Chapter 335 CATL
It was cloudy and rainy in Mindong City, Fujian Province in early April.
A convoy of luxury cars drove slowly on the wet street, attracting the attention of passers-by.
In the middle car of a Mercedes-Benz, Song Ci admired the misty tea garden outside the car window, which dyed the tea mountains in the distance into a vast green.
"This is my first time in Mindong City. I heard that this is a famous tea-producing area in the country."
On the side, Li Ying, the female president of China New Investment, listed them all: "Yes, Fuding white tea is the most famous, followed by Tianshan green tea and Tanyang Gongfu tea."
"I didn't expect that you, a native of 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 something about the human geography of Fujian Province."
The convoy turned a corner and the ATL factory was vaguely visible.
As they approached their destination, Li Ying couldn't help but express her doubts: "Mr. Song, I have been in contact with ATL (CATL) before, and they clearly stated that they would not sell their power battery business.
And even if ATL management is willing, its parent company, Japan's TDK, will not agree. I'm afraid you'll have made a wasted trip."
Song Ci answered the question irrelevantly, with a far-sighted look in his eyes: "It's a pity that I was immature back then, and Tengda had just set sail in 2005, otherwise ATL would not have fallen into the hands of the Japanese."
Li Ying also sighed upon hearing this: "No one would have thought that in just a few years, smartphones would emerge. ATL, relying on its technological accumulation in consumer lithium batteries, has become the world's largest supplier of high-end mobile phone batteries."
"Fortunately, ATL is an independent operator. Although it is influenced by TDK, the management has a strong say, which gives me some possibility to implement my plan."
Thinking of his boss's always forward-thinking strategic vision, Li Ying pondered and asked tentatively: "Mr. Song, do you mean that power batteries are the next technological outlet?"
Song Ci did not answer. He closed his eyes gently, concentrating his energy and thinking about how to convince the ATL management.
At the same time, in the ATL company conference room, Chairman Zeng Yuqun, COO Li Ping, Technical Director Huang Shilin and other senior executives gathered together.
"Mr. Zeng, why would this richest man come to visit our company for no apparent reason?"
In response to Huang Shilin's question, Zeng Yuqun shook his head slightly: "I don't know either."
At this moment, he was still confused about Song Ci's sudden visit. A few days ago, ATL suddenly received a contact letter from Tengda Group, stating that the group's chairman and Asia's richest man wanted to visit ATL for research.
If it weren't for the bright red official seal on the official letter and the repeated confirmation from the two companies afterwards, he would have thought it was a prank by a hacker. After all, Tenda's business and new energy have nothing in common, and the two companies are not related at all.
Li Ping smiled and said, "We'll know his purpose when he arrives. Anyway, he comes with good intentions, so we should welcome him well."
"That's right." Zeng Yuqun nodded, lowered his eyes to look at his watch, "Song Ci will be here soon, let's go and greet him. After all, he is the richest man in Asia, a unique figure among mainland Chinese, so we must not lose our manners."
A group of senior executives responded and followed the chairman downstairs to wait for the distinguished guest.
When everyone arrived at the factory gate, the weather was good. The rain that had lasted for many days suddenly stopped, and a gorgeous rainbow appeared in the sky.
Under the rainbow, a black convoy was slowly approaching the ATL gate.
The Mercedes-Benz sedan stopped steadily in front of the main entrance of ATL. A young female secretary in a dark gray business suit got out of the car quickly and then respectfully opened the back door.
As soon as Song Ci got out of the car, he saw a group of ATL executives lining up to greet him.
The middle-aged man walking in front walked steadily. When he was three steps away from Song Ci, he took the initiative to extend his hand and said, "I have heard of your name for a long time, Mr. Song. I am Zeng Yuqun, the chairman of ATL."
The people behind him also greeted politely: "Hello, Mr. Song."
"Mr. Zeng, you are too polite. Sorry to bother you." Song Ci shook hands with Zeng Yuqun and others in turn with a very gentle attitude.
While Zeng Yuqun introduced the company's senior executives to Song Ci, he looked at the richest man calmly.
This young business legend is indeed as handsome as a jade, even more handsome than reported in the media. His eyebrows and eyes are picturesque yet masculine, and his every move reveals a calmness that does not match his age.
The most impressive thing is the pair of eyes, deep and bright, as if they can see through everything.
After everyone got to know each other and exchanged pleasantries, Zeng Yuqun, as the host, suggested, "Director Song, shall I take you to visit my factory first?"
