"Three million vehicles in five years means an annual production capacity of 600,000 vehicles. If the technological research and development goes smoothly, it is not impossible to do it without the influence of Buffett."

Wang Chuanfu was a little bit unconvinced, “The problem is that apart from the slow-growing household car market, it is difficult to achieve this goal with only the online car-hailing market.

The development of technology requires constant trial and error, and the amount of funds required is astronomical. With his extraordinary influence, BYD can get continuous support from overseas capital markets."

"With my presence, it won't be that important anymore. Plus, with some special skills, it will be enough to solve all the troubles we are facing now."

Li Zehua was very confident. He stretched out his fingers and gestured one by one, "Modu, Pengcheng, Yanjing, and other large cities that you and I can influence, start lobbying one by one.

Restrict the issuance of license plates for traditional fuel vehicles, massively increase the number of license plates for new energy vehicles, and use administrative power to force promotion.

Assisted by the purchase of online ride-hailing vehicles and the guidance of social vehicle renewal, the market share of traditional gasoline vehicles is gradually eroded.

We may not be able to make a big splash this year, but we can prepare in advance to expand production capacity and lay a solid foundation for the upcoming market explosion. In this process, we can use the expansion of the new energy industry chain as a bargaining chip.

Attract more cities and stakeholders to join the support queue.

To realize this plan, Qingyun's industries are actively expanding, and BYD should also take action. If it limits itself to Guangdong Province and does not move north, won't it be giving up the market in vain in the future?

As for R&D funding, just name a number and I will try my best to find a way to get it.”

"How can I say this? Nothing is easy in technology. Many times, a small problem that seems easy to solve may not be completely solved even if billions of dollars are invested.

According to your idea, perhaps 10 billion yuan can solve the problem, but in fact, what is needed is 100 billion yuan or even more. Even after years of investment, you may not see stable returns.

Even if you agree, the investors behind you will lose patience sooner or later."

Wang Chuanfu smiled bitterly, "Besides, pure electric and hybrid vehicles are not yet mature in terms of technology, and the foundation for large-scale promotion is not enough.

Taking hybrid cars using DM technology as an example, the electric range of more than 100 kilometers is simply unable to meet the operating needs of taxis.

After all, the fuel consumption is not much lower than that of traditional fuel vehicles. It is not economical and cannot gain consumer support and understanding.

Secondly, with the rational use of administrative resources, BYD has an inherent advantage in expanding its production capacity locally with the support of the Pengcheng government. Even if risks arise, it can eliminate hidden dangers through internal coordination.

Investing in the north is too risky. The automobile industry requires huge investments, has a long period of time to recover costs, and has too many uncontrollable factors.

In the absence of clear profit expectations, expanding production capacity is tantamount to chronic suicide and is too risky. "

Li Zehua remained unmoved and stared into his eyes. "If, I say if, I am willing to personally back up the entire plan."

Wang Chuanfu was stunned. "Are you kidding?"

"Have you ever seen anyone throw real money away?"

He laid his cards on the table, "Just as you said, I can sign and pledge a 10 billion yuan technology investment every year. It doesn't matter if there is no profit in the early stage, as long as the company develops according to the established route.

I can wait, wait patiently, be it five years, or ten years, until the day when it bears fruit.

I am not greedy. As long as you manage BYD, I can entrust my shares to you, as long as I retain the audit and financial supervision rights, as well as the veto power when there is a conflict of interest. "

"Let's put the issue of shares aside for now, but doesn't this deviate from your original intention of using more benefits to win over the support of the local government?"

If other people said this, Wang Chuanfu would just treat it as a joke, but since it was spoken by the leader of a business group that holds the future market and has a whole set of expected industry development plans, he had to be cautious.

Li Zehua gave a solution without hesitation: "With the nationalization of the industrial chain, Qingyun can allocate funds for strategic investment in key component companies.

After binding these enterprises, we will integrate resources and move in collectively, impress the local area with scale, tax revenue and employment, and pave the way for the entire new energy plan.

Mr. Wang should not forget that Qingyun Electronics and BYD Electronics also have huge common interests in the field of foundry industry.

A foundry in a coastal area, creating billions of dollars in output value and employing tens of thousands of people may not be a big deal, but what about if it is located in an economically underdeveloped inland area? "

Wang Chuanfu was finally moved. “This is the importance of the industrial production chain! Through the scale of related enterprises, we can force local governments to compromise and protect the main business.

