The Birth of Shanghai's First Conglomerate

Chapter 267 Accelerated Stimulation
The negotiations between Chen Pingsheng and Zhang Zhiyao were coming to an end.

The advantage is that he can quickly own one of the largest lithium iron phosphate battery factories in China.

The downside is that he is about to invest 5.5 billion to fully acquire this huge loss-making mega-factory.

Within three years, another 15 billion yuan will be invested in battery research and development.

Without this targeted R&D investment, Zhang Zhiyao wouldn't necessarily have had to sell to him.

There are generally two models for operating electronics companies in China.

One type is an eco-friendly enterprise that integrates production, education, and research.

Industry-academia-research collaboration sounds simple, but the investment required is enormous.

For example, if you invest 15 billion in battery research and development, it only means that you can gather more true experts in the battery field and bring these people together to study and break through existing technological bottlenecks every day.

To strive for technological patents in higher fields.

If this works, the benefits will be enormous.

But if it doesn't work, like the foreign giant Samsung.

Samsung's mobile phone screens are world-leading, having invested nearly 20 billion US dollars and suffered huge losses for more than a decade before finally succeeding.

This is the result of Samsung's investment in research and development since the 1990s.

Samsung also ventured into the chip industry in the 1990s, investing nearly 10 billion US dollars in it.

It took countless hours, but ultimately ended in failure.

To put it bluntly, R&D is a lifeline that everyone is vying for. Once a major foreign company breaks through a patented technology in a certain field, it will be a huge challenge.

Everything you research in this field may be wasted.

We must re-examine the technology patents that circumvent it.

Otherwise, it would be an infringement.

This is industry-academia-research collaboration, a business model with boundless investment.

The risks are extremely high, and the chances of success are extremely low.

It can even be described as unimaginably low.

The other method is simpler: dry assembly.

The technology belongs to others; I can simply pay a high price to use their patented technology.

Then these products are assembled together, and marketing and sales costs are reduced.

To get their share of the meager profit.

The advantage of this is that you don't need to invest your own money in research and development, which reduces both risk and investment.

Over 99% of well-known domestic electronics manufacturers follow this model.

There are advantages, but also quite a few disadvantages.

If a foreign country tries to restrict your operations, this kind of factory will immediately shut down.

They simply cannot produce their own core products.

Chen Pingsheng didn't know if his dedication would lead to success, but he was focused on the fact that he had already taken on this task.

Then we have no choice but to give it our all.

In order to raise the 5.5 billion yuan for the full acquisition as soon as possible, he instructed Zhang Wanyi in Shanghai to immediately repurchase the Bobo Milk Tea shares that had been bought back at a low price, as well as the 2 billion yuan worth of shares in Boiling Sheep.

To sell off.

Fortunately, both stocks were bought up using thousands of accounts, and now that they're being sold off, the market is doing very well.

It won't attract too much attention.

There are still many details to be discussed in the negotiations, and it will take at least half a month to reach an agreement.

This also gave Chen Pingsheng time to raise funds.

June 2nd.

A major piece of news has emerged in the domestic new energy vehicle market: the newly established Tengfei New Energy Vehicle.

The company plans to acquire the largest lithium iron phosphate electronics manufacturer in China for 5.5 billion yuan.

Incidentally, we will also invest 15 billion yuan in battery research and development over the next three years.

For a time, paper became scarce in Luoyang.

Countless people in the new energy vehicle market have begun to pay attention to this newly established new energy vehicle company.

Unfortunately, the current sales volume of new energy vehicles is extremely low, with very few units sold per year.

At least half of the people who enter this industry don't come with the intention of building a good car. They're simply playing the football game.

This has resulted in not many people being willing to invest tens of billions of dollars in the early stages to set up their own super factories.

Not to mention that 20 billion yuan has been invested in core battery factories for new energy.

All I can say is that this newly established energy vehicle brand is far too wealthy and powerful.

That's why they dared to enter the industry and immediately invest nearly 30 billion yuan.

The specific details of the cooperation have not yet been finalized, so naturally there has been no press conference yet.

However, the news prompted the Tengfei Super Factory in Shanghai to accelerate all approval procedures.

There's no way around it; this is clearly a super company that genuinely wants to succeed in the new energy sector.

Such companies are not only needed in Shanghai, but are also highly sought after in various places.

They might even directly impose a series of conditions.

Tengfei's first-phase investment in the super factory reached 120 billion yuan, with the main goal of building a world-class integrated super factory for the overall production of new energy vehicles.

The industrial land area allocated by Shanghai is 550,000 square meters.

Building such a super factory requires a lot of supporting industries in the surrounding area.

After a period of negotiations, it was finally decided that the super factory would be located in Lingang.

The address has been decided, but the specific terms still need to be negotiated.

For Tengfei to use such a large piece of industrial land for free, it must meet a series of conditions.

For example, how much tax revenue is generated, how many jobs are created, etc.

Amidst the accelerating pace of various major news events, Yan Donghui, the former president of Sany Heavy Industry Research Institute, was...

They officially joined Tengfei New Energy on June 5th.

He also serves as the co-founder, executive director, and president of the automotive company.

Xu Dong, the former president of Huawei's consumer business unit, has been appointed as the chief technology officer of Tengfei Auto.

In addition, Zhang Qiming, the former president of BMW Greater China, will serve as the president of production and sales.

In the early stages, the main responsibility was the construction of the super factory.

After all, the car hasn't even been manufactured yet, so how can it be sold?

The construction of the super factory was not something Chen Pingsheng could handle alone.

To create a world-class product, you must hire world-class talent.

This is a very simple principle of Chen Pingsheng's.

At least in his opinion, these three were far superior to him in terms of ability.

If he were to work for someone else, he would never be able to hold such a high position in those three large companies in his lifetime.

Even getting in is a big question.

The educational background requirement is a major obstacle.

Most bosses prefer to hire people who are less capable than themselves.

Because he felt it was easier to control.

He's different; he likes to use people who are more capable than himself, the more capable the better.

When the three of them came over, he showed them the utmost sincerity.

Three 500-square-meter apartments in Tomson Riviera were delivered directly to them.

In addition, each person will be provided with a Maybach 680, which costs around four million yuan.

If we go a step further, he could introduce any minor celebrity in the entertainment industry.

It all comes down to mutual consent.

This special resource can handle most men.

New energy vehicles require not only a large investment, but also a series of other tasks to begin once all three are in place.

Meanwhile, Chen Pingsheng was still raising 5.5 billion yuan to acquire the battery factory.

Many banks were willing to lend him money, but he refused.

In short, the interest rates are too high.

Wouldn't it be better to use that interest to hire a few more top-notch research experts in the field of lithium iron phosphate batteries?

(End of this chapter)