2003: Starting with Foreign Trade

Chapter 954 What's the point of a press conference without a new car?
Beicang Sports and Arts Center.

"Everyone, please work hard. It will be rain-free for three days, so we can catch up on the work in the next few days and then things will be easier."

Since the beginning of July, Ningbo has not had a single day of good weather. For more than 20 days, it has been alternating between heavy rain and light rain, with not a single sunny day.

Preparations for the press conference, which began in the middle of the month, were already underway due to the rainy season, making the schedule extremely tight.

Fortunately, the rain in Beicang will stop for three days starting today, which gave Zeng Jixiang a breather. While Tan Jincheng was keeping an eye on the traders at ByteDance to prevent them from doing anything reckless, Zeng Jixiang was in charge of on-site supervision.

"What's wrong? There are still a few days left, why are you in such a hurry?"

In the evening, Zhang Xupeng, dressed casually and walking a small dog, noticed that Zeng Jixiang's car was still parked in front of the Sports and Arts Center. Out of curiosity, he came over to take a look.

His villa and Tan Jincheng's villa are not too far from the sports and arts center. He has a small dog and usually passes by here when walking it.

Upon seeing that it was Zhang Xupeng, Zeng Jixiang smiled and said, "There's definitely enough time, but the sooner we get everything arranged, the more at ease we'll all feel. Mr. Zhang, you seem to have a lot of free time, much more comfortable than our boss."

"Haha, that's absolutely true. At least your boss doesn't have time to walk the dog."

Zhang Xupeng couldn't help but chuckle when he thought about how his good friend was even busier than the dog he was walking.

Zhang Xupeng's style of doing things is completely different from Tan Jincheng's. Compared to Tan Jincheng, his business strategy is more conservative. Under his leadership, Flash Group went through a transition period of the first few years and then entered a strategy of steady operation.

Although he took over as chairman of Flash Group, Zhang Xupeng still focused his main energy on Jinpeng Industry. Flash Technology has a professional management team and is a listed company that has been operating for many years. In addition, with Tan Jincheng as the key figure in charge, there is no need for him to interfere too much.

Jinyi Industrial also has a dedicated management team. As for Hangxin New Energy, the earliest of them, it has long been spun off and incorporated into the Weilai Group. As for Bafang Electric, which is about to be listed, he doesn't need to manage it at all.

The businesses of the major subsidiaries are very stable. Apart from some impact on foreign trade, their businesses have not changed much in recent years, so he has a relatively easy job as chairman.

Zhang Xupeng, in his thirties, is not thinking about retirement, but having been involved in management for over a decade, he is certainly capable of seeing the situation clearly.

Flash Group, which engages in clothing, trade, two-wheeled electric vehicles and parts, is a standard light industrial group that controls two listed companies. It is very healthy in terms of business, cash flow and industrial chain.

Zhang Xupeng's stability-oriented business strategy is very suitable for Flash Group under the current economic situation. Although it may seem conservative to outsiders, it is the most suitable for Flash Group.

As one of the most popular entrepreneurs today, and the successor of Tan Jincheng, a representative of the post-80s generation, Zhang Xupeng has also received a lot of attention, and his every move is being watched by all parties.

Tan Jincheng has a remarkable track record in investment, having invested in well-known companies such as Xiaomi, ByteDance, and Horizon Robotics. However, Zhang Xupeng, who grew up with him, is surprisingly uninterested in investing.

The only bright spot is that FlashTech holds a certain number of shares in Meituan, but it's obvious to anyone with eyes that this is definitely Tan Jincheng's doing. Tan Jincheng has been involved in both the ride-hailing war and the food delivery war.

Instead of investing, FlashTech focuses solely on its business. As a listed company, FlashTech doesn't engage in mergers and acquisitions to ride the wave of popularity like other companies, except for normal business needs. It also doesn't seem to care much about the listing of Bafang Electric.

The capital market has a lot of complaints about Zhang Xupeng, a business manager who doesn't stir up trouble. How can I make money if you don't cause trouble? This is why FlashTech's market value has remained stable at around 200 billion yuan for a long time.

Currently, Flash Group is valued relatively low in the eyes of investors due to Zhang Xupeng's uncooperative attitude. The total valuation of a listed company and a pre-listed company is no more than 300 billion yuan.

However, it must be said that Zhang Xupeng's approach brought great peace to Flash Group. After 2018, due to the Jin New Era, Wei Lai was more or less at the center of the friction between the two parties.

