General Office of Beijing Municipal People’s Government
About deepening reform and promoting the taxi industry
Implementation Opinions for Healthy Development

District people’s governments, municipal government committees, offices, and bureaus,Municipal institutions:

In order to fully implement the "Guiding Opinions of the General Office of the State Council on Deepening Reform and Promoting the Healthy Development of the Taxi Industry" (Guoban Fa [2016] No. 58), actively and steadily promote the reform of the taxi industry in this city, and better meet the diverse travel needs of the people, with the consent of the municipal government, the following implementation opinions are hereby proposed.

Guiding ideology and work objectives

(1) Guiding ideology.

Deeply implement the spirit of the 18th National Congress of the Communist Party of China and the Second, Third, Fourth, Fifth and Sixth Plenary Sessions of the 18th Central Committee of the Communist Party of China, thoroughly study and implement the spirit of the series of important speeches of the General Secretary of the Supreme Leader and the important instructions to Beijing, earnestly implement the decisions and arrangements of the Party Central Committee and the State Council, firmly establish the development concept of innovation, coordination, green, openness and sharing, adhere to the basic idea of giving priority to the development of public transportation and the appropriate development of taxis, in accordance with the principle of "passenger-oriented, reform and innovation, overall consideration and standardization in accordance with the law", actively and steadily promote the reform of the taxi industry in this city, effectively improve the service level and supervision capacity, and strive to build a diversified and differentiated travel service system to better

(2) Work objectives.

Promote the integrated development of cruise taxis (hereinafter referred to as cruise cars) and online rental cars (hereinafter referred to as online taxi-hailing), promote the transformation and upgrading of cruise cars, standardize the operation of online taxi-hailing, improve the management and service level of the industry, promote the sustainable and healthy development of the industry, and provide the public with safe, convenient, comfortable and economical personalized travel services.

Second, clarify the positioning of the taxi industry

(3) Scientific positioning of taxi services. Taxi is an integral part of the urban comprehensive transportation system, a supplement to urban public transportation, and provides personalized transportation services for the public. Taxi services mainly include cruises, online reservations, and other methods. The city will continue to give priority to the development of public transportation, develop taxis moderately, optimize the urban transportation structure, and build a super-large urban passenger transportation pattern with diverse and differentiated services.

(4) Establish a dynamic regulation and control mechanism for the total amount. Implement the strategic positioning of the capital city, comprehensively consider the city’s population, economic development level, air quality, urban traffic congestion, public transportation development level, taxi mileage utilization rate and other factors, rationally grasp the scale of taxi transportation capacity and its share in the urban comprehensive transportation system, and establish a dynamic monitoring and adjustment mechanism. Carry out a scale assessment of the total number of taxis, and prepare a development plan and implementation plan for the taxi industry, which will be implemented after approval by the municipal government.

III. Deepening the reform of cruise vehicles

(5) Reform the management system of operating rights. Adhere to the implementation of the free use of vehicle operating rights, and the term of the operating rights of cruise vehicles is the same as the period of vehicle scrapping. The new operating rights of cruise vehicles shall be subject to period restrictions, and the operating entity shall not be changed without authorization. If the operating rights of existing cruise vehicles do not specify the specific operating period, all factors shall be comprehensively considered, a transition plan shall be scientifically formulated, and the operating period shall be reasonably determined. Establish and improve the allocation and management system of operating rights guided by service quality and reputation. If the operating rights expire or there are major service quality problems, major safety production liability accidents, serious illegal business activities, and unqualified service quality and reputation assessments during the operation process, the operating rights shall be recovered in accordance with relevant regulations.

(6) Perfect the benefit distribution system. Cruise car operators shall sign employment contracts and contracts with drivers in accordance with the law to build a harmonious labor relationship. Encourage, support and guide cruise car operating enterprises, industry associations, cruise car drivers and trade union organizations to negotiate on an equal footing to determine the contract fee standard or quota task, and dynamically adjust it according to factors such as operating conditions, cost and freight changes. If the existing contract fee standard or quota task is too high, it should be reduced. Taxi car industry associations shall organize and guide cruise car operating enterprises to actively explore the use of Internet technology to build a business model in which enterprises and drivers share operational risks and distribute interests reasonably.

(7) Straighten out the price formation mechanism. Cruise vehicle freight rates are subject to government-guided prices. It is necessary to comprehensively consider factors such as the operating costs of cruise vehicles, the income level of drivers, and the overall development of urban transportation. Continuously improve the formation mechanism of cruise vehicle freight rates and the linkage mechanism between freight rates and fuel prices. Improve pricing rules, scientifically formulate and timely adjust the level and structure of cruise vehicle freight rates, and give full play to the leverage of freight rates to adjust the supply and demand relationship in the taxi transportation market.

(8) Encourage companies to operate on a large scale. Study and formulate supporting policies to encourage cruise car operators to integrate resources through mergers, reorganizations, and other means, implement intensive and large-scale operations, give full play to their backbone leading role, and improve industry management and service levels. Measures for the implementation of the transfer, transfer, and share purchase of cruise car operators’ vehicle operating rights shall be formulated in accordance with the law. Individual industrial and commercial households of cruise cars shall be encouraged to jointly establish companies of a certain scale or join existing cruise car operating enterprises by means of shares, etc., implement organized management, improve service quality, reduce management costs, and enhance anti-risk capabilities. Encourage cruise car operating enterprises to take passenger needs as the guide, continue to increase the intensity of driver training, take the initiative to disclose service standards and service quality commitments, and actively carry out safety, integrity, and quality service creation activities; strengthen the main responsibility of cruise car operating enterprises, vigorously promote enterprise branding, and effectively improve the level of management services. Improve the assessment and evaluation system for cruise car operating enterprises, improve the content and methods of assessment, regularly publish the assessment results and evaluation, and establish an incentive and restraint mechanism that conforms to the characteristics of cruise car operation.

(9) Promote the transformation and upgrading of the industry. Encourage cruise car operators and online ride-hailing platform companies to adopt mergers, restructurings, and absorbing shares to achieve the integrated development of new and old business models. Revise the technical specifications of cruise cars and improve vehicle technical standards. Encourage cruise car operators to follow the idea of "Internet + taxi", make full use of Internet information technology and the advantages of existing vehicles and personnel, and transform to provide online ride-hailing services. Encourage cruise cars to provide operation services through telecommunications, Internet and other e-hailing services, and promote the use of non-cash payment methods that meet financial standards to facilitate public rides, reduce empty vehicles, and reduce the labor intensity of drivers. When cruise cars provide operation services, they must use the special metering device for cruise cars, and charge fees and issue special invoices for taxis in this city accordingly. Encourage the development of new energy cruise vehicles.

IV. Standardizing the development of online car-hailing

(10) Regulate the development of online car-hailing. Online car-hailing platform companies, as well as enterprises that provide vehicles, drivers who provide online car-hailing services, and their vehicles, shall comply with relevant national and municipal regulations and requirements. Online car-hailing platform companies are providers of transportation services, and shall have online and offline service capabilities. They shall have corresponding office space and driver education and training places in this city. They shall also connect relevant basic information and dynamic operation data to the supervision platform of relevant departments in this city in real time, so as to realize the backup of data information in this city. Online car-hailing platform companies implement restrictions on the operating period. The operating period is 4 years. The expiration can be extended after passing the review. The online car-hailing platform company shall assume the responsibility of the carrier, the responsibility of production safety and corporate social responsibility in accordance with the law, undertake the safety management responsibilities of vehicles and drivers, purchase relevant insurance to fulfill the responsibility of the carrier, and ensure the safety of operation and the legitimate rights and interests of passengers. Encourage online car-hailing platform companies to use their own vehicles to carry out business activities.

