Rebirth 99 to become a car giant.

Chapter 441: Buffett’s assist helps BYD get out of trouble early

Car sales are much better than last year, but the stock price is much lower than last year.

After Wang Fu finished talking to Cao Yang on the phone, although his psychological pressure was reduced, he still had a lot of worries.

Especially on the Internet, several articles suddenly appeared criticizing BYD Auto, saying that they blindly engaged in various research and development and launched a bunch of projects, resulting in ugly financial reports.

That's why the stock price keeps falling.

Even last month, Wang Fu himself repurchased millions of Hong Kong dollars in shares, and was questioned as having deliberately suppressed the stock price and repurchased them at a low price.

This made Wang Fu feel miserable and unable to express his feelings.

He even regrets taking the company public.

"Mr. Wang, how about we slow down the investment in research and development related to car batteries to prevent this year's financial report from getting even worse?"

Lu Faxiang, who is responsible for battery research and development, is naturally relatively clear about the company's current situation.

During this period, BYD invested more R&D funds in various new projects than at the same time in history.

It can be said that among all independent brand car companies in China, with the exception of Xingchen Automobile, BYD's R&D investment accounts for the highest proportion of turnover.

Research and development of this kind of thing is not like marketing, where you can see results as soon as you spend money.

The research and development of some technologies often takes many years to produce results.

Then after the results were obtained, several years passed before it was installed on new models.

When I finally saw the effect, I didn’t even know it was a few years later.

Why are many companies in China unwilling to spend money on R&D? Especially during this period, there are really not many companies willing to vigorously engage in R&D.

That is to say, it was not until five or six years later that all parties paid less attention to research and development, and this situation changed.

"Battery technology is the most critical technology for new energy vehicles. Whether it is producing PHEV models or pure electric vehicles, it is inseparable from the support of batteries."

"There are several technical directions for batteries now, and we have no way of determining which one the market will ultimately choose."

"So now whether it is lithium iron phosphate, ternary lithium, or some other lithium batteries, we have to be involved."

"We have to arrange for people to study even nickel-metal hydride batteries to see if they are more suitable for hybrid vehicles."

"With so many projects to be developed together, it will definitely cost a lot."

"If we slow down and are caught up or even surpassed by other companies, the situation will be difficult to handle."

Wang Fu felt that it was still necessary to bite the bullet and continue to spend money on research and development.

This money cannot be saved.

Otherwise there will be no future.

"Judging from the current domestic market situation, it is impossible for new energy vehicles to surpass traditional fuel vehicles in a short period of time, even with policy support."

"We need to wait at least ten years before there are more opportunities."

"The current stock price has been affected by the subprime mortgage crisis and has fallen a lot."

"Coupled with the fact that profit margins are lower than expected, the decline is even more severe."

"Appropriately reducing the R&D investment in batteries should not have a great impact on the company's development."

Lu Faxiang followed Wang Fu's old man, so he often considered issues from Wang Fu's perspective.

Otherwise, as the person in charge of battery research and development, he must hope that the company can provide more funds, the better.

No leader would dislike having too much money and too many people under his command.

"No, Lao Lu, you underestimate the competitive environment in this industry."

"BYD is not the only domestic battery company."

“A few years ago, our battery technology might have been the most advanced in the country, but now it’s hard to say.”

"You must have heard about the situation of Nanshan battery."

"Not only did they successfully mass-produce the FHEV batteries used in the Star Sports Car, they also simultaneously launched technical research on PHEV batteries and BEV batteries, and also had a dedicated trial production line."

"As long as they are willing and as long as there is a market, Nanshan Battery can build new factories at any time to increase battery production capacity."

"At that time, Nanshan Battery's influence will rise immediately."

Wang Fu has a relatively strong sense of crisis.

He is not too worried about other domestic battery companies.

But as for Nanshan Battery, he always felt that it might give him a "shock" in the future.

"FHEV batteries are power-type batteries and have very high requirements for output power under different working conditions."

"After all, the batteries of FHEV models often only have one or two kilowatt hours of electricity."

"In this case, even if Nanshan Battery's FHEV battery technology is relatively strong, the number of batteries actually produced is very limited."

"The amount of battery required for one of our PHEV models is more than ten times that of FHEV."

Lu Faxiang also wanted to find a way for Wang Fu to step down and stop spending so much money.

