Tan Jincheng had little interest in the equity of Boneng Environmental Power.
Furthermore, there was no financial plan for this.
After acquiring Bafang Electric and investing in the construction of the Tianjin Plant Phase 1 project, the planned capital was 120 million yuan.
20 million yuan for Bafang Electric had already been received.
Additionally, for the 100 million yuan for the Tianjin Plant Phase 1 project, 50 million yuan was a low-interest loan provided by a local bank, and the remaining 50 million yuan needed to be sourced by Shanchi Group itself.
This 100 million yuan must be transferred to the Tianjin branch company's account within this week.
Most importantly, Tan Jincheng had little interest in acquisitions outside the overall industrial plan.
Rather than spending this money on Boneng Environmental, it would be better to use it to buy shares in some lithium mining related companies.
There are many profitable industries, and there's no end to earning money.
Trying to monopolize every industry would only make the company appear particularly bloated.
"The cooperation between Shanchi and Boneng has been very pleasant. I wonder what President Jin thinks?"
Not wanting to spend money, he listened to the other party's opinion.
"Boneng's production capacity can meet all the demands of the Shanchi series electric vehicles. Our intention is to further deepen cooperation with your company and raise the level of our partnership."
"Exclusive supplier?"
Tan Jincheng mused.
Jin Chuanling nodded:
"Yes, we can also be strategic partners. I know your company has no intention of researching lead-acid batteries, and I assume you wouldn't have much interest in lead-acid battery equity. However, having a stable supplier is also a guarantee of quality."
"Additionally, we also have some business in energy storage. If both parties cooperate, this aspect can form a pairing with your lithium battery business."
Companies like Boneng were not unaware that lithium battery technology could be applied to electric vehicles.
It was just that the R&D investment was too large.
Few pure power supply companies would develop lithium battery technology solely for the purpose of selling batteries.
With existing technology, quick profits, and products that align with current mainstream trends, the rational approach is, of course, to focus on the present.
If Tan Jincheng hadn't planned for something big, he wouldn't have launched the lithium battery project.
"That's certainly true. A stable supplier is indeed a guarantee of quality. But honestly, we don't have that much cash right now. If possible, it can only be cross-shareholding."
The term "energy storage" was not unfamiliar to Tan Jincheng.
Those who had been "A-share leeks" for a few years should all be familiar with this term.
Energy storage technology can be applied in multiple fields; literally understood, it is a technology for energy storage.
Large power supply companies generally possess this technology, the only difference being the strength of their technical capabilities.
Hangxin New Energy indeed needs energy storage technology.
If they could acquire it from Boneng and improve upon it, it should save a lot of time in technology development.
When Jin Chuanling mentioned that they could provide energy storage technology to support Hangxin New Energy's lithium battery development, Tan Jincheng had the intention of reaching cooperation with the other party.
But still, the same thing: he didn't want to spend money.
Batteries are not like motors or controllers; there are simply too many stable batteries on the market.
Even without Boneng, other companies could provide them.
And with Shanchi's current market position, finding batteries of better quality than Boneng's brand Yazhen Power would not be difficult at all.
"No problem, cross-shareholding is fine. We don't have a big pursuit for money; we just hope to have stable cooperation with Shanchi,"
Jin Chuanling said happily.
At the same time, he cast a glance at Zhang Yunhua.
Zhang Yunhua immediately understood that the boss was responding to what had been said earlier: President Tan would not take advantage of the situation.
"Then there's no problem. To be honest, we've launched so many projects recently, and without wanting to increase the company's debt, we genuinely can't come up with much capital for a while."
"That's understandable. It's true that companies need to expand, but at the same time, the debt ratio must be controlled. President Tan and I share the same philosophy on this point,"
Jin Chuanling highly agreed.
The main body of this cooperation was still Shanchi Technology, not including other businesses.
Boneng would transfer the energy storage technology they owned to Hangxin New Energy for consideration, in exchange for the opportunity of cross-shareholding with Shanchi Technology.
Because Shanchi held the dominant position in this cooperation, the technology transfer would involve a certain discount.
Since no cash transaction was involved, share swaps were much more convenient.
After Tan Jincheng and Jin Chuanling reached a general cooperation framework, Zhang Yunhua led his team to begin negotiations with Shanchi Technology's financial team.
Tan Jincheng then took Jin Chuanling to visit Shanchi Technology's factory area, as well as the factory buildings under construction.
Five months had passed, and the Beicang District Electric Vehicle Industrial Park had already taken initial shape.
Not only Shanchi Technology's factory buildings were under construction, but also the government's supporting facilities and factory buildings of some other companies that had moved in.
Wearing hard hats, Tan Jincheng and Jin Chuanling, followed by Li Yaohui, walked around freely in the safe area, led by the construction site manager.
"President Tan is quite remarkable, to be able to acquire such a large piece of land in Beicang. Looking at the speed of this construction, it shouldn't be long before it can officially go into production,"
Jin Chuanling exclaimed.
By the way, it was Jin Chuanling's first time accompanying a client to visit a construction site.
It was also because the existing Shanchi factory was too small, with nothing much to see.
A bustling construction site, factory buildings under construction, and a large area of land were also a display of strength.
"It's expected to officially go into production by the end of this year or early January. Looking at the construction progress, there should be no problem,"
Tan Jincheng smiled.
150 mu of land was nothing to boast about in front of the super factories of later generations.
But in 2006, for an electric vehicle industrial base, it was absolutely more than enough; it could even directly launch an automobile project.
