What's wrong with me being a rich man?

Chapter 578 Broad-mindedness (4K)

Ipsos is a globally renowned consulting firm that has long been deeply rooted in the Chinese market, serving thousands of clients to date and wielding considerable influence in domestic automotive industry research.

GAC is one of Ipsos's customers.

However, Ipsos is not a traditional management consulting firm, unlike McKinsey, Boston Consulting Group, or Bain & Company. It focuses more on market research, providing services such as consumer profiling, market segmentation research, and brand research.

The main reason Xu Xin clashed with Ipsos this time was that she felt it was absurd, believing that Fu Jingyao's judgment was simply saying the market was wrong, and that the advice he provided to GAC Trumpchi was seriously problematic.

The six-seater model from Carbon Silicon Kyushu is just a passing fad; isn't this just putting off the answer by letting time take its course?

If it weren't for a fleeting trend, and six-seater models remained popular in the long term, a casual remark from someone else could be a mistake, causing automakers seeking accurate advice to miss out on excellent development opportunities.

Returning to the specific assessment, Xu Xin believes that it is precisely because there is indeed a large market demand for six-seater SUVs that Jiuzhou, a new energy vehicle company and a new model, has achieved breakthrough results with its "three new" vehicles.

Market demand exists, and combined with factors such as configuration, price, and policy, this has contributed to the current success of the Silicon Carbon Group.

Xu Xin believes that for Kyushu's current price, it is a car with almost no shortcomings.

As the head of Capital Today, and an investor who has successfully bet on e-commerce giants like JD.com and new energy vehicle companies like Silicon Carbon, Xu Xin attended several industry conferences after Kyushu's April sales figures were released, giving a judgment that was completely opposite to that of Ipsos.

Before joining Silicon Carbon Group, Xu Xin worked in the dessert sector, focusing on e-commerce and consumer goods, with no intention of investing in new energy. But things are different now.

In addition to its impact on the industry, Capital Today is also examining new new energy projects in China, because the earlier you invest, the higher the returns.

That being said, Xu Xin doesn't believe that GAC can really do a good job with the benchmark models. She knows the ways of doing things in these kinds of companies all too well, and the escalating public opinion this time is slightly beyond her expectations.

Ultimately, the initial success achieved by the Silicon Carbon Group was too dazzling.

From WeChat Moments to Weibo, from private discussions to public interviews, Xu Xin's inadvertent attack on Ipsos has provoked even more backlash.

Fu Jingyao, the vice president of Ipsos, was the main contributor. When speaking publicly, he didn't mince words with Xu Xin, and sarcastically mentioned the past failures of Capital Today: "I can understand Mr. Xu's position. Now you've invested in silicon carbon, unlike before when you failed with Tudou, Kungfu, and Ganji.com. But I want to emphasize that no one in the global market has performed like this. I also ask Mr. Xu not to be blinded by temporary success."

He was referring to three major marital breakdown projects invested in by Capital Today.

Some people joked on Weibo about the relationship between Xu Xin and Yu Xing: "President Xu must have forgotten the scene of arguing with President Yu in the office back then, but that's how investors are, they'll follow whoever pays the most."

Furthermore, even Ipsos' peers have spoken out, both openly and subtly: "Six-seater cars aren't a carbon silicon invention. It seems Mr. Xu doesn't understand this market at all. The Volkswagen Touran and Honda Jade both have six seats, and the Ford Grand also has six seats in Europe, but the overall market for six-seater cars is just so-so. Ipsos is giving GAC feedback based on market data, what's it to you?"

Xu Xin noticed this argument and refuted it: "The Touran, Jade, and Grand are all MPVs. Can't we see the growth trend of SUVs in China in the past two years? Six-seater SUVs can definitely become the first choice for families. The market is not static."

She posted updates on her WeChat Moments frequently, sticking to her judgments and ideas, but she was still overwhelmed by many voices, among which the doubts about the latest developments in silicon carbon were beyond her ability to explain.

Silicon Carbon Group is expanding its production capacity, and the second phase of the factory has also revealed that it will start construction in Q3. However, the entire domestic new energy market is facing the impact of the subsidy reduction next year.

This year, Kyushu received a subsidy of 5.6 yuan, but next year it won't be that much. Will its sales be able to hold up?

At this critical juncture, Frost & Sullivan, a well-known consulting firm that focuses on market research of IPO companies, released an analysis arguing that silicon carbon groups should be cautious about capacity expansion, citing BYD's slump in the previous two years as an example.

They both have new energy sources, both receive subsidies, both expand, and both are ambitious.