Online car-hailing vehicles should meet the basic conditions for providing passenger transportation services, have passed the annual inspection by the public security department of this city, have purchased commercial vehicle compulsory traffic insurance, third-party liability insurance and passenger accident injury insurance, and have the city’s vehicle number plate. 5-seat sedan or 7-seat passenger car. Non-operating vehicles of government agencies, enterprises, institutions and social organizations are not allowed to engage in online car-hailing operations. Online car-hailing qualifications are applied by online car-hailing platform companies. When a vehicle applies for online car-hailing qualifications, it must meet the latest motor vehicle emission standards announced and implemented by this city, have no unfinished traffic accidents and traffic violations records, and meet the technical specifications of online car-hailing vehicles in this city. Vehicles that have obtained online car-hailing qualifications must have a special logo posted on the body of the online car-hailing vehicle, and use the original number plate. The term of the vehicle operation right shall not exceed 8 years from the date of vehicle registration (or when the mileage reaches 600,000 kilometers), and the vehicle operation right shall not be transferred without authorization. If the vehicle is scrapped, transferred or the ownership is transferred without authorization, the vehicle operation right shall be cancelled. If the access relationship between the platform and the vehicle is terminated or the operation period of the platform company is terminated, the vehicle shall not engage in online car-hailing operations during the period of not accessing the new platform.

Online car-hailing drivers must be registered with the city, have obtained a driving license issued by the city, have not reached the legal retirement age, are in good health, have not committed more than 5 road traffic safety violations in driving a motor vehicle within 1 year before the date of application, and have not been included in the taxi serious violation information database. Individuals and vehicles under their names who apply for access to the online car-hailing platform must obtain the qualifications of online car-hailing drivers and vehicles, and have no other cruise cars and online car-hailing cars under their names, and drive their own vehicles to provide online car-hailing services.

(11) Regulate the business behavior of online car-hailing. Online car-hailing platform companies should safeguard and protect the legitimate rights and interests of drivers, maintain the stability of the driver team, and sign employment contracts or agreements with their subordinate drivers according to law. If an agreement is signed, they should purchase personal accident insurance for them; it is necessary to strengthen the production and operation management of service vehicles and drivers, and continuously improve the passenger’s satisfaction with the ride experience. Online car-hailing provides operation services through online booking, and it is not allowed to cruise around to pick up customers or queue up at cruise car dispatching stations to pick up customers. Reasonably determine the metering method of online car-hailing, and there must be no improper price behavior. Online car-hailing platform companies shall strengthen cyber security and information security protection, establish and improve data security management systems, collect, use and protect personal information in compliance with the law, and shall not disclose sensitive information involving national security. The personal information collected and the business data generated shall be stored and used in the Chinese mainland, and the retention period shall not be less than 2 years. Online car-hailing platform companies and drivers shall declare and pay taxes to the tax department in accordance with the law. After providing operation services, online car-hailing vehicles shall issue special invoices for taxis in this city.

V. Regulate private passenger car sharing

(12) Encourage private passenger car sharing. Private passenger car sharing (also known as carpooling and ride-sharing) is a shared travel mode in which the ride-sharing service provider publishes travel information in advance, and people with the same travel route choose to take the ride-sharing service provider’s passenger car, share the travel cost (fuel and tolls) of the ride-sharing part, or free mutual assistance. Private passenger car sharing is conducive to alleviating traffic congestion and reducing air pollution, and this city will encourage and regulate its development. The city’s guidance on private passenger car sharing travel shall be formulated and issued separately by the municipal transportation administrative department in conjunction with relevant municipal departments.

(13) Regulate private passenger car ride-sharing. The ride-sharing information service platform providing ride-sharing travel services must comply with the relevant regulations of the state and this city. The connected vehicles must be the city’s number plate, and the number of orders per car per day shall not exceed 2 times. It is forbidden for any enterprise or individual to carry out illegal operations in the name of ride-sharing. Those who charge significantly higher than the ride-sharing billing standard, provide ride-sharing services more than the specified number of times, and provide online car-hailing business services in the name of private passenger car-sharing shall be punished in accordance with the relevant laws, regulations and rules of the state and this city for illegal passenger transportation.

Create a good market environment

(14) Improve service facilities. Further increase the planning and construction of comprehensive taxi service areas, dispatching stations, recruitment stations, waiting parking spaces, charging infrastructure and other service facilities. It is necessary to set up cruise bus dispatching stations or waiting areas in large public places and large residential areas such as airports, railway stations, public transportation hubs, commercial areas, hotels, hospitals, etc., and scientifically guide taxi operations to provide convenient services for passengers’ daily travel, especially in special circumstances such as bad weather.

(15) Strengthen the construction of the credit system. It is necessary to implement the service quality credit assessment system and the driver qualification management system, formulate taxi service standards, credit management system for operators and employees, and clarify the basic requirements for operating in accordance with the law and providing honest services. Actively use the Internet, big data, cloud computing and other technologies to establish an evaluation system for taxi operators and drivers, and strengthen the records of information such as violations and dishonesty, complaints and reports, and passenger service evaluation. As an important basis for taxi operators and employees to enter and exit, and incorporate it into the city’s credit information sharing platform and enterprise credit information publicity system. Taxi industry associations should continue to improve industry self-discipline, smooth communication channels between drivers and enterprises, take the initiative to commit to service standards to the society, and promote the improvement of industry service capabilities and integrity levels.

(16) Strengthen market supervision. It is necessary to innovate supervision methods, simplify licensing procedures, strengthen the use of information technology means, and promote online processing to further improve the transparency of the management of the taxi industry. Establish a joint supervision and law enforcement mechanism and a joint punishment and exit mechanism for the participation and linkage of the Municipal Transportation Commission, the Municipal Development and Reform Commission, the Municipal Public Security Bureau, the Municipal Human Resources and Social Security Bureau, the Municipal Environmental Protection Bureau, the Municipal Commission of Commerce, the Municipal Bureau of Industry and Commerce, the Municipal State Taxation Bureau, the Municipal Local Taxation Bureau, the Municipal Quality Supervision Bureau, the Municipal Communications Administration, the People’s Bank of China Business Management Department, the Municipal Network Information Office, and the Municipal Urban Management Law Enforcement Bureau. Establish an integrated information sharing platform, strengthen real-time supervision of law enforcement throughout the process, investigate and punish acts that hinder fair competition in the market and various price violations in accordance with the law, and severely crack down on illegal operations, gathering crowds to disrupt social order, or inciting organizations to disrupt operational order and damage public interests. Regularly carry out taxi service quality assessments and release them Handle complaints about service quality issues in a timely manner, promptly expose serious violations of laws and regulations, and protect the interests of passengers.

(17) Strengthen the legal system and organizational guarantee. Accelerate the revision of laws and regulations such as the Regulations on the Administration of Taxi Vehicles in Beijing to provide better legal guarantee for deepening reform and promoting the healthy development of the taxi industry. Strengthen organizational leadership, establish a leading group for deepening the reform of taxis in this city, and be responsible for coordinating and promoting various reform work. Strengthen social communication, smooth the channels for interest appeals, take the initiative to disclose information, respond to social concerns, build consensus on reform, and create a good public opinion environment. Major policy-making in reform should carry out social stability threat and risk assessment, improve emergency response plans, prevent and resolve various contradictions, and maintain social stability.

