Reborn since 1993

Chapter 1251 Chapter of the Agreement
When Mr. Wang asked Li Dongling this question, it wasn't without reason, as Dongling Hi-Tech is also one of BYD's major shareholders!

Dongling High-Tech has now invested in companies in its parts supply chain, including BYD, Sichuan Rong Co., Ltd., and Jinyang Electronics.

No matter how loudly these component suppliers profess loyalty to Dongling Hi-Tech, if there are no means to restrain them, there will inevitably be traitors who will stab Dongling Hi-Tech in the back at crucial moments!

Therefore, Dongling Hi-Tech has changed its management model for its component supply chain companies several times in recent years.

The current rule is that anyone wanting to become a component supplier for Dongling Hi-Tech must contribute a portion of their equity to Dongling Hi-Tech as a shareholder.

However, this is not something Dongling Hi-Tech is trying to seize. Once you become a supplier of Dongling Hi-Tech, the orders will be plentiful. As long as Dongling Hi-Tech has something to eat, these suppliers will not starve.

In addition to a large number of orders, when faced with the Asian financial crisis last year, Dongling Hi-Tech not only proactively shortened the settlement cycle, but also provided a large amount of interest-free loans out of its own pocket to help these suppliers overcome difficulties.

Even last year, BYD, after receiving funding from Dongling High-Tech, carried out counter-cyclical expansion, catching battery competitors such as Panasonic, Toshiba, and LG off guard. Its market share surpassed Panasonic, capturing 45% of the global nickel battery market and becoming the undisputed leader in the nickel battery industry!

BYD's ability to achieve all this is inseparable from the substantial financial support from Dongling High-Tech.

Besides funding, there is other support, such as legal matters, which are protected by Dongling Hi-Tech, the big brother. Even in cross-border lawsuits, there is Dongling Hi-Tech's Hanxi Pizza Hut legal team.

Don't think that BYD's dominance of the nickel battery market was smooth sailing. Battery giants such as Panasonic, Toshiba, and Sony are suing BYD all over the world, trying to ban BYD from selling its products.

These transnational lawsuits would have dragged on and bankrupted most companies.

A significant portion of BYD's lawsuits were handled by the legal teams of Dongling High-Tech America and Old Europe.

Currently, 35% of BYD's shares are held by the logistics department of Dongling High-Tech. Dongling High-Tech has entered BYD's board of directors, and the latter needs Dongling High-Tech's statement for any major plans and decisions.

Entering the automotive industry is a major event for BYD, possibly even a matter of life and death. Mr. Wang will definitely need to consult Mr. Li, the philanthropist.

In its previous life, BYD entered the automotive industry, but was not favored by all parties, and its stock price plummeted, dropping 45% in two days and wiping out billions of dollars in market value.

On the contrary, at the suggestion of his partner Munger, Buffett took advantage of the situation and bought BYD at a bargain price, cashing out his BYD shares and making a profit of nearly HK$60 billion.

Entering the automotive market and acquiring car license plates was a daunting prospect for Mr. Wang. If Dongling High-Tech didn't support him, he would feel even more hopeless.

Seeing Mr. Wang's expectant expression, Li Dongling smiled and said, "Dongling High-Tech's requirement for component suppliers is simply that they can supply products on time, in accordance with Dongling High-Tech's requirements, meeting technical standards and quality standards."

As for suppliers wanting to engage in businesses outside their core operations, Dongling Hi-Tech will not interfere as long as it doesn't affect its component suppliers!

The philanthropist Li gave his answer, which relieved the boatman.

Cars and guns represent a kind of romance ingrained in men's bones. In ancient times, it meant owning a magnificent horse, while in modern times, it means the roar of a car.

These days, any founder who has amassed wealth inevitably wants to try their hand at the automotive industry, and Mr. Wang and BYD are certainly not the last.

Li Dongling's meaning was very clear: as long as it doesn't affect the supply to Dongling Hi-Tech, Dongling Hi-Tech won't stop BYD from doing whatever it wants. Dongling Hi-Tech isn't that domineering; suppliers don't need Dongling Hi-Tech's approval to do anything.

Furthermore, Dongling Hi-Tech has always encouraged its suppliers to invest in research and development to create more new products.

The stronger the supplier, the more Dongling Hi-Tech actually benefits. Dongling Hi-Tech and its suppliers are not mortal enemies.

Of course, all of this is based on the premise that suppliers such as BYD cannot delay supplying Dongling High-Tech. This is the prerequisite!
"Thank you for your support, Mr. Li. Even if BYD enters the automotive market, it will not compete with Dongling High-Tech!"

Mr. Wang expressed his stance to Mr. Li, the philanthropist, that he would not betray his promise and forget his gratitude by competing with Dongling High-Tech after entering the automotive market.

Looking at Boss Wang, Li Dongling nodded, "Of course, Dongling Hi-Tech also welcomes fair competition!"

To be honest, Li Dongling really wanted to see Dongling High-Tech's automotive division clash with BYD's automotive division; he wondered what kind of sparks would fly.

But these words startled Mr. Wang. "Mr. Li is joking. BYD just wants to test the waters in the automotive industry. As long as we can gain a foothold in the automotive industry, I will be satisfied."

Competing with other major automakers is beyond BYD's reach!

Before entering the automotive industry, Mr. Wang was somewhat uncertain about BYD, thinking he could just make a living there.

