Signing the World's Largest Environmental Business Contract

Chapter 113 Signing the World's Largest Environmental Business Contract

After a year of holding firm, the EU began to implement a plastic reduction strategy.

Attempts are being made to reduce and upgrade packaging at its source, including taxing single-use plastic packaging and mandating improved recyclability design for packaging.

However, the results were not ideal, and the cost was still too high.

As the garbage gradually piled up into a mountain, it held up for half a year before finally giving way.

Using DeepBlue Technology's solution, costs can be reduced by more than half, or even by more than 70%, saving real money.

Faced with this economic dilemma, after struggling for a year and a half, they finally chose to be pragmatic.

The total cost for European and American countries to process waste plastics on their own is over $500 per ton. This includes the costs of the entire chain of collection, sorting, transportation, incineration or landfill, not to mention the long-term environmental liabilities incurred by incineration and landfill.

DeepBlue Technology's plasminoides solution is priced at $220 per ton.

Moreover, the plastic-eating bacteria truly "eliminate" plastics, causing them to be completely broken down by microorganisms at the molecular level.

PET plastic can degrade into water and carbon dioxide within a month, without secondary pollution or carbon emission controversies. It is clean and can be discharged directly.

The alternative that Europeans and Americans had high hopes for, Kohei Oda's "Osaka Sakai fungus," has yet to see a breakthrough.

To be honest, Osaka Sakai-kun made quite a splash when it was first released.

At the time, it was hailed by European and American media as a rising star that could break the Deep Blue monopoly, and several venture capital firms in Europe and America provided substantial financial support to the Osaka Sakai mushroom project.

Clearly, the hope is to cultivate a competitor that can counterbalance DeepBlue Technology and also snatch up this market share.

But unfortunately, I can't see the progress bar.

Even more fatally, distant water cannot quench immediate thirst.

Even if Osaka Sakai no Mizore were to succeed, it would be many years from now.

But right now, garbage is being generated every moment.

Currently, the most cost-effective solution globally is DeepBlue Technology's plastic-eating microbial community technology. Europeans and Americans have done their own calculations and believe that if they continue to adhere to the self-processing route, they will spend an additional $2000 to $2500 billion on plastic waste management over the next five years.

However, if DeepBlue Technology's solution is adopted, it can be done for less than $500, saving at least $2000 billion.

Without a doubt, this astronomical figure of $2000 billion is the biggest reason why Europeans and Americans have to come back to DeepBlue Technology.

Finally, Lin Chuan tossed the documents aside and said with a smile, "Let them come. You go and make the arrangements."

Shen Yuxin asked, "Should we arrange a one-on-one consultation, or together?"

Lin Chuan calmly said, "No need for that trouble, let's talk together."

Shen Yuxin nodded: "Okay."

Clearly, Lin Chuan wasn't afraid of them banding together at all. They were already banding together anyway, so talking one-on-one wouldn't make much sense and would only reduce efficiency and waste time.

Lin Chuan didn't have time to argue with them one by one.

Saturday, July 19th, 10:7 AM.

Inside the No. 3 business negotiation room of DeepBlue Technology's new headquarters, James Carter, president of ALBA Group, and his entourage appeared at the negotiating table on time.

The entourage included representatives from the European Waste Management Association, vice presidents from two other European environmental giants, and representatives from a US chemical company.

In total, there are eight European and American companies.

Before the European and American business leaders present entered this building, they already knew that they didn't have many cards to play in their hands during today's negotiations.

Over the past year and a half, they have tried various options, including exporting to Southeast Asia, expanding their smelting capacity, and investing in Osaka Sakai fungus.

However, Southeast Asia also couldn't withstand the rejection of garbage. The expansion of incineration and landfill were blocked by environmental assessments, especially the expansion of incineration. Even if it wasn't blocked by environmental assessments, few manufacturers would be willing to actually do it, and the so-called Osaka bad bacteria project was still a long way off.

For every month the delay occurs, the company will have to spend hundreds of millions of dollars more on additional waste disposal costs.

These companies combined spend an extra three to four billion US dollars each month.

Shareholder pressure, protests from environmental organizations, and other issues followed one after another. The boards of directors of these companies were very clear that they would negotiate a settlement.

At this moment, Lin Chuan walked into the conference room.

All eyes turned to him, and Carter stood up calmly, smiling as he extended his hand: "Mr. Lin, it's an honor to meet you."

"Mr. Carter, welcome." Lin Chuan calmly shook his hand and said, "Have a seat."

The two sides took their seats at the conference table. Lin Chuan brought Shen Yuxin and a legal advisor with him.

The formation was much simpler than that of Luyuan, but it was in no way inferior in terms of momentum.

Carter didn't waste time with pleasantries; he knew there was no point in beating around the bush, so he got straight to the point.

