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: "Everyone, the current situation is that Future Technology Group has mastered world-class lithium battery manufacturing technology.

Our independently developed lithium iron phosphate battery has been blocked by their technical patents in terms of improvement, making it difficult to make a breakthrough.

Under these circumstances, I asked Hao Qiang for technology licensing, and he agreed in principle, but the price he offered was quite high.”

He went on to explain that if BYD accepts this technology licensing agreement, based on the minimum production capacity of 2GWh, it will need to pay a minimum licensing fee of 8300 million yuan to Future Technology Group each year.

This number made the senior executives present gasp.

It’s so damn expensive!

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

After all, this is a core technology that determines future competitiveness.

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

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

A senior executive paused and said, “Although the cost is indeed high, we must weigh the long-term benefits.

If this technology can ensure we maintain our leading position in new energy vehicles, then the investment may be worthwhile.”

Another senior executive added: “If we don’t accept technology licensing, the time and financial investment required for independent research and development may be greater, and the uncertainty of success is higher.

The most frustrating thing is that there is no way forward. Future Technology Group is developing too fast, directly blocking our way."

Wang Chuanfu listened to the discussion and nodded.

He knows very well that this decision not only concerns the company's short-term interests, but will also 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 a final decision.

One small shareholder raised a key question out of curiosity: "If we buy finished batteries directly, will it be cost-effective?"

Wang Chuanfu quickly responded: "If we want to deploy more than 10,000 new energy vehicles each year, it is extremely uneconomical to directly purchase finished batteries."

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

Producing 1GWh will save 400 million yuan.

This is an easy calculation; it's too expensive.

Of course, the cost of producing batteries independently is also high.

On average, for every 1GWh of production capacity, using other people's equipment requires an investment of 300 million yuan, and more than 40 million yuan in technology licensing fees.

Upon hearing this, another shareholder immediately said: “In this case, it is obvious that independent 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 that they value most.

If cooperation can lead to an increase in stock price, they tend to support the decision.

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

But 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 parties can reach a cooperation, it is likely to bring a positive boost to BYD's stock price.

After listening to opinions from all sides, 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 needs to find a balance between the cost-effectiveness of independent production and the market response that comes with collaborating with industry leaders.

Finally, he concluded: "Guys, 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 options before making a final decision.”

This suggestion was agreed by everyone present.

In fact, as a leader with in-depth understanding of technology, Wang Chuanfu had already made up his mind.

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

This is not just a business decision, it is about the future survival of the company.

He envisioned a disturbing scenario: if a competitor were to reach a cooperation with Future Technology Group first and obtain exclusive technology license, BYD's lithium battery project would face a devastating disaster.

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

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

Although the cost of technology licensing may seem high, the investment is worth it compared to the risk of losing market dominance.

Therefore, although he had already made a decision in his mind, Wang Chuanfu still encouraged the team to conduct comprehensive analysis and discussion.

He hopes that through this process, everyone will understand the importance and necessity of this decision, and that the technical team will also understand that backward technology will lead to difficulties everywhere.

Three days later,

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

He couldn't wait any longer. He hadn't had a good night's sleep in the past three days. It would be better to settle it sooner and feel at ease.

"Okay, happy cooperation!"

"Okay, it's a pleasure working with you. I'll go over with the team tomorrow to discuss it 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 the cooperation basically follow the framework of the previous negotiations. The technology license is for lithium iron phosphate battery technology. The main contents are as follows:

1. The down payment is RMB 50 million.

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

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

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

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

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

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

At the close of the market that day, BYD's share price rose sharply by 12.3% (Hong Kong stocks have no price fluctuation limits).

In the next two trading days, BYD's stock price continued to climb.

It wasn't 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.