From the date of issuance of this implementation opinion, online car-hailing platform companies, drivers and vehicles that have already started online car-hailing business in this city will be given a five-month transition period.

General Office of Beijing Municipal People’s Government

On December 26th, the Q & J M9 and Huawei Winter All-Scene Conference was held. Q & J M9, nova 12 series mobile phones, Huawei FreeClip earphones, Huawei MatePad Pro Collector’s Edition, Huawei Smart Screen V5, Huawei Routing BE3 Pro 2500M Network Port Edition and other all-scene products were unveiled. The new products of this conference cover consumer smart travel, smart home, smart office and other diverse application scenarios, further improving Huawei’s all-scenario ecology of Internet of Everything.

Hongmeng Zhixing’s annual blockbuster product, Wenjie M9 was officially released, with a total of 4 models launched, priced 46.98-56 9,800 yuan. Wenjie M9 fully boarded Huawei’s top ten smart car technologies, bringing leading experiences such as smart cockpit, smart driving control, smart driving, and smart safety. Redefine smart car standards and create a new smart travel experience for users.

The Q & A M9 has a variety of space, three rows of larger space performance, the occupant space reaches 2725mm, and supports 3, 4, 5, and 6 seats of variable seat mode. Q & A M9’s smart cockpit, the whole car is equipped with 10 screens to realize multi-person, multi-screen and multi-device interaction. The car-level projection system is on the bus, and the 32-inch lifting projection screen replicates the cinema-level viewing experience. The new HUAWEI SOUND excellent series has a flagship configuration, equipped with 25 units of professional-grade audio, and the power amplifier output reaches 2080W. The new Xiaoyi smart assistant is equipped with an AI large model for the first time, creating more full scene possibilities for users.

The M9 is equipped with Turing intelligent chassis, adopts front double fork arms and rear multi-link independent suspension, and the whole system is equipped with intelligent closed air spring and CDC variable damping shock absorber as standard. Through multi-modal fusion sensing system, HUAWEI DATS dynamic adaptive torque system and HUAWEI xMotion intelligent body collaborative control system. HUAWEI ARHUD in-person head-up display system, HUAWEI XPIXEL megapixel intelligent projection headlights and other technologies, so that intelligent driving control can enter the light age.

The M9 fully upgrades the HUAWEI ADS 2.0 high-level intelligent driving system, is equipped with 192-line lidar, and can accurately identify vehicles, pedestrians, traffic facilities and signs, piles, etc. through GOD (General Obstacle Detection) Network 2.0 and RCR (Road Topology Inference Network) Network 2.0.

The nova 12 series combines portrait power with avant-garde technology aesthetics. In terms of appearance, the vitality and confidence of young people are integrated into the design, resulting in a new color 12. In terms of screens, the nova 12 Ultra and nova 12 Pro bring equal-depth four micro-curved screens, which combine round feel and precise control.

In terms of imaging, the nova 12 Ultra and nova 12 Pro are equipped with a front-mounted binocular stereoscopic vision imaging system, which brings 0.7X-5X full-focal zoom capability, and is equipped with the XD Portrait Da Vinci portrait engine, focusing on the four portrait characteristics of "shape, quality, light and color". Various selfie scenes can not only be photographed clearly, but also beautifully. In terms of comprehensive experience, the nova 12 series has an antenna architecture with a wide coverage, which can enjoy high-quality signals outside the suburbs, urban shopping malls, or subway high-speed trains. The dual-card dual-pass function allows the nova12 series to achieve dual data parallelism, and the fast Internet connection does not wait. Nova 12 Ultra and nova 12 Pro support two-way Beidou satellite messages, and support sending and receiving Beidou satellite messages without ground network signals. At the same time, nova 12 series is equipped with HarmonyOS 4, bringing a smarter and more convenient interactive experience. Nova 12 series is equipped with 100W smart fast charging Turbo, nova 12 Ultra and nova 12 Pro can be charged to 60% in 10 minutes.

Huawei FreeClip earphones are designed with "C-bridge" design and built-in nickel-titanium memory alloy, which is reliable and durable. A single earphone weighs only 5.6g, achieving a comfortable and unburdened wearing experience. With a 10.8mm dual magnetic high-sensitivity unit, it brings a pleasant listening experience without entering the ear. The single earphone is full of 8 hours of continuous music playback, and it is matched with a charging case for 36 hours of music playback life of the whole machine. It also supports smart experiences such as multi-device connection and audio sharing.

Huawei MatePad Pro 13.2 inches, Collector’s Edition, Huawei MatePad Pro Kit (Star Flash Edition) and Huawei Smart Magnetic Keyboard (Star Flash Edition) were unveiled at the press conference at the same time. Huawei MatePad Pro Kit (Star Flash Edition) contains a keyboard with Star Flash technology and HUAWEI M-Pencil (third generation), which also uses Star Flash technology, completes the closed loop of the Star Flash ecosystem in professional creation and mobile office scenarios, making office creation more stable and efficient, once again broadening the boundaries of tablet experience. Huawei MatePad Pro 13.2-inch Collector’s Edition also contains Huawei FreeBuds Pro 3 headphones, quiet calls, and HUAWEI Care + service for two years, giving the device more peace of mind.

Huawei released a new smart screen V5. In terms of smart function, it continues to be equipped with Huawei’s Lingxi pointing remote control, bringing a new interactive experience of "playing TV like a mobile phone"; with the super desktop function, it brings a large number of mobile phone applications to the large screen and unlocks hundreds of new ways to play "giant screen mobile phone". In terms of image quality, SuperMiniLED Honghu image quality supports "1080P seconds to 4K", showing more delicate and clear picture details. In terms of entertainment experience, it is equipped with HarmonyOS 4, through multi-device collaboration and diverse living room entertainment gameplay.

　　　 September 6, 2011 news, Hong Kong, Andy Lau and Liu Qingyun starred in the film and this year’s Venice Film Festival competition together, and the two set off for the local film festival on the evening of the 4th. The new films starred by Andy Lau and Liu Qingyun were both shortlisted for the competition of this Venice Film Festival, and they were more optimistic about each other’s chances of winning prizes.

　　　 Andy Lau, the best actor, showed up at the airport at about 10 pm on the 4th and went to the Venice Film Festival, where he received dozens of fans to drop off the plane and send small gifts. "Sister Peach" starring Andy Lau and "Death Gold" starring Liu Qingyun were shortlisted for the competition of the Venice Film Festival, which means that they have a chance to win the title of best actor. When asked about Andy Lau’s mood to play, he smiled and said that he was not nervous. After staying for a few days, he returned to Hong Kong to continue his work. He should not have time to go shopping. He is confident about winning the award. "I hope there is a chance. (Will you be worried that the length of the film will be cut too much?) Usually it is like this. Normally, the film length of" Sister Peach "is less than 2 hours. (The opponent Qingyun is optimistic about you?) Two Hong Kong films were shortlisted.

　　　 As soon as he arrived in Venice, Andy Lau attended the official press conference of "Sister Tao" with the director and director. Last year, Andy Lau, who visited Venice and won a large number of autographs from fans, coquettishly shouted to the film festival chairperson: "I am back!".

　　　 When asked why he took on the film, Andy Lau laughed and said that he had spent a lot of money to take on the film! After filming, he also felt that he encountered many different things, and he cared more about the people around him. He felt that simple things were more important than anything else. When the reporter heard Andy Lau say this, the audience clapped. It is known that after many critics have seen "Sister Tao", it is tentatively determined that it is the highest-rated film in the competition.