But why do I think all the businesses under your name are similar?

You don’t know that before you came, the group argued about this matter for two or three days, and still couldn’t figure out what industry Qingyun Group is based on.

If the winner is determined by the scale of revenue, then Pinxixi e-commerce is definitely the core business. However, looking at the rapid increase in the business volume of Fengniao Group every day, there is a trend of catching up.

But from the perspective of future development, Qingyun Electronics' potential is even greater. The smartphone market is growing at a rate of hundreds of millions per year, and the Roewe series has not yet been launched on the market.

This caused countless competitors to jump up and down and curse, and various lawsuits were filed because of this. However, the more intense their reactions were, the more it showed that Qingyun was on the right track.

Having spanned so many major industries, do you still have the energy to get involved in the automobile manufacturing industry?"

Li Zehua thought to himself, you don’t know yet about Qingyun’s instant messaging software (public opinion), Internet finance, agriculture, and mining strategies.

If everything is exposed, the whole world will go crazy.

It’s not that cross-industry diversified operations are not good. In fact, major companies around the world are doing this because the growth of their core businesses is limited, and they need to paint a rosy picture for investors and stimulate the capital market.

If you take more money from the market, there will be less left for your competitors. Everyone understands this principle, so big companies will not leave opportunities for others whenever possible.

However, it is rare in the world to achieve the level of diversified development that Qingyun Group has achieved.

It is the undisputed number one in the express delivery industry, there is not a single competitor in the food delivery industry, and it is the number one in online shopping in remote rural areas.

In addition, there is an agricultural company with extremely competitive advantages, the number one in urban group purchasing business, and an Internet financial payment company that occupies the top three in the market.

In the logistics industry, it has attracted the rapid development of the Tongda Group and is competing with SF Express for the first place in the same-city delivery field.

It is a well-deserved giant in the electric two-wheeled vehicle industry, with pre-sale orders this year alone exceeding the total of the second to tenth places in the industry.

As a smartphone developed as a hobby to support the group's business development, Panda's performance can only be described as disappointing. Its shipment volume of less than 25 units in half a year did not create any waves.

Most of the production capacity is consumed by college students and business people, which is mainly due to the world-leading mainstream configuration and outstanding appearance materials.

College students pursue the ultimate simple beauty, while business people are attracted by the app software ecosystem it carries, especially the freight industry and Qingyun-related companies, who are obsessed with this phone.

The problem is that the market for phones priced above 4000 yuan has not been developed. Even traditional kings like Nokia and Motorola have begun to decline. The market seems to be in a period of transition and wait-and-see.

But in the 2500-3500 price range, Honor is creating a new storm, breaking into the top ten domestic single-model sales rankings in one fell swoop, and is currently taking advantage of subsidies for home appliances going to the countryside.

It has been constantly eroding the market share of its competitors, making a number of veteran mobile phone manufacturers suffer.

Just as Qingyun Electronics promotes, Honor phones are not just tools for communication and entertainment, but also means of production for creating wealth.

No one can resist a smartphone that can bring them extra income. It is equipped with WeChat for Business and various professional apps, which greatly facilitates business office, daily food, clothing, housing and transportation and other needs.

With the increase in the number of Chichimo catering users, the number of Fengniao individual logistics drivers, the number of Qingyun internal employees, and the number of employees of affiliated companies, the demand for internal electronic products is also increasing.

The overall sales volume driven by this has made competitors in the electronics industry envious.

Wang Chuanfu knew this very well, because BYD Electronics was Qingyun Electronics' largest OEM manufacturer, and Li Zehua's incidental purpose of coming this time was to take BYD Electronics into his possession.

Wang Chuanfu did not refuse, but the two sides continued to discuss the possibility of cooperation around the topic.

“First of all, I want to make it clear that Qingyun Power Technology is also developing new energy batteries, and it is taking a completely different path from BYD Electronics.

Even after acquiring shares and holding shares in your company, Qingyun Power Technology will continue to follow the ternary lithium battery technology route. If BYD needs it in the future, the two companies can license each other free of charge. "

Li Zehua decided not to hide it anymore, because the basis for cooperation between the two sides is here. If they work together, both sides will benefit, but if they separate, both sides will lose. "Mr. Zeng from Ningde's new energy power technology research and development department will come to Pengcheng in the evening.

