Reborn since 1993

Chapter 817 Dark under the lamp

The global battery industry is currently at a stage where lithium batteries are on the rise, but have not yet become mainstream, and nickel batteries are still a huge market.

Although there are rumors that lithium batteries will replace nickel batteries, nickel batteries and lithium batteries will still coexist for at least the next three to five years.

Now that the Southeast Asian economy is collapsing, the nickel battery market has also plummeted. Compared with last year, prices have dropped by more than 30%.

Panasonic, Sanyo, Toshiba, Samsung and other major nickel battery suppliers together account for more than half of the global nickel battery market.

But now, Samsung itself is in trouble, and Panasonic, Sanyo, Toshiba and others are also dealing with the risk of falling Japanese foreign exchange and stock markets.

In addition, the price of nickel batteries has fallen and the market is in a downturn. Manufacturers such as Panasonic and Sanyo have reduced production, which is also a common practice.

But BYD did not follow the routine. When the price of nickel batteries plummeted, it suddenly began to expand its production capacity, reduce costs, and start to seize the market!
This move was unexpected and completely disrupted the rhythm of several major nickel battery manufacturers. They either had to follow BYD and take the risk of increasing production capacity, or watch their market share being snatched away!

This counter-cyclical method of expanding production capacity and occupying the market was Samsung’s favorite in the past. After a few times, it eliminated its competitors!

Now it is BYD's turn. After receiving the interest-free loan provided by Dongling Hi-Tech, BYD began to expand its production capacity. This time, the worst result is that BYD becomes a global battery supplier like Panasonic and other manufacturers.

If the result is ideal and BYD can obtain the global pricing power for nickel batteries, then BYD will become a new battery supplier giant!

In addition to expanding production capacity, BYD also sent people to South Korea to poach engineers from battery companies such as Samsung, seeking to copy Samsung's battery production line.

Samsung is now trying to survive by cutting off its arms. Apart from Samsung Electronics, Samsung C&T and Samsung Financial, the rest of its automobile, heavy machinery and other industries are being sold off.

As for Wall Street institutions, they probably have little interest in Samsung's battery business, so BYD has a good chance of acquiring it at a very low price.

BYD's move has made domestic manufacturers begin to understand that Dongling Hi-Tech's provision of interest-free loans to parts suppliers is not only to allow these suppliers to have money to survive the difficult times, but also to allow them to expand against the trend and seize the market share of South Korea and Japan!

Not only BYD, but also a number of companies including BOE, Dongxin Semiconductor, and Shenzhou Memory have begun sending people to South Korea to recruit engineers.

Dosin Semiconductor and Oriental Optoelectronics originally had R&D centers in South Korea and Japan, and have been poaching talents from companies such as Samsung, Sharp, and Toshiba.

But before, companies like Samsung were very wary of Dongxin Semiconductor and Oriental Optoelectronics poaching their engineers.

But now, companies like Samsung have cut off their businesses in order to survive, and a large number of engineers have been fired. Companies like Oriental Optoelectronics can poach people blatantly and even buy their equipment production lines at bargain prices!

Doxin Semiconductor expanded its chip production capacity, BOE expanded its panel production capacity, and Shenzhou Memory expanded its memory stick production capacity. They began to lower prices and went overseas to grab the market that originally belonged to Japan and South Korea.

It may not have been easy to grab the market in the past, but now, the sticks have been beaten to pieces, and Japan is unable to take care of itself. Under the Southeast Asian crisis, a dark effect has been created.

Suppliers in Dongling Hi-Tech's parts industry chain are grabbing the Korean market, poaching customers, and buying at rock-bottom prices with almost no resistance at all.

The capacity expansion of companies such as BOE, Shenzhou Memory, and Doxin Semiconductor may not be able to capture the high-end market, but they have great opportunities in the mid- and low-end markets. Occupying these markets can significantly increase revenue.

But unfortunately, it is impossible to directly swallow up Korean companies such as Samsung, LG, and Daewoo. These companies are all America's food, and it is impossible to allow other companies to snatch them away.

But just this counter-cyclical expansion, poaching engineers from South Korea, buying patents, equipment, and production lines, can be said to be a bargain for Dongling Hi-Tech's parts supplier. It has made a lot of money and it is probably not an exaggeration to say that it has saved ten years of work.

……

Jinyang Electronics Company in Guangdong Province used to be very bustling. Every day, countless trucks came from all over the country to transport Jinyang Electronics' products to various manufacturers.

But today, there was a subtle sense of restlessness in Jinyang Electronics Company. Neither the office staff nor the production line personnel started work. Many production line personnel were still gathered in the factory, looking outside from time to time.

Jinyang Electronics' capital chain has been completely broken. No one expected that heaven and hell would be turned upside down in an instant. Previously, Jinyang Electronics had applied to the Pengcheng Exchange for listing, but who could have imagined that it is now on the verge of bankruptcy.

"Not here yet?"

"Which company is acquiring Jinyang? Will we be laid off?"

"Even if we have to lay off employees, as long as we can get paid, I don't want to continue working in this crappy factory. Ever since we stopped receiving orders from Dongling Hi-Tech, our wages have been reduced and our food has become worse. Now they can't even pay us!"

The Jinyang Electronics employees gathered in the factory area, whispering in groups of three or four.

Jinyang Electronics, which was only one step away from bankruptcy, can no longer hold on. Manufacturers that had previously placed orders with Jinyang Electronics have now stopped placing orders, and even the payments for goods that have already been delivered have not been settled.

Jinyang Electronics wants to borrow money from the bank, but domestic banks are also in a panic now. A large number of banks in Siam, South Korea, Indonesia and Malaysia have gone bankrupt.

Banks have always been like this: they lend money when it is sunny and take it back when it is raining. They will never help when it is snowing. Domestic banks, insurance companies, investment banks and other institutions, big and small, are all busy collecting the money they have lent out, fearing that they will also go bankrupt. How can they pay out money? Owing a lot of debts to raw material suppliers, unable to collect the payment, unable to borrow money from banks, and unable to pay employees' salaries, Jinyang Electronics had no choice but to sell itself.

But with the current market conditions, even if one wanted to sell oneself, there was no buyer. Lin Yekang, the factory director of Jinyang Electronics, had been blocked in the office several times. If he had not mortgaged his house and car to get some money to calm down his emotions, he would have been besieged by now.

"Dongling Hi-Tech's parts industry chain suppliers, including BYD, BOE, Hanxi New Materials Chuanrong Electronics, Kelian Shares, and Changshan Precision, have received the first interest-free loan from Dongling Hi-Tech.

Among them, BYD alone received more than 60 million US dollars, including 20 million US dollars in foreign exchange!

A-share Dongling Hi-Tech concept stocks listed companies such as Chuanrong Electronics are currently performing strongly. When the market falls, the stock price has not suffered huge fluctuations, showing strong resistance to declines. Dongling Hi-Tech concept stocks are also the best performing concept stocks in the A-share market. "

Lin Yekang was sitting in the factory director's office, flipping through a newspaper. When he saw the news, he closed his eyes in pain.

All this is completely different from the script he had imagined. He originally expected that Jinyang Electronics would have a huge performance increase, and then be listed on the A-share market and become the most popular stock in the A-share market. He will also be on the domestic rich list, and by then he will be successful and famous, and tell the world who was wrong between him and Dongling Hi-Tech!
But now, the script did not unfold at all as Lin Yekang expected. Dongling Hi-Tech, whom he had questioned, ridiculed and belittled before, has now been proven to be right.

