Chapter 044 Financing Considerations
The stunning appearance of the new battery has caused a craze in China, and after users are sought after and manufacturers are nervous, this enthusiasm continues to spread overseas. The first one to be attracted is undoubtedly the mobile phone manufacturer, Samsung, the world's highest sales, and Apple, which has countless loyal fans, is focusing on its eyes.
Both companies are extremely concerned about influencing new technologies. As early as when Warwick began to promote X7, they were already careful. Now it has triggered a craze for pursuit, and finally the giants can't help it. The technical department and executives in the China region have begun to discuss countermeasures and prepare to contact each other.
Even a Chinese military-industrial enterprise is studying this technology. As early as when Warwick signed the first battery cooperation, the relevant departments obtained battery samples, but there was no announcement, and Warwick did not reveal any news. But the country will definitely pay attention to this advanced technology.
Although military technology will always be ahead of civilian use, major countries also have ways to increase battery capacity, which can be increased by five times or ten times, but the cost is too high and can only be used strategically. Now this private product has exploded with many highlights and the cost is still very low.
Although the performance is not surprising, the key point is that the cost is very low. Although the level of military technology is high, the cost of mass production is too high and no one can afford it. Nowadays, having technology can significantly reduce costs is definitely a big advantage. The only thing is that it is difficult to crack technology.
Even if you are willing to spend money and time, the technology will be broken sooner or later.
But the easiest way is: go-to-door transactions.
So in a very short time, the information, patents, and even the information of Meng Qian and his team were sorted out and handed over to relevant departments for reference. The company's capital needs, development prospects, Meng Qian's ability, personality... have corresponding reports.
...
Regardless of the popularity of the outside world, Meng Qian became busy after the second round of Warwick release.
The company has held many meetings, focusing on cooperation goals, factory expansion, company value assessment and other things that are related to the future. It is currently the best stage for the company's development. Grasping every detail can make it grow faster and create greater value and profits.
Put your attention down, Meng Qian first focused on discussing the country.
Vice President Zong Yan is briefly introducing the information.
"According to the newly released world smartphone shipments in 2013, China has successfully exceeded one billion, reaching half of it, reaching 500 million, while Warwick has exceeded 60 million. It is also very in line with the plan of our high-end battery consumer group."
Meng Qian in the audience listened to the company's battery cost higher than ordinary batteries, and the selling price is naturally higher. The X7 battery purchase price is 125, and the retail price is at least 200 yuan. Therefore, the market we are targeting is mid-to-high-end. Low-end mobile phones are definitely not allowed to consume, and low-end mobile phones cannot provide profits.
"At present, Warwick is happy to cooperate with us for a long time, but the problem is that our production is very low. According to the current scale, it can produce up to 3 million mobile phone batteries a year, and Guanghuawei's mid-to-high-end models are more than 10 million. So our first step is to increase production."
Meng Qian also considered that it is best to expand fifty times in response to demand.
Fifty times is undoubtedly a big deal, but even so, the annual output is still only about 150 million yuan, accounting for about 15% of the global mobile phone market, similar to the ambitions that Meng Qian had expressed at the beginning. However, the actual demand is even stronger. The two foreign companies, Samsung and Apple, have a total of more than 400 million units.
Meng Qian didn't want to give up the meat that was on his lips, but the problem was: funds.
Zong Yan analyzed internal and external factors, and then gave the current valuation of Fuguo Energy. Although it may be worth hundreds of billions in the future, at present, referring to its production capacity, influence, sales market, Zong Yan gave an estimate of 18 billion to 20 billion as a reference for financing cooperation.
The valuation is not high, mainly because Fuguo Energy has not yet developed.
If you don’t have money, you can’t develop, and if you don’t have money, you won’t have money... Meng Qian was worried about this vicious circle. If he could spend tens of billions to build a factory now, and then sign an agreement with mobile phone dealers around the world to ensure that the value of Fuguo Energy immediately soared by hundreds of billions. But this is a bit far away, so we have to consider reality first.
Meng Qian asked Zong Yan: "What's the negotiation with Warwick?"
The company's frequent contact with Warwick is well known throughout the world. For this reason, the company's scale has expanded to more than 300 people, and more than half of them are from the business department. Not only Warwick, but domestic mobile phone dealers have broken through the threshold, and foreigners have also begun to contact them, and their manpower is far from enough.
Zong Yan replied: "We have reached an agreement on long-term cooperation, and they also accept the price increase. The difference lies in the cost of exclusive cooperation. We offer 1 billion yuan as the price for exclusive domestic cooperation. Warwick pointed out that our current output is no more than 1 billion yuan, and they lose a lot."
The so-called exclusive domestic cooperation can naturally help Warwick kill other domestic brands. They are extremely happy, but they have to pay 1 billion protection fee for it? Fuguo Energy's production is only tens of millions, which is not enough for them to digest. How can they supply it to other brands?
Warwick seized this point and asked for a price cut.
Meng Qian understood: "So at present, if we can prove that the annual output of the factory exceeds 100 million, which is enough to last for Warwick, they will submit?"
Although it is simple, Zong Yan agrees: "They are nothing more than using production as an excuse to bargain. When we supply production from multiple merchants, in order to monopolize the market, Warwick will inevitably suffer."
"It's money to get back the problem." Meng Qian had a headache. Only by cooperating can you get money, but only by having money can you get cooperation... People don't have such a problem.
Zong Yan gave him some pressure: "It will be the same as foreign merchants. We cannot produce enough production, so they will definitely not give an ideal price."
"Okay, do this first." Meng Qian made a plan, "I will consider bank loans first. In terms of financing, I will make the decision. If it doesn't work, I will consider reducing the cost of exclusive supply. All the funds obtained are used to expand the factory, and we will give priority to protecting our weaknesses."
"I know it." Zong Yan wrote it down.
...
Even if the bank can make a loan, the funds provided are limited.
Meng Qian wants to use a huge amount of money to develop, but also wants to be fast - he cannot determine when his opponent will appear. Will the advance launch of this technology cause the butterfly effect of the industry? But it is certain that technology can only dominate within four or five years, and he needs speed.
Speed up the mobile phone battery market, and then use the money you earn to develop power batteries. By the time the competitors appear, most of the market has been occupied by the company, and Fuguo Energy has long been a giant. Giants can suppress mergers and acquisitions, or they can spend money to develop stronger technologies.
So he put his hopes on financing. In addition to financing faster and more, he also has the connections he needs.
The connections are not only for the company, but also for him. For example, if he wants to develop power batteries in the future, as a new energy source that can replace gasoline, it will pose a threat to three barrels of oil and even foreign oil companies. The water in this pool is very deep, and he cannot just have money, but also has a background.
But businessmen are very smart, and the valuation of venture capital companies coming one after another is around 19 billion. But compared to money, Meng Qian values power and connections more. As long as he does not deliberately commit suicide, the company will inevitably stand high. Partners need to combine money and power to accelerate the development of the company.
"It's quite difficult to find a backer with strong background, strong funds, and active cooperation." Meng Qian lay on the sofa and chatted with Gong Hui on the phone.
Gong Hui mentioned: "The initiative is on your side now, and it is the main thing to keep calm. If necessary, foreign capital alliances should also be considered."
"I know everything." Meng Qian knew it, "I just wanted to hear you speak."
"Things have been settled," she said.
"Then I'll feel relieved." Meng Qian said.
She told: "I went back to my parents' home with my child, and planned to live for a while and finish kindergarten in the local area... I miss you very much."
"Come here?" Meng Qian invited.
"But the child needs me." Her words were a little sad.
"It's all over." Meng Qian comforted, "Take care about yourself and your family first. As for me, it doesn't matter, I have so many women."
"I seemed to hear someone stubborn." Her laughter came.
"Really, I just made an appointment with a small model yesterday." Meng Qian turned over and smiled, "I'm very honest."
"How do you feel?" She continued to play with him.
"It's very boring. I can't find your shadow from her." Meng Qian said.
"What's good about me?" she asked.
"Gentleness, temperament, has a taste that attracts me..." Meng Qian described that although she is not outstanding beauty, she is very unique to him.
"The first time I found someone admired me so much." She was happy.
"Are you proud?" Meng Qian chatted with her aimlessly, listening to her voice made him feel relaxed.
...
After relaxing, he made up his mind.
He contacted Liu Jianhao and talked about his brother's affairs.
"I just happened to want to tell you about this." Liu Jianhao was thinking, "I just talked to him last night. Your company is quite awesome. Even foreign news has made headlines, and there are such praises from future giants. He is very interested in you and is willing to talk about cooperation with you."
"Then let's arrange a meeting time?"
"The day after tomorrow, he is a career-oriented man. He has high-quality investments like high-tech and has a hot prospect, and he will not miss it."
Meng Qian said: "I'm waiting for news from Brother Ling."
"Yes, please contact you then." Liu Jianhao said, and the two of them chatted for a few more times and hung up the phone.
Meng Qian was in a better mood, and I hope that brother Liu Jianhao would be very good.
When it comes to partnering, Warwick is also fine, and the funds are very strong, but according to the signs of recent negotiations, they obviously have a bit of taking advantage of the situation. Before the value is released, the offer is not high. This makes Meng Qian a little dissatisfied, and then considers other influences and rule them out for the time being.
Liu Jianhao has a strong family background. Meng Qian also heard a little during several circle gatherings. No one talked too much about whether there are core senior officials, but he was doing well at home and abroad. Without a huge background, it would definitely not work and was also an ideal backer.
However, nothing can be concluded before meeting.
If the other party’s quotation is not ideal enough and the cooperation is not sincere enough, Meng Qian will not consider it. He has high technology in hand and has a wide range of choices. Funds are just one kind. If we talk about the official background, Warwick is not without it. Can a company that can rush abroad do not have government support?
In short, he first looks at the reality. He will choose which mountain to rely on.
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Chapter completed!