Chapter Twenty-Two
After the Shengguang project was halted, Zuo Xutong tried several times to explain to Peng Kun. However, on Monday morning, he was in a meeting in the conference room the whole time. Company executives came and went in and out of the conference room, and he didn't come out for lunch. In the afternoon, two directors from Polar Blue Sky also came. Throughout the entire day, Peng Kun only came out to use the restroom once.
Zuo Xutong wanted to ask Director Jiang, but he was so busy that he was always in a hurry and never gave her a chance to speak.
With no other option, she had to risk being fired and continue conducting tests in the lab downstairs, even though the project had been halted. However, for several days in a row, no one came to check on her. It was only then that she belatedly realized that something serious had happened at the company.
At noon, Zuo Xutong finished lunch in the cafeteria and happened to run into Tan Chao. The two stood side by side waiting for the elevator. A moment later, the elevator doors opened, and Qin Zhenzhen appeared before them, carrying a briefcase. Her entire demeanor was different now. After her eyelid surgery, she had also received Botox injections to slim her face. With the addition of colored contact lenses and makeup, Qin Zhenzhen now possessed expressive eyes and a captivating radiance that was impossible to look away from.
Even a man like Tan Chao, who witnessed her entire transformation firsthand, now looked at her with more kindness and spoke to her in a gentler tone. Just like now, he looked at her with a smile: "Zhenzhen, where are you going with that box?"
Qin Zhenzhen moved her lips, but before she could say a word, her eyes reddened. Seeing her pitiful appearance, Tan Chao stopped stepping into the elevator, blocking Zuo Xutong's way. She could only watch helplessly as the elevator doors slowly closed.
Tan Chao placed his hand on Zhenzhen's shoulder and said softly, "Don't get agitated, tell me slowly, what happened?"
It was lunch break time, and a group of people quickly gathered around the elevator. Qin Zhenzhen took a deep breath and forced back her tears. She told herself that she couldn't lose her spirit no matter what she lost, so she tried her best to manage her expression and even forced a smile, pretending to be relaxed and saying, "It's nothing serious. I resigned and will be leaving here starting today. Don't miss me."
Later everyone found out that she had been fired by the company, and in order to save face for her, Peng Kun let her submit her resignation to HR herself.
A batch of lithium batteries manufactured by the company at the beginning of the year experienced short circuits during road testing, nearly causing a safety accident. Subsequent testing upon return to the factory revealed that the cathode material supplied by Beijialongtai had excessively high impurity content. The samples they provided were flawless, but the actual products differed significantly in quality from the samples. Excessive metal impurities can affect battery lifespan and safety performance. This company had previously invested in an unfinished real estate project, incurring significant losses, and therefore misappropriated funds intended for manufacturing materials to cover the losses from the real estate investment.
At the time, Peng Kun asked Qin Zhenzhen and Ge Donglin to investigate Beijialongtai separately. In fact, both reports were provided by Ge Donglin. Ge Donglin also facilitated several other links, such as the incoming material sampling inspection of the quality department. Qin Zhenzhen was the link that cost him the least.
Qin Zhenzhen's investigation report caused incalculable losses to the company. Although she tried to explain that the report was given to her by Ge Donglin, she could not escape responsibility. Moreover, Ge Donglin had resigned and moved a month ago, and it was said that he had even sold his house.
Excessive impurities in the positive electrode material of lithium-ion batteries can lead to the formation of lithium dendrites during charging and discharging. If these dendrites accumulate to a certain extent on the negative electrode, they may puncture the separator, causing an internal short circuit. In severe cases, this can lead to overheating or even a fire. Many safety incidents involving new energy electric vehicles are related to substandard battery quality.
Now, the company must recall a large number of lithium batteries already sold and may also face the risk of contract termination and huge compensation payments. The company's executives are spending their days in a state of utter chaos, and no one has the energy to worry about new projects. Zuo Xutong is fortunate to have found a glimmer of hope in this predicament.
When only the two of them remained in the conference room, Peng Kun asked Jiang Zhuo, "How many of the R&D engineers from your department who switched jobs after the New Year went to Chaoma New Energy?"
Jiang Zhuo lowered his head and thought for a moment: "Five people resigned, and four went to Chaoma. They are taking advantage of their strong financial resources and are openly poaching people from all sides. Our company's salary and benefits are already in the upper-middle range of the industry, but Chaoma is offering 1.5 times our salary."
"I heard that most of those who left were key technical personnel?"
“That’s right, even the project manager who developed Ora was poached,” Jiang Zhuo said.
Peng Kun understood that talking about loyalty without considering salary was just empty talk. He had originally planned to further improve employee benefits, but this incident immediately made the company's finances difficult to manage.