However, Flash Group was hardly affected. Electric tricycles could still be exported to North America, as could clothing. If tariffs were high, prices would be raised. In any case, light industry in North America needed these products.

Zhang Xupeng's net worth hasn't changed much over the years because the overall valuation of Flash Group is not high. He holds 49% of Jinpeng Industrial and 3% of the parent company, Flash Group. He also holds a certain number of shares in Flash Technology, Orange Group, and Weilai Group, but none of them are large.

But all of this is already enough for Zhang Xupeng. With a net worth of several billion yuan, the listing of Bafang Electric will indirectly bring him a net worth increase of nearly 6000 million yuan, so Zhang Xupeng is in a good mood.

After chatting with Zeng Jixiang for a while and inquiring about the press conference this weekend, I left with my dog. Meanwhile, our boss Tan was still at the Weilai Research Institute, brainstorming with his employees.

"What we need to do now is to focus on design aesthetics, design models that are more in line with the personality of young people and have a more technological feel, so that young people's first impression is that they are beautiful."

The Exeed brand is determined to focus solely on pure electric vehicles. Pure electric vehicles are Exeed's strength, and for the time being, Exeed has no need to compete with BYD in the plug-in hybrid market. Moreover, with the advancement of AI technology, plug-in hybrid technology is very likely to be optimized through algorithms in the future, rather than relying solely on electricity to save fuel.

Currently, the mainstream new energy vehicle models in the 10 to 20 yuan price range on the market mainly include Roewe EI5, Venucia D60EV, BYD Qin series, Geely Emgrand EV500 and Geometry A, as well as BAIC EU5 and ORA R1, plus Aion S and Aion Y series.

In addition, there are two other emerging brands, WM Motor's EX5 and Xiaopeng G3 series. The prices of these two models after subsidies are roughly in the range of 20 yuan.

Overall, there are still relatively few new energy vehicles priced below 20 yuan. Competition between different models is not actually that fierce. Companies like Xiaomi, WM Motor, and Leapmotor have set their prices in this range to create a differentiated market.

It's no exaggeration to say that among new energy vehicles priced under 20 yuan, especially pure electric vehicles, the best model in terms of intelligent driver assistance technology, battery system, and range is the new generation Aion S.

To ensure the safety of its operational vehicles and its market reputation, Weilai has incorporated all of its most mature and advantageous technologies from its pure electric platform into the latest generation Aion S. Although it is a model primarily designed for public transportation, the Aion S is definitely a strategic product for Weilai.

"We don't need to worry about the performance of the three electric components and intelligent driver assistance systems. Just copy the current Aion S. I believe it will still have a certain advantage in the market under 15 yuan. However, we should not be too complacent. If there are any mature technologies that can be used in Exeed if the cost allows."

The limited number of models this year doesn't mean there won't be many next year. Besides, Exeed won't be on the market until at least 2021. New energy vehicles are being launched very quickly, and even faster once they have a foundation. However, Tan Jincheng still hopes to take things one step at a time.

Building a car is not difficult for Weilai now, but safety testing is still necessary before it can be launched on the market. Under normal circumstances, Weilai needs to produce at least 500 test vehicles before a new mass-produced car can be officially mass-produced.

These test vehicles are distributed all over the world to conduct safety and range performance tests based on different road conditions and climates. WILAY's advantages in electric vehicle performance are accumulated through repeated tests.

"Indeed, market changes are unpredictable. Just like the mobile phone industry, it was booming in 2017, but who could have imagined that it would plummet in 2018 and consumers would suddenly find themselves unable to upgrade their phones."

The same applies to the automotive market, which has now entered a mature market. The Aion S boasts the most superior technology among pure electric vehicles currently on the market, but no one knows how long this advantage can be maintained.

Perhaps by the end of this year, this advantage will have disappeared.

"Yes, our Starway won't be listed until 2021 at the earliest. Nobody knows what will happen in the next two years."

In a sense, electric vehicles, like mobile phones, are electronic consumer products. However, compared to the mobile phone industry, which releases one or more new models every year and updates its products much faster, it is difficult for cars to be updated once a year.

Moreover, doing this will also be a big test for the car's resale value. If you replace the car every year, which used car dealer or rental company would dare to buy your car?

"We need to put in a lot of effort in terms of hardware, and we must ensure that we are in a leading or relatively leading position for at least a few years. In terms of software, we can keep the car in an advanced position through OTA updates."

Mobile phone operating systems will be updated, and so will car operating systems, but only if the hardware is up to par. An update can't result in significant lag; otherwise, it would seem like a rip-off.