BYD's growth rate plummeted from 162% in 2009 to negative in 2011, followed by a continuous slump. This performance led the market to question Warren Buffett's investment in BYD, believing that his move was a mistake.

The prevailing analysis is that Buffett didn't want to invest in BYD; he only did so because of his partner Munger's insistence.

Frost & Sullivan views Silicon Carbon Group's capacity expansion before the subsidy phase-out as a mistaken decision made on the eve of BYD's problems.

Xu Xin argues, posts on Weibo and WeChat Moments, and is not afraid of public debate, but... when she saw the report issued by Sullivan, her heart skipped a beat, and she felt that she had been a bit rash.

She knew about President Yu's plans for the listing of the silicon carbon group, and knew that he hoped to start the listing process as soon as possible, with the US stock market as the first choice and the Hong Kong stock market as the second choice.

Frost & Sullivan's job is to provide credit endorsement for companies.

Chinese companies listed in the US have experienced frequent financial crises in recent years. Both the SEC and investors prefer to refer to due diligence reports from institutions like Sullivan. However, opinions from such institutions may disrupt Mr. Yu's plans.

Xu Xin felt a little uneasy, considering the possible impact of this matter, and called her mahjong friend Liu Wanying.

“I heard him mention just a couple of days ago that he was going to ask an institution about the listing process,” Liu Wanying replied. “If there are no problems with the procedures, the silicon carbide project should start by the end of the year at the latest.”

Xu Xin asked helplessly, "Then what should we do?"

"What should we do?" Liu Wanying laughed. "If nothing happens, it will pass. If something does happen, just wait for him to scold you."

Xu Xin was absolutely certain that President Yu could actually bring himself to swear.

She could only complain about the situation over the phone.

“Ipsos, Ipsos,” Liu Wanying said after listening for a while, her memory excellent. “Is it giving feedback to GAC? When Carbon Silicon was making a six-seater model, didn’t they also ask them to do research? Back then, they asked two companies, and there was another one…”

She recalled for a moment and confirmed, "There was also a domestic company called Zero2IPO Research. Didn't you also do research on them back then?"

Xu Xin exclaimed in surprise, "Carbon Silicon also contacted Ipsos back then? We did. Later, I even went to several brand 4S stores specifically to look for families buying cars, and it turned out that there is indeed a demand for six-seater SUVs."

She not only visited the market in person but also considered her family's needs, ultimately changing her mind about the six-seat carbon silicon project.

“Yeah, their conclusion at the time was that it couldn’t be done,” Liu Wanying said. “So he threw both reports in the trash, and that’s how it is now.”

Xu Xin considered her options and said, "Could you ask President Yu if I can bring this up? I'm a little embarrassed to ask him right now, so it's better to just let the rumors die down." Liu Wanying agreed and replied to Xu Xin the next day that it wasn't a big problem.

As for Sullivan, they're not paying them yet, and that's their stance. But once they do, the official statement in the prospectus will have its own interpretation.

Xu Xin breathed a sigh of relief and immediately started a conversation on Douyin the next day.

—Question over the phone: Mr. Xu, what are your thoughts on Ipsos's views on six-seater SUVs?
—Xu Xin: I've talked about this many times. If Ipsos's research were really that useful, there wouldn't be six Kyushu carbon fiber companies like we have now. Back then, carbon fiber companies, like GAC Group, hired two research institutions to conduct research, one of which was Ipsos. Fortunately, Mr. Yu threw both reports in the trash, otherwise there wouldn't be independent brands that have broken through to this price point now. If you don't believe me, just call Mr. Yu and ask him.

The head of Capital Today revealed that Silicon Carbon Group was also a client of Ipsos, in a situation almost identical to that of GAC Group, but Mr. Yu made a completely opposite judgment.

Now that Kyushu has successfully launched, Ipsos is still sticking to its old arguments. Should GAC choose to believe it this time?

Xu Xin tried to steer the expanded topic back to the original question.

However, before Ipsos could react, Zero Hour, who had been quietly watching the drama unfold, called Yu Xing.

Zero Point Data was originally just observing the situation and didn't offer any market analysis or car model evaluations. However, Xu Xin's sudden revelation left Pei Jichuan, the vice president who had previously written a report on silicon carbide, completely dumbfounded.

Pei Jichuan didn't want to get involved in this matter, and he also felt that if President Yu, who hadn't yet taken action, were to actually do something, things might not go well. So he quickly contacted him to communicate. Although his words were tactful, his goal was clear under the banner of supporting the domestic new energy industry.

Yu Xing found it somewhat amusing and reassured the other party, "President Pei, the market is developing, and we are also exploring. It's alright."

He really thought it was a small matter.

Pei Jichuan thanked President Yu and said that his family was about to buy a new car and was considering going to the carbon silicon dealership for a test drive.