The richest man readily follows the advice: "The guest follows the host's wishes."
After everyone boarded the factory tour bus, Zeng Yuqun started chatting with Song Ci.
"I graduated from Donghai Jiaotong University in 1989 and was assigned to work in a well-established state-owned enterprise in Fujian Province. After only three months of work, I couldn't stand the rules and regulations and the decadent 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 from time to time, as if he could feel the turbulent tide of the times from Zeng Yuqun's life.
"I worked there for ten years, met several like-minded partners, and founded ATL in 1999." Zeng Yuqun was filled with emotion, "More than ten years have passed in a flash."
Song Ci sincerely praised: "From scratch to building an industry leader, Mr. Zeng's journey over the past 20 years is truly legendary."
"You are embarrassing me by saying that." Zeng Yuqun waved his hands and smiled bitterly, "You are the real legend!
In the entire Chinese business community, and even in the world, who can compare with you? Even Bill Gates and Steve Jobs in their twenties could not compare with you. "
Knowing that Song Ci was going to visit ATL, he made a special effort to learn more about the richest man. His extraordinary life was truly astonishing.
Song Ci smiled modestly: "We who work in the Internet industry are all benefiting from the country's rapid development."
Zeng Yuqun nodded slightly, and couldn't help but admire Song Ci, a business leader who was 20 years younger than him. However, his clarity and composure were not something that ordinary people could match.
During the conversation, the sightseeing bus arrived at the production workshop. Song Ci put on a safety helmet, took protective measures, and began to follow Zeng Yuqun to visit the production line.
"Please look, Mr. Song. This is our production line. In the field of polymer lithium batteries, ATL has the most advanced technology in the world."
Pointing to the fully automated production equipment, Zeng Yuqun expressed pride: "We overcame the technical difficulty of lithium battery bulging, which made ATL a benchmark in the mobile phone battery industry."
“Is this electrolyte formula independently developed by ATL?”
“What is the yield rate of this production line?”
"What breakthroughs has ATL made in fast charging technology?"
Song Ci listened to Zeng Yuqun's introduction very carefully and asked a few questions from time to time.
Manufacturing is a real industry that requires heavy investment. It relies on technological accumulation and product performance. It is completely different from the Internet.
Zeng Yuqun answered every question and shared his valuable experience with the richest man.
"Mr. Song, in manufacturing, especially in a technology-intensive industry like ours, there are no shortcuts. Every bit of market share is gained through real technological accumulation."
After the tour, everyone moved into the meeting room.
While Song Ci was in the bathroom, Huang Shilin leaned over to Zeng Yuqun and asked in a low voice:
"Mr. Zeng, you just told Song Ci in some detail. Judging from the professional level of his questions, he is not a complete layman. At least he has a deep understanding of the battery industry. What if..."
"Are you worried that Tengda will suddenly switch to new energy and compete with us?"
"It's not impossible." Huang Shilin recalled the eager look in Song Ci's eyes. Combined with his special visit to ATL, it can be concluded that this richest man definitely has plans to enter the new energy field.
"If Songci really intends to enter the new energy sector, it would be a good thing." Zeng Yuqun said meaningfully, "Don't forget, ATL is still a Japanese company after all!"
Zeng Yuqun was well aware of the clues that his old partner could see, but he had his own considerations and feelings. He always hoped that a world-leading new energy company would be born in China.
After a while, Song Ci came to the conference room. The tour left him wanting more, feeling that he had gained a lot and broadened his horizons.
There were not many people in the meeting room at this time, but they were all core members.
The ATL side only had Zeng Yuqun, Huang Shilin and Li Ping.
On Song Ci's side, there are Li Ying and secretary Song Xueying, both of whom are his trusted confidants.
Song Ci looked around at everyone: "Mr. Zeng, Mr. Huang, Mr. Li, there are no outsiders here now, so I will just say something directly."
The three of them were shocked and waited for the richest man to reveal the real purpose of this trip.
"Three of you, I have learned about ATL's development history. In 2005, it was wholly acquired by Japan's TDK." Song Ci's eyes were deep and his tone was light, "So strictly speaking, you are all working for the Japanese."
Zeng Yuqun's eyes flashed with reluctance: "ATL was acquired back then, it was a helpless move! Mr. Song, if you have anything to say, just say it."
Song Ci caught the unnatural look on the faces of the three people opposite him and said, "Instead of working for the Japanese, why not start your own business and be your own boss? I'll pay for it, and you guys will provide the technology. How do you think?"