Exeed is a sub-brand of Weilai, but it carries the largest market share for Weilai, making its strategic significance comparable to Yuechi in the era of gasoline-powered vehicles.

Sunday, May 7.

Today, the Beicang Sports and Arts Center is decorated in Weilai's blue both inside and out. Weilai has also rented out the surrounding area, and the parking spaces are full of cars, most of which are Weilai's vehicles used to pick up and drop off guests.

"The weather is perfect! It's been raining for over a month, but today the sun is shining."

There weren't many people Tan Jincheng could get to come out and greet. At this moment, Tan Jincheng was chatting with representatives from various car companies backstage. The weather was hot, but he was still somewhat happy. This was the first time in a month that Beicang had actually seen the sun.

"This is a good omen."

Having lived in Jiangnan for several years, Cao Xudong, a man from Northwest China, finally understands what the rainy season is like. When it rains, it never stops. Twenty days is nothing; the longest he has gone without seeing the sun is almost a month and a half.

"Thank you for your kind words, Mr. Cao. I hope so too." Cao Xudong wanted to hear about the contents of Wei Laixin's 400V architecture, which would be a good reference for their company, allowing them to obtain some useful information as soon as possible.

In fact, domestic companies are currently looking to Wei for the best in terms of electric drive technology and lithium batteries, and their research and development directions are also largely based on Wei's ideas.

At the press conference, the huge poster featured only the logos of Weilai and Exeed, with nothing else on it.

"Haha, this really suits Wei Lai's style, but the theme of this press conference is quite interesting."

"Riding the starry path, exploring the boundless."

This is the theme of Weilai's press conference. Combining imagery such as the starry sky and roads, it highlights the connection between the two brands and emphasizes the financing of culture and technology, aiming to maximize the anticipation of the new products for the audience at the venue and those watching the live stream.

"Although there are no new cars, it is still worthwhile to hold a press conference for the launch of a brand new car brand."

Wearing a short-sleeved shirt and jeans, Tan Jincheng walked casually to the center of the stage with a microphone in hand, and started by making a self-deprecating joke.

"Exeed will focus on developing pure electric vehicles priced under 20 yuan. We will launch two to three pure electric vehicles priced under 20 yuan within the next five years, so that more consumers can afford higher-quality electric vehicles."

"In the public's perception, Weilai is a high-end new energy vehicle brand. Admittedly, Weilai has been building our high-end brand image, but this does not mean that Weilai will always produce models priced above 30 yuan."

"You should all be aware of this from the pricing of the ET5."

"Technology should benefit all people; other companies are doing this, and we at Weilai have been doing it too."

Without any preamble, Tan Jincheng got straight to the point, explaining the reasons for launching the Exeed brand and its market positioning, as well as the reasons for entering the sub-20 yuan market.

The slogan "Technology for All" has been around for years, and many emerging brands have been using it to promote their products.

"Haha, Mr. Tan is still as direct as ever. But it takes real courage to break into the 20 yuan market."

The live stream was much more lively than the actual event. Because of Tan Jincheng's popularity, there were quite a few viewers watching the live stream. However, apart from industry professionals, most people watching the car launch event knew a thing or two about the subject.

In the past, Weilai also followed a differentiated approach. When Yuechi was launched, the urban SUV market was not very popular, and the main models were mostly high-priced luxury brands.

The emergence of the Yuechi A1 quickly filled the gap in the domestic car market. With its independent design, high-quality materials, and excellent service, the Yuechi A1, along with its low price, quickly seized market share from joint venture brands.

In the electric vehicle sector, Weilai also pursued a differentiated market strategy. The earliest ES6 even had a hybrid version. After realizing that it had no advantage, Weilai quickly focused its efforts on the pure electric vehicle sector.

In terms of luxury and intelligence, Weilai has also invested heavily. When the ES6 was launched, there were no competitors. Weilai has successfully established itself in the automotive market with its business acumen.

However, Weilai is now abandoning these advantages and entering the most competitive market, which is priced below 20 yuan.

"It is a bit difficult, but Wei Lai is not entirely without experience. You know, their Yuechi A1 was born from this track. But the key is still Wei Lai's accumulation of sedan technology."

From its inception, Weilai has been known as "Little Great Wall" in the SUV and pickup truck market. It was only in recent years, after its continued efforts in new energy vehicles and its sales surpassed those of Great Wall, that it was able to shed this nickname.

"Indeed, but no matter what, President Tan is very courageous."