There is a final version of "Death Gold"

　　　 In addition, Liu Qingyun also set off for Italy with his wife Guo Aiming on the evening of the 4th. It turned out that they had to visit Rome for two days before flying to Venice. Asked if Qingyun knew the external reaction of "Death"? He said: "I don’t know, I just watched the dubbed version, and I knew there would be a final edited version. (Will you be worried that the length of the film will be cut, so that foreign audiences will not see it comprehensively?) Everyone is watching the subtitles, and only the subtitles are more detailed." Qingyun was optimistic that Andy Lau would win the prize, but he did not think about winning the prize.

　　　 In addition, she said that it was not intentional for the Venice Film Festival to go off the red carpet, and also pointed out that the characters played in the films with whom she worked could not see the acting skills and could not learn the nonsense of Xingye. When Qin Hailu promoted her participation in the film "Sister Tao", she said that she attended the Venice Film Festival 10 years ago, and now she has returned to the old place, which makes her feel like looking back on her 10-year film journey. She revealed that her next goal is to be a producer.

　　　 As for the director, it was reported by Hollywood as China’s CGI feast, due to the coexistence of martial arts movements and stunts, and it is one of the top 10 films in the film festival.

Next page More wonderful pictures

　　Correspondent, Jianxuan, Zhu Dianping

　　Jinling Evening News/Zijinshan News reporter　

　　Yin Xuebing Ling Yun

　　On the morning of May 19, Xiaomi Nanjing Science and Technology Park was officially opened at Xiaomi Group’s East China headquarters in Jianye District. It will become one of Xiaomi’s most important software research and development centers outside the Beijing headquarters. This move not only marks a new level for Xiaomi Group’s innovation platform in East China, but also adds strong momentum to the development of Nanjing’s digital economy industry.

　　Taste "millet porridge" again and start a new journey together

　　At 9:58 in the morning, with the sound of gongs and drums, Xiaomi Nanjing Science and Technology Park officially opened. In the square in front of the gate, nearly 200 Xiaomi employees dressed uniformly, waved support sticks in their hands, and laughed one after another, welcoming the "new home" moment that belongs to the Nanjing Xiaomi team.

　　Walking into Xiaomi Nanjing Science and Technology Park, the garden-like layout of the park is hidden by green trees, and the geometric aesthetic "back" shaped glass building is brand new and bright. According to the official plan, the Xiaomi Group East China Headquarters project is divided into three phases, with a total construction area of 365,000 square meters, including scientific research and design offices, talent apartments and related supporting facilities. The first phase of the project was completed and opened about 164,000 square meters, and more than 2,600 employees in the early stage were all in place on May 6.

　　Xiaomi Nanjing Science and Technology Park is affiliated to the Xiaomi Group East China Headquarters project and is positioned as "Xiaomi Group Software R & D Center and Talent Base". It is one of the most important software R & D centers of Xiaomi. It has been selected for major planned development projects in Jiangsu Province and key projects of Nanjing Famous Enterprise Settling Plan. Xiaomi Group East China Headquarters is mainly responsible for the development of operating systems and software. Together with Xiaomi Wuhan Headquarters, it jointly supports the overall technology research and development work of Xiaomi Beijing Headquarters.

　　At the event site, the "Xiaomo" service specialist of Jianye High-tech Zone presented the company with an exclusive "golden key" printed with the Xiaomi logo, which will serve the development of enterprises and project construction with great efforts, and support the development of Xiaomi Group’s East China headquarters with more practical measures. Together, we will write a new future of high-quality development.

　　In April 2010, under the leadership of Lei Jun, the start-up team drank a bowl of millet porridge, which started Xiaomi’s legendary development; in just 9 years, it became the youngest world’s top 500. At the opening ceremony of Xiaomi Nanjing Science and Technology Park that day, Lei Jun, founder, chairperson and CEO of Xiaomi Group, once again invited the guests to drink "millet porridge" to jointly start Xiaomi Group’s new journey in East China.

　　"I was very excited when I visited the Nanjing park. I would like to thank the relevant departments of Nanjing and Jianye District, as well as the headquarters and Xiaomi students in Nanjing. We have worked together to have this beautiful home. With the support of the municipal party committee and municipal government and the district party committee and district government, Nanjing will become a blessed land for Xiaomi to take off." Lei Jun said in his speech.

　　70 days on the ground, "Nanjing Efficiency" moved "Xiaomi People"

　　Why did Xiaomi Group’s East China headquarters choose Nanjing to settle in Jianye? It dates back to August 2017, when the Xiaomi team was first invited to Jianye, Nanjing, to further understand the Nanjing market and explore the possibility of cooperation with Jianye District. "During the visit, Xiaomi saw the basic resources such as Nanjing’s good infrastructure and development environment, as well as the long-term investment value and development prospects of Jianye and the support of the government. It also realized the responsibility of Jianye as the core area of Nanjing, which provided good conditions for Xiaomi’s development in Nanjing." Liang Qiushi, general manager of Xiaomi Group Nanjing, recalled in his opening speech.

　　Then in October 2017, Xiaomi Group’s East China headquarters project was officially signed and landed in Jianye. What’s more worth mentioning is that it only took 70 days for the two parties to "hold hands" from the first negotiation to the official signing. "The agreement was reached in 70 days, which fully demonstrates the good business environment and high efficiency of Nanjing and Jianye, which makes our company more confident in long-term rooted development!" At the signing ceremony at that time, Lei Jun expressed his high appreciation for the service consciousness and innovative spirit of Nanjing and Jianye.

　　"Xiaomi, which is young, creative and full of science and technology, and Jianye, which is modern, open and innovative, are very compatible in terms of urban temperament and development concept. Xiaomi’s choice of Nanjing and Jianye is an important strategic move for both parties to superimpose their advantages and win-win cooperation," said the relevant person in charge of Jianye District.

　　From coordinating the transition carrier of Xiaomi Group in Xincheng Science and Technology Park to fully supporting the completion and implementation of Xiaomi Nanjing Science and Technology Park, Jianye High-tech Zone "accompanies" the development of Xiaomi Group’s East China headquarters throughout the process, keeping an eye on the demands of enterprises, and providing support according to the model of "one main body + one base + a series of policies" to ensure the maximum integration of resources and achieve accurate drip irrigation for industrial development. Since 2017, Xiaomi has established 6 companies in Nanjing, including Beijing Xiaomi Mobile Software Co., Ltd. Nanjing Branch and Nanjing Xiaomi Communication Technology, and gathered a number of ecological chain enterprises.

　　Demonstration leads, turning Nanjing into a super R & D center

　　"I am very happy today. The Xiaomi Nanjing Science and Technology Park has opened, and the Xiaomi Engineer Training Camp has officially opened. We will cooperate with universities for this project, so that outstanding Xiaomi engineers can hold technical training in universities, communicate directly with outstanding students, and let students master more practical skills." Lei Jun testified with a picture on Weibo.

　　It is understood that the East China headquarters of Xiaomi Group, as the software research and development center and talent base of Xiaomi Group, will focus on mobile phone and automotive software development, internet services and other advantageous businesses in the future. In terms of talent training, Xiaomi is working with universities in Jiangsu Province such as China Southern Airlines and Nanjing University of Technology to jointly train students, and cooperate with industry, university and research. Continue to play a leading and exemplary role in helping Nanjing become an innovative economic highland and a smart city.