He has made a lot of research achievements in this area. I will host a meeting and invite Mr. Wang and Mr. Zeng to sit down and have a chat to discuss new ideas in their respective R&D fields. Just treat it as making friends."

Wang Chuanfu could not help but frown, "Mr. Li, you can't chew too much. BYD's DM technology alone involves parallel connection and range extension, which requires huge capital investment.

10 billion per year is really just a preliminary budget. No one knows how much money it will take to produce actual results.

If you support another company to pursue independent research and development, to put it bluntly, will the investors behind you really agree? "It is common in the industry to bring up competitors to lower prices. Wang Chuanfu is not angry about this, but judging from his expression, is he really planning to pursue two paths at the same time?

Seeing his confident appearance, I felt a sense of absurdity. Did he have some misunderstanding about the automotive industry?
This is an industry that requires investments of more than ten years and costs hundreds of billions of dollars, but may not necessarily yield a reasonable return. Does he think he can achieve success as easily as making two-wheeled electric bicycles?

“When did I say I would use investors’ money?”

Li Zehua was stunned, "From the beginning to the end, wasn't it Qingyun Holdings that came forward to negotiate with your company?
Mr. Wang may not understand that this company is a wholly-owned holding company under my name, and every penny is earned by me. "

"Mr. Li, are you kidding?"

Wang Chuanfu stood up, paced back and forth, and finally sighed, "This involves the strategic cooperation between the two groups. You said you would use your personal earnings to subsidize the market?

If this is the case, I can only express my regret for the future of this cooperation. Let’s be pragmatic and talk about the cooperation with the electronics foundry first.”

I thought that they were just young people and didn’t know how high the world was!
It is also possible that he knew nothing about the automotive industry and simply transferred the success of two wheels to four wheels.

"Don't worry, Mr. Wang. This is proof of my insignificant assets. If you still don't believe it after reading it, just pretend that I didn't come here at all."

Li Zehua casually handed him a document.

Out of basic business etiquette, Wang Chuanfu motioned to the financial director beside him to take it. The latter simply took a quick look and exclaimed, "So exaggerated? Is it fake?"

Then, he immediately reacted, “I’m sorry, I lost my composure.”

Then he handed it to Wang Chuanfu and said, "Mr. Li, do you mind if I verify it a little bit?"

"Please."

After getting permission, the CFO immediately arranged for someone to call and verify the authenticity.

It's not his fault that he lost his composure. The data provided by the other party was really too outrageous. Even Wang Chuanfu felt dizzy after seeing it.

"US$45 billion in cash and equivalents available at any time? More than 170 tons of physical gold in the three major banks in Lijiapo?"

Facing doubts, Li Zehua calmly explained: "The $45 billion in assets are real, most of which are temporarily used to stockpile certain raw materials and need to be converted into cash before the end of the year.

However, if Mr. Wang is in urgent need of capital investment, I can immediately contact Lijiaopo Bank for a second mortgage, plus some of the US dollar assets that I can use.

It won’t be a problem to raise a few billion dollars.”

Theoretically, the gold deposited in several banks in Lijiaopo does not belong to him yet, but through the recent continuous long to short positions in the futures market, the cost of this batch of gold has been raised to US$700 per ounce.

It is far lower than the current market price of $1100, and large-scale idle long positions are being built. In less than two months, the gold futures price will skyrocket.

By then, let alone a second mortgage, all he needs to do is open his mouth and banks all over the world will be willing to come to him and offer the most favorable conditions, begging him for loans.

The waiting process was not idle either.

BYD Electronics' expansion is inevitable, but the two companies have major differences when it comes to equity financing.

BYD Electronics is only willing to sell 25% of its shares in this round, of which 17% will be sold in cash and 8% will be made up by order resources from Qingyun Group.

The condition offered by Qingyun is 30%, of which 12% is in cash and 18% is in the form of resources.

"Isn't that too cruel?"

Wang Chuanfu was so annoyed by him that he said, "Unless Chaoxu Electronics and BYD Electronics merge and Huaixu Electronics' OEM share is eliminated, we will recognize the value of resource exchange."

He also advised him, "After all, BYD Electronics is one of the top ten electronic OEMs in China. You are asking for 30% without paying. The board of directors will not approve this."

“How big is the gap between the top ten?”

