Chapter 831 ATL
He found that foreign giants occupied the mainstream round/square battery market of lithium batteries, and it was difficult for start-ups to survive.
A popular Nokia mobile phone is equipped with a Sony polymer battery, which is thin, short, and easy to carry.
The most important thing is that this technical route can be flexibly packaged to meet the needs of electronic products of different sizes, and is especially suitable for lightweight and customized design.
There were thousands of electronic products at that time, and it was extremely uneconomical to design batteries for each product individually, whether in R&D or production.
This technical route actually solves the problems in both production and demand directions to a certain extent.
So why didn’t the giants choose this route?
Lao Zeng didn’t think about it at first, but they soon figured it out.
The patent parties that mastered similar routes at that time were Sony of Japan and Bell Labs of the United States.
He went to the United States, bought a license from Bell Labs with $1 million, and returned to Dongguan happily, ready to start production.
What disappointed him was that the technology was flawed. The internal materials would decompose and release gas and expand, posing a possible risk of battery explosion.
Old Zeng immediately contacted the experts from Bell Labs, but the answers from the old and American experts soon made him understand the differences in the capitalist world.
What, there is something wrong with our patent?
Of course there is a problem. If there was no problem, we would have done it ourselves. Is it your turn?
What, refund?
We have licensed it to more than 20 companies, and our main focus is to be able to trick every one of them.
You will be unlucky if you encounter one.
Losing money?
Even if God comes!
Sue me?
casual.
In our business lawsuit, it doesn’t cost hundreds of thousands of dollars, and it doesn’t take a year or two to come to a conclusion?
Go ahead and sue.
Even if I agree, I will accompany you for one million US dollars, which may not be as high as the legal fees.
This picture of a dead pig that is not afraid of being scalded by boiling water made ATL both disgusted and angry.
You must know that when ATL was established, its own capital was US$2.5 million.
40% was lost all of a sudden, and I felt so distressed.
But the technology cannot be used, and the money will not be returned.
Is it going to be wasted?
Old Zeng was unwilling to give in. He gritted his teeth and stamped his feet.
We do it ourselves.
In this way, he led ATL technicians to study day and night for half a month, and finally discovered the flaw in Sony and Bell Labs patents:
There was a problem with the electrolyte formula.
How about Lao Zengniu?
It’s not surprising to find problems. What’s great is that people can solve them.
He developed 7 formulas by himself and contacted the electrolyte factory to try them one by one.
A working battery was quickly built.
He solved the problem that more than 20 large and small battery manufacturers at home and abroad failed to solve.
Soon, with its flexible packaging process, ATL occupied a place in mobile phone batteries.
In 2001, the company's shipments reached 1 million cells.
In 2002, it achieved profitability and gradually became regular.
So, the second question arises: What to do with funds to expand production?
The best way for technology companies to get money is through venture capital.
ATL does the same thing.
From 2002 to 2003, ATL conducted two rounds of financing, A and B.
Wanwan Handing, Laomei Carlyle, European 3i Group, and Hanhua Mars 4 Fund have all become early investors in ATL.
In 2004, ATL, which was booming, received an order from Apple to provide batteries for the iPod, which later became a hit.
However, the consumer electronics market in 2004 was already a red ocean.
The profitability of downstream electronics companies continues to be poor, and midstream battery companies are also involved.
By 2005, the directors of Carlyle Investment made a survey and found that some competitors, including Pengcheng BAK Battery, BYD and Nanfu, were better than ATL in terms of price and other aspects.
Do you want ATL to continue rolling?
As competition in the lithium battery industry becomes increasingly fierce, the possibility of the rise of medium-sized companies like BYD and ATL is getting smaller and smaller.
If you spend more money, you are likely to lose money.
If it goes public, ATL will be valued at only US$100 million, which is still some distance away from going public.
So in addition to Hanhua, Handing, Carlyle and 3i Group all requested to withdraw and withdraw funds.
Under Xu Liang's instruction, Torch Group defeated Zeng Shuyu's old club, Japan's TDK, and fully acquired ATL for US$120 million.
Of course, without his intervention, Japan would have made a huge profit very quickly after fully acquiring ATL.
Under the leadership of Lao Zeng, ATL developed rapidly and quickly acquired a series of customers such as Samsung, Huawei, VIVO, and DJI.
In 2007, China began to support the new energy vehicle industry with subsidies.
In 2008, taking advantage of the Olympic Games, the authorities used policy + finance to promote new energy vehicles.
Lao Zeng is keenly aware that new energy vehicles will bring huge business opportunities to the lithium battery industry, and the power battery market has a broader prospect.
However, China’s subsidies for new energy are definitely aimed at its own interests.
In 2011, the above issued the "Catalogue for Guiding Industries for Foreign Investment", which clearly restricted the production of automotive power batteries by wholly foreign-owned enterprises.
This national policy directly contributed to the birth of the Ningde era.