　　Lei Jun said that the long-term goal of Xiaomi’s future development is to invest in the underlying technology on a large scale and become a global leader in the new generation of hard core technology. In all Xiaomi products and technology ecosystems, the improvement of software capabilities is particularly important, which is also the mission of Xiaomi Group’s East China headquarters. It is hoped that the development of Xiaomi will be deeply integrated with Nanjing’s industry, closely combined with Nanjing’s industrial advantages, and the Nanjing area will be turned into a super R & D center to effectively support the implementation of the group’s strategic goals and help Nanjing’s new quality productivity development.

　　The opening of Xiaomi Group’s East China headquarters will undoubtedly bring new changes to the development of the urban economy and industry. On the one hand, the settlement of talents can increase employment and stimulate consumption; on the other hand, the advantage of corporate headquarters has a strong role in driving the radiation of the industry, and the headquarters economy can promote the stability of the industrial chain and supply chain in the region.

　　The reporter learned that in addition to Xiaomi’s East China headquarters, projects such as Alibaba’s Jiangsu headquarters and Hang Seng Electronics’ Jiangsu headquarters, which are gathered in the southwest of the river, are also being accelerated.

　　In recent years, Jianye District has focused on the leading industries of "finance + digital economy", gathered more than 95% of the municipal headquarters enterprises in the area, attracted more than 80,000 high-end talents to settle in, and built a number of 10 billion-level emerging industrial clusters such as information software, smart logistics, and digital entertainment.

Zong Qinghou’s legendary business life ended.

On February 25, Wahaha released an obituary saying that Zong Qinghou, founder and chairperson of Wahaha Group, died at 10:30 on February 25, 2024 at the age of 79 due to ineffective medical treatment.

After hearing the news, many Hangzhou citizens spontaneously came to No. 160 Qingtai Street, the former headquarters of Wahaha, to lay flowers for the legendary entrepreneur. Among the many bouquets, someone brought him his favorite Wahaha products.

"There will be 1,000 Hamlets in the eyes of 1,000 people, and there will be 1,000 Wahaha in the eyes of 1,000 people," Zong Qinghou described the importance of Wahaha to him. "But for me, there is only one Wahaha. It is all the dreams of my whole life, all the meanings, values, labels and symbols, and it is the proof that I have existed in this world."

This gray six-story building has almost carried Zong Qinghou’s life. Since the "School-run Enterprise Distribution Department of Shangcheng District, Hangzhou" sign was hung up in 1987, Zong Qinghou has come to work here almost every day for the rest of his life without business trips. It is also an important meeting place for him. Media visits often find that Zong Qinghou has worked for more than an hour and slept in the office the night before.

This is the starting point of everything in Zong Qinghou, and it is also the beginning of the story of Wahaha.

At the age of 42, he started a business and created a beverage empire

Zong Qinghou first entered this small building in 1987.

In April 1987, 42-year-old Zong Qinghou with a courage, with 140,000 cash, contracted the uptown school-run enterprise distribution department, by dropshipping soda, popsicles and stationery paper earned a penny.

Many years later, Zong Qinghou recalled the scene at that time, because he did not dare to spend the only 140,000 yuan, the distribution department simply painted the walls, bought a few office desks and chairs, and opened.

This year was a turning point in Zong Qinghou’s life. In July 1987, Zong Qinghou used the sales payment of "China Pollen Oral Liquid" and a bank loan of 50,000 yuan as the original funds to establish Hangzhou Baoling Children’s Nutrition Food Factory, which processed "China Pollen Oral Liquid" for Hangzhou Baoling Company, and started Wahaha’s entrepreneurial process. At the end of November of the same year, the filling workshop with a daily output of 10,000 boxes was completed at No. 160 Qingtai Street, Shangcheng District. That year, the total sales volume was 4.36 million yuan, and the profit was 222,000 yuan. In 1990, Wahaha’s sales revenue exceeded the billion yuan mark, and the profit exceeded 20 million yuan.

Mr. Zong always described his success as "catching up with a good era."

In 1978, the Third Plenary Session of the Eleventh Central Committee was held, which opened the curtain on China’s reform and opening up. The surging tide came, and in the agitation brought countless opportunities to the times. At that time, Zong Qinghou was 33 years old. After more than 10 years of "manual work", he succeeded his mother to get a job in a school-run factory in Hangzhou.

Soon, the surging tide brought a big wave, rushing Zong Qinghou to the forefront of the times. In 1986, the state issued relevant regulations, proposing to "implement a variety of forms of management contract responsibility system to give operators full operating autonomy." The wave of reform and opening up was booming, and Zong Qinghou became the first to eat crabs.

In 1991, the small building at No. 160 Qingtai Street in Shangcheng District had a new name – Hangzhou Wahaha group company. Under the matchmaking of the Hangzhou Municipal Government, Zong Qinghou paid more than 80 million yuan to merge the old state-run factory with a factory area of 60,000 square meters and more than 2,000 employees – Hangzhou Canned Food Factory, creating a miracle of "small fish eat big fish". Three months after the company was established, the original loss of more than 40 million yuan of Hangzhou can factory turned into a profit, sales revenue, profits and taxes more than doubled, the second year sales reached 400 million yuan, net profit of more than 70 million yuan.

In that exciting era, everything was new. In 1994, Zong Qinghou proposed the "joint sales system" at the dealer conference, requiring first-level dealers to pay a "security deposit" in advance. After the payment is settled every month, Wahaha will continue to ship. After the sale, Wahaha returns the "security deposit" and gives dealers rebates. He also formulated a strict price difference system. Each first-level dealer must strictly implement the corresponding sales price, so that "everyone makes money".

Wahaha’s development trajectory has also become a microcosm of the big era.

In 2003, Wahaha’s revenue exceeded 10 billion yuan, making it the fifth largest beverage producer in the world. In 2012, Wahaha entered the revenue 50 billion club and reached its peak in 2013. According to public data, in 2013, Wahaha’s revenue was 78.20 billion yuan. In 2014, Zong Qinghou set a goal of 100 billion yuan. With the rapid development of Wahaha, Zong Qinghou became the richest man in China three times during 2010-2013.

Over the past 30 years, Wahaha has grown into a huge beverage empire. According to Wahaha’s official website, the cumulative sales in 35 years are 860.10 billion yuan, profits and taxes are 174 billion yuan, and taxes are 74.20 billion yuan. Wahaha has 81 production bases and 187 subsidiaries in 29 provinces, municipalities and autonomous regions across the country.

The products cover more than 200 varieties of packaged drinking water, protein beverages, carbonated beverages, tea beverages, fruit and vegetable juice beverages, coffee beverages, plant beverages, special-purpose beverages, canned food, dairy products, medical and health foods, among which purified water, AD calcium milk, nutrition fast line, eight treasure porridge are well-known national products.

"I’m not a capitalist, I’m an entrepreneur."

There are many entrepreneurs who have risen to the forefront and become trendsetters of the times, and Zong Qinghou is particularly different.

The financial writer Wu ****** once described meeting Zong Qinghou in the 1990s in "The Shanjia Man of Hangzhou": He had the face of a typical Hangzhou man, square, gentle and lacking in features. He spoke a little shyly, and when he liked someone, his only expression was to keep passing you cigarettes.

As a representative of Zhejiang businesspeople, Zong Qinghou was low-key and gentle. Even Wahaha seems to have inherited this trait from him.

In an interview with The Paper, Yang Yiqing, director of the Zhejiang Merchants Museum, believes that Wahaha’s corporate management model is very unique and can be summarized as "four nos" – that is, no loans, no listing, no vice president, and no real estate.

"He didn’t touch all the popular industries in various periods, including real estate, financial investment, and the Internet. The valuable thing is that Zong Qinghou has always adhered to his main business, and he is very confident. There is no unified model for enterprise management, and there is no standard answer. Only those that suit him are the best," Yang Yiqing said in an interview with the media.