"Mr. Lin, Green Source Environmental Group and several of my partners cover more than 70% of the plastic waste management market in Europe and North America."

"We hope to have in-depth discussions on cooperation in plasticizing microbial community technology and seek a long-term cooperation model that benefits both parties."

Lin Chuan nodded, signaling him to continue.

Carter opened a folder in front of him and then looked up at Lin Chuan.

"Our initial idea is to cooperate in the form of a joint venture, with Green Source providing the site, facilities and operations team, and DeepBlue Technology providing the phagocytic bacteria strains and technical support."

"Each party holds 50% of the equity, and profits are shared according to their shareholding ratio. We believe this model can maximize the integration of the strengths of both parties."

Upon hearing this, Lin Chuan calmly replied, "Mr. Carter, Deep Blue Technology does not engage in joint ventures."

He looked at the other party and said further, "The plasminoides microbial community is DeepBlue Technology's exclusive core asset. Our cooperation model has been clear from the beginning: DeepBlue Technology provides the microbial strains and regular microbial community activity maintenance services, and charges a technical service fee based on the processing volume. That's all."

"This model has been running in China for two years and has been fully validated. Henghui Group, as our strategic partner, uses this model, and the two sides have cooperated very well."

Lin Chuan added, "In short, DeepBlue Technology is maintaining the same conditions as it did back then."

Carter's expression did not change significantly, while the heads of the other companies present exchanged glances.

"Mr. Lin, relying entirely on a single supplier for core raw materials poses too great a risk to our operations."

"Without the guarantee of a joint venture, we will face internal resistance to trust when promoting the application of plasminogen lysate."

"Joint ventures can reduce transaction costs for both parties, which is a common practice in large-scale international technology cooperation projects."

Lin Chuan smiled slightly; he understood the unspoken meaning in Carter's words.

Rather than talking about risks, they are actually testing their own bottom line.

After a moment, Lin Chuan got tired of arguing with them and made his decision bluntly.

"Gentlemen, let's not talk about these irrelevant things. Deep Blue Technology's conditions will not change in the slightest. I don't care about internationally accepted practices. Deep Blue Technology will only stick to its own way."

"If you can accept this, then let's cooperate. Once the order is signed, DeepBlue Technology will supply the goods directly."

"If this is unacceptable, DeepBlue Technology will simply not do this deal."

The Europeans and Americans present were very unhappy to hear Lin Chuan's domineering attitude, but they were powerless to do anything about it.

Even if the self-processing cost in the European and American markets is calculated at $500, DeepBlue Technology's solution is still more than half the price.

At this moment, the conference room fell silent.

The head of the American Chemical Company behind Carter quickly scribbled a line in his notebook and then gently pushed it to his colleague next to him.

Clearly, Lin Chuan's stance indicated that there was absolutely no room for negotiation.

Those present knew they had little bargaining power at the negotiating table.

If you can't accept it, then just forget about DeepBlue Technology; this trip was a waste of time.

But they couldn't afford to wait any longer; every month of delay meant their costs were skyrocketing.

Conversely, landing a month earlier can save a lot of money each month.

This time, the negotiations between the two sides were not as complicated and protracted as they had been in the past.

The process was surprisingly fast; a consensus was reached on the same day.

The European and American companies present fully accepted DeepBlue Technology's cooperation approach, having already prepared themselves mentally beforehand.

After reaching a consensus, the business delegations from both sides entered a phase of intensive detailed consultations, and finally confirmed that the total annual processing capacity requirement is 4000 million tons.

The following day, on the weekend of July 20, the two parties officially signed a cooperation agreement.

DeepBlue Technology provided phagocytic microbial community technology services to these eight European and American companies, signing a 5-year contract with a cumulative processing volume of 2

It has a capacity of 100 million tons and an annual processing capacity of 40 million tons.

The technical service fee is $220 per ton, with a total contract value of $440 billion, equivalent to approximately 2730 billion yuan.

The other party signed a 5-year contract, which obviously indicates that they anticipate that the so-called Osaka Sakai fungus might make a breakthrough in 5 years.

Then we'll let the bad bacteria from Osaka replace the plastic-eating bacteria from DeepBlue Technology.

However, Lin Chuan didn't care at all.

Let alone five years, even twenty years, it's unlikely that the large-scale fungus will be able to leave the laboratory.

Moreover, Lin Chuan hadn't forgotten that the Hyperdimensional Library also contained an advanced version of the "Plasticizing Bacteria" technology. This version's product could regenerate petroleum, which was the real killer.

At approximately 4:00 PM, at the new headquarters of DeepBlue Technology.

Jiang Miaolan entered Lin Chuan's office carrying a document. She walked slowly and said with a smile, "The finance department has already submitted the calculation report. This time, we've really made a fortune."