However, Wang Fu couldn't listen at all, "It's not very meaningful to discuss battery production at this stage."

"What is more important at this time is everyone's technical level and quality level."

"As long as the level in this area is strong enough, any battery company in the future will hope to surpass its predecessors and become the leader in the industry."

"Nanshan Battery is like this, and other battery companies such as Guoxuan Hi-Tech are also similar."

"The advantages of technology require a large amount of R&D funds to be established."

"We cannot reduce investment because of the current pressure. If that is the case, all our previous efforts will be in vain."

Wang Fu had already mentioned this, and Lu Faxiang was naturally speechless.

However, at this time, Wang Chunping, BYD's finance minister, hurriedly came to his office and said angrily: "Mr. Wang, our stock price rose by 5.2% today, which is very abnormal."

“It seems like big institutions are buying our stock in a big way.”

Rising stock prices are generally a good thing, but for listed companies, sometimes they don't want to see large increases and decreases in stock prices.

Because whether it is rising or falling, it means something is going on behind the scenes.

"At this time, someone is boldly buying BYD's shares. Does this mean that the new energy strategy we launched before is beginning to take effect?"

Lu Faxiang looked at Wang Fu and Wang Chunping expectantly.

Although nothing can be seen from the single-day rise, it is definitely a good thing.

Lu Faxiang himself also holds stocks in some companies. If the stock prices keep falling, he will also feel a headache.

"Wang Bu, please find someone to investigate and confirm which institutions are buying our stocks today."

"The financial market is very unstable now. Don't let things go into trouble then."

The stock fell, and Wang Fu was anxious.

The stock has risen, and Wang Fu is also a little worried.

Being a boss is really not easy.

In the next few days, BYD's stock price has basically been rising.

Although it did not rise directly all the way, there were even large sales orders in the middle that crashed the market.

But for several consecutive trading days, BYD's stock rose by more than ten points.

And the mastermind behind this incident has also emerged.

"Mr. Wang, Buffett's investment company took the initiative to find us and wants to sign a strategic investment and share subscription agreement with us to become an important shareholder of BYD."

Wang Chunping's report made Wang Fu very surprised and pleasantly surprised.

Buffett.

This is a god-level figure in the investment circle.

BYD's stock price has fallen to single digits.

If there is Buffett's support, Wang Fu is very confident that it will double, not to mention how many times it will double.

"Has the other party indicated how many shares it wants to subscribe for?"

Wang Fu quickly made a decision in his mind. What he wanted to confirm now was Buffett's investment company. Whether he just wanted financial investment or had other ideas.

How big are their appetites?

How many shares do you want?

Do you have any plans to interfere with the company's operations?

As long as the issues he is worried about are confirmed clearly, Wang Fu can arrange to sign a share subscription agreement at any time.

"Currently, the other party wants about 10% of the shares, and the offer is relatively sincere."

"But the company has never encountered anything like this before, so I'm not sure how to reply to the other party."

Wang Chunping was still in a state of excitement.

This pie came a bit suddenly and quickly.

Even Buffett is optimistic about BYD's future, so what else do he need to worry about?

If the company is willing to spend more on research and development, then so be it.

At worst, if you have no money, you will get a loan.

With BYD's current influence, there is no problem at all in borrowing billions.

"You go and confirm some details with the other party. In principle, BYD welcomes all like-minded investors to become shareholders of the company."

"If the other party is interested, you can also invite them directly, and I will personally share with them the company's future development strategy."

For Wang Fu, this is obviously a once-in-a-lifetime opportunity.

Whether the company can get out of this stage of trouble depends on whether Buffett's assistance is in place.

However, Lang has feelings for his concubine.

In the end, BYD and Buffett's investment must have reached an agreement smoothly.

Even the negotiation time between the two parties was shorter than any previous major equity investment by Buffett's company.

"Mr. Yu, this news is too sudden, I'm going to pin it to the top."

After He Ling received the soft article shared with her by BYD Auto, she immediately found Yu Yu.

As a sensitive editor, she has realized that this news will become a hot market topic in the next few days.

"Is Warren Buffett investing in BYD Auto?"

Yu Yu was stunned for a moment, and then immediately asked: "Have you opened a transfer account in Hong Kong stocks?"