As for saying things like "I can beat domestic joint venture cars with my fists and kick German, Japanese and Korean cars with my feet," even if someone dares to say that, Boss Wang wouldn't dare to listen to it right now...

"Everyone needs to have dreams, otherwise what's the difference between them and a salted fish? I have high hopes for BYD!"

Li Dongling said to Boss Wang, "BYD is different from Dongling High-Tech. Dongling High-Tech is planning to establish a high-end brand from the very beginning in the automotive industry."

Given Mr. Wang's style, BYD's initial priority is likely survival, targeting the low-to-mid-range car market. They'll be fiercely competing with joint ventures, German, Japanese, and Korean brands – a market rife with price wars, and Mr. Wang is known for his aggressive pricing tactics! "I want BYD to obtain its car license plates first; in this regard, I'm afraid we'll need Mr. Li's support!"

Mr. Wang couldn't help but say that for Dongling High-Tech, obtaining a car license plate was not difficult; it was just a matter of going through the process and getting it approved.

But for companies like Geely, Great Wall, and BYD, this is an insurmountable barrier standing in their way.

"Is BYD preparing to apply for a car production license, or is it going to be acquired..."

"Acquire a company that owns an automobile manufacturing license!"

Without hesitation, Mr. Wang said, "What Dongling High-Tech can do may not be suitable for BYD. If BYD wants to apply for a car license on its own, who knows when it will be approved? On the contrary, acquisition is much easier."

Upon hearing Mr. Wang's words, Li Dongling understood that he probably already had a target in mind.

"Which car company's license does BYD want to obtain?"

"Qinchuan Automobile, headquartered in the provincial capital of Hanxi!"

Mr. Wang rubbed his hands together and said, "Hanxi is Dongling High-Tech's old base. Here, BYD can go all out. In other places, BYD wouldn't dare to play this big game."

Li Dongling chuckled to himself. He hadn't expected that Boss Wang would be so good at picking targets. Qin Chuan Automobile was now an industry under Hanxi Guotou. Whether or not it was sold was not up to Wu Yaoguo, the general manager of Hanxi Guotou.

However, if Wu Yaoguo gives in, the probability of BYD acquiring Qin Chuan Automobile is quite high, not to mention that it also has the brand of Dongke Group.

Qin Chuan Automobile is having a tough time right now. They mainly produce microcars, which are priced at around 40,000 to 50,000 yuan, like the Alto, Geely Haoqing, and Chery QQ, and the profit margins are quite low.

The entire Qin Chuan Automotive business was teetering on the edge of making a little money and suffering huge losses. Boss Wang must have put a lot of thought into setting his sights on Qin Chuan.

In Hanxi's territory, Dongke Group companies, while not necessarily able to do whatever they want, certainly have a much greater advantage than outsiders.

"If we get the Qin Chuan license plate, what are BYD's plans?" Li Dongling asked, looking at Boss Wang.

After considering for a moment, Mr. Wang said, "BYD's first car might be a test vehicle for gasoline-powered vehicles."

However, BYD's future plan is to develop electric vehicles, and batteries are BYD's strength; they plan to focus their research and development in the electric vehicle field!

After he finished speaking, Boss Wang looked at Li Dongling with unease. These days, talking about developing electric cars is definitely a wild and outlandish idea.

Over the years, overseas automakers have also developed electric vehicles, but none of them have made much of a splash.

BYD has once again plunged into the quagmire of electric vehicles, and no one knows what the outcome will be. Even Mr. Wang doesn't know what Li Dongling thinks about BYD's electric vehicle plan.

"BYD still needs to focus on its battery business, and I hope to see BYD's mobile phone lithium batteries go into mass production as soon as possible."

If lithium batteries can be mass-produced and BYD enters the automotive market, Dongling High-Tech will also do its part to help if needed!

Li Dongling laid down three conditions with Boss Wang beforehand, saying that if BYD could develop a lithium battery for mobile phones, Dongling High-Tech would not mind giving BYD a push.

In Hanxi, Dongling High-Tech has a say in who gets the license plates for Qin Chuan Automobile!
"If BYD wants to develop electric vehicles, it can also cooperate with Dongling High-Tech's automotive division."

However, BYD's development of electric vehicles should not be based on the slogan of saving money or being economical. Instead, its mission should be to protect the environment for all humanity, to address the future of humankind, and to promote zero-carbon emissions and sustainable energy development for automobiles!

Mr. Wang stared in disbelief at Mr. Li, the series of words shocking him.

No, BYD just wanted to test the waters and see if electric vehicles were a viable option. How did it relate to the future of all mankind?
When it comes to hype, you have to look to Silicon Valley and Wall Street. If you're just making electric cars for the sake of cheapness, nobody cares.

But if it concerns the future of humanity, sustainable energy development, zero pollution, and electric vehicles as the environmentally friendly mode of transportation, doesn't it suddenly become high-end and become humanity's hope?

……

Mr. Wang stayed in Pingyang for several days before leaving. For him, the trip was a great success, and the three rules he agreed to were supported by Mr. Li.

In Pingyang, as the autumn winds blow and temperatures turn to winter, the Dongling High-Tech concept stocks, which had previously experienced a sudden surge in share price, have remained stagnant.

At the time, rumors circulated that Dongling High-Tech's stock price surged, either due to rumors of its entry into the automotive industry or the release of new products.

But just when things calmed down and the incident was almost forgotten, the media suddenly reported that Dongling High-Tech, which was entering winter, was going to hold a new press conference!
(End of this chapter)