Those with some understanding of the industry may comprehend Tan Jincheng's approach: to become a leading enterprise in the new energy vehicle industry, it's impossible to avoid entering the most competitive markets forever; this would only raise questions about the leading enterprise's status.

A company without sales volume can never become a leading company.

Wei Lai had no other choice.

"Okay, the launch of Exeed is mainly aimed at the market below 20 yuan. We also know that this market is very competitive. We don't know if Exeed's performance will satisfy consumers, but we will do our best to make everyone satisfied."

"In addition, we will also release the Exeed prototype as soon as possible. We would like to invite everyone to witness it. Now let's talk about the second thing at today's press conference."

Without a prototype vehicle, no matter how eloquently Tan Jincheng speaks, it's useless. It's enough to make people remember the Exeed brand through today's on-site press conference and live broadcast. The second thing today is the key point.

"In addition to the launch of the Exeed brand, today's press conference is also the launch of our brand-new 400V architecture."

Cao Xudong, sitting in the audience, perked up; the question he was interested in had arrived.

"Tesla is an excellent company, and their 400V architecture technology is something we should learn from. We have also been enriching our 400V architecture system by collaborating with suppliers and developing our own technologies. Now, we have achieved some success."

It may not be long before the 400V architecture is no longer mainstream, but at present it is still a very advanced architecture system. In 2019, WILRE released its new generation of 400V architecture system, which is also an innovation for the new energy vehicle industry.

Tesla's 400V architecture compensates for charging voltage limitations through high-current DC technology, making it a representative company of high-current fast charging solutions. Weilai also has its own fast charging system.

"Battery life and fast charging technology are the most important issues for new energy consumers besides safety. Solving consumers' pain points is our company's responsibility, and Weilai is honored to have made some breakthroughs in this area."

To increase battery range, it's not enough to simply increase battery capacity; energy consumption must also be optimized. While domestic manufacturers are rushing to adopt 800V architecture, Tesla has continued to use their 400V architecture.

Even though Tesla's 400V architecture has been criticized for being outdated, its sales figures speak for themselves. Why would consumers choose Tesla products when the technology is considered outdated?

"As you can see, what I'm holding in my hand is the latest battery cell product from Jinshidai, which supports 3C-4C charging rates and reduces internal resistance and improves charging and discharging efficiency through tabless design."

At a formal press conference, Tan Jincheng pulled a battery cell out of his back pocket, a move that drew laughter from the audience.

A regular battery cell can be put in a pocket, but the battery cell that Tan Jincheng brought this time is a specially made one that is suitable for putting in a pocket.

Today, Tan Jincheng's explanations were more relaxed and humorous than usual, which was also to cater to the live broadcast audience. If he were too serious, the audience wouldn't want to listen.

"Through improvements in battery cells and battery pack structure, we have made certain breakthroughs in battery technology. You should have felt this through the results of these battery experiments. If you haven't watched the live broadcast, you can compare them if you are interested."

The foundation for achieving a 400V architecture, besides basic battery technology, also includes conditions such as support for basic charging design.

"Those of you here should be able to understand, but our viewers in the live stream may not be so familiar with these technical terms. So let me use a somewhat inappropriate way to describe them to make it easier for everyone to understand."

"Just like the batteries in your mobile phones, now that the battery capacity is larger, you definitely need a faster charging connector, right? This is so that you can charge your phone faster. You can think of the battery system of an electric vehicle in a similar way."

With the development of the supply chain, the layout of charging piles, the coordination of the power grid, and the matching of user needs are becoming more and more mature. Weilai is using its gradual technological approach to enhance its advantages in the field of electric vehicles step by step.

"In just over ten years, Wei Lai has truly overturned everyone's preconceived notions. Is this a company led by a high school student who knows nothing?"

Sitting below, Cao Xudong pondered to himself that Tan Jincheng today was definitely not the same Tan Jincheng from more than ten years ago. His understanding of automotive technology was certainly not the same as before. However, within the industry, especially among those of them who had formal training, the subconscious thought was that Tan Jincheng, who came from an unorthodox background, had led Weilai to success more through marketing.

After all, since the beginning of Flash, Tan Jincheng has been known as the king of marketing. His strong marketing ability and his high profile have overshadowed Weilai's technological accumulation to some extent.

This press conference, ostensibly to launch a sub-brand, actually highlights the 400V architecture technology.

"This technology is already on par with Tesla's; what it lacks is the support of the charging network. Weilai is truly a technology company now."

(End of this chapter)