"Give priority to the Samsung production line, and we'll be the backup?"
Li Zehua felt indescribably sad. It was hard for him to imagine that a 7.5-generation line had not yet shown sincerity to prove that it would be put into production.
The 6.5-generation flexible screen production line, which was about to go into production as soon as the local authorities gave their approval, was actually squeezed out when specific cooperation matters were discussed.
Ultimately, it is because the financial budget of Suzhou government is insufficient. Samsung has pledged to invest a total of US$7.5 billion in the 22.8-generation line, of which US$15.3 billion will be jointly borne by the financial market and Suzhou local government.
The remaining $7.5 million is actually funded by Samsung, but only $800 million has been received so far. Perhaps this money will eventually be borne by Suzhou’s finances.
In that year, Suzhou's GDP was 7400 billion yuan, and its fiscal revenue was 745 billion yuan. Although the revenue was high, the expenditure was even higher. The Samsung project alone accounted for one-tenth of the annual expenditure.
If another BOE-Qingyun 6.5-generation production line is built and one-tenth of the capital is invested, then the Suzhou government will have to stop doing other work, and at least one-third of the general public financial budget projects will have to be suspended.
Therefore, the local government hopes that BOE and Qingyun Group can understand the practical difficulties and consider putting this production line into production at the end of this year or in 11.
If the project must be launched ahead of schedule, local governments can only contact banks to provide commercial loans and offer certain subsidies on the interest rate, but they can do nothing else to help.
Because of the sudden rise of the Qingyun Group, history was changed, and life-saving funds were provided to BOE, which in turn created an 8.5-generation line in Pengcheng and a 6.5-generation flexible smart screen planned to be invested in Jiangsu Province.
This has disrupted the plans of foreign manufacturers. Samsung has joined forces with Korean, Japanese and Taiwanese manufacturers to put pressure on the mainland in an attempt to delay its layout in the semiconductor industry.
As King Pengcheng has made the final decision on the 8.5-generation production line, no one can change it. However, the 6.5-generation production line, especially the smartphone screen production line, must be nipped in the bud by all means.
The lobbied Korean upper echelons did not explicitly ban exports. In order to cooperate with Samsung's suppression plan, the relevant domestic departments took it seriously, held meetings and discussions with great fanfare, and frequently briefed the outside world.
Actively contacting commercial banks to provide loan support and revealing concern and optimism about the progress of cooperation from time to time, this series of actions is seen by outsiders as a harbinger of cooperation.
The reason why Samsung and LG have mobilized so many connections and resources is that they are sure that there are not many places in China that have the capacity to accept BOE's production line, and Yanjing and Chengdu no longer have the spare capacity.
Other cities may not have the courage to go all out like Feicheng. As for the remaining cities, Pengcheng has just acquired the 8.5-generation line, and Jinshi is in the process of transformation. Huanghai has never been interested in such a large investment.
Chang'an is very interested, but it has no money, and it is impossible to look to the north.
Jinling, the strongest city in Jiangsu Province, and Suzhou are completely held back by the more advanced production lines of LG and Samsung from South Korea, and have no spare energy to negotiate another one.
Only Yangcheng, Shanghai and Qiantang have the strength to continue competing. However, Yangcheng has just been stood up by Sharp and is holding a meeting to reflect on the situation. It may not be a good thing for them to join in at this time.
As for Qiantang, the Qingyun faction may not be willing to go there.
Only Shanghai may still have some hope. In fact, Shanghai has been in contact, but the boss is not very interested in this kind of production line that will subsidize profits for ten years.
The conditions offered were not satisfactory, but they were generous. As long as the Qingyun Group agreed, they could contact Motou and Pufa would provide more than 50% of the financing and commercial loans for the project. The problem was that the interest rate was high.
Compared with the full interest subsidy and five exemptions and five reductions (corporate income tax is exempted in the first five years and halved in the next five years) offered by Pengcheng, the three exemptions and three reductions in Shanghai seem like a joke.
In fact, Suzhou is very interested in BOE's production line, but it is tempted by Samsung and is neither here nor there. It wants to have it but does not have the strength to do so.
They actually still have a flexible fund in their hands, but they have to ensure that the project can continue to move forward in case Samsung is unable to come up with the money for a while...
“In fact, Qingyun invested US$3.5 million, and BOE is expected to get about 80 billion through equity issuance and mortgage. The total planned investment for this production line is estimated to be 210 billion yuan.
We have already secured half of the funding. We can borrow some more from the bank and get some subsidies from the local government. In the future, we can produce tens of millions of mobile phone screens per year, and we can recover all the investment in a few years.”
