Chapter 1801 Negotiating Profits
"Then, Mr. Du, what conditions do you think are most suitable?"
Chang Zishan crouched down and turned to look at Du Ye, but did not sit down, as if she would leave immediately if she was not satisfied with the answer.
"A 1.5% profit split, what does Mr. Chang think?"
Du Ye spoke up.
Upon hearing Du Ye's reply, Chang Zishan sat down again.
"Mr. Du, although this condition does not meet my requirements, it is at least sincere, so we can continue to discuss it."
Chang Zishan smiled and said that the other party had just offered 100 million yuan to buy out their battery technology for a year, which was completely treating them like fools.
However, it's definitely impossible for her to get 5% of the profit; that's already exceeded the other party's bottom line.
A buyout is out of the question; what she needs is a share of the profits. A phone with an ultra-long battery life is very attractive to customers.
She believes that once this phone is released, it will definitely attract many buyers, and at that time, the revenue from the phone will certainly be very high.
If the profits are split, it will definitely be a considerable amount.
"What conditions does Mr. Chang want? Don't talk about 5% profit anymore, that's simply impossible."
Du Ye asked.
"How about I get 3.5% of the profits?"
Chang Zishan didn't think much of it and spoke directly.
Upon hearing this, Du Ye did not answer immediately. After pondering for a moment, he asked.
"Mr. Chang, how does the cost of this new battery technology compare to that of a normal battery?"
"The cost of new energy batteries is 20% lower than that of normal batteries. Is Mr. Du satisfied?"
"You didn't lie to me?"
"Mr. Du, I have no reason to lie to you. We will be the ones supplying the phone batteries later. If I lied to you, we would have to make up for any extra costs you incur in battery production."
"This does us no good at all."
Du Ye nodded upon hearing Chang Zishan's words; the battery issue definitely needed to be written into the contract.
Chang Zishan is now saying he wants a 20% discount on the construction cost, and the funds he provides will definitely be supplied at that price.
If Chang Zishan is deceiving him now, then he doesn't need to make up for the extra funds from battery production.
It has no impact on him.
It's simply a matter of the cooperation being cancelled; he won't suffer any loss.
"Yes, I trust you, Mr. Chang. In that case, a 3.5% profit split is definitely not feasible. I can offer a 2.5% profit split instead."
Du Ye spoke slowly.
He just did a simple calculation and found that the cost savings in battery manufacturing have already increased the profit of the mobile phone.
In addition, with the phone's ultra-long battery life, the price will definitely need to be increased appropriately, which will further increase profits.
With the addition of phones boasting ultra-long battery life, a little marketing can definitely boost sales and even capture a larger market share.
This can also increase income to some extent.
Overall, it can increase income by at least 4%.
By giving the other party 2.5% of the profits, you can still earn 1.5% more than before.
While Chang Zishan receives a 2.5% profit share, he provides the battery production costs, but Tomorrow New Energy will still need to pay for labor salaries and other expenses.
Therefore, the final profit of tomorrow's new energy will definitely not reach 2.5%.
Moreover, the 4% profit margin is only the minimum expected profit; if it can be increased to 5%, he will earn even more.
Moreover, with this battery technology, it's a long-term business opportunity. If all mobile phones are designed with ultra-long battery life, then Huawei Mobile will definitely become the number one domestic mobile phone brand.
However, if this is desired, the battery technology must be supplied exclusively to Huawei Zero Mobile.
Thinking of this, Du Ye looked at Chang Zishan sitting opposite him.
"Mr. Chang, besides that, I have another request."
"Please speak, Mr. Du."
Chang Zishan responded.
"I hope that after we sign the contract, your battery technology can only be supplied to Hualing Mobile."
Du Ye said, enunciating each word clearly.
"Mr. Du, I can guarantee that the mobile phones and tablets will be supplied exclusively to Hualing Group."
"As for other applications, we have other ideas. Applying batteries to other applications will not affect the sales of Hualing mobile phones."
"Another point is about profit sharing. I don't think 2.5% is enough. I need 3% of the profits."
Chang Zishan slowly began to speak, saying that even if the other party hadn't mentioned it, she wouldn't have negotiated with other companies regarding mobile phones and tablets.
This also relates to the revenue of tomorrow's new energy sources. Scarcity increases value; if all mobile phone companies had this battery technology, it would be worthless.
"Mr. Chang, a 3% profit share is too high. Also, I would like to apply batteries for laptops."
"........"
time flies,
Inside the office, the sound of two people talking could be heard from time to time.
About half an hour later,
Chang Zishan looked at Du Ye sitting opposite her and said with a smile.
"Mr. Du, then it's a pleasure to cooperate. I'll arrange the contract, and we can sign it tomorrow."
After the discussion, the final profit sharing will remain at 2.5%.
However, Hualing Group has to pay Tomorrow New Energy 20 billion yuan annually for technology buyout.
And the battery suppliers have also changed from mobile phones and tablets to mobile phones, tablets, and laptops.
She originally did not intend to hand over the laptop battery to Hualing Group.
After all, Hualing Group's laptops don't currently occupy a large market share.
The market for other brands of laptops is better, and there may be greater profits from collaborating with other brands.
However, because Hualing Group subsequently increased the technology buyout from 10 billion yuan to 20 billion yuan, it was handed over to Hualing Group.
Laptop users who require extended battery life are mostly white-collar workers and executives who need to use it while commuting to work or traveling.
However, current laptop battery life is sufficient, so improvements in battery life are not very appealing to these people.
Most people who need to play games on a laptop will be in a place with a power source, or they will be using a desktop computer, so the need for laptop battery life is not a necessity.
The profit margin on laptops is probably not very high.
Another point is that Hualing Group is preparing to develop the laptop market, and this battery technology will help Hualing Group to better expand its laptop market.
Therefore, considering various reasons, she directly supplied the laptop battery to Hualing Group as well.