Lao Zeng decisively used his influence to lead the ATL power battery sector to become independent and establish a new company in his hometown of Ningde, and named it "CATL Era" after his hometown.
Thus, the world's largest power battery manufacturer was born.
The reason why Xu Liang still acquired ATL after having Nanfu, the alkaline battery overlord and the small lithium battery giant, was because of the talent of Zeng Shuyu.
Only he can lead Torch Group to become a true global auto parts giant.
Xu Liang picked up the teapot prepared on the table, poured two glasses of water and handed it over. Lao Zeng took it rather flattered.
After the five flavors of tea have passed through.
"Old Zeng, how do you think about the future of ATL?"
Zeng Shuyu has thought about this issue many times.
"Mr. Xu, I think we should integrate Nanfu and ATL, bring together the strengths of both companies, and compete with lithium battery giants such as Samsung and Sony in the field of lithium batteries."
Xu Liang nodded. , "Have you considered that if the two companies are integrated, in a new environment, I'm afraid it will be difficult for you to do research and develop the company as you like in ATL."
Zeng Shuyu was silent for a while, "Mr. Xu, no matter what the outcome is, I will make suggestions that I think are right.
If the consequences of this suggestion are not ideal, I will submit a resignation report to the head office myself."< br>
“You are very frank.” Xu Liang smiled.
“I can’t lie in front of you, and there is no need to lie.”
Xu Liang nodded, “If you were asked to be the CEO of Nanfu, what would you do?”< br>
"Then Chen Laimao...?"
Xu Liang interrupted him with a wave of his hand.
“Don’t worry about this for now, I just want to hear your suggestions, or corporate strategies.”
Zeng Shuyu did not hesitate, “We focus on product research and development, and gradually build our own Patent option pool, develop better lithium battery products
In terms of market strategy, we will gain profits based on the rapidly growing domestic consumer electronics market and compete for orders from Apple, HP, Dell, General Motors and other companies.
< br>
Strive to become one of the top five lithium battery giants in the world within five to ten years. "
"The goal is very good, but how are you going to deal with the competition from lithium battery giants such as Samsung, Sony, Panasonic, and Sanyo? "
"Mr. Xu, although Samsung, Sony, Panasonic and Sanyo are lithium battery giants, their main business is consumer electronics. In terms of corporate priorities, lithium batteries lag behind.
Let me give you an example.
After the Asian financial crisis, global demand for battery products plummeted, and battery prices at that time fell by 20-40%.
Panasonic, Sony, Sanyo, etc. were affected by the economic crisis and they focused more on their main electronics business.
At the same time, based on various considerations such as profit and economy, orders were placed with domestic companies such as BYD, ATL, Nanfu and Sunwanda.
Although there has been some recovery after the crisis passed.
However, the priority of the lithium battery business of these consumer electronics companies is naturally not as high as that of professional lithium battery companies like us.
Nothing can be seen in the short term, but as the market continues to develop and competition becomes more and more intense, companies such as Panasonic and Sony will gradually fall behind.
The companies that can really compete with us are those companies that have invested heavily in lithium batteries, such as BYAT and Samsung. "
Xu Liang nodded.
"The analysis is very good.
I can rest assured when I leave the company to you. "
Seeing Zeng Shuyu hesitate to speak, Xu Liang continued with a smile.
"Do you know why Torch Group acquired ATL and not Hongyan or Hanhua?"
Zeng Shuyu shook his head.
“The strategic business of Torch Group is the auto parts industry.
But the auto parts industry for internal combustion engine vehicles has been eaten up by foreign giants.
Even if Torch invests heavily in research and development, It is also difficult to catch up with each other in a short time
So, I want to bet on electric cars. "
Zeng Shuyu suddenly realized.
"You plan to let ATL vigorously develop vehicle power batteries? "
Xu Liang nodded and said with a smile: "Not just the power battery, but also the motor and electronic control.
In the future, the R&D and production of Sanden will be the unquestionable core business of Torch Group.
And batteries are the core of Sandian’s business.
I need a very good person who understands both battery research and development and has management skills to take charge of this business.
This person is you! ”
Looking at his affirmative eyes, a wave of heat rose from Zeng Shuyu’s heart.
The feeling of being valued and trusted is always so heart-warming.
However, despite being excited, he still remained calm.
"What about Chen Laimao, Mr. Chen...?"
"I have decided that after integrating Nanfu's lithium battery business, ATL will be merged into the Torch Group as a whole.
< br>Nanfu retains its alkaline battery business and continues to have Chen Laimao as CEO, and will choose the opportunity to be listed on the Hong Kong stock market." Xu Liangdao.
Originally, he planned to merge Nanfu's alkaline battery business into Torch.
But Chen Laimao is really difficult to arrange.
Not only is he the founder of Nanfu, he has been working hard on research and development in the past few years, and has made the company prosperous, and is quite prestigious within Nanfu Battery.
If you force him away, push Zeng Shuyu up.
It will also cause division among employees within the two companies.
There will inevitably be endless internal fighting.
(End of this chapter)