Seeing that there was no way to reach a conclusion in the negotiations, he could not stay in Gusu any longer, so he ran to Wuxi overnight to find BYD Chairman Dong Chaogui to have a drink and complain.
"Why are people pretending to be ignorant of something that anyone with a clear eye can see? I bet that as soon as the dust settles on this production line of BOE, Samsung and LG will immediately go home.
We will never mention investing in and building factories in the mainland again.”
"Alas, it's not easy for everyone to do anything, and each place has its own difficulties. Who dares to take responsibility at this critical juncture?"
"You've been successful enough. When we first met, you had to find ways to get a payment for 500 million yuan. Now you can easily manage projects worth tens of billions of yuan. You've become a big shot that we all look up to."
Luo Yuanming, who was accompanying him, said with emotion, "This matter is difficult at the same time as it is simple.
In fact, it is a question of division of responsibilities. If the deal is successful, everyone will be happy. If it fails in the end, there is no need to take responsibility. The only thing is to ignore the foreign investment and choose BOE in case Samsung really builds a factory in the mainland in the future.
I can't explain everything, so don't take it personally. If things really don't work out, you can still consider our Wu Xi."
"Are you here to be a lobbyist?"
Li Zehua picked up the wine glass and looked at him in astonishment. "Okay, as long as Wu Xi's government can solve the remaining 105 billion, plus the five exemptions and five halving policies, I will invest immediately."
Dong Chaogui thought for a while and said: "105 billion is actually a small matter. Although Wu Xi is not as rich as Gu Su, he can think of a way to get the money by scraping together money from here and there, even if he has to sell everything he has.
The only thing that cannot be done is the five exemptions and five reductions and the supporting preferential policies. You also know the attitude of the province, which basically gives priority to the development of both ends. It is difficult for Wu Xi to successfully win such a large project. "
It’s not that Jinling and Gusu don’t want the project, they just can’t spare the time for now. How could they sit back and watch the project go to other companies?
Wu Xi Yamen wanted to join the battle for the project, but he was under pressure from both sides and it was difficult for him to make up his mind.
"Forget it, let's not talk about these troubles.
Electric two-wheelers are selling like hot cakes recently, and the factory is still running in three shifts and still can’t meet the demand. I would like to congratulate the three bosses on their prosperity.”
As he spoke, Li Zehua raised his glass to congratulate. Hearing this, Ning Tao, who had been silent, raised his glass with both hands and said, "Thank you, President Dong, for your kindness and thank you, President Li, for your support. It is all thanks to you two for your support.
I have no way to express my gratitude to you... It's all in this glass of wine. Please wait and see how I perform in the future."
Having said that, he drank it all in one gulp, not leaving a drop.
However, he drank too quickly and couldn't stop, which caused him to cough violently, and a lot of wine spilled on the table.
Wang Fei was quite observant and took out a tissue to wipe it. Ning Tao blushed and apologized repeatedly.
Luo Yuanming handed over a tissue and said with a smile: "You are not a young man in your early twenties anymore. Your health is important. Look at how hard you cough. This is 50-proof liquor, not mineral water.
Oh, it looks expensive to you, so you want to take the opportunity to have a few more drinks, right?
Also, do you have any opinion about me?
Or maybe you have climbed up the ladder and forgot who brought you into the industry. Why did you only thank the two big bosses but forget me?"
It seems like a complaint, but it is actually an excuse.
Li Zehua laughed and scolded: "We are all family, so stop acting here."
Turning to Dong Chaogui who was watching the fun with a smile on his face, he suggested, "I heard that the company is holding an annual meeting next week. How about inviting these two to perform a duet on stage?"
"Row."
Dong Chaogui agreed readily, but then turned around and said, "But you're not coming. I can't record it and show it to you later, right?"
"I'm too busy. It's not that I'm partial to one and neglect the other. The entire group won't have an annual meeting this year, and I won't participate in any celebrations anywhere."
After Li Zehua patiently explained, he changed the subject and said, "The production lines in Jinshi and Wuxi are still not able to meet the market demand even if they are fully utilized. When will the production capacity in Yongcheng, Zhejiang Province be put into use?"
Facing the major shareholder who was on par with himself in the group and also the head of the largest single sales channel, Dong Chaogui told him everything in detail.
"The production line in Yongcheng was originally prepared for export, but is now temporarily used to support domestic production capacity. However, trial production will not start until next month, and the production design indicators will not be met until May..."
Dong Chaogui was still worried about domestic sales half a year ago. At that time, BYD planned to sell no more than one million vehicles for the whole year. However, when the Qingyun Group broke in with an unreasonable sweeping attitude.
