From knock-off old-man's electric vehicles to industrial giant

Chapter 89 Acquisition of Weineng and Establishment of Xingchen Battery R&D Center!
but.

Xu Yi did not intend to do that.

Manufacturing self-developed batteries through contract manufacturing is tantamount to completely disclosing one's battery parameters and material formulas to the contract manufacturer.

It's essentially an alternative form of technological openness.

Many supply chain factories initially had mediocre technology, but after connecting with major manufacturers' channels, their technology and processes quickly improved by leaps and bounds. This is also the reason why, including the domestic fruit supply chain.

This problem will exist in any OEM (Original Equipment Manufacturer) model.

Even with patent restrictions, it is easy for contract manufacturers to modify the formula and then apply for an "improved patent".

Of course, many large companies also proactively open up some of their technologies to cultivate supply chain factories.

For large-scale manufacturing companies, supply chains and technology companies are completely complementary. Without a high-end supply chain, it is impossible to mass-produce high-end cars and technology products.

and so.

Xu Yi's choice is to acquire!
It's simple, I'll just acquire it!

By directly acquiring core battery suppliers and turning them into their own factories, the patent technologies of both parties become intertwined.

Furthermore.

He needed to rapidly expand his battery R&D team, and acquiring Vaillant directly was the fastest way to do so.

As a second-tier battery supplier in China, the company has a research and development team of more than 200 people and has accumulated its own technical patents.

Within the industry, these are all excellent R&D resources.

only.

Acquiring a majority stake and full control of Vaillant put significant pressure on their finances.

They've already spent so much money, and now they don't have hundreds of millions left in their accounts.

Xu Yi could only lament that the massive investment in research and development and the expansion of offline brand stores were simply too expensive.

If it weren't for the rapid increase in the production volume of new cars, coupled with the stable sales in the market for electric vehicles for the elderly, Xingchen wouldn't be able to afford such extravagant spending.

……

"Mr. Xu, the bank's 1 billion yuan loan has been approved."

Just thinking about it.

A message came from Liang Shouzhou in the finance department.

After meeting with the city investment company last time, Xu Yi applied for another 2 billion yuan industrial loan directly in the name of Xingchen Automobile through the city investment company's connection with the bank.

Through the government's green channel, the approval was granted in less than a month, and the development requirements of "diversified industrial integration and acquisition of supporting production capacity factories" were added to the bank's terms in advance.

The interest rate for the entire loan is 20% lower than the benchmark rate, and it is divided into 15 years. For the first three years, you only need to pay interest and not principal.

This money can not only be used legitimately to build factories, but also to acquire and integrate manufacturing companies and factories related to Xingchen Automotive's development.

In principle, diversified acquisitions carry many risks, do not comply with the bank's consistent rule of "dedicated funds for specific purposes," and the use of industrial loans is subject to significant restrictions and financial supervision.

However, ever since Xu Yi unveiled the technological expectation of "large single cell battery" and achieved solid sales results.

The principles are on my side.

...

One billion has arrived in the account.

The remaining portion will only arrive when the 4.0 factory project officially commences.

For the current situation, it's sufficient.

"Then what are we waiting for? It's time to meet with the senior management of Vaillant."

The money arrived in my account.

Xu Yi's spirits lifted, and he immediately prepared to set off.

……

the other side.

Vaillant has been experiencing both pain and happiness lately.

As a second-tier battery supplier, the company was originally struggling with insufficient orders, making it unable to expand its profits and relying solely on its original business and the supply of bus battery packs to make a living.

no way.

They have neither national nor military background, nor the ability to connect with top international companies.

But since partnering with Xingchen Automotive, this is the first time I've experienced the feeling of "orders exploding"! To meet Xingchen Automotive's huge order demand, even maximizing battery production capacity wasn't enough, and we had to find ways to expand production capacity.

to this end.

Vaillant had to cancel its order for bus battery packs for the next quarter.

In order to secure this long-term order, Vaillant's senior management used connections and offered significant discounts.

