesting things in Shanghai, everyone will weigh the pros and cons.
Maybe Songjiang or Pudong are willing to offer equal conditions to retain the production line of BOE and Qingyun?
If we don’t talk about it, who knows the outcome?
"What about Jiangsu Province? You moved Panda Electronics out of Jinling, and there were a lot of people saying weird things about you. Now the new production line is not going into production. Isn't this embarrassing for you in disguise?
Will it cause operational obstacles to your company in the future?"
Liu Xiaodong asked in confusion.
As a result, Li Zehua opened his mouth and said, "Didn't I invite you two to come here to discuss the construction of 4.5-generation smartphone screens? With this production line, what right does the Su Province have to blame me?"
Even Wang Dongsheng was stunned. "No, you not only want to build an 8.5-generation line, but also continue to invest in 4.5-generation?"
Yao Xiangjun, who manages the purse strings for BOE, also helped to persuade them, "Mr. Li, there is no need for duplicate construction. The 8.5 generation sounds impressive, but in fact it is just the difference in the size of the screen that can be cut.
With the 8.5 generation, there is no need to build the 4.5 generation, which will have a higher production cost. If there is overcapacity, the time to recover the investment will increase.”
He Li, who knew the inside story and got a hint from Li Zehua, interrupted with a smile:
“Let me introduce myself. I am the president of the Rongwei Division of Honor Electronics. Maybe you three don’t know, but our company has another plan.
The smartphone promotion program is aimed at villages and towns, as well as overseas third world countries, and has now reached strategic cooperation with many Southeast Asian countries.
Don’t worry, everyone. At present, the production capacity of the 4.5-generation production line in Chengdu can be fully occupied by Roewe alone, and even new production lines are needed to provide production capacity support.”
Wang Dongsheng was completely furious now. According to this statement, Roewe Electronics, which has not sold a single product yet, might become BOE's largest single customer in the future.
No wonder Qingyun Group didn't even blink when discussing the investment, and directly invested 3.5 million US dollars. He tried to ask, "If your demand for production capacity is large enough, why not upgrade this production line slightly, after all, the size of the products produced by the 4.5-generation line is a little smaller.
If you can mention it, by the 6th generation line, future products can also be supplied to the home appliance industry, Mr. Li, what do you think? "
"US$3.5 million, if calculated as one-third, can leverage more than 60 billion RMB investment, which is not impossible, but it would be best if this production line could be located in Suzhou or Guangzhou."
Li Zehua thought for a moment and explained: "This is due to the comprehensive consideration of transportation, proximity to talent concentration areas, and industrial chain. The company has assembly production lines in Suzhou and Dongguan, as well as in Pengcheng.
In the future, Roewe Electronics will have high requirements for location advantages in its production and assembly in Southeast Asia, Latin America and Africa. After all, the land transportation cost that can be saved is not a small number.
It’s too far from Chengdu.”
BOE also readily accepted this situation.
Wang Dongsheng did not think too much about it. He came here just to confirm in person whether Qingyun Group really had the strength and the demand.
Now that they saw that the matter was very reliable, they immediately agreed to cooperate. The subsequent detailed negotiations would naturally be handled by the two companies' dedicated teams...
At this moment, Qingyun Group officially became BOE's largest single shareholder (non-state-owned) and largest potential single customer.
Through BOE, Qingyun Group can not only control the core resources of smartphone screens, but also influence the increasingly distant home appliance companies through LCD screens.
The e-commerce promotion month launched by Pinxixi and JD.com has an increasingly greater impact on traditional offline channel merchants.
The channel dealers who have suffered losses will of course fight back. Home appliance companies are caught in the middle and it would be bad for them to side with either side, but they are still emotionally inclined towards traditional channels that can create more value.
Naturally, the attitude towards Pinxixi is not as good as before.
However, Li Zehua is now directly deploying in the upstream of the industry, and when Qingyun Group and BOE sign a new strategic cooperation agreement, these manufacturers are all staring with wide eyes.
When the strategic investment of more than one billion US dollars was in place half a year later, almost all manufacturers were cursing in their hearts.
Qingyun Group has no intention of giving them a way out. Seeing that they cannot gain an advantage in the competition for sales channels, they are trying to find another way to obtain upstream resources in the home appliance industry.
How should we deal with this company in the future, which not only controls the core sales channels of the home appliance industry, but also the core components of LCD TVs?
It is only natural for them to invest, do OEM, and even become part of Qingyun's ecological chain...
What both groups did not expect was that although the Shanghai government was very interested in the suddenly emerging 8.5-generation production line, it was even more interested in a big player who was omitted.
Pengcheng!
In this semiconductor LCD industry chain transfer process, the big player did not gain any benefit!
Just as BOE and Qingyun Group were openly negotiating with Shanghai, Jiangsu Province, and even Jiangcheng and Xingcheng on the establishment of new production lines.
The people from Pengcheng came over following the scent.
"…Prefect Wang personally inquired about it and even asked his old friends in Jiangsu Province to say hello, saying that Gusu had Samsung's 7.5, Jinling had LG's new production line, and even Yangcheng had a Sharp production line.
Only Pengcheng has nothing, and now they want BOE to move its new production line to Pengcheng, and the conditions they offer are better than those of all other cities currently?"