On CCTV Finance’s "Dialogue" program, when asked why he did not choose to sell expensive products, Zong Qinghou, who is already in his 70s, answered 11 words: "I am not a capitalist, I am an entrepreneur." Referring to the reason why he did not choose to go public for so many years, he said that Wahaha is not short of money at present, and if there are projects that require large capital investment in the future, he will also consider going public. But if it goes public, it is necessary to be responsible to shareholders. It is not good for shareholders to raise money without increasing the efficiency of the enterprise.

In Zong Qinghou’s view, the real economy is the foundation of a country’s economy and the lifeblood of our country’s economy. The virtual economy is produced in the real economy and should also serve the real economy. Entrepreneurs should sink their hearts into doing business and lead the transformation and upgrading of the real economy with innovation.

Therefore, Zong Qinghou also had a famous economic dispute with Ma Yun.

In 2016, when discussing "the deep reasons why China’s manufacturing industry is facing a cold winter in 2016" and "how to revive the real economy" on the "Dialogue" program, Zong Qinghou was asked what he thought of the five major changes proposed by Ma Yun: "new retail, new manufacturing, new finance, new technology and new resources".

At that time, Zong Qinghou’s answer was: "Except for new technology, everything else is nonsense. [Ma Yun] himself is not [engaged in] the real economy, [can] make something." New technology is what the real economy should pursue, and can help the manufacturing industry from the low end to the high end.

Afterwards, when Ma Yun attended a political and business event in Nanjing, he also talked about the debate between the real economy and the virtual economy. He believes that the real economy and the virtual economy are not antagonistic relationships. Entrepreneurs must not live in yesterday and complain about tomorrow. "It is not technology that makes you eliminated, it is backward thinking that makes you eliminated, it is unwillingness to learn and self-righteousness that makes you eliminated… It is not that China’s real economy is not working, but your real economy is not working." This is considered Ma Yun’s response to Zong Qinghou’s criticism.

A month later, Zong Qinghou and Ma Yun publicly shook hands for a group photo, thus ending the "virtual and real economic dispute".

Just as Zong Qinghou chose to do the real economy, Zong Qinghou always has a sense of "down-to-earth" constancy. Since starting his business in 1987, Zong Qinghou has maintained a consistently diligent schedule for more than 30 years: working nearly 16 hours a day, going to work at 7 am, and leaving work at 11 pm.

Zong Qinghou’s early experience of working hard from the bottom also made him very thrifty. He is known for his deeds: personal consumption of 50,000 yuan per year, choosing economy class by plane, choosing a second-class seat by high-speed rail, and often not bringing secretaries and assistants on domestic business trips. Because he wears cloth shoes all year round, Zong Qinghou is also known as "the richest man in cloth shoes".

"If my’destiny ‘is to smooth the cracks and scars between the poor and the rich, if it is to present a kind of values and possibilities that enable young entrepreneurs to find their way and see even a glimmer of light, I will definitely feel that this is valuable and worth paying for without hesitation," Zong Qinghou said.

Looking for a new direction

However, in recent years, people have noticed that Zong Qinghou has undergone some changes.

Zong Qinghou, who had always claimed that he would not retire, began to take a back seat. Zong Qinghou, who had always said that he would "never go public", relented. Zong Qinghou, who had always refused E-commerce LIVE, not only started Douyin live broadcast, but also opened several e-commerce platforms at once.

At the same time as these changes, Wahaha "stagnated". In 2013, Wahaha’s revenue peaked at 78.30 billion yuan. However, just as Zong Qinghou announced in 2014 that he would hit the 100 billion target, Wahaha’s revenue plummeted to 49.40 billion yuan in 2015. Since then, Wahaha’s revenue has been hovering below 50 billion yuan, and it will not be until 2021 that Wahaha returns to the 50 billion yuan club.

In the process, Wahaha, a leader in the industry, gradually lost its advantage. In 2001, Nongfu Spring surpassed Wahaha in the market share of bottled water, and has been in the industry for many years since then. At other tracks, brands such as Wanglaoji, Jiaduobao, Master Kong, and Yili are eyeing each other, while new brands such as Yuan Qi Sen Lin have emerged with concepts such as "0 calories" and "0 sugar". Wahaha’s voice was drowned out.

Today, when it comes to Wahaha, the public’s impression is still mostly in Nutrition Express and AD calcium milk. Many people think that its products lack innovation and are not young enough. At the same time, Nongfu Spring has broken through the beverage circle with the Oriental Leaf series of tea drinks, gradually gaining the upper hand in the competition with Wahaha.

In the age of the internet economy, Zong Qinghou, who is in his infancy, seems to be getting farther and farther away from his consumers. Wahaha needs to change, and Zong Qinghou has to seek change and find a new way out.

For Wahaha, the addition of Zong Fuli is a kind of thing, and the establishment of an e-commerce platform is naturally the same.

In 2018, Zong Fuli took the initiative to join Wahaha Group as the head of the brand public relations department, in order to make Wahaha younger. Under Zong Fuli’s younger strategy, Wahaha replaced Wang Leehom, the spokesperson for more than 20 years, with a younger Xu Guanghan; Nutrition Express launched a limited colorful version and launched a limited makeup. Under Zong Fuli’s leadership, Wahaha began to cross the border and appear in more young people’s favorite circles. In recent years, Wahaha has launched AD calcium milk-flavored milk heart moon cakes, launched a joint juvenile ice cream with Zhong Xuegao, and launched a joint pH 9.0 soda with POP MART. It has also entered the e-sports circle and cooperated with League of Legends Professional League (LPL) officials and teams.

In order to keep up with the pace of the times, both Zong Qinghou and Zong Fuli have made many attempts, but the effect is not obvious. According to media statistics, in the past two or three years, Wahaha has launched more than 300 new products, but basically they cannot escape the fate of going offline at the speed of light. In recent years, Wahaha has been jokingly called the fastest company in the industry for "making babies" because of the fast speed of introducing new products. But the new big single product has not yet appeared.

Who will take over? Hangzhou state-owned assets once sought to withdraw

Zong Qinghou always had one wish – to turn Wahaha into a century-old store.

However, seeing his age getting older, Zong Qinghou began to think about the issue of succession. In 2023, on the CCTV financial "Dialogue" program, Zong Qinghou once again talked about the issue of succession: "You always have to train young people and successors. After I leave, he can continue to let Wahaha develop healthily and become a century-old store." Because it is impossible for me to keep it a century-old store. "

At the end of 2021, Zong Fuli became the vice chairperson and general manager of Wahaha Group, responsible for daily work, and Zong Qinghou remains the chairperson of the group. For Zong Qinghou, he is still waiting for a more mature opportunity.

On the show, Mr. Zong revealed that he was already gradually preparing for the shift. "Why do I have to revamp the process, the post responsibility system, and modify and improve the rules and regulations?" he said. "It is to let every employee know what he should do, to what extent, what he cannot do, what responsibilities he should take, and what compensation he can get."

In the eyes of the outside world, it is a foregone conclusion that Zong Fuli will inherit the Wahaha business empire left by Zong Qing.

On February 23, Hangzhou Wahaha E-commerce Co., Ltd. underwent an industrial and commercial change, and Zong Fuli succeeded Zong Qinghou as the company’s legal representative, executive director, and manager. Earlier, in 2021 and 2022, Zong Fuli began to serve as directors of related companies in succession. After entering 2023, Zong Fuli served as directors of related companies under 14 Wahaha Group.