<divclass="contentadv">Obviously, she has realized that BYD Auto's stock price will definitely skyrocket in the next period of time.

Although if you try again today, you will have missed the best opportunity to enter.

But you may not be able to eat meat, and there is definitely no problem in drinking soup.

"There are thresholds for opening a Hong Kong stock account. It's not as easy to open as a domestic account."

"In addition, the domestic stock market has performed very well in the past few years, so I have not thought about buying stocks in Hong Kong."

As soon as He Ling heard Yu Yu's words, she knew what he meant.

BYD's current stock price is very low. Now that Buffett has intervened, the situation must be completely different.

Now is a good time to get it.

Of course, the market has risen a lot, and whether people still dare to buy it is another question.

"That's right. It's estimated that not many people will benefit from this wave of benefits."

"But I think their stock prices should still have room to rise in the next step, so you can consider buying some."

Yu Yu's current income is not low. To a certain extent, he can be considered financially free.

At this time, it is natural to consider some issues of financial investment.

For ordinary people, apart from buying a house, the easiest thing to do is to buy stocks.

Although the stock market has been very hurtful this year, after the sharp decline, it means that new opportunities have arrived.

"Well, I'll find a way to buy some when the time comes."

He Ling was naturally a little moved when she saw that Yu Yu was so optimistic about BYD's changes.

Who doesn’t want to make more money?

"Mr. Yu, then I will arrange this news in the most prominent position first?"

"Buffett has taken a fancy to China's independent brand car companies, which is a good thing for China's auto industry."

Although China's automobile industry has developed rapidly in recent years, and independent brands are also very competitive, many people still lack some confidence in independent brands and want to prove that they are no worse than others through various means.

He Ling had this idea more or less.

"Well, let's make arrangements quickly."

"With this opportunity, we can once again hype the future strategies of BYD and Xingchen Motors, and link Buffett's investment with this future strategy."

"It can even be said that if Xingchen Auto had not been launched, Buffett would have given priority to Xingchen Auto."

Yu Yu would not want to miss any opportunity to increase exposure for Xingchen Automobile.

What's more, this matter does have something to do with Xingchen Automobile's future strategy.

It is not impossible to create a relevant topic and report it well.

However, compared with the performance of Autohome, some car companies seem a bit sour.

In particular, Great Wall Motors, which is also listed on the Hong Kong stock market, has a complicated mood.

"Lao Zhu, do you think Buffett will invest in BYD? What is the most important thing about the other party?"

"Purely looking at sales, our sales of Great Wall Motors are no worse than BYD's."

"In terms of brand heritage, Great Wall Motors is better than BYD."

"But the other party chose to invest in BYD instead of Great Wall Motors."

Wang Ying frowned and looked at Zhu Jianbo, thinking about something in her heart.

"Mr. Wang, judging from the current situation, Buffett should be optimistic about BYD's long-term development prospects, so he has the current equity investment."

"For American investment institutions, fuel vehicles are doing very well, but they may not be as good as General Motors and Ford."

"So when they are looking for potential investment companies, they like to find companies with concepts that they can promote."

"That way it is easier to speculate and allow the stock price to achieve rapid growth in a short period of time."

"I think BYD should have met Buffett's expectations in this regard, so it made corresponding investments."

"For example, the F3DM launched by BYD this year has no competitiveness at all on the market, and few consumers will choose to buy it."

"But if you put it in the stock market and in front of Buffett, the situation may be different."

"People may think that BYD is ahead of many companies in the new energy field."

"They may even feel that BYD's management team is more forward-looking and has started investing in new technologies early."

"But these things are actually the moon in the water and the flowers in the mirror. They are unreliable."

"The domestic new energy market is indeed promising, but it is definitely not something that will happen in ten or eight years."

"Especially now that with the addition of Nanshan engines and Nanshan gearboxes, the core component technology that has been plaguing the development of China's independent brand car companies has been broken through."

"Those international automobile giants no longer have any advantages in this regard."

"So for the promotion of new energy vehicles, everyone's enthusiasm is not necessarily that high."

Zhu Jianbo had previously denied BYD's new energy strategy in front of Wang Ying.

So now even a relatively objective analysis can't help but explain in an unfavorable direction.

"What you say makes sense, but sometimes people in the financial circle, as a third party, may see things more clearly."

"No matter when new energy sources have a future, their emergence will have a great promotion effect on stock prices."