Beicang's land price was not as cheap as an 18th-tier small county town.
It was truly fortunate that Tan Jincheng was able to acquire so many land resources last year.
Firstly, Beicang, which was just preparing for major development, did not yet have a complete industrial chain. The government urgently needed a leader to guide the enterprises in the district to operate in a centralized manner and build its own complete industrial chain. Tan Jincheng's electric vehicle project perfectly met the district's requirements.
Secondly, the district's current large enterprises were more inclined to build factories in the export processing zone area, while Daqi was temporarily still a concentration of small factories, with no large factories, so acquiring land was relatively easier.
If it were two years later, wanting to acquire such a large plot of land in such a good location would not be so easy.
"Then starting in 2007, the production capacity issue that has always plagued Shanchi can be completely resolved."
Tan Jincheng nodded:
"Indeed, our biggest problem currently is that the production capacity issue cannot be fully resolved. Sales have been rising too fast recently, and the peak season has not officially arrived yet. In the coming months, Shanchi's production workshop will still be under great pressure."
Currently, Shanchi Technology's maximum designed production capacity, including some that can be outsourced for processing, can reach a maximum of 45,000 vehicles per month, with an annual extreme production capacity of 500,000 vehicles.
The Beicang Industrial Base has a designed capacity of 700,000 vehicles, and the Tianjin Industrial Base has a designed capacity of 1 million vehicles.
Considering a slightly higher building density design and adding more production lines, the existing two factories plus the two major industrial bases mean that by the end of 2008, Shanchi's maximum annual production capacity should be between 2 million and 2.5 million vehicles.
Don't think this number is exaggerated.
By 2023, when electric vehicles are nearly saturated, leading companies like Yadi and Aima can all exceed 10 million vehicles in annual sales.
Company sales figures have some exaggeration, but this exaggeration won't be too excessive; it's impossible to say they sold 5 million vehicles and boast they sold 10 million.
Last year, leading company Xinri only sold over 100,000 vehicles in a year.
By this year, in just five months, Shanchi sold 167,200 vehicles.
Even with this total sales volume, it could only barely rank among the top four nationwide.
While Shanchi's sales exploded, competitors Xinri, Yadi, Lvyuan, and some other regional old brands also saw sales surge.
In terms of market share, it's not considered high.
Scattered small brands across the country, miscellaneous brands, and even unbranded electric vehicles are also fiercely seizing the entire market.
Today's electric bicycle/scooter industry is a genuine wealth-creating industry.
In 2009, Aima invited Jay Chou to be their spokesperson, using a crazy marketing model to seize the low-end electric vehicle market.
By 2010, their annual sales were heading towards 2 million vehicles.
An annual production capacity of 2.5 million vehicles, for Shanchi Technology, could only last until 2009.
Next year, Shanchi Technology might have to build a third industrial base.
This time, Tan Jincheng specifically requested to build an even larger industrial base.
"Take your time. After this peak season, you should be able to build up some inventory later, and your production tasks in the second half of the year will also be a bit easier."
After saying this, Jin Chuanling then jokingly added:
"Other manufacturers wish they could sell as much as possible, but for Shanchi's electric vehicles, it seems that selling more is not necessarily a good thing.
I once heard a shop owner in Huzhou at a retail store complain that Shanchi's electric vehicles were very difficult to get hold of. Sometimes they even had to bribe agents just to get the goods, especially Shanchi, this low-end brand, it sells too well."
Tan Jincheng also gave a wry smile:
"I actually know about this. Some people online are even scolding us, saying we're doing 'hunger marketing,' but it's true that our production capacity is limited, so we can only prioritize Tier 1 suppliers."
Tan Jincheng couldn't, and was too lazy to, control the matter of bribing agents to get goods early.
Since it could reach the level of gift-giving, that meant it was profitable, a market behavior, as long as the terminal retail price wasn't chaotic.
If Shanchi sells 200,000 vehicles a year, Boneng Environmental's turnover from a single client can reach 90 million yuan.
If Shanchi sells over 2 million vehicles a year, Boneng, solely from Shanchi, could achieve nearly 1 billion yuan in turnover!
With such long-term expectations and sufficient market data support, the negotiations between Shanchi and Boneng proceeded very smoothly.
Jin Chuanling used 15% of his 95% stake in Boneng Environmental, plus energy storage technology, in exchange for 5% of Shanchi Technology's shares, becoming Shanchi Technology's second strategic partner and the exclusive lead-acid battery supplier for all electric vehicles under Shanchi.
To simplify the process, the share swap between Shanchi Technology and Boneng Environmental Power was completed in the form of a private share swap between Tan Jincheng and Jin Chuanling, so the shares of minor shareholders like Zhang Yunhua and Wang Qinghua would not be diluted.
Tan Jincheng transferred the energy storage technology to Hangxin New Energy.
As for the 15% stake in Boneng Environmental, it was transferred to Juliang Engine.
Beicang Chengtou had no objection to this.
Beicang Chengtou had no right to interfere with how the company operated specifically.
The shares used for the swap were also Tan Jincheng's shares, so there was no conflict of interest with Beicang Chengtou.
The energy storage technology complemented Hangxin New Energy's shortcomings, and Beicang Chengtou could also benefit.
Thus, Shanchi Technology's equity had changed again, and with the change in Shanchi Technology's equity, Tan Jincheng achieved another victory, and the shortcomings of the electric vehicle business have been patched up again!
(End of Chapter)