At midnight, Lingdian Youshu made a phone call to remove their own name from the list. Ipsos was also shocked. Vice President Fu Jingyao had no idea about this and only confirmed it after asking around.

Before he could even decide how to respond, a reporter actually called Mr. Yu.

—The reporter interviewed Xu Xin over the phone, mentioning the details of her revelations to verify their authenticity.

Yu Xing replied casually, "That's true, but it's normal to have different opinions. We'll just have to see how the market performs."

Fu Jingyao noticed President Yu's brief response and felt somewhat embarrassed.

Liu Lifeng, president of Ipsos China, promptly stopped Fu Jingyao from further public communication, criticizing him: "Are you trying to make things worse? President Yu has developed two carbon silicon projects in Lingang. I heard that the subsidy policy in Shanghai is considering extending the carbon silicon subsidy. Are you going to have a showdown with him or something?"

Fu Jingyao said somewhat sullenly, "I'm not trying to smear him. We're just doing business with GAC."

Liu Lifeng said with dissatisfaction: "GAC asked me this morning for my opinion on six-seater SUVs. Don't be so definitive with your answer, or you'll have a hard time getting out of it. Whether it's interviews or discussions about new energy vehicles, President Yu's influence will definitely grow. Be careful not to become his iconic counterexample."

Fu Jingyao was startled. He accepted his boss's warning, deleted all his posts on WeChat Moments and Weibo, and silently reflected on his life.

The public opinion situation is not complicated, mostly lively, leaving only a few impressions on the internet, while the Frost & Sullivan report may have more influence.

In the second week of June, just as Silicon Carbon Data quietly announced a memorandum of understanding to sell to 360 and Blackstone, He Xiaopeng of XPeng Motors arrived in Lingang with his team, and they had a similar exchange based on almost the same sentiment.

He Xiaopeng attaches great importance to his previous communication with Yu Xing at the Shanghai Auto Show.

His visit to Hong Kong was partly to see how the Silicon Carbon Group was operating, and partly to seek clarification from Mr. Yu regarding his ideas.

When Yu Xing was receiving He Xiaopeng, he received a phone call from Li Yanhong of Baidu, asking why they had reached a cooperation agreement with 360 so quickly.

“If the price is satisfactory, then we’ll sign it. We’re not greedy with silicon carbon data,” Yu Xing replied to Li Yanhong.

Li Yanhong retorted, "President Yu, Baidu can also raise prices, we can discuss it!"

“Baidu is too slow, everything is slow. Mobile internet is fast in everything. Carbon Silicon Data is a mobile internet company,” Yu Xing laughed. “We’ll try to be faster next time.”

He Xiaopeng witnessed the phone call between President Yu and President Li and felt that... on one side was the face of the mobile internet industry, and on the other side was the style of the new energy industry.

His hesitation regarding car manufacturing stems from whether to choose 400V or 800V, a point on which XPeng's current team is still debating.

Yu Xing gave direct advice: "At this stage, 400V is the way to go. 800V will definitely not be popular. The market is not at that stage yet. I know you are definitely considering positioning yourself as an advanced technology company, but BYD's Tang also had the same idea, and the feedback was not good."

"Mr. He, it's not that I'm worried that XPeng's higher 800V will put us at a disadvantage in silicon carbon technology. It's just that our costs and infrastructure are not good enough."

He Xiaopeng sensed the sincerity of Mr. Yu's suggestion and discussed the issue with the domestic charging piles, feeling that the construction and promotion of this technology is still quite difficult.

Yu Xing smiled and said, "Mr. He, you should first get rid of UC and then focus on XPeng Motors. Carbon Silicon will start the construction of charging piles next year. You can leave the difficult things to us first."

Looking at President Yu's expression and hearing his statement, and thinking about the help he had given at the auto show, He Xiaopeng was suddenly struck by a jolt.

After a moment, he said sincerely, "President Yu, it's no wonder that the Kyushu brand from the Silicon Carbon Group sells so well."

Yu Xing smiled slightly: "Jiuzhou's sales have nothing to do with this. We need to look at them separately. We need to build up the pie of the entire industry first, whether it's six-seater SUVs, five-seater SUVs, or charging piles. If we have the capacity, we can use it; if we don't, we should focus on that."

He Xiaopeng agreed wholeheartedly and expressed his admiration.

　Thank you to "37天下无双" for the Silver Alliance. I only saw it after being reminded in the group. I also saw "酒三壶" for last month's Alliance Leader in the backend. I am ashamed that I don't usually pay attention to the backend. Thank you for the reward and for your support.

　　
　
(End of this chapter)