"From this perspective, it is also necessary for us to conduct research on hybrid vehicles and even electric vehicles."

Wang Ying's original attitude was still a bit wavering. She didn't know whether Great Wall Motors would invest heavily in new energy-related parts.

But Buffett's unexpected assist to BYD Auto made Wang Ying's attitude firmer.

If Great Wall Motors wants to develop, hybrid and electric vehicles cannot be given up.

It is not necessary to launch relevant models so soon, but it is necessary to start the technical reserve work in advance.

"If we consider this issue purely from the perspective of stock prices, it is indeed necessary to do something about it."

"At least in terms of publicity, we must make it appear that we are seriously researching new energy-related components."

Zhu Jianbo will definitely not object to the company increasing investment in research and development.

However, in his heart, he also feels that the future of new energy vehicles is still relatively limited.

There are still too many problems waiting for the entire industry to solve, and there is no hope in the short term.

"Assign people to sort out the situation related to new energy and do a good job of preparation and analysis in this area."

"I will also report to the chairman at that time to see what his opinion is."

Regarding issues related to the company's future development strategy, Wang Ying certainly has no way to make a direct decision.

In the end, you still have to listen to what your boss wants.

While Great Wall Motors was struggling with this matter, the situation at Spring City Motor Group was completely different.

"Mr. Zhu, Nanshan Hongqi has basically completed the establishment of a new organizational structure, and plans to launch three SUVs and two sedans in the future."

"However, according to previous thinking, these models are all fuel vehicles."

"But now Xingchen Motors has launched an FHEV strategy, and BYD has also launched a PHEV strategy."

"Even because of the emergence of BYD's PHEV strategy, stock investor Warren Buffett also took the initiative to come to the door and want to invest in BYD."

"It shows that the capital market is very optimistic about the hybrid vehicle track."

"Over in the United States, those in finance are the smartest people."

"They are all optimistic about the market, and I think Nanshan Hongqi also needs to follow suit."

Tao Wen's point of view was very simple and direct, and Zhu Zhengfeng couldn't help but nod after hearing it.

"New energy vehicles represent the future. Nanshan Group has the technology in this area. We can indeed enable Nanshan Hongqi to keep up with the pace of industry development as soon as possible."

"However, Nanshan Group's FHEV system is designed for luxury cars, and the related requirements should be relatively high. I'm afraid it may not be suitable for us."

Zhu Zhengfeng is also self-aware.

Let Nanshan Group use the hybrid system used in the Xingkong Sports Car for use in Hongqi Car. Regardless of whether the other party is willing, even if it is willing, the price of Hongqi Car cannot afford this system.

After all, except for a few special models like Dahongqi, other models still want to take the mid-range route, so as to increase sales.

Otherwise, we always produce small batches of particularly high-end models, which is good for brand marketing, but don’t think about making money.

"Hasn't Toyota already announced the patent for their first-generation FHEV system?"

"I think when the time comes, models on Nanshan Hongqi can consider using Toyota's FHEV system, and let Nanshan Auto Parts supply us with parts based on this system. It should not be a big problem."

"After all, they can produce more complex parts."

"For the relatively simple FHEV system used in Toyota vehicles, there is no reason why Nanshan Auto Parts cannot produce it."

In response to Zhu Zhengfeng's question, Tao Wen quickly gave his own solution.

Not to mention, this plan still sounds very feasible.

"Mr. Cao and I will have a discussion first and decide on the general direction, then we will see how to implement it."

"However, the most important thing now is to ask Mr. Cao to help design the appearance of several cars as soon as possible."

"I'm a little worried that someone else designed it."

Zhu Zhengfeng is willing to take out Hongqi sedan as a joint venture with Nanshan Group, and also acknowledges that Nanshan Group has made more profits through parts and components.

There must be a plan.

Cao Yang helped design some models of Nanshan Hongqi, which was one of the conditions.

At the very least, Cao Yang will help design an SUV and a sedan.

By then, Nanshan Hongqi, which has two flagship products, will have no pressure to achieve annual sales of more than 20.

For Zhu Zhengfeng, that is already a very good result.

All the concessions made before can withstand scrutiny in the face of this achievement.

Otherwise, Zhu Zhengfeng will also have a headache when he is accused of losing state-owned assets.