Li Zehua refused to give in. "The first place, Hon Hai, and the second place, Flextronics, together account for more than half of the top ten. BYD Electronics' annual revenue is not even a fraction of theirs."

A BYD executive immediately retorted, "That's still much better than Chaoxu Electronics."

Then it was defeated in the face of real data, because no matter what, Qingyun Electronics' outsourcing orders have become BYD Electronics' largest source of income.

If we include the orders for Roewe electronics that will be launched in the second half of the year, it will easily exceed half.

This is the charm of the smartphone market, and the related industry chain supporting products, such as headphones, chargers, Bluetooth devices, wireless network cards, etc., and even a router order needs to be added.

When you add up all these, each order is worth hundreds of millions, not to mention the phone assembly itself, which easily involves contracts worth millions of units and billions.

Refuse.

Impossible. For BYD Electronics, this is a negative statement rather than a question.

With the tailwind from Qingyun Group, the benefits brought to BYD Electronics' development are needless to say and can be seen by every normal person.

But giving 18% to resource stocks is a bit too much.

"What I can guarantee is that we will increase the order volume by 50% every year and give BYD Electronics OEM orders for no less than 2013 million mobile phones in 1500.

At the same time, it helped BYD Electronics to go abroad and build an assembly plant in Southeast Asia with an annual output of 800 million to million units.

Mr. Wang should understand what this means, and what beneficial changes BYD Electronics will bring to the new energy vehicle sales market as it expands its influence abroad.”

Wang Chuanfu was finally tempted. “These must be written into the contract. Besides that, Qingyun Group cannot arbitrarily interfere with the development direction of BYD Electronics.

And I think 18% is too high, how about 15/, % each?"

BYD Electronics was originally established to provide supporting services for new energy vehicle electronic equipment. Historically, it developed by providing OEM services for Huaban.

Now with Qingyun Electronics' early intervention, BYD Electronics is taking off ahead of schedule.

Compared with the expected benefits in the future, Wang Chuanfu doesn’t care about a mere portion of shares, because win-win cooperation is the goal.

After confirming the authenticity of the personal asset certificate, he couldn't wait to speak, "Mr. Li's ability to make money is really enviable. The production line of Pengcheng BOE is still selecting a site.

A new wafer factory has been built in Yangcheng, and now the two major development directions of new energy batteries are supported, with hundreds of billions of dollars invested every year, which is really generous.

But I have one last question. As the saying goes, "A righteous cause has many supporters, while an unrighteous cause has few." If BYD's new energy strategy is to succeed, it needs help from many parties. It may be difficult for Qingyun alone to achieve this."

When it comes to an entire large industry, those who take more than they earn are bound to have no friends. Those investors who are excluded from the harvest of success will try every means to hinder it.

He was worried that conflicts would arise in the future over the distribution of interests, because no matter how you looked at it, Qingyun was planning to dominate the industry.

Otherwise, what's the meaning of him investing in the development direction of ternary lithium?
Do you think the money is too much?
“I can answer Mr. Wang’s question now.

First, Qingyun Holdings does not exclude other capable players from entering the market as long as they can provide necessary assistance for the new energy strategy.

Second, as long as the tens of billions of funds are invested every year in project research and development that you and I both agree on, I am willing to pay for it regardless of whether scientific research results are achieved.

Third, no matter how many shares Qingyun finally holds, as long as Mr. Wang does not deviate from the original development intention, the management rights of BYD will always be controlled by the entrepreneurial team under your leadership.

This is particularly important and can be written into the contract as a special guarantee. In addition, Qingyun will set aside an additional 15% of its share to reward the management team and the scientific research team.

Let’s set a specific goal, for example, BYD’s sales volume should reach X number of vehicles excluding online ride-hailing platforms, or it should rank among the top three in global sales.

This reward plan has begun to be implemented. As for who the reward will be given to and how much the reward will be, we fully respect Mr. Wang’s professional opinion. As for the part that will be given to you personally, we can talk about it now.

The fourth point involves financing. A minimum of 51 billion yuan will be invested in the scientific research team every year. After Qingyun Group reaches a % stake, it can continue to provide support in the form of low-interest loans.

Until BYD reaches a break-even point, I can accept ten years of losses, five years of business development, and no withdrawal of investment or dividends within fifteen years, as long as BYD can become the industry leader! "

Wang Chuanfu really couldn't think of a reason to refuse. The only thing left was the price of the first round of private placement. (End of this chapter)