The entire BYD company was shocked to discover that it was not that there was no market in China, but that their original sales channels were unable to cover the real demand market.
When Pinduoduo launched its vigorous battery replacement program in towns and villages across the country with 3300 experience stores and nearly people today, countless new orders came in like snowflakes and flooded the entire BYD.
The question now is not how many products they can sell, but how long it will take them to produce the completed orders!
It is no exaggeration to say that based on the current production capacity, even if no orders are received in the next six months, even if BYD is exhausted from top to bottom, it will still be unable to meet all sales orders.
The shocking 350 million pre-sale orders were a task that BYD could not complete in two years. Now, the deposits alone are so much that they are overwhelmed. Products that have not yet come off the production line have already been pre-ordered by consumers. Dealers from all over the country who cannot get the goods are anxious and block the factory gate with banknotes in their hands, begging for a share of the goods.
BYD is happy. The Wuxi headquarters factory is expanding its capacity at full speed, the Jinshi production line is running at full capacity 24 hours a day, and the Yongcheng factory in Zhejiang Province is working overtime day and night.
The planned Xingcheng factory with an annual production capacity of 240 to 360 million vehicles (including the Phase II plan) will be completed in one go, directly increasing the annual production capacity to 360 million vehicles.
In Yangcheng, which is still under negotiation, the construction of the Zhengxin factory of International is also accelerating as planned. In Dongguan, a factory with an annual output of 400 million fuel motorcycles is leveling the land in preparation for construction.
(Indicator oil trucks available for export)
The envisioned Feicheng and Chengdu factories are also in the company's plan, and will be decided based on the circumstances after the existing production capacity is consolidated.
However, Li Zehua came this time with more orders. "I remember that we rented production lines from two factories, doing temporary work, right?"
"Yes, as our sales increase, our competitors will have to take a bite out of our business. Two of our competitors couldn't survive in the second half of the year, and are now planning to discuss with you whether to acquire or lease our products."
Dong Chaogui was in high spirits when the good news came, and he finally found the passion he had when he started his business. "After a little debugging of the production lines of the two factories, they can produce about 7 vehicles per month at full capacity.
The only problem is that the production line is too outdated and there is basically no possibility of upgrading. After investigation, the expert group believes that it will be eliminated by the market within three to five years. "
"I have no problem with renting or buying, the main thing is to keep up with the production capacity."
Li Zehua put down his chopsticks and finally got to the point. "Give me a definite answer. In two years, how many vehicles can BYD produce?"
Dong Chaogui looked at Luo Yuanming, who thought for a moment and said, "By the end of 2012, if the six factories were fully operational, not including mergers and acquisitions and new factories, the monthly production would be around 80 vehicles."
"Not enough, even double is not enough!"
Li Zehua shook his head. "Let me make it clear here. By the second half of next year at the latest, I will take over all of this production capacity. Not only that, I also require Yadi to cooperate in acquiring a bicycle factory."
Dong Chaogui was stunned. "800,000 cars, you want them all?"
Luo Yuanming was stunned, and Ning Tao didn't even hold the chopsticks.
“It is difficult to say exactly what the situation is, but as the group’s smartphone shipments catch up and 1,000-yuan phones become more popular, by the end of next year.
A brand new potential market will be formed. The business model has been verified by the group. It will be promoted simultaneously at home and abroad. It is conservatively estimated that tens of millions of two-wheeled vehicles will be consumed within two years.
Among them, the demand gap for pure human-powered bicycles and electric-driven bicycles is tens of millions of units. With the continuous advancement of the battery replacement plan, the demand in the township market segment continues to increase.
Eight hundred thousand? This number must be at least tripled to meet the minimum requirement!"
In this regard, Li Zehua really underestimated the situation, because there were no legal and regulatory restrictions in the early days, and many pedal-only bicycles could also use pure electric drive.
Unlike the traditional electric two-wheeled vehicles, electric bicycles are powered by a simple battery at the pedals, and the selling price is mostly less than 1,000 yuan.
But for BYD, even if it opens up production, it can still achieve a net profit of more than 20% (actually higher).
Combined with the country’s special subsidies for new energy and the huge market demand in Southeast Asia, the tens of millions is really estimated based on the minimum demand.
The most crucial thing is that domestic 3.5g communications have matured, and 4g is nothing more than a battle for standard technology. He is very happy to use the shipment volume of Roewe mobile phones to speed up the technological progress of related industries in the country.
Didn’t the three major telecom operators say that there are not enough smartphone and mobile data users, resulting in the costs not being spread out?
Then he used practical actions to prove that the user scale can actually be influenced by human factors!