Compared to Xingchen Automotive, the current buyer, they are now a thing of the past.

"Mr. Liu, Xingchen Automotive sent a message saying that Mr. Xu will be visiting with his team to discuss further cooperation..."

Liu Chengyong and the board of directors received this message.

I felt a sudden surge of energy.

Given Xingchen Automotive's current situation, Xu Yi is definitely a very busy person. It is said that Xingchen Automotive has already taken over from Chengzi, and not only will it build a new 4.0 car manufacturing plant, but it will also put its own battery plant into production.

Judging from the current development trend, Xingchen Automotive has great potential for future growth, which may not be met by a single battery supplier. It is only natural for them to start their own battery plant.

Meanwhile, Vaillant's senior management team couldn't help but start having wild thoughts.

How can we further integrate Xingchen Motors into our partnership? From the perspective of geographical location and transportation, they have considerable advantages, but these are not absolute. Xingchen Motors can also seek cooperation with other battery manufacturers.

Moreover, they have established their own battery R&D team, and its scale and technology are growing rapidly.

Previously, Vaillant's factory had a serious problem with idle capacity. For second-tier suppliers to grow rapidly, long-term super orders are essential.

Or, how about we let Mr. Xu take in more shares?

Or perhaps we could go deeper and jointly develop battery cell technology, share the technology, and sign a long-term exclusive cooperation contract?

……

result.

When Xu Yi arrived with several senior executives, his first words dispelled their worries.

"Mr. Liu, I have a win-win solution that can make Weineng Battery a first-class, or even top-tier, battery company in China in the future..."

In a word.

This immediately made everyone's heart pound!
Win-win? Top performer?!

Good guy! !

Xu Yi dared to say that they wouldn't even dare to think of such a concept.

There was no other way; we were used to living a hard life.

It has neither a military background nor the technology and resources of CATL.

Don't be fooled by the fact that there's only one tier between second-tier and first-tier cities.

In reality, the difference is enormous, both in terms of technology and resources.

Especially in industries like battery energy manufacturing and supply, the winner takes all.

First-class and top-tier manufacturers can never keep up with their orders, while second- and third-tier manufacturers with poor technology will have idle capacity when the market fluctuates even slightly, and can only be squeezed out.

"I intend to make you the core battery supplier for Xingchen Motors in the future, on the condition that I acquire a controlling stake of more than 51% at a relatively favorable and reasonable price..."

I now have a technical roadmap that focuses on in-depth research and development of large-cell lithium iron phosphate batteries. Once the technical formula and performance parameters are achieved, it will completely surpass the industry mainstream. Internally, we have named it Polaris Battery, and we already have a complete R&D path...

After the acquisition, Mr. Liu, you will remain the general manager of Vaillant, responsible for daily operations. I will only be in charge of R&D strategy and resource integration.

The management team will remain unchanged, and no one in the core team will be replaced. Instead, everyone will receive equity incentives, and profit sharing will be based on equity ratios. When the company grows bigger and stronger, the annual dividends will be five times, or even ten times, more than they are now..."

Xu Yi presented his sincerity and terms.

Meanwhile, a technology research and development plan has already reached the hands of Vaillant's senior executives and core technical personnel.

Those present were all professionals in the battery industry. When they heard the term "large single cell", their expressions were slightly shocked. After seeing the technical details on the R&D plan, their expressions became even more uncontrollable.

The potential benefits of this technology are more than enough to fulfill Xu Yi's "promise."

"Of course, most importantly, I want to integrate the R&D resources of both parties. Your R&D team and our Xingchen Automotive battery R&D team will jointly establish the Xingchen Battery R&D Center, focusing on large single-cell batteries, to achieve technological breakthroughs as quickly as possible... At that time, both Xingchen Automotive and Weineng Battery will be well-known brands in the industry!!"

Orders, technology, brand...

Xu Yi provided ready-made answers to these three major challenges facing second-tier battery manufacturers.

……

(End of this chapter)