Rebirth 2004: I can make money by writing

The next day,

Wang Chuanfu convened a high-level meeting at the company, and all the company’s major shareholders were present.

At the beginning of the meeting, Wang Chuanfu gave a detailed report to the participants on the content of his conversation with Hao Qiang.

Wang Chuanfu said solemnly: “Ladies and gentlemen, the current situation is such that Future Technology Group has mastered the world’s first-class lithium battery manufacturing technology.

Our independently developed lithium iron phosphate battery has been blocked by their technical patents in the direction of improvement, and it is difficult to break through.

In this case, I asked Hao Qiang for technology licensing, and the other party agreed in principle, but the price offered was quite high.”

He went on to explain that if this technology licensing agreement was accepted, according to the minimum production capacity of 2GWh, BYD would need to pay Future Technology Group at least 83 million yuan in licensing fees each year.

This figure made the senior executives present gasp.

It’s really expensive!

However, they had to admit that if the roles were reversed, they might ask for a higher price.

After all, this is a core technology related to future competitiveness.

More importantly, they realized that if they refused the technology license and the new energy vehicle market really flourished as expected, other competitors would likely get the exclusive technology license first.

This would put BYD at a great disadvantage in future market competition.

A senior executive said after a moment of contemplation: “Although the cost is indeed high, we must weigh the long-term interests.

If this technology can ensure that we maintain our leading position in the new energy vehicle field, then the investment may be worth it.”

Another senior executive added: “If the technology license is not accepted, the time and capital investment required for independent research and development may be greater, and the uncertainty of success is also higher.

The most headache is that there is no way forward. Future Technology Group is developing too fast and directly blocking our way.”

Wang Chuanfu listened to the discussion and nodded.

He knew that this decision was not only about the company’s short-term interests, but also would determine BYD’s long-term competitiveness in the new energy vehicle field.

Next, they need to conduct more in-depth financial analysis and market forecasts to make the final decision.

A small shareholder curiously raised a key question: “If we buy finished batteries directly, is it cost-effective?”

Wang Chuanfu quickly responded: “If we have to configure more than 10,000 new energy vehicles every year, it is extremely uneconomical to buy finished batteries directly.”

On average, the manufacturing cost of each kilowatt-hour battery can be saved by about 400 yuan.

Producing 1GWh, it will save 400 million yuan.

This account is easy to calculate, it is too expensive to buy.

Of course, the investment cost of self-produced batteries is also high.

On average, for every 1GWh of production capacity, using other people’s equipment, it takes an investment of 300 million yuan, and more than 40 million yuan in technology licensing fees must be paid.

Hearing this, another shareholder immediately said: “In this case, it is obvious that self-production is the most cost-effective option.

After all, we already have the relevant technical foundation.”

In fact, for most shareholders, they are more concerned about whether this cooperation can increase the company’s stock price.

This is the factor they value most.

If the cooperation can bring about an increase in stock prices, then they tend to support this decision.

As for other details, they don’t care too much.

However, these words cannot be said publicly.

It is obvious that the rise of Future Technology Group has had a significant impact on BYD’s stock price.

If the two sides can reach a cooperation, it is likely to bring a positive boost to BYD’s stock price.

After listening to the opinions of all parties, Wang Chuanfu fell into deep thought.

He realized that this decision was not only about technology and cost, but also about the company’s market positioning and investor confidence.

He needed to find a balance between the cost-effectiveness of independent production and the market response brought by cooperation with industry leaders.

Finally, he concluded: “Ladies and gentlemen, we need to conduct more detailed financial analysis and market forecasts.

We must not only consider short-term costs, but also weigh long-term technological development and market competitiveness.

After the meeting, we will further evaluate the pros and cons of the plan before making a final decision.”

This suggestion was agreed by everyone present.

In fact, as a leader with a deep understanding of technology, Wang Chuanfu had already made a conclusion in his mind.

He clearly realized that BYD had almost no choice but to accept technology licensing.

This is not just a business decision, but also about the company’s future survival.

He envisioned a disturbing scenario: if a competitor first reached a cooperation with Future Technology Group and obtained exclusive technology license, thenThen BYD’s lithium battery project will face a catastrophe.

In this case, BYD will be forced to buy lithium batteries from competitors, which will not only greatly increase costs, but also cause the company to lose its core competitiveness in the new energy vehicle market.

Such consequences will undoubtedly lead to a continuous decline in stock prices and may even jeopardize the company’s overall layout in the new energy field.

Although the cost of technology licensing seems high, the investment is worth it compared with the risk of losing market dominance.

Therefore, despite having made a decision in his mind, Wang Chuanfu still encouraged the team to conduct a comprehensive analysis and discussion.

He hopes that through this process, everyone can understand the importance and necessity of this decision, and let the technical team know that the backward technology is full of difficulties.

Three days later,

Wang Chuanfu called Hao Qiang and expressed his willingness to cooperate.

He can’t wait any longer. He didn’t sleep well in these three days. It’s better to make it clear as soon as possible.

“Okay, happy cooperation!”

“Okay, happy cooperation, I will go to the team tomorrow to talk in detail.” Wang Chuanfu breathed a sigh of relief after ending the call.

Two days later,

After in-depth discussions, BYD and Future Technology Group finally reached an agreement.

The terms of cooperation basically followed the framework of the previous negotiations, and the technology license was for lithium iron phosphate battery technology. The main contents are as follows:

1. The down payment is 50 million yuan.

2. BYD promises to officially start production within three years.

3. The annual production capacity after production must not be less than 2GWh.

4. The technology licensing fee is 5% of the battery pack price.

5. If the annual production capacity exceeds 10GWh, the rate of the excess is 4.5% of the battery pack price.

On the day when the two parties signed the agreement, the two parties jointly held a media press conference to announce this major cooperation to the public.

The next day, which happened to be Monday, the news caused a huge response in the capital market.

At the close of the day, BYD’s stock price rose sharply by 12.3% (there is no limit on the rise and fall of Hong Kong stocks).

In the next two trading days, BYD’s stock price continued to rise.

It was not until the fourth day that the stock price gradually stabilized.

Overall, compared with the stock price level before the announcement of the cooperation, BYD’s stock price has risen by nearly 20% in just three days.

This significant increase not only reflects investors’ high recognition of this cooperation, but also reflects the market’s optimistic expectations for BYD’s future development prospects.

It also illustrates the power of Future Technology Group.