From the perspective of shareholding structure, Zong Qinghou is the founder and chairperson of Wahaha Group, but he is not the largest shareholder of Wahaha.

According to Tianyancha, Hangzhou Shangcheng District Wenshang Travel Investment Holding Group Co., Ltd. holds 46% of Wahaha Group’s shares, making it the largest shareholder of Wahaha Group. Behind it is the State-owned Assets Supervision and Administration Commission of Hangzhou Shangcheng District. Zong Qinghou himself holds 29.4% of the shares, and the remaining 24.6% of the shares are held by the Wahaha employee shareholding platform. As Zong Qinghou’s only daughter, Zong Fuli has the opportunity to inherit the 29.4% stake held by her father. But she is still not the largest shareholder of Wahaha, and the matter of taking power requires the cooperation of the Wahaha employee shareholding platform.

In fact, as early as May 2006, Zong Qinghou said that it was not difficult to negotiate with the Hangzhou State-owned Assets Administration about the exit of his 46% stake in Wahaha Group. However, due to the "Dawa dispute", the talks between the two sides were forced to be suspended.

In 2023, there is a signal that Hangzhou state-owned assets intend to withdraw again. According to the bidding information inquiry platform Xunbiaobao information, in July 2023, Hangzhou Shangcheng State-owned Investment Holding Group invited tenders for the equity value evaluation and legal services of the 46% equity held by Hangzhou Wahaha Group. Among them, Wanbang Asset Appraisal won the bidding for the equity value evaluation service, while Guohao Law Firm won the bidding for the legal services of equity disposal. It is not yet known whether Wahaha Group is still negotiating this part of the equity. If this part of the equity is taken over by an external institution, Zong Fuli will take over, or it will face greater challenges.

Will Wahaha, which is "not short of money", go public?

When the owner of Wahaha Group changed from Zong Qinghou to Zong Fuli, whether Wahaha would go public became another outstanding issue.

Compared to her father, who went to the United States to study in junior high school until she graduated from college, Zong Fuli has her own way of dealing with the world – directly and insisting on herself. In company management, she attaches more importance to systems and rules and does not exclude listing.

In May 2017, China Candy, a former Hong Kong-listed company, announced that New Baili Financing would make a voluntary conditional cash offer for and on behalf of the offeror Ever Maple Flavors and Fragrances Holdings Limited (Hengfeng Holdings) to acquire all the shares in the entire issued share capital of China Candy. The only ultimate beneficial owner of the offeror, Hengfeng Holdings, is Zong Fuli. This move was also interpreted by the outside world as Zong Fuli’s attempt to go public. This also triggered speculation about the listing of Wahaha Group. Wahaha Group denied this and said that the acquisition was Zong Fuli’s personal behavior and had nothing to do with the company.

However, the offer ultimately lapsed. On July 14, 2017, Zong Fuli posted a statement on her Weibo about the "lapse of the cash offer with China Confectionery Holdings Co., Ltd." The statement said that for the company, this was a positive and constructive exploration, which provided valuable experience for the company’s future layout in related fields.

On different occasions, Zong Fuli talked about the issue of listing with an open attitude. In 2019, Zong Fuli, who is the chairperson of Hongsheng Beverage Group and the head of Wahaha Group’s brand public relations department, once again responded to her views on listing when participating in the People’s Daily Online "Ask" program. "If you are not a listed company, people will have doubts about your investment. Although we are also a big brand company, others will think that a listed company is a company with a clear and standardized process, and will be more at ease to negotiate with you. Because we have never encountered a process of capital integration. In the current market and industry environment, any large-scale development of an enterprise is operated through capital means."

Zong Fuli believes that in the future, only by combining with capital markets will it go further, which is what every company has to do. "I also want to see what capital means can bring us."

In recent years, with Zong Qinghou’s relaxation, Wahaha Group’s listing has attracted more attention, but each time Wahaha Group has denied the listing rumors.

In fact, in the current shareholding structure, it is difficult for Wahaha Group to go public. According to public information, since Wahaha implemented the employee shareholding plan in 1999, the number of shareholding shareholders has exceeded 15,000. According to the relevant regulations of IPO, when the company to be listed applies for listing, the employee shareholding plan needs to be penetrated by shareholders, and the final number of shareholders after penetration shall not exceed 200. Under the background of Wahaha Group’s "family culture", it is conceivable that it is difficult to optimize the number of shareholding of 15,000 people to less than 200 people.

Wahaha is still 63 years away from becoming a century-old store, and its road is still long.

On August 28, China Evergrande announced on the Hong Kong Stock Exchange that Evergrande’s agreement arrangement meeting will be postponed for 29 days to September 26. Before that, China Evergrande said that the agreement arrangement meeting scheduled for August 23 will be postponed to August 28.

On the same day, China Evergrande resumed trading on the Hong Kong Stock Exchange, and the intraday share price fell by more than 90%. As of the close, China Evergrande’s share price was HK $0.34, falling below HK $1 and becoming a penny stock.

Image Source: Oriental Fortune

Agreement to postpone the meeting

According to China Evergrande’s announcement, the company has decided to extend the period for Evergrande Agreement Arrangement creditors to consider, understand and evaluate the terms of Evergrande Agreement Arrangement, and to give Evergrande Agreement Arrangement creditors more time to consider the recent development of the Group. Therefore, the Evergrande Agreement Arrangement Meeting will be postponed for 29 days to September 26. In order to keep the schedules of Evergrande Agreement Arrangement, Jingcheng Agreement Arrangement and Space-based Agreement Arrangement as consistent as possible, the Jingcheng Agreement Arrangement Meeting and the Space-based Agreement Arrangement Meeting will be postponed for 28 days to September 25.

The Hong Kong Evergrande Class A Agreement Arrangement Meeting will be postponed to September 26, 2023 at 8:00 pm (Hong Kong time) (i.e. 7:00 am Cayman Islands time). The Hong Kong Evergrande Class C Agreement Arrangement Meeting will be postponed to September 26, 2023 at 9:30 pm (Hong Kong time) (i.e. 8:30 am Cayman Islands time) (if later than the aforementioned time, after the conclusion of the Cayman Islands Evergrande Class A Agreement Arrangement Meeting).

The Cayman Islands Evergrande Class A Agreement Arrangement Meeting will be postponed until 8:45 pm (Hong Kong time) on September 26, 2023 (i.e. 7:45 am Cayman Islands time) (if later than the aforementioned time, after the conclusion of the Hong Kong Evergrande Class A Agreement Arrangement Meeting). The Cayman Islands Evergrande Class C Agreement Arrangement Meeting will be postponed until 10:15 pm (Hong Kong time) on September 26, 2023 (i.e. 9:15 am Cayman Islands time) (if later than the aforementioned time, after the conclusion of the Hong Kong Evergrande Class C Agreement Arrangement Meeting).

The meeting will be postponed until 9:00 am (British Virgin Islands time) on September 25, 2023 (i.e. 9:00 pm Hong Kong time).

The Space-based Agreement Arrangement Meeting will be postponed to 8:00 pm (Hong Kong time) on September 25, 2023.

Evergrande Group believes that, despite the postponement of the Agreement Arrangement Meeting, the timetable for the proposed restructuring is still in line with the Agreement Arrangement creditors’ expectations for the implementation of the proposed restructuring, given that the current deadline is December 15, 2023.

Shares resume trading on the Hong Kong Stock Exchange

On August 28, China Hengda resumed trading on the Hong Kong Stock Exchange, the intraday share price fell by more than 90%, and the market value evaporated by nearly 20 billion Hong Kong dollars.

