171 Industry Alliance

In the huge conference room, senior executives and representatives of six lithium battery manufacturers, including BYD, CATL, Lishen and Guoxuan, sat down one after another. These people are all elite figures in www.biquge.info the domestic battery industry, and most of them are not familiar with each other, but they have always had a few encounters in various conferences and forums. At this moment, perhaps there was a sense of apprehension in the hearts of the people present, and before Chen Wenhao and the other conveners appeared, everyone began to talk familiarly, and cautiously tested whether the other party had more information.

In fact, before receiving the invitation from Infinite Future, all lithium battery factories have sent representatives to Jianghai City to carry out activities, in order to get in touch with Chen Wenhao in advance, but they are not allowed to enter. Unexpectedly, he turned his head and received an active invitation, and in addition to being excited, the real power figures of various companies left their work at hand and immediately rushed to Jianghai City from all over the country.

When I entered the door just now, the representatives of the manufacturers were already shocked. Originally, I thought it was held in the conference room of a certain hotel, but according to the address provided by the other party, I found that the inconspicuous door did not even have a door number, but there were heavily armed soldiers standing guard. The reception staff of Infinite Future Company had been waiting at the door for a long time, leading many guests to this conference room.

"It's coming, it's coming!"

"Sure enough, there are people from the troops."

……

As soon as the appointed moment arrived, in the whispers and eye contact of everyone at the venue, Chen Wenhao and Dai Junpeng, who were dressed in military uniforms, walked into the conference room on time.

After a simple greeting, Chen Wenhao went straight to the point and distributed the authorization plan that had been prepared to everyone. For a moment, all that remained in the conference room was the sound of flipping through papers.

Chen Wenhao sat in his place peacefully, watching the expressions on the faces of the people who were reading the plan change, there was no need to read any paper documents, all the details of the plan were deeply imprinted in his mind, as the main drafter of this plan, he did not set any terms and conditions. Those who can be included in the list of this meeting are all lithium battery companies that are absolutely controlled by domestic capital and ranked high in the industry. The core content of the authorization scheme includes:

Infinity Future will license the new battery technology to the designated enterprises (no more than 6) in exchange for the designated enterprises ranging from 1% to 8% of the equity and a board seat, and the equity ratio will vary according to the market value of different enterprises, based on 200 million yuan. In addition, within two years, 3%-5% of the lithium battery sales of the authorized enterprises will also belong to the infinite future company.

The authorized companies will form an emerging battery industry alliance with Infinite Future, and the alliance will set up a review system, and all members of the alliance will not accept orders for procurement needs that cannot pass the review. In addition, the ban list will also take into account the opinions of relevant departments, and purchases involving sensitive industries such as the military will also be rejected.

Within three years, the authorized enterprises are prohibited from licensing the technology to any third party, and the end product will adopt a unified pricing range (the benchmark price fluctuates by 10%), and the benchmark price is calculated at three times the price of ordinary lithium batteries of the same volume and weight, and the alliance will jointly agree on the next year's selling price at the end of each year.

In addition, there are more detailed clauses that require that within three years, the authorized enterprise shall not receive more than 5% of the share capital from the overseas enterprise or overseas investment institution, etc.

Chen Wenhao is not worried that the companies here will not participate, compared with the profits that the new batteries may bring: think of the stock of laptops, mobile phones, and digital cameras in the number of billions...... As long as the price is not too outrageous, who doesn't want to change to a new battery that can last up to ten times longer; Not to mention the fact that so many new digital products are produced every year, compared with the proportion of lithium batteries in the cost of these digital products, even if it is three times more expensive, the impact on the total price is not too intense; And the booming power battery market, which grew by more than 35% last year, if replaced by a new type of battery, this number doubled? Probably still a conservative estimate.

And what is the price, the first is about 200 million yuan of authorization, can appear in the venue of the enterprise, last year's lowest sales are more than 2 billion yuan, to the domestic lithium battery industry in recent years higher gross profit margin (40%), out of this money is not a problem at all. However, to exchange for equivalent stocks, some companies may prefer not to use valuable cash flow, and some companies will resist, but the strength of resistance is not a problem in the face of expected benefits.

Then it is necessary to pay 3%-5% of the sales of lithium batteries in two years. Take BYD, the first domestic lithium battery business sales, as an example, with its scale, the use of 3% of this grade, the previous year's lithium battery sales of about 7.5 billion yuan, 3% is 225 million yuan, it seems a lot, but compared with the new battery can bring more profits, it is just a fraction.

From the perspective of business operators, the most critical and important point is that once it joins the industrial alliance, it means that it has naturally become the first camp of the domestic battery industry. For at least three years, no company outside the alliance, including the now market-leading Japanese and South Korean battery companies, will have the ability to challenge this leading position unless they can invent something more advanced than this new type of battery. In their eyes, this possibility is almost non-existent. All the companies here have obtained samples of the new battery as soon as possible, but the R&D team has not made any progress so far.

After a short discussion, the representatives of the companies present expressed their preference to participate. However, although the team leader of each company is an executive with some decision-making power, the company's major decisions must go through the board process, and at the strong request of the company, the meeting here was suspended for half a day to allow them to hold an emergency board meeting.

Not surprisingly, the next day, the six lithium battery companies present coincidentally chose to join the industry alliance. In the following time, companies will focus on how to get tickets to join at a smaller price: those who want to pay a smaller percentage of equity, those who want to replace part of their equity with cash, and everyone who wants to get a 3% share of the most preferential sales segment......

Chen Wenhao was reluctant to go into battle directly and handed over to his subordinates. In fact, in his heart, Chen Wenhao doesn't care much about this difference in income, if he just wants to make money, what can be more profitable than doing monopoly business?

Now that he is licensing the technology, if only the cash value and current sales are calculated, he will probably receive about 3 billion from these six companies in two years. Of course, with the popularity of new batteries, the appreciation of these companies' shares and sales growth are expected, but compared to his other businesses, it is really not a lot of money. For example, selfie drones sold 2.25 million units a week, with sales of more than 20 billion yuan.

After they made a fuss for a few days, I don't know if Chen Wenhao's attitude played a role, or if they were worried about the long nights and dreams, after winning some discounts, these companies all chose to enter the steps of formal signing. In the final analysis, how many discounts can be obtained, or related to the scale and strength of the enterprise, are peers, who does not know who, after the strongest BYD determines the classification, other companies take this as a reference, and there is not much controversy.

A few days later, a press release from Xinhua News Agency appeared in the publications of several central-level media, the title of "Seven Domestic Enterprises to Form a New Battery Industry Alliance", less than 300 words of content, for ordinary readers is completely used to fill the blank space of the substitute, but in the eyes of many digital electronics companies and enterprises with demand for batteries, it is simply the headline in the headlines. Many CEOs of enterprises in need read this short report several times until they can memorize the names of these seven companies, and then they call for people and personally lead a team to go to the promising companies.

When this report was issued, except for Infinite Future, which has already made it clear to the public that its own battery products are only for internal use, and received fewer consultations, the threshold of the other six companies is about to be broken by customers. Different from the sudden rise of the infinite future company, there are not many old friends and old customers, other companies are in business for many years, familiar with the customer group, many old customers rushed to the door to order a new type of battery, more bold first to make a deposit, and then to order.

These six companies, from senior executives to marketing employees, have been explaining to customers all day long recently that although the new battery technology has been obtained, it will take at least two or three months of absorption and trial production before it can be officially sold. In addition, the sales object must also be reviewed by the industry alliance, but there is generally no problem for domestic enterprises to pass the audit. Then send away the suspicious customers, and then turn around to deal with a new wave of customers. To sum it up in one sentence, it is the pain of happiness.

On the other hand, the Japanese and South Korean battery companies that originally occupied the market advantage are all over the country, especially the South Korean battery companies are already in a hurry.

Previously, China's lithium battery market was almost monopolized by South Korea's Samsung and LG, Samsung and LG sold lithium batteries in the Chinese market at a loss all year round to seize market share. In the past year, due to well-known reasons such as SD, the power lithium battery products of these two companies have been unable to enter the official power lithium battery catalog, and have lost orders from many new energy vehicle companies. This time, the establishment of new battery licensing and industry alliances has made their plight even worse.

Samsung and LG executives have traveled frequently between China and South Korea, publicizing everywhere, and even lobbied the South Korean government to put pressure on China, only to find that they have hit a wall at every turn.

Three months later, six companies began to supply new batteries to the market, because the production capacity has not been fully released, and the price is a cut higher, the old lithium battery can still maintain a certain market in the low-price area. However, anyone with a discerning eye can predict that with the increase of production capacity, the battery industry will inevitably usher in a reshuffle, and battery companies that cannot produce new batteries will either transform or be acquired.

For Chen Wenhao, the work on the battery is basically completed. All kinds of electronic products with new batteries as selling points began to appear on the market, especially the mid-to-high-end mobile phones that are not sensitive to the new price of batteries, without exception, new batteries have been selected, and mobile phone parties can wave goodbye to the life of a daily charge. There will be more and more in the future. Some industry experts have predicted that perhaps within three years, the word battery will be equated with Chinese companies all over the world. At this point, the progress bar for technology to change the world has moved forward a little bit.

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PS: Recently, family affairs have been restless and worsening, and the mood and time are not in the right place. So, first of all, don't sell badly, and secondly, the update may be affected, and I try my best.