Zeng Yuqun exchanged glances with his two partners and asked tentatively, "Mr. Song wants to establish a new energy company with us in a joint venture?"
Song Ci no longer concealed his ultimate goal: "Yes! I hope you can separate the ATL power battery division and, on this basis, establish a new company engaged in power battery production."
Zeng Yuqun smiled bitterly and shook his head: "Mr. 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 divest the power battery division at will?"
Li Ying on the side quietly looked at her boss. This was exactly the concern she had raised in the car.
Song Ci took his time, took a sip of the local white tea from eastern Fujian, and then slowly spoke: "Mr. Zeng, times have changed. I have some information channels in Peking, and learned about some new policies regarding new energy."
"Please let me know, Mr. Song."
"In the second half of the year, the state will issue a foreign investment industry guidance catalogue. One of the provisions is that foreign-invested enterprises, including holding subsidiaries in China, are not allowed to engage in power battery production."
Zeng Yuqun's pupils suddenly contracted and 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 capital background which directly limits the development space of its power battery business.
Therefore, divesting the power battery business unit is a necessary choice to circumvent policies.
"Next year, the country will launch a subsidy program to support the new energy industry. Naturally, these dividends will not be given to foreigners."
Song Ci continued to drop bombshells, revealing the terrifying power of his connections in Peking.
The meeting room was silent. Zeng Yuqun rubbed his hands excitedly. If what the richest man said was true, then there would be great potential for splitting up ATL.
Huang Shilin, who had been silent all this time, couldn't wait any longer: "How does Mr. Song want to cooperate?"
"It's very simple. You will spin off the power battery division as a technology investment. I will be responsible for all capital investment for the new company to invest in production lines and technology research and development.
In the future, I can handle all the funding and approval issues of the new company."
Mr. Billionaire's eyes were blazing. "If you are willing to join me, I am confident that I can create a Chinese new energy giant that can rival Panasonic and LG."
Zeng Yuqun already agreed with Song Ci's plan, but as a business veteran, he still wanted to find out the truth: "Mr. Song, you revealed this important information in advance, aren't you afraid that we will leave you behind and go it alone?"
"Mr. Zeng, you have the technology, and it is your freedom to choose who to cooperate with." Song Ci paused, and said calmly, "But I think no one would refuse the olive branch thrown by Asia's richest man! Whether it is an enemy or a friend, it all depends on Mr. Zeng's decision."
"Mr. Song, you are right. I don't think there is a fool in this world who would refuse the richest man's initiative to show his kindness."
Zeng Yuqun laughed out loud and said, "We are willing to cooperate with you, but there is a prerequisite. The new company must be run by us. Unless there is a major change in the company, you cannot interfere in the daily operations."
At this point, a hint of vigilance flashed in Zeng Yuqun's eyes. The business world is like a battlefield. It is not uncommon for partners to be too strong and founders to be kicked out. He has to be on guard.
"That's exactly what I want. I don't have the energy to manage a new company. My life motto has always been to leave professional matters to professionals. The three of you are experts in the field of new energy, so it's natural for me to leave the new company to you to run."
Li Ping complimented him at the right time: "Mr. Song has such a broad vision, no wonder he can create a business empire like Tengda."
Now that the consensus has been reached, subsequent negotiations will be a natural progression.
After several rounds of negotiations, the two parties reached a preliminary equity agreement: Song Ci invested US$10 million and held 45% of the shares; the remaining 55% was controlled by the management team.
However, everyone knows that if the new company wants to successfully divest its business from TDK, it will have to transfer part of its equity to the Japanese side. It is not realistic to expect not to give a penny.
"Everyone, if there are no problems with the subsequent financial audit, the matter will be basically settled. As long as the national policy is introduced, we can take action."
"It's a pleasure to work with you, Mr. Song!"
When the agreement was finalized, the atmosphere in the meeting room became cheerful, and Huang Shilin excitedly suggested: "Let's give the new company a name!"
"Song Ci is a great literary figure, not like us rough people, so you should give it a name!"
Song Ci smiled and declined: "Please come, Mr. Zeng. This is your new journey. The company will rely on you a lot in the future!"
Seeing Song Ci's insistence, Zeng Yuqun pondered for a moment and solemnly said the name that had been lingering in his mind for a long time: "CATL! It means that CATL's new energy is reborn from the ashes and opens a new era!"
(End of this chapter)
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