Entertainment mogul: Starting his business with the internet

Chapter 335 CATL
In early April, Mindong City in Fujian Province was shrouded in continuous rain.

A luxury convoy slowly drove along the wet streets, attracting the attention of passersby.

Inside a Mercedes-Benz in the middle, Song Ci admired the misty tea gardens outside the window, which painted the distant tea mountains a vast expanse of green.

"This is my first time visiting Mindong City. It is said to be a famous tea-producing area in the country."

Standing nearby, Li Ying, the female president of China-Singapore Investment, listed them off with great familiarity: "Yes, Fuding white tea is the most famous, followed by Tianshan green tea and Tanyang Gongfu tea."

"I didn't expect that someone from Guangdong Province would know so much about the local specialties of Fujian Province."

"Since ancient times, there have been frequent exchanges between Fujian and Guangdong, so I know some of the human geography of Fujian Province."

The convoy rounded a bend, and ATL's factory area came into view.

As they approached their destination, Li Ying couldn't help but voice her doubts: "Chairman Song, I've been in contact with ATL (Contemporary Amperex Technology Co., Limited) for a while now, and they've made it clear that they won't sell their power battery business."

And even if ATL's management were willing, its parent company, TDK of Japan, wouldn't agree. You'll probably have made a wasted trip.

Song Ci answered the question indirectly, but his insight was profound: "It's a pity that I wasn't fully developed back then. In 2005, Tenda had only just set sail, otherwise ATL wouldn't have fallen into the hands of the Japanese."

Upon hearing this, Li Ying sighed, "I'm afraid no one expected that in just a few years, smartphones would emerge out of nowhere, and ATL, with its technological accumulation in consumer lithium batteries, would leap to become the world's largest supplier of high-end mobile phone batteries."

"Fortunately, ATL is an independent operation. Although it is affected by TDK, the management has a lot of say, which gave me a chance to implement the plan."

Thinking of her boss's consistently forward-thinking strategic vision, Li Ying pondered for a moment and tentatively asked, "Chairman Song, do you mean that power batteries are the next technological trend?"

Song Ci did not answer. He gently closed his eyes, conserving his energy, and pondered how to persuade ATL's management later.

Meanwhile, in the conference room of ATL Company, Chairman Zeng Yuqun, COO Li Ping, Technical Director Huang Shilin and other senior executives gathered together.

"Mr. Zeng, why would this richest man suddenly want to visit the company?"

When asked by Huang Shilin, Zeng Yuqun shook her head slightly: "I don't know either."

At this moment, he himself was still completely baffled by Song Ci's sudden visit. A few days ago, ATL Company suddenly received a letter of contact from Tengda Group, stating that the group's chairman, Asia's richest man, wanted to visit ATL Company for research and inspection.

If it weren't for the bright red official seal on the letter and the repeated confirmations from both companies afterward, he would have thought it was a prank by some hacker. After all, Tengda's business and new energy have nothing to do with each other, and the two companies are completely unrelated.

Li Ping smiled and said, "Once the person arrives, we'll know his purpose. In any case, he's come with good intentions, so we should treat him well."

“That’s true.” Zeng Yuqun nodded, glancing down at his watch. “Song Ci should be arriving soon. Let’s go greet him. After all, he’s the richest man in Asia, a unique figure among mainland Chinese. We can’t be impolite.”

The senior executives echoed their agreement and followed the chairman downstairs to wait for the distinguished guests to arrive.

As everyone arrived at the factory gate, the weather cooperated; the continuous rain that had lasted for several days suddenly stopped, and a magnificent rainbow appeared on the horizon.

Under the rainbow, a black convoy is slowly driving toward the ATL gate.

The Mercedes-Benz sedan came to a smooth stop in front of the ATL main entrance. A young female secretary in a dark gray business suit quickly got out of the car and then respectfully opened the rear door.

As soon as Song Ci got out of the car, he saw a group of ATL executives lined up to greet him.

The middle-aged man at the front walked with a steady gait. When he was three steps away from Song Ci, he extended his hand and said, "I've long admired Mr. Song. I am Zeng Yuqun, Chairman of ATL."

The people behind him also greeted him politely: "Hello, Mr. Song."

"Mr. Zeng, you're too kind. I apologize for disturbing you." Song Ci shook hands with Zeng Yuqun and the others in turn, his attitude very gentle.

While introducing Songci to a group of senior executives from the company, Zeng Yuqun subtly observed the richest man.

This young business legend is indeed handsome and refined, even more so than in media reports. His features are exquisite yet exude masculinity, and his every move reveals a composure beyond his years.

What's most impressive are those eyes, deep and bright, as if they can see through everything.

After everyone introduced themselves and exchanged pleasantries, Zeng Yuqun, as the host, suggested, "Chairman Song, shall I take you on a tour of my factory?"