She placed the documents on the table and continued, "Based on a price of $220 per ton, the total cost of plasminoides is only 30 RMB, calculated using a model after deducting relevant taxes and fees—"

"This contract will contribute 546 billion yuan in revenue to the company annually over five years, with an extremely high profit margin. It is estimated that this contract will generate 534 billion yuan in profit annually, with a net profit of over 453 billion yuan."

This contract alone contributes more net profit than DeepBlue Technology’s total revenue for the entire previous year, and is 3.55 times its net profit for the entire previous year.

In 2013, the company's total revenue was 422.51 billion yuan, and its net profit was 127.33 billion yuan.

Lin Chuan looked at the materials for a while, then said, "Disclose it to the public."

Around 20 p.m. that evening, DeepBlue Technology released this important announcement through official channels.

The announcement directly listed the core terms and key data, including the contracting parties, the five-year contract term, the annual processing capacity of 4000 tons, the cumulative total of 2 million tons, and the total amount of US$440 billion (approximately RMB2730 billion).

-

This news immediately caused a huge sensation both inside and outside the industry.

Within half an hour of its release, major media outlets were vying to report on it.

[DeepBlue Technology Signs World's Largest Environmental Business Contract Worth $440 Billion] — Bloomberg

[Deep Blue Technology: A New Champion in the War on Plastic Waste – Five Years to Secure European and American Markets] – Global Times

DeepBlue Technology Signs 2730 Billion Yuan Mega Deals with Eight European and American Companies – Toutiao

[China's Original Environmental Protection Technology Goes Global: DeepBlue Technology's Plastic-Eating Bacteria Colony Signs Agreements with Europe and the US, Aiding Global Plastic Pollution Control] — Xinhua News Agency

The following Monday, the A-share market opened.

Stimulated by this news, DeepBlue Technology's stock price immediately hit the daily limit upon opening.

During the pre-market auction, DeepBlue Technology's stock price immediately hit the daily limit, rising to 112.68 yuan and firmly remaining there after the market opened.

On Tuesday, the stock hit its daily limit again, reaching 123.95 yuan.

On Wednesday, the stock continued its upward trend, reaching a daily limit of 136.35 yuan.

On Thursday, the stock hit its daily limit again, reaching 149.99 yuan.

It recorded four consecutive limit-up days in four trading days, including three limit-up days with a single-word limit-up.

DeepBlue Technology's stock price climbed at an almost vertical angle, like a spring shoots up from dry land.

The previous historical high of 123.45 yuan was easily broken on the third consecutive limit-up day, creating a new historical high with almost no resistance.

This also means that those who bought at the previous high point and were trapped will all be able to break even this Thursday.

Investors who bought at the peak thought they would be trapped for five or six years, and many even thought that 123.45 was the ultimate peak for DeepBlue Technology. Unexpectedly, it hit a new high in less than half a year.

On the following Friday, DeepBlue Technology hit the daily limit again, successfully achieving a five-day winning streak.

The company's stock price surged to 164.99 yuan, with a market capitalization of 10442.21 billion yuan, surpassing the trillion-yuan mark for the first time and becoming the first technology stock in the domestic A-share market to break the trillion-yuan mark.

This is undoubtedly a historic moment, as no tech stock has ever surpassed a trillion dollars before.

The rally was not over. In the next three trading days, DeepBlue Technology continued to rise and reach new highs. It rose 1.53% on Monday and hit the daily limit again on Tuesday and Wednesday. It had eight consecutive days of gains, including seven days of limit-up.

On Thursday, the stock price hit a new high again, reaching 205.55 yuan, corresponding to a market capitalization of 13009.26 billion yuan.

100 million yuan.

In just eight trading days, DeepBlue Technology's stock price has easily doubled since its initial surge.

Many investors were stunned. A company with a market capitalization of trillions of yuan exhibited a stock-like price movement, even more so than small-cap stocks with market capitalizations of several billion yuan.

DeepBlue Technology's market capitalization surpassed that of China Construction Bank, which had a market capitalization of 1.18 trillion yuan during the same period, and entered the top 3 of the A-share market capitalization ranking. The two listed companies ahead of it were PetroChina, with a market capitalization of 1.46 trillion yuan and the world's largest bank, with a market capitalization of 1.32 trillion yuan.

It is less than 20 billion yuan behind ICBC in market capitalization, and it is also very close to PetroChina.

What kind of ranking is this?

Of the top ten listed companies in the A-share market, apart from DeepBlue Technology, the other nine are all state-owned enterprises, dominated by the financial and energy sectors.

DeepBlue Technology is a private enterprise that was established less than five years ago.

Prior to this, no high-tech company had ever topped the market capitalization list on the A-share market, let alone a private enterprise.