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Chapter 615: Investing in BYD?

Neon country Kyoto.

Panasonic Group.

After Gu Benmoo sent Zheng Yuzhe away, he called the villager Kunio.

"Good afternoon Ju Sang, I already know about the lithium mine. If we want to regain the market from Kirin, then we must persist. Temporary losses in order to regain the market are acceptable."

"Mr. Muranaka, as long as your company can persist, I have nothing to worry about."

"Ju Sang, we are comrades on the united front, and we will persevere no matter what."

"In that case, I won't bother you any more."

"Thank you for your hard work, Ju Sang, let's stop talking here."

After Murakami Kunio finished speaking, he hung up the phone.

Muranaka Kunio picked up the report on the table and looked at it carefully. They needed to lose 1.2 cents for each battery.

It is still acceptable to bite the bullet and accept this loss. A temporary loss is better than the collapse of the entire business.

Loss-making business strategies are very common when companies are doing business in the market.

This kind of thing is very common in later generations. The well-known Goudong, Didi, Pinduoduo and Ruixin Coffee, who invited us to drink coffee from Dingtao Guorenyang.

These are classic examples of seizing the market through loss-making operations.

In fact, the manufacturing industry in this era would not lose money, nor would there be such a loss-making business strategy, if Cao Mang had not appeared with a new type of cobalt-free battery.

These battery manufacturers will not adopt this loss-making business strategy.

After reading the report, Muranaka Kunio pressed the quick dial button on the landline phone.

"Prepare a car for me. I'm going to Panasonic Manor to meet the president."

Although he is the CEO of Panasonic, he still has to explain to Panasonic Shinnosuke about operating at a loss.

...

No. 3009 BYD Road, Pingshan District, Shenzhen City.

BYD headquarters.

After Kirin's cobalt-free batteries were launched, BYD's battery market share dropped sharply, and Wang Chuanfu chose to OEM for Kirin.

Although the profits of OEM for Kirin batteries are much less than when they produce and sell them in-house.

However, this approach also saved Wang Chuanfu a lot of worry, as he no longer had to worry about battery business issues.

At this point, Wang Chuanfu focused all his attention on building cars.

However, Wang Chuanfu's life has not been very good recently. There are two reasons why Wang Chuanfu's life is not very good.

The first reason is that the price of battery raw materials has increased, which has also led to an increase in their manufacturing costs. As costs rise, profits will naturally shrink.

Although BYD's battery raw materials are purchased domestically, as international prices rise, domestic prices also rise, which also makes Wang Chuanfu suffer the loss of no mineral resources.

The second reason was brought about by BYD. After Wang Chuanfu concentrated on making cars, he invested a lot of money in car research and development. However, the sales of BYD cars were not satisfactory.

This also caused BYD Auto to suffer serious losses.

The funds he uses to run BYD basically come from BYD batteries.

The decline in battery profits has also indirectly led to problems in BYD Group's capital chain.

Wang Chuanfu looked at the report on the computer and felt worried.

"It's better to call Lu Guanghua to discuss it." Wang Chuanfu muttered after closing the report.

As he spoke, he picked up the landline phone on the table and called Lu Guanghua.

"Ling ring ring~"

Before the call was dialed, his cell phone rang.

Wang Chuanfu glanced at the Kirin mobile phone on the table and put down the phone when he saw that the caller was Lin Dongze.

"Mr. Lin, what's the matter?" Wang Chuanfu asked with a smile after answering the phone.

"Mr. Wang, there are two things I want to tell you when I call this time. The first thing is that we plan to increase the production of Kirin mobile phones. I have already negotiated with Foxconn.

But our chairman didn’t want to cooperate with Foxconn, so I thought of BYD, and I hope BYD can take over this task," Lin Dongze said.

Wang Chuanfu didn't know whether to cry or laugh when he heard Lin Dongze's words.

It is a good thing for BYD that Kirin Group once again sends them orders, but BYD's foundry is already at full production and there is no way to create more production capacity for Kirin Group.

(It should be noted here that BYD is still manufacturing mobile phones and computers for Kirin Group.)

"Mr. Lin, it's not that we don't want to take your order. The production capacity of the foundry has been fully arranged, and now we are working in three shifts. I want to take your order, but there is no way." Wang Chuanfu said with a bitter smile.

"Mr. Wang, haven't you ever thought about expanding production? Our orders will only increase in the future. I hope your company can expand production to take our orders," Lin Dongze said.

It's not that he hasn't thought about expansion, but BYD doesn't have enough funds on hand.

Wang Chuanfu used his equity as collateral to borrow money to produce their self-developed hot-selling car F3.

BYD launched a car in September 2005. This is their first model that is truly recognized by the market, the F3.

Many colleagues found that this sedan equipped with automatic air conditioning, leather seats, sunroof and navigation was simply a replica of the Toyota Corolla (i.e. coro), which was a hot model on the market at that time.

The difference is that the starting price of the F3 is only 79,800 yuan, which is almost half that of the Corolla.

BYD currently does not have enough funds on hand to expand its factory.

"Mr. Lin, it's not that we don't want to expand production, but we have limited funds on hand." Wang Chuanfu said helplessly.

"Mr. Wang, how about this? You split the BYD OEM factory, and Kirin Electronics invests in the OEM factory, so that the BYD OEM factory can expand." Lin Dongze said.

Wang Chuanfu was stunned when he heard Lin Dongze's words.

Wang Chuanfu did not expect that Lin Dongze would propose such a plan. This plan was not unacceptable to him, and the advantages of this plan outweighed the disadvantages for BYD.

"Mr. Lin, I will find an accounting firm to evaluate the foundry. We will discuss the shares after the evaluation is completed." Wang Chuanfu thought for a while and said.

"Mr. Wang, if you believe me, I will ask Qilin Accounting Firm to evaluate it and we will implement this matter as soon as possible." Lin Dongze said.

"No problem." Wang Chuanfu replied.

Although Qilin Qilin Accounting Firm is Qilin's company, he believes that Qilin Accounting Firm will not lie to him. After all, Qilin Accounting Firm does business publicly.

Accounting firms are all about reputation. If your reputation is ruined, who will come to do business with you?

"Mr. Wang, I want to tell you the second thing next. The second thing is about employees..." Lin Dongze told Wang Chuanfu what Cao Mang told him in the morning.

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