The richest man readily agreed: "When in Rome, do as the Romans do."

After everyone boarded the tour bus in the factory area, Zeng Yuqun chatted with Song Ci.

“I graduated from Donghai Jiaotong University in 89 and was assigned to work in a long-established state-owned enterprise in Fujian Province. After only three months, I couldn’t stand the rigid rules and regulations and the stagnant atmosphere of the state-owned enterprise at that time, so I resigned and joined a foreign-funded enterprise, Xinke Industrial.”

Song Ci listened attentively, nodding occasionally, as if he could feel the turbulent tide of that era through Zeng Yuqun's life.

“I worked there for ten years, met several like-minded partners, and founded ATL in 1999.” Zeng Yuqun said with deep emotion, “More than ten years have passed in the blink of an eye.”

Song Ci sincerely praised: "From nothing to something, building an industry leader, Mr. Zeng's journey of more than 20 years is nothing short of legendary."

"You flatter me by saying that," Zeng Yuqun waved her hands and gave a wry smile. "You are the real legend!"
Today, in the entire Chinese business community, and even globally, who can compare to you? Even Bill Gates and Steve Jobs in their twenties couldn't match you.

Knowing that Song Ci was going to visit ATL, he made a point of learning about the richest man in the country in detail. His extraordinary life was truly astonishing.

Song Ci smiled modestly: "We work in the internet industry and benefit from the country's rapid development."

Zeng Yuqun nodded slightly, feeling a sense of admiration for Song Ci, a business leader twenty years her junior. But Song Ci's clarity and composure were unmatched by ordinary people.

During the conversation, the sightseeing bus arrived at the production workshop. After putting on a safety helmet and taking protective measures, Song Ci began to tour the production line with Zeng Yuqun.

"President Song, please take a look. This is our production line. In the field of polymer lithium batteries, ATL possesses the world's most advanced technology."

Pointing to the fully automated production equipment, Zeng Yuqun couldn't hide his pride: "Back then, we overcame the technical challenge of lithium battery bulging, which made ATL the benchmark in the mobile phone battery industry."

"Was this electrolyte formula developed independently by ATL?"

What is the yield rate of this production line?

What breakthroughs has ATL made in fast charging technology?

Song Ci listened attentively to Zeng Yuqun's introduction, and occasionally asked a question or two.

Manufacturing is a real industry, involving heavy investment, and it relies on technological accumulation and product performance. It is a completely different field from the Internet.

Zeng Yuqun answered every question without reservation, sharing his valuable experience with the richest man. "President Song," he said, "in manufacturing, especially in a technology-intensive industry like ours, there are no shortcuts. Every share of market share is earned through solid technological accumulation."

After the tour, everyone moved to the conference room.

While Song Ci was in the restroom, Huang Shilin leaned close to Zeng Yuqun and whispered:
"Mr. Zeng, you just spoke quite in detail about Song Ci. Judging from the professionalism of his questions, he's not entirely an outsider; he must have at least done in-depth research on the battery industry. In case..."

"Are you worried that Tengda might suddenly switch to the new energy sector and compete with us?"

“It’s not impossible.” Huang Shilin recalled the eager look in Song Ci’s eyes and his special visit to ATL. He could say with certainty that this richest man definitely had plans to enter the new energy field.

"If Songci really intends to venture into new energy, that would be a good thing," Zeng Yuqun said meaningfully. "Don't forget, ATL is ultimately a Japanese company!"

Zeng Yuqun was well aware of the clues his longtime partner could see, but he had his own considerations and sentiments. He always hoped that China could give birth to a world-leading new energy company.

A short while later, Song Ci arrived at the conference room. The tour he had just completed left him wanting more, feeling that he had gained a lot and learned a great deal.

There weren't many people in the meeting room at the time, but they were all core members.

ATL's team only has Zeng Yuqun, Huang Shilin, and Li Ping.

On Song Ci's side, there were also Li Ying and his secretary Song Xueying, both of whom were trusted confidants.

Song Ci looked around at everyone: "President Zeng, President Huang, President Li, now that there are no outsiders here, I'll speak frankly."

All three were invigorated, waiting for the richest man to reveal the true purpose of their trip.

“The three of you, I’m familiar with ATL’s history. It was wholly acquired by Japan’s TDK in 2005.” Song Ci’s gaze was deep, and his tone was indifferent. “So, strictly speaking, you are all working for the Japanese.”

A hint of resentment flashed in Zeng Yuqun's eyes: "ATL's acquisition back then was a last resort! President Song, please speak frankly."

Song Ci noticed the unnatural expressions on the faces of the three people opposite him: "Instead of working for the Japanese, why not start our own business and be our own boss? I'll provide the capital, and you all can contribute your skills, what do you say?"

