Our Rise Era

Chapter 207 Bait!

2 month 12 day.

There are still two days left until the Chinese New Year.

On the Internet…

There are more and more news reports about low-level photovoltaic salesmen making a lot of money!
Became rich overnight, bought cars, houses, played with young models, and spent money like water...

Many of his behaviors are like those of the former coal boss!

However, for all the photovoltaic CEOs in China, there was no smile on their faces.

At this moment...

Everyone stayed in the meeting room of [Wheat Mall].

Silently staring at all aspects of MEMC company's data.

..............................

"The price of polysilicon has slightly increased from yesterday's price of US$51/kg to US$51.5/kg..."

In the conference room.

The slideshow showed the global price of polysilicon on the 12th.

Everyone stared at the price trend of [polysilicon] seriously, and their eyes became more and more solemn.

Zhou Xinsheng of [Suzhou Deschamps] was staring at that set of data closely.

From 03 to 09...

Everyone witnessed this amazing adventure of [photovoltaic raw material] polysilicon.

In 03, the price of polysilicon was around US$26 per kg.

At that time, it was the spring of China's photovoltaic industry. Overnight, photovoltaic practitioners sprang up like bamboo shoots after a spring rain, and wave after wave of photovoltaic companies went overseas.

As of 06, China had 14 photovoltaic companies listed in the United States, and nearly 1000 scattered companies in the industry. In 2007, China surpassed Japan to become the world's largest solar cell producer and occupied more than 50% of the world's market!
Once upon a time, it was such a glorious and brilliant page.

All the bosses present are witnesses of that page of history. They were once glorious and became the richest people in the region thanks to the photovoltaic industry.

however……

It was like a firework display.

It blooms brilliantly and turns into ashes when it falls.

And all of this stems from the sudden price increase of polysilicon in the photovoltaic industry...

In 2005, the price of polysilicon was still around US$50.

In 2006, it rose slightly to $70.

In 2007, within just a few months, the price of raw materials soared to US$400, and at its peak, it rose to US$500!

As a midstream processor, Huaxia Enterprises has no raw materials upstream and no pricing power downstream. Coupled with the disorderly competition in the industry, Huaxia Photovoltaic Enterprises is trapped in a dilemma of buying high and selling low, and is forced to sign a five-year or ten-year procurement agreement...

They once resisted, built their own silicon material factory, invested a huge amount of money, started research and development, and planned to compete with Europe and the United States...

A few days after the agreement was signed, the price of polysilicon suddenly plummeted, coupled with the 2008 financial crisis...

All the glory turned into a mess in an instant.

……

History always repeats itself in a surprising way!
In 09, when China's photovoltaic industry fought back against the United States and conquered the European and American markets again...

The price of polysilicon had already dropped to US$50 per kilogram, but without any warning, the raw material price suddenly increased!
The lights in the conference room are bright.

Zhang Yang and Zhou Xinsheng from Suzhou Deshang sat together, silently watching the Western-led MEMC company, which had quietly pushed up the price of polysilicon in the past two days...

The price rose from US$51/kg to US$51.5/kg.

This figure seemed to be a normal price fluctuation, but all those who had already suffered heavy losses felt an unprecedented sense of vigilance at this moment.

They all know...

Those people on Wall Street have already raised their sickles again in this photovoltaic carnival market, ready to cut it down.

"What do you think, Mr. Zhang?" Zhou Xinsheng stared at the number, finally turned his head and asked Zhang Yang silently.

"We have to wait!" Zhang Yang did not look back, but narrowed his eyes with a murderous look in his eyes.

"What are you waiting for?" Zhou Xinsheng asked back.

“Wait until the price of [polysilicon] goes up a bit more! Wait until more and more European and American companies come into the market and make [polysilicon]…” Zhang Yang pushed up his glasses.

"Can we hold on until that day?" Zhou Xinsheng immediately thought of something after hearing Zhang Yang's words.

"Can we hold on until..." Zhang Yang looked at Diao Guangdou of Shenglan Technology not far away: "Boss Diao, let me confirm again, at our current silicon material factory, what is the current price that will allow us to be on par with the cost of Europe and the United States?"

"About 100 US dollars per kilogram... Our silicon material factory doesn't ship much now, and basically it's all circulated internally..." Diao Guangdou looked at everyone when he heard this.

"US$100/kg..." Zhang Yang nodded when he heard this.

Develop a product...

And if the other party already has the product, you cannot replace them all at once.

After all, you have to make your money back!
Your initial investment in labor, factory construction costs, business operating expenses, R&D expenses, etc. should all be included in [sales volume].

The higher your sales volume, the faster you will get your money back; the lower your costs, the lower the selling price.