Dong Chaogui felt like he was going crazy, "No, are you serious?"
The terrifying demand for the sharing economy cannot be measured by normal market supply and demand. In this life, Li Zehua wants to establish a terrifying market entry threshold.
Keep all competitors out!
Do it all at once and advance simultaneously, using the lowest cost in the industry to create the largest market demand, low-priced means of transportation, and a stable user base.
It is a one-time fee, and members do not need to pay a deposit for a monthly subscription. They can borrow and return the cards anytime and anywhere. He is even planning to launch an annual usage package, and the cards can be accumulated for the next year if they are not used that year.
Of course, the cost of a single use is more expensive than that of a membership. In short, everything is based on the user scale, and other factors are not taken into consideration.
In parallel with this, there is also a plan to share power banks.
He has never been so goal-oriented. He used 10 and 11 to train a full-time team of up to one million people, and a part-time team of at least three million.
At the first opportunity, the campaign was launched simultaneously in major cities across the country, with hundreds of millions of shared power banks and millions of shared vehicles put into use.
Even if he loses 10 billion or 20 billion every year, he will keep doing it!
Until no one in the market dares to compete with him!
If others want to get involved in the sharing economy, they will see Qingyun products everywhere and Qingyun employees everywhere in the streets and alleys.
When I went back and did the math, I realized that I couldn't gain a competitive advantage even if I lost all my money, and I couldn't break the monopoly no matter what.
Picture what?
He never thought about making money in these two industries, what he wanted was the user scale!
With the QR code in hand and the patent in hand after scanning, the company that produces power banks and shared cars belongs to him. The raw materials are mined from his own mines, and the entire industrial chain is laid out.
and then?
Users who want to use these convenient and discounted products must buy a smartphone that can scan codes, use exclusive micro-payments, and use WeChat to enjoy discounts!
The resulting sales volume of Honor Panda Roewe series smartphones, WeChat users, micropayment market share, net profit from product production itself, and valuation growth far exceed the investment itself!
What's more, these are tens of millions of the best customers who are active all the time. If they develop the habit of using WeChat and micropayments, what a huge internal market it will bring!
"Have I ever failed to keep my word?"
Thinking of this, Li Zehua waved his hand and said, "It would be best if we can negotiate the deal between Yangcheng and Zhengzhou International within one or two months.
The factories in Feicheng and Chengdu will immediately send working groups to negotiate with us. In addition, we are considering building factories in Quancheng or Huanghai in Shandong Province, Lushun in Liaoning Province, Chang'an in Shaanxi Province, and Quanzhou in Fujian Province.
吴锡本地总部工厂扩容到月产35-40万辆左右规模,到2012年中,争取形成全国12大生产基地,月产300-350万辆的规模。
At the same time, you and I will invest jointly, you get 3% and I get 7%. You will be fully responsible for production management. We will acquire one to several bicycle factories and leave enough space around the electric bicycle factory for expansion.
Within two years, I want to see products worth tens of millions appear in any designated market across the country.
Boss, I'm not kidding you!
For this plan, I am willing to invest an additional US$10 billion within six months on top of the existing funds, and mobilize all my relationships to make advance arrangements.
Qingyun’s power technology company will increase its production capacity more than tenfold in the next two years!
BYD can seize this golden opportunity to expand its production capacity by more than 20 times, complete all industrial layouts, and even dominate the national electric two-wheeled vehicle market!
By then, you will be the supreme king of this market!"
Dong Chaogui felt his scalp tingling. He opened his mouth but couldn't utter a word.
Not to mention others.
You should know that the industry leader in the same period in history only sold 200 million products.
Now, Li Zehua's blueprint for them is to sell 300 to 350 million vehicles per month. Judging from the current market capacity, it is more than enough to take over the national existing market.
Dong Chaogui swore that as long as this plan was implemented and sold successfully, the BYD brand would become the only one in the market!
Be the only one, not the first!
What does it mean that a company produces twice as much as its peers across the country?
Electric two-wheelers have no technical content at all, and they rely entirely on large-scale production to lower costs. The cost difference between producing 350 million and 10 vehicles a month is at least more than 200.
In today's fierce homogeneous competition, 20 yuan can decide life or death, let alone 200, add in brand awareness and consumer acceptance, what's the point!
Poor competitors, especially one of them spent tens of millions to hire Jay Chou as their spokesperson. This is like a sudden blow to their competitors.
It was as if two people were competing with each other with stones and wood.
Suddenly, one of them laughed wildly, drove a space battleship over, and with a bang, fired a star destroyer cannon, blasting both the people and the planet into pieces.
"My friend, times have changed!" (End of this chapter)