“It seems the salary adjustment plan will have to be put on hold for now. We’ve invested a lot in R&D this year, but now there’s a problem with the cathode material for lithium batteries, causing the company to lose a large number of orders. Judging from the current situation, Beijialongtai is unlikely to fulfill its breach of contract obligations and compensate us. We’ll have to go to court and go through a long litigation process…” Peng Kun dared to discuss the company’s survival issues with him so frankly because Jiang Zhuo was not only the company’s R&D director, but also a veteran figure who pioneered the company. He also held 3% of the shares in Polar Blue Sky. This mere 3% of shares tightly bound him to the company, turning them into a community of shared interests.
"Then raise wages..."
"Let's talk about it after Yuantu settles the final payment." Yuantu Automobile Company is Polar Blue Sky's largest purchaser, specializing in the production of electric vehicles. Polar Blue Sky supplies nearly 30% of its lithium batteries to this company every year. Due to the long-term cooperation between the two parties, they have always kept their promises. Starting last year, the company agreed to Yuantu's request to increase the final payment amount from 30% to 50% and extended the payment period by three months, with payment to be made within six months after delivery.
However, a final payment due from Yuantu in October of last year had still not arrived, causing Peng Kun considerable concern. He repeatedly sent the company's finance department to urge payment. A few days later, a bombshell dropped: Yuantu Automobile Company went bankrupt! This not only meant that Polar Blue Sky had lost one of its most important clients, but also that the huge debt was likely unrecoverable. These successive black swan events exacerbated the company's already dire situation, bringing it closer to a break in its cash flow.
In the conference room, Peng Kun and several of the company's major shareholders were having a meeting, along with the R&D director and the CFO.
One shareholder, who had long been "uninvolved in politics," asked in surprise, "How could such a large company go bankrupt overnight?"
“Last year, Yuantu’s electric vehicles were found to have serious design flaws, and tens of thousands of vehicles were recalled.” The CFO rubbed his cold fingers and added, “However, at the time, Yuantu’s chairman assured that the recall did not affect the company’s financial security.”
Upon hearing this, the shareholder realized it was a premeditated attempt to default on a debt. His shoulders slumped, and his face turned ashen as he asked again, "How long can the company's cash reserves last?"
"Three or four months, I guess," the CFO said.
A long silence fell over the meeting room before Peng Kun slowly spoke: "The only way now is to expedite fundraising. I hope everyone will keep today's meeting content strictly confidential. Otherwise, if a large number of employees leave, it will not only affect the valuation of the company by investment institutions, but also affect investors' confidence."
A year ago, Peng Kun invested all of his working capital in setting up a hydrogen fuel cell R&D center, and now he has no additional funds available. Currently, the company's revenue mainly comes from its lithium battery product line; the hydrogen fuel cell is still in the R&D stage and has not yet generated any revenue.
To secure funding, Peng Kun has been meeting with investors almost daily lately. He's abandoned his usual carefree, tech-savvy style of dress and finally adopted a more business-like approach. A strikingly handsome man—perfectly tailored in a suit, gleaming shoes, and with hair so smooth it looked like it was coated in varnish, even a fly would do a split on it—appeared in the office building, attracting frequent glances from young women. It seems the saying "clothes make the man" is indeed true. Peng Kun has a naturally good foundation, and with this makeover, he's transformed from a hardworking, grassroots entrepreneur into a domineering CEO with his own background music, straight out of an idol drama.
However, without any compelling core technology to showcase, even the most impressing businessman would struggle to convince investors. During this period, the question he was asked most frequently was: "What technological advantages do you have?"
With time running out, not a single investor had shown any clear intention to invest. The company's cash reserves could only last for another three months. To raise funds before bankruptcy, he had to race against time, but he couldn't show any desperation to investors.
Peng Kun was under so much pressure that he couldn't sleep all night, and within just one week, a few gray hairs appeared at his temples.
That afternoon, he received a call from an investment company, but after hanging up, his expression didn't lighten; instead, it became more serious. The battery recall had severely damaged Polar Blue's brand image, causing the company's valuation to plummet. This company's valuation of Polar Blue was significantly lower than before, meaning that after several rounds of financing, their shareholding might surpass Peng Kun's, making them the largest shareholder of Polar Blue, and Peng Kun would lose actual control of the company.
So after much hesitation, he rejected the company and decided to continue looking for other investors. Some suggested buying a few patented technologies first, so that even if there wasn't time to develop them into products, the gimmick could still attract investors. However, the company's cash flow was already very tight, and spending a large sum of money to buy new technologies would be tantamount to hastening its death.
With the company's survival time fast approaching and bankruptcy looming in two months, Peng Kun had no choice but to grit his teeth and make a phone call. If he hadn't been desperate, he would never have wanted to see this person.
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