Lin Yekang had previously slandered Dongling Hi-Tech in the media and vowed to part ways with Dongling Hi-Tech, but now he has become a laughing stock in the industry!
Looking at Chuanrong Electronics, Hanxi New Materials and other Dongling Hi-Tech parts suppliers, it would be a lie for Lin Yekang to say that he is not envious.

There is a 35-day payment settlement cycle, and there are interest-free loans to support component manufacturers to go overseas and buy out industry rivals such as South Korea. Isn't this better than Jinyang Electronics, which is about to go bankrupt?

But it was too late to regret now. During this period, Lin Yekang personally called Gao Peng, the general manager of the logistics department of Dongling Hi-Tech, and asked many people to intercede for him, but he only got a cold response, "Dongling Hi-Tech has terminated all cooperation with Jinyang Electronics!"

Hearing a commotion outside, Lin Yekang tidied up his appearance and prepared to meet the buyer.

When Lin Yekang forced a smile and entered the meeting room, the smile immediately froze on his face when he saw the person coming.

"Lao Pang, why is it you?"

Seeing the person in front of him, Lin Yekang lost control of his expression and couldn't help but shout.

The person who came to acquire Jinyang Electronics was Pang Jiazheng, the former technical manager of Jinyang Electronics. After Jinyang Electronics parted ways with Dongling Hi-Tech, Pang Jiazheng submitted his resignation letter and left.

Looking at Pang Jiazheng, and then at the several professional managers in suits following behind Pang Jiazheng, an idea popped up in Lin Yekang's mind. He understood who was going to acquire Jinyang Electronics this time.

"Lao Pang, what you did was so unkind!" Lin Yekang said gritting his teeth.

Meng Rongcheng and other Jinyang executives who followed behind Lin Yekang were also surprised. They did not expect that the one who acquired Jinyang Electronics this time was Pang Jiazheng. Apparently Pang Jiazheng had obtained the support of a certain banking consortium to acquire Jinyang.

Pang Jiazheng was looking at Lin Yekang in front of him, and then at the familiar faces in the conference room. He felt a lot of emotion, but it was just a brief emotion.

When he left before, Lin Yekang didn't say a word to try to keep him, and even warned him not to work for a rival company, otherwise don't blame him for not appreciating their old friendship!
What Pang Jiazheng can't let go of is Jinyang Electronics. He has given everything here and studied the technology bit by bit, but he can't let go of Lin Yekang!

"Mr. Lin, if you are unwilling to sell Jinyang Electronics, I will leave immediately!" Pang Jiazheng looked at Lin Yekang without looking away.

Lin Yekang must have paid a huge price for selling Jinyang Electronics now, as the wealth he had accumulated over the years was gone in one day.

But if he doesn't sell it, Jinyang Electronics will go bankrupt, and Lin Yekang will still be saddled with a mountain of debts that he will have to pay off for the rest of his life. At his age, can he make a comeback?

Lin Yekang sat down with a dejected look on his face. He had no choice at all. Apart from the acquisition bank consortium brought by Pang Jiazheng, who else would be willing to take over the heavily indebted Jinyang Electronics?

"With 35 million RMB, we can acquire Jinyang Electronics in full!"

Upon hearing this offer, Lin Yekang almost jumped up. You know, when Jinyang Electronics applied for listing on the A-share market, its valuation was over 800 million yuan.

But then Pang Jiazheng added, "After the acquisition is completed, the debts of Jinyang Electronics will be borne by the acquirer!"

"This price is really too low..."

"This is the only offer!" Pang Jiazheng did not give Lin Yekang any room for choice.

……

In Pingyang, Yuhe Leisure Resort, Li Dongling basically stayed here during this period, and the executives of Dongling Hi-Tech also often gathered here.

"The US dollars borrowed from Siam, Korea and other places can be returned to their banks. Tanglin Hi-Tech is a responsible company with a sense of social responsibility. We cannot do such a thing as not paying back debts!"

The voice of Mr. Li was heard from the hotel suite in Yuhe Leisure Resort.

(End of this chapter)