Li Zehua, who was organizing a smartphone launch conference in Shanghai, was stunned, but he reacted immediately and "arranged a negotiation team to come to the door immediately to clarify all the situations.
No, I will go myself!"
It's like pie in the sky!
Not to mention the repeated discussions with BOE, I was impressed by Pengcheng's locational advantages and investment environment, which will facilitate the direct export of finished and semi-finished products in the future.
For Qingyun Group, Pengcheng has BYD Electronics and Dongguan has Zhaoxu Electronics, which are the largest electronic product production and assembly bases in the entire Qingyun system.
As we all know, the closer to the raw material production site, the lower the product production cost. For smartphones, batteries and screens are the biggest transportation items.
Not to mention the locational advantage of Pengcheng, it takes less than two hours to load the goods and reach the bonded area for shipment to the ship at any time.
How much cost will this save in the future?
But for Li Zehua, these are not the most important things.
He has been looking for an opportunity to reach cooperation with Pengcheng!
It would be best if there is a deep binding of interests that cannot be easily severed. That is the future of WeChat, which to a certain extent depends on Pengcheng’s attitude!
If WeChat wants to stand out in China, there has been internal discussion within the company as to whether its headquarters should be located in Shanghai or Shenzhen.
The reason for placing it in Pengcheng is very simple. By taking away half of Tenda (QQ is almost impossible to beat on the PC side) and compensating it with a new WeChat, Pengcheng will not lose out.
But the reverse effect is also very obvious, that is, the government of Magic City will definitely be furious, and a bunch of junk will be left in Magic City.
Take the best and most profitable instant messaging software company to Pengcheng?
Can this be tolerated?
Therefore, Li Zehua is also actively looking for a solution to have the best of both worlds. The original idea was that Qingyun Investment’s headquarters in China would be in Shanghai, specializing in investing in the primary market while also investing in the domestic secondary market.
The establishment of a new financial company in Pengcheng mainly focuses on insider investment related to the company. Whichever listed company the Qingyun Group cooperates with can more or less drive up the other party's stock price.
In addition to the listed companies developed through the Qingyun system, once the original investment is listed, the tax contribution from future investment income will not be a small amount.
Coupled with Li Zehua’s own forward-looking investment returns in future liquor, real estate, new energy, minerals, etc., there are always countless opportunities to make money, both at home and abroad.
The only unfortunate thing is the timing. The profits from these transactions were generated too far away from the launch of WeChat, and may not be promptly understood by Pengcheng.
Now, Pengcheng has come to the door and actively invited Qingyun Group to invest. Isn’t the opportunity for cooperation here?
It involves an investment of 20 to 30 billion yuan, which will drive the development of an industrial chain of 50 to 60 billion yuan in the short term and over 100 billion yuan in the long term. Coupled with the financial group, Dajiang Technology has a promising future.
We can at least make up for Pengcheng’s losses, right?
In the future, if Qingyun and Tengda fight over the instant messaging industry, which involves hundreds of billions of output value in the industrial chain, the Pengcheng government will just have to not help either side.
Li Zehua is not under much pressure now that he can free up his hands to deal with the Chaozhou porridge behind Tengda. After all, Hong Kong is also a key part of his plan.
If we can cooperate with Southeast Asian capital while attacking Tengda, we can eliminate a large number of compradors who cheer for British and American capital.
That is truly a great thing that will benefit the present and future generations!
"Director Wang, Pengcheng has come to us with several potential partners. Do you have any specific instructions?"
Wang Dongsheng laughed on the phone, "It was quite sudden, and there was no preparation, but it might be that Sharp is used to playing tricks on people, and the talks with Yangcheng broke down, which irritated Pengcheng.
I heard that several Taiwanese companies are trying to contact Shenzhen and Shanghai, preparing to invest in the construction of 6-8 generation lines. "
"No wonder, I was wondering why you suddenly showed up. I have no objection. Please ask BOE to send someone to negotiate. I happened to be in Pengcheng for some other things, so I'll stop by to take a look."
Li Zehua didn't pay any attention to it. In fact, this was the butterfly effect he had caused.
Historically, BOE had no money and was even so poor that it had to exchange 10 billion tons of coal for production lines from a certain resource-rich city.
Now, the $3.5 million he promised has been transferred, and a new 6.5-generation production line is under negotiation.
The underwriting agreement signed with Honor Electronics for the next three years has made the capital market boil, and even BOE's stock price has skyrocketed.
Some sources also leaked that BOE's management is in contact with a well-known investment company and is expected to reach a cooperation within six months and obtain a strategic investment of over US$10 billion.
Now, it’s hard for the stock price not to hit the daily limit!
Naturally, a certain overseas investment company was involved, which made arrangements in advance to reap a wave of cheap chips at the bottom.
Don’t ask who it is. It’s definitely the stock god Buffett. He’s an old insider. Li Zehua is just following suit.
The butterfly flapped its wings, and in the process lured Pengcheng, which had missed this opportunity in history.
So new production lines are being built everywhere, but Pengcheng is the only city that doesn't get a share of the pie?
How can this be tolerated? Doesn’t the economic leader have any dignity?
It's all about money. Pengcheng has plenty of money. What it lacks is high-end projects. BOE, please come to the table! (End of this chapter)