Zeng Yuqun exchanged glances with his two partners and tentatively asked, "President Song wants to establish a new energy company with us?"

Song Ci no longer concealed his true intentions, stating his ultimate goal: "Yes! I hope that you can spin off ATL's power battery division and establish a new company engaged in power battery production on that basis."

Zeng Yuqun shook his head with a wry smile: "President Song, to be honest, we are not willing to work for the Japanese, but ATL belongs to TDK, which is an unchangeable fact. How could the parent company agree to let us arbitrarily divest the power battery business unit?"

Li Ying glanced at her boss, who was standing nearby. This was the very concern she had raised in the car.

Song Ci calmly took a sip of the local specialty white tea from eastern Fujian before slowly speaking: "President Zeng, times have changed. I have some information channels in Beiping and have learned about some new policies regarding new energy."

"Please enlighten me, Mr. Song."

"In the second half of the year, the state will issue a catalogue for the guidance of foreign investment industries. One of the provisions is that foreign-invested enterprises, including their subsidiaries in China, are prohibited from engaging in the production of power batteries."

Zeng Yuqun's pupils suddenly contracted; he was extremely shocked by the news.

If the information revealed by the richest man is true, then ATL, as a wholly-owned subsidiary of TDK, has Japanese background that directly limits the development space of its power battery business.

Therefore, divesting the power battery division is a necessary choice to circumvent the policy.

"Next year, the government will launch a new energy industry support and subsidy program, and these benefits will certainly not go to foreigners."

Song Ci continued to drop bombshells, revealing the terrifying power of his connections in Beiping.

The meeting room was completely silent. Zeng Yuqun rubbed his hands together excitedly. If what the richest man said was true, then there was great potential in splitting up ATL.

Huang Shilin, who had been silent all along, couldn't wait any longer: "What kind of cooperation does President Song want?"

"It's very simple. You all will spin off the power battery division as a form of equity investment. I will be responsible for all the capital investment, which will be used by the new company to invest in production lines and technology research and development."

"I can handle all the funding and approval issues for the new company in the future."

The richest man's eyes were piercing. "If you are willing to join us, I am confident that we can build a new energy giant in China that can rival Panasonic and LG."

Zeng Yuqun had already agreed with Song Ci's plan, but as a seasoned businessman, he still wanted to test the waters: "Mr. Song, aren't you afraid that we'll leave you behind and go it alone by revealing these important details in advance?"

"Mr. Zeng, you have the technology, and it's your freedom to choose who to cooperate with." Song Ci paused, her tone indifferent, "But I think no one would refuse an olive branch extended by Asia's richest man! Whether they are friend or foe is entirely up to Mr. Zeng."

"Mr. Song, you're right. I don't think there's any fool in this world who would refuse the richest man's overtures."

Zeng Yuqun laughed loudly, "We are willing to cooperate with you, but there is a condition: the new company must be run by us, and you cannot interfere in the daily operations unless there is a major change in the company."

At this point, a hint of vigilance flashed in Zeng Yuqun's eyes. The business world is like a battlefield, and it is not uncommon for founders to be ousted when their partners are too powerful. He had to be on guard.

“That suits me perfectly. I don’t have the energy to manage a new company. My life motto has always been to leave professional matters to professionals. All three of you are experts in the field of new energy, so the new company will naturally be left to you to run.”

Li Ping offered a timely compliment: "President Song's vision is truly remarkable; no wonder he was able to build a business empire like Tengda."

With a consensus reached, subsequent negotiations will naturally follow.

After several rounds of negotiations, the two parties reached a preliminary equity agreement: Songci will invest US$1000 million, holding 45% of the shares; the remaining 55% will be controlled by the management team.

However, everyone knows that in order to successfully divest its business from TDK, the new company will inevitably have to transfer some equity to the Japanese side; it's unrealistic to expect them to give up nothing.

"Gentlemen, if there are no problems with the subsequent financial audit, the matter will be settled in this way. As long as the national policy is issued, we can proceed."

"It's a pleasure doing business with you, Mr. Song!"

Once the agreement was finalized, the atmosphere in the meeting room became cheerful, and Huang Shilin enthusiastically suggested, "Let's give the new company a name!"

"Song Ci was written by literary masters, unlike us roughnecks. You should suggest a name for him!"

Song Ci smiled and politely declined: "President Zeng, please come. This is a new journey for everyone. The company will rely on you all in the future!"

Seeing Song Ci's insistence, Zeng Yuqun pondered for a moment before solemnly uttering the name that had lingered in his mind for so long: "CATL! It signifies Ningde New Energy's rebirth from the ashes, ushering in a brand new era!"

(End of this chapter)