Wind data show that China Hengda shares closed at HK $1.65/share before the resumption of trading, with a market value of HK $21.80 billion.

On the evening of August 25, China Evergrande announced that it will resume trading on August 28. So far, all three listed companies in the Hengda department have completed the resumption of trading.

On August 27, China Evergrande released its 2023 semi-annual report. Revenue in the first half of 2023 was 128.20 billion yuan, an increase of 44% year-on-year, and the total net loss was 39.25 billion yuan.

Data show that Evergrande’s total liabilities decreased slightly to 2.3882 trillion yuan from the end of last year, excluding the advance payment of the debt is 1.7842 trillion yuan. Among them, interest-bearing loans 624.80 billion yuan, engineering materials and other payables 1.0566 trillion yuan, other liabilities 102.90 billion yuan. As of June 30, China Evergrande’s land reserves reached 190 million square meters, and there were 78 old renovation projects (34 in Shenzhen).

It is worth noting that according to the 2022 annual report released by China Evergrande recently, China Evergrande’s revenue in 2022 was 2300.7 billion yuan, the total net loss was 125.81 billion yuan, and the cumulative sales refund for the year was 35.79 billion yuan. The total liabilities in the 2022 statement were 2.43741 trillion yuan. In terms of land reserve, as of the end of 2022, China Evergrande had a land reserve of 210 million square meters.

According to China Evergrande, since its operating difficulties began in September 2021, Evergrande has promoted the full resumption of work on nearly 700 projects and the maintenance of buildings.

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Original title: "More than 90% down! Evergrande sudden announcement"

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　　Driven by the growing trend of mobile phone screens, it seems that all electronic products are racing towards the road of "big and thin". Therefore, after 5-inch brilliance, portable navigation turned to 7-inch in 2012 without hesitation. Under the leadership of the first-line brand Ren Waiyou, GPS manufacturers have continuously launched 7-inch large screens to seize the market, and Chinese consumers who are used to buying big things are also happy to enjoy the great happiness brought by large screens. Today, I will recommend several first-line brands’ 7-inch boutique navigation for you to see if there is any "dish" for you?

　　Let Me Travel N710

　　Operating system: WinCE6.0

　　Memory: 128M

　　Positioning accuracy: 10m

　　Screen: 7 inch high definition touch screen, resolution: 800 * 480

　　Map: New map of 4D map

　　N710 screen has 480 * 800 high definition resolution, clear and comfortable screen brightness with 7-inch screen presents clear traffic information and navigation information, while the 7-inch screen also makes the N710 UI interface more outstanding, whether it is the boot interface or 3D real scene, service area Kanban, dynamic lane display and other functions have been perfectly presented to the greatest extent, especially after the enhanced version of the software, its various path planning functions, more comprehensive high-speed distance, ordinary road distance, traffic lights number, total driving distance, estimated driving time and other navigation indicators, for the owner to plan a shorter distance, high-speed priority, ordinary priority and recommended routes and other driving routes, forming a high-value driving recommendation scheme.

　　In terms of query and navigation functions, the N710 brings a leisurely experience to car owners. The "seckill" query function ensures that the N710 has unlimited search in unlimited areas and categories across the country. Whether it is WEB query, vague query, point of interest query or house number query, the 7-inch wide screen can fully display the query information, and then present a more concise and intuitive perfect navigation route, making driving more leisurely.

　　In addition to inheriting the powerful functions of the N series, the Renwoyou N710 also has excellent expansion functions. By reserving the AV-IN interface in the product design, the integration of navigation with electronic dogs, driving recorders, reversing rear view and other devices is realized, which fully meets the various needs of car owners during driving and provides them with a safer driving life.

　　Editor’s comment:As a leading brand of domestic navigation, each product is firmly established in the navigation market with its high-level and demanding style. This is the case with the N710 recommended for everyone. While the navigation function meets the needs of consumers, the enhanced software and expanded functions help users effectively cope with new traffic regulations and avoid severe penalties.

　　Freelander D70

　　Operating system: WinCE6.0

　　Memory: 128M

　　Positioning accuracy: 10m

　　Screen: 7 inch high definition touch screen, resolution: 800 * 480

　　Map version: Daodaotong map

　　The D70 Freelander uses the Daodaotong 3D navigation system, and the navigation map data covers the whole country, of which the number of POIs reaches 24 million, the road network reaches 3.24 million kilometers, has 350,000 electronic eyes, and 2,000 upgraded service points.

　　Due to the use of 3D navigation system, Freelander supports 3D real-life navigation. Its 360,000 3D intersection enlarged map can cover all cities in the country, providing the best 3D stereo vision. Don’t worry about complex intersections. At the same time, it provides dual-screen interface display, which has fuzzy search, point of interest search and other methods in query, and supports handwritten input. Built-in 4G, supports TET card expansion

　　In addition to professional navigation functions, the Freelander D70 also offers a wide range of entertainment features, including MP4/AVI and other video formats. It also supports FM transmission, allowing car owners to play the car audio through the car radio with the car stereo. A variety of puzzle games are also installed in the machine.

　　Editor’s comment:Freelander D70 has a 7-inch high definition large screen display effect is good, while 500,000 fixed electronic eye data can ensure the safety of road warning, in the map upgrade, Freelander provides consumers with a lifetime free upgrade map and hardware three years quality assurance and other after-sales services.

　　DECZhongheng M7TV

　　Operating system: WinCE6.0

　　Positioning accuracy: 10m

　　Memory: 128M

　　Screen: 7-inch ultra-high definition touch screen, resolution 800 * 480

　　Map: Kailid 3D Real Map

　　DEC Zhongheng M7TV has excellent appearance and workmanship, and adopts the function of international first-class IML piano paint, while the 7-inch VGA ultra-high definition LCD touch screen has a resolution of 800 * 480 pixels, and implants 100Hz/120Hz double speed technology to completely bid farewell to the picture trailing phenomenon.

　　In terms of navigation, DEC Zhongheng M7TV adopts professional navigation maps, with detailed map information for large, medium and small cities. It supports real-life voice navigation and automatic smooth switching. The navigation information includes intersection turning prompts and point-to-point itinerary scheduling. Adopting the latest generation of SIRF star search navigation module in the United States, it can provide fast and accurate positioning, fast response, hot and cold start. At the same time, it has a built-in high-sensitivity GPS receiver group and antenna to accept satellite signals and locate faster and more accurately. Support personalized function settings, such as "multi-country voice settings, backlight adjustment, power management, coordinate adjustment, etc.".

　　Editor’s comment:The overall quality of DEC Zhongheng M7TV is good, whether it is navigation function, map information, etc., it is very powerful and complete. At the same time, DEC Zhongheng M7TV also tailor-made FM FM transmission function for the car, which can quickly and easily realize the connection between the digital player and the car stereo. And supports Bluetooth function and wireless reversing rear view

　　HUAFENG e LH700

　　Operating system: WinCE6.0

　　Memory: 128M

　　Screen: 7-inch high definition LCD touch screen, resolution 800 * 480

　　Map: Daodaotong 3D Real Map

　　The 7-inch TET large screen of the Huafeng e-Luhang LH700 gives people the feeling that it is first and foremost atmospheric and decent, with a resolution of 800 x 480 allowing navigation information to be clearly displayed.

　　In the navigation function, the first efficient positioning star search makes it only 13 seconds to complete the positioning when entering the navigation. On speed-limited sections, schools, traffic lights, and accident-prone sections, its fixed electronic data can be broadcast in advance to effectively avoid fines. