After understanding this, you should know that don't be deceived by the name "Goldman Sachs". This Kevin is the kind of guy who collects "Investment Project Documents" everywhere. They collected 10,000 copies, and only 10,000 of them were able to get investment from Goldman Sachs.
There were only more than 200 projects, and only seven or eight projects were successfully IPOed in the end?
Imagine what the probability is? Is it just like winning the lottery?
And during the communication, Li Yuan also discovered that this Kevin knew nothing about his identity?
There is a saying that Li Yuan is known to everyone? That is definitely a bit exaggerated. But in a place like Wall Street in Silicon Valley, at least he is not an unknown person, right?
After all, Li Yuan is the kind of rich man who can be on the hero spectrum. Kevin doesn't even know this. He has never even done a back-up job for Phoenix New Energy. He doesn't know that Li Yuan is the boss of this company?
It can only be said that Kevin's level is really too low. To be honest, he is not as well-informed as the staff at the BMW Museum.
However, at this time, Kevin still maintained the arrogance of the Wall Street elite. He did not realize that Li Yuan had already figured out his details.
"Li. If you are willing to accept our Goldman Sachs assessment and agree to our capital injection, we will work together to promote Phoenix New Energy to be listed on the New York Stock Exchange, and you may also become a multi-millionaire in China. Goldman Sachs has huge power on Wall Street and has close cooperation with
The governments of most countries have good relations. Once we can join hands, we may be able to create a new wealth myth..."
Okay! Multimillionaire! This number is so touching!
but……?
Li Yuan suddenly thought that when it comes to financing, the photovoltaic industry does not need it at all now. In just a few years, silicon wafers will be converted from monocrystalline silicon to polycrystalline silicon, and the production cost of polycrystalline silicon will also increase from the current 1,000 yuan per kilogram (
Laboratory products, which are currently not produced in factories), dropped to 50,000 per ton.
In the research institute of Phoenix New Energy, the research and development of polysilicon has already begun, and a pilot production line is being built. Moreover, the pre-production capacity of the first phase of the factory is 6,000 tons, and the third phase of the vision is 43,000 tons?
In the near future, the market price of polysilicon will reach 255,000 per ton? And will this price continue for more than 10 years?
In other words, the sales of polysilicon alone are expected to generate an annual net profit of more than 5 billion?
Not to mention, there are also Phoenix brand photovoltaic products?
Among the Phoenix Group, there are also solar water heaters, shale oil and gas exploration, the Zhuque No. 1 project...
Taking a step back, even if it only relies on solar water heaters and the energy storage reservoir of Zhuque No. 1 to generate electricity, it can guarantee income every year despite droughts and floods. Phoenix Group has formed a very healthy capital cycle.
To be honest, the early cash burn has long since ended, and the Phoenix is about to soar into the sky. At this juncture, do we still need financing? Only if we are confused, can we share profits with investment banks like Goldman Sachs?
But having said that, Phoenix is indeed no longer needed, but Qinglong is so hungry and thirsty?
In the original historical line, when it comes to electric vehicles, Tesla is definitely the most popular one.
But it will have to wait until next year for Tesla to be established in the United States. It was co-founded by Martin Eberhard and Marc Tarpenning.
In 2005, Tesla released its first electric sports car, the Roadster. As Tesla's first model, the process was full of difficulties. There were problems with the gearbox in the early stage of development and mass production costs in the later stage. Deliveries began in 2008, and Tesla had to start at a low price.
It was sold at cost price, but the market didn’t buy it.
By this time, Tesla had been burning money continuously for five years. It was unknown how many U.S. dollars had been burned, which made the company's burning eyes dark. Even this money-burning process is still far away, and there is no way to know where it will end.
The day is coming to an end. What's even more frightening is that even the company's money has been almost completely burned.
At this critical moment, fortunately Musk reached out to help.
In 2008, Musk became the CEO of Tesla. Daimler spent US$50 million to acquire 10% of Tesla's shares, and Musk contributed another US$60 million. Soon after, Tesla received a low US$465 million from the US Department of Energy.
The money brought Tesla back from the brink of bankruptcy. After surviving the most difficult moment, Tesla was successfully listed on Nasdaq in 2010, becoming the only pure electric vehicle manufacturer listed in the United States.
And raised a lot of money in the stock market.
In 2009, Tesla released its second car: Model S, a luxury four-door electric sedan. It was delivered in 2012 and achieved great success in terms of market and reputation.
However, it is not over yet. Tesla's development process is still bumpy and bumpy, and it has been looked down upon by the market more than once. Is it because the electric vehicle market is not perfect and cannot reduce costs at all, and it still continues to burn money year after year?
It has even been warned by the market many times that Tesla only has a few months of funds left and will soon face bankruptcy liquidation.
Maybe many people have no idea. At that time, Musk was also traveling around the world, giving interviews and publicity to various media outlets, and was so anxious that he almost cried, just to enhance the confidence of investors.
It seems that in the 1920s, Musk is still running around, and now he is the richest man in the world, with unlimited glory.
Why is this happening? The main reason is-Modu Super Factory!
At that time, in 2018, the Shanghai government gave Tesla a large piece of land for free, and completed the entire process of construction, installation, production, etc. within one year. And relying on the complete domestic supply chain, it completely released
Tesla's production capacity and rapid reduction of production costs.
This finally saved Tesla’s fate!
Did you find it?
The success of electric vehicles has a long-term process.
Not only does it require government support (the U.S. Department of Energy), but it also requires long-term financing and money burning (from 2003 to 2018). In a full fifteen years, a huge amount of U.S. dollars were burned!
The same is true for domestic BYD.
BYD has always taken OEM battery products as its main business, and has become the world's second largest mobile energy supplier. It has made huge profits through the popularity of mobile phones and other electronic products.
In 2002, BYD was listed on the Hong Kong Stock Exchange, setting a record for the highest issuance price of 54 H-shares.
However, after suddenly receiving such a huge sum of money, the poor suddenly became rich and did not know how to spend it. (Laughing and crying)
It just so happens that the national strategy supports the development of electric vehicles and provides huge subsidies.
Many domestic automobile manufacturers have taken notice of this and have entered the field of electric vehicles with thousands of troops, just to... cheat on subsidies. Ahem.
There is no need to hide this. At that time, there was indeed the idea of defrauding subsidies. So BYD believed that the risk was not high. Anyway, the batteries were produced by itself. With state subsidies, it would not lose money at all.
Of course, it must be painful to burn money, so we found some external investors, such as Mr. Warren Buffett, to support BYD's continuous money burning.
It’s also state support! It’s also constant financing!
Tell the truth!
At the beginning, the field of electric vehicles was viewed as a joke, and almost no one thought that this project would be truly successful. The only possibility was a gasoline-electric hybrid, which would only save a little fuel.
And when it comes to the development of car models, it means burning money with eyes closed, and there is no way to save money at all.
For example, Li Yuan’s Qinglong Group.
At present, the group has two major businesses: Qinglong mopeds have reached an annual sales volume of 550,000 units, which has basically recovered the investment, and maintains an annual gross profit of about 20 million.
But Qinglong Automobile?
The annual research and development cost is 450 million. And they continue to invite foreign aid and hire European and American automotive experts at high prices. For example, this time I went to BMW headquarters and outsourced it to BMW to design the shape of the sports car and purchase the chassis. It cost all of a sudden.
Lost 6.3 million euros of money.
Just like Tesla and BYD back then, they were burning money and they didn’t know how many years it would take.
In this case……?
…
Li Yuan rolled his eyes, causing Gu Yuqin beside him to be stunned for a moment - is this man thinking of something bad again?
"Haha, Kevin. I have a better project here. I wonder if you are interested in it?"
"A better project?" Kevin was a little surprised, "Sorry, isn't it you, Phoenix New Energy?"
"Phoenix New Energy is also good. However, the photovoltaic industry has obvious advantages and obvious disadvantages. On the one hand, the electric energy is unstable and has a small scope of application; on the other hand, the electricity price is relatively high, making commercialization more difficult. Therefore, government subsidies must be
.”
"Oh." Kevin nodded. Since he came to this exhibition to find customers, he still has a certain understanding of the photovoltaic industry. "Li, because of this, you need IPO financing to obtain as much funds as possible to expand production."
.And clean energy happens to be the latest hot topic and is easy to win the favor of investors?”
"Haha, have you ever thought about it? Government subsidies? China is a country poor in oil and gas energy and needs to vigorously develop various new energy sources. And we need more... government subsidies! Huh? Do you understand?"
"Oh!" With such an obvious hint, Kevin immediately had an idea - government subsidies? Of course it's the Chinese government! So there should be some obstacles to listing on the New York Stock Exchange... right?
"Okay! Then keep in touch. But the new project you just mentioned...?"
"Haha. I have Qinglong Automobile, which is a pure electric vehicle project."
"Pure electric car?"
"Yes! You should know about the future of electric vehicles, right? And as a commodity, photovoltaics are large-scale projects, and each country has its own products, so the market prospects are limited. Even if we develop well in the future, part of it is in China
, and then export a part of it, the proportion is just that, and you can see the end at a glance. But what about cars? This is a blue ocean market that no one has developed. If successful, as long as it can replace part of the fuel vehicles, it will immediately bring huge revenue.
profit……"
"Wait a minute, Li." Although he is a small role on Wall Street, Kevin is not inexperienced. There are many people who go to Wall Street to deceive investors with a PPT. "Li, I would like to ask, what are you talking about?"
Qinglong Automobile, have you produced any finished products?”
"Let me give you a comprehensive introduction. In fact, I own a Qinglong Group in China. The mature product now is electric bicycles, and last year's annual sales reached nearly 600,000 units."
"Huh? 600,000 units?" Kevin was startled. For foreigners, this number is quite exaggerated. Of course, in Li Yuan's eyes, this sales volume is just that.
"...I also own a Chinese listed company - Nanfu Battery. It currently ranks first in domestic battery sales, and has started the research and development of lithium batteries. In the future, it can be used for mobile phones and electronic products, as well as electric bicycles.
and the field of electric vehicles. My automotive department has developed the first generation of pure electric vehicles and is now developing the second generation. And this time in Munich, I have reached a strategic cooperation intention with BMW and will jointly develop a new generation of pure electric vehicles in the future.
Electric sports car…”
Kevin was already dumbfounded. If this young Chinese man wasn't bragging...then he was bragging!
How could Kevin not have such imagination? How much financial resources would it take to achieve such a whole industry chain?
"Sorry to interrupt! Li, may I ask you...are these all true?"
"Huh?" Li Yuan smiled and pretended to be stupid, "Kevin, are you doubting my energy? Okay! You should have heard of me, right?"
"Ah? Excuse me...?" Unknowingly, Kevin had started to use honorifics.
"What? I also have a company listed on NASDAQ in the United States..."
"ah?"
"You should have heard of it, it's Parallel Line Technology!"
"ah?"
Kevin couldn't help but jump up: "So... So you are that Li A?"
"Haha. Do you understand now? There is no need for me to exaggerate to you."
"Sorry, sorry, I didn't, it's not me." Kevin was already incoherent. He didn't expect to cast a net in this exhibition and catch such a great person. His heart suddenly jumped up, "Li, that's great! We at Goldman Sachs welcome you.
You cooperate. Don’t you know that Qinglong Automobile of yours...?"
"I haven't prepared a complete project plan. Give me a business card! I'll have someone contact you as soon as possible."
"No, no, no!" Kevin said quickly, "I will report to the headquarters in person. I hope you will allow me to go to your company for on-site investigation?"
"Of course there is no problem. But there is one thing that needs to be stated in advance - we have restrictions on investment in China. For the automobile industry, the proportion of foreign investment cannot exceed 50%?"
"Haha, please don't worry. We at Goldman Sachs are just an investment bank. We are not interested in running a business."
"That's good!"
"..."
After leaving his contact information, Kevin said goodbye happily. He also happily accepted the invitation and got a few tickets for the game. In a few days, it happened to be the Champions League match between Sheffield United and Bayern Munich.
Of course, the reason why Kevin is so happy is not because of the game, but because of the opportunity given by Li Yuan.
If such a project can be successfully completed, Kevin's promotion and salary increase will definitely not be a dream.
For investment banks like Goldman Sachs, although the investment ratio is only 2%, it depends on the person. If it is a technology upstart like Li Yuan, investment banks are still very interested.
Many times, investment banks don’t look at projects, they look at people!