And this range is 100 US dollars per kilogram!

If the price is lower than 100 USD/kg, the payback period will be slow; if the price is higher than 100 USD/kg, the payback period will be fast.

The current price of [polysilicon] in the world is only $51.2 per kilogram, which is far from reaching this balance point...

To announce it rashly now will only cause everyone's polysilicon factory to suffer an unprecedented blow, and ultimately fail!
After asking clearly...

Zhang Yang stood up and walked silently to the chairman's seat.

Look at everyone.

"Everyone!"

"Don't rush, everyone!"

"Let's just be patient!"

"I'll make a decision with you all!"

"Use $120/kg as the benchmark!"

"If the international price of [polysilicon] exceeds $120 per kilogram..."

"Let's take another shot!"

"Now, we maintain the status quo. As long as the price is within 120 US dollars per kilogram, we will continue to buy their products no matter how much they raise the price. Not only can we buy, we can even increase the purchase volume, indirectly or directly pushing up the price!"

"..."

When Zhang Yang said this, he turned his head and stared at the screen, which showed a number of global polysilicon giants, led by MEMC. "I remember that all of us signed a purchase contract for about a year!"

"Now, there is about half a year left before this contract expires!"

"..."

"This contract is expired. Remember, no matter how long the other party asks us to renew it, we should not sign it!"

"..."

"besides!"

"In the last words, this meeting is about our first battle in the global photovoltaic field since the cold winter!"

"If we win this battle, from now on, there will be no more shackles around our necks!"

"But if we lose this battle!"

“Just like in 2008, our photovoltaic industry, which had stood up again, may fall down from now on and never stand up again!”

"So, we must keep it absolutely confidential!"

"Even if it's with our family, we have to keep it a secret!"

"..."

After Zhang Yang finished speaking, he looked at everyone and then waved his hand.

Fatty Yuan had a serious expression on his face. He took out confidentiality contracts from a distance and silently distributed them to everyone.

After watching everyone sign the contract.

Zhang Yang looked out the window and closed his eyes!
..........................................

Getting rich overnight is attractive!

In particular, some people only have high school or elementary school education, but they have earned 200 million, 300 million, or even more in just a few months...

Seeing them buy houses and cars...

Looking at them wearing famous watches, big gold chains, smoking cigars, they are like nouveau riche, wandering around under everyone's noses.

These scenes are even more stimulating to everyone!
As the Internet becomes more and more popular...

As more and more information about [photovoltaic coal mines] is exposed on the Internet...

The hearts of countless young people who were watching on were finally stirred.

After the Spring Festival...

More and more young people are rushing to join the photovoltaic industry.

From February 2th to February 14th...

More than half a month!
The number of young Chinese people heading to the European and American markets has increased nearly tenfold overnight!
There was even a village of young people who appeared at one point...

Led by a nouveau riche young man, they obtained work visas and headed towards Europe and the United States in large numbers!

For these young people...

Either do business, or do the most basic installation and porter work, or learn technology...

China's photovoltaic companies, led by Suzhou Deshang, have already arranged suitable positions for them!
As more and more...

Young people with dreams of making fortunes flocked to Europe and America...

The photovoltaic market in Europe and the United States seemed to have changed overnight!
Next to major villa areas and major enterprises...

Overnight...

There are smiles everywhere!

They spoke broken English and German, and some didn't speak any foreign languages ​​at all, using hand gestures to explain what they were doing...

……

..............................

"We can't compete with the Chinese in low-end processing!"

"..."

January.

The grass grows and the orioles fly.

German Ministry of Commerce.

Bailey, head of the photovoltaic field of the Ministry of Commerce, hurriedly handed the March data to his superiors.

After the leader looked at this data...

Frowning deeply!

After the financial crisis!

Germany's photovoltaic industry was the first to recover, but it was also one of the countries hardest hit by China's photovoltaic industry.

From September to October…

In just about a month!

Strictly speaking it is 28 days!
Another 12 photovoltaic companies have announced large-scale layoffs!

but……

Miraculously, the overall photovoltaic industry revenue did not fall into crisis due to this large-scale layoff. Instead, it increased by nearly 15% last year.

And all these profitable projects...

It is a silicon material factory that Germany cooperates with the photovoltaic giant [MEMC], as well as large and small silicon material factories in Germany...

"I suggest that we stop protecting these assembly plants!"

"Let the Chinese do all the physical work..."

"Let's go fry silicon materials!"

"..."

Bailey said this seriously to his leader.

The leader was silent for a while.

"The EU will meet this afternoon!"

"Regarding the photovoltaic incident!"

"This time, the US delegation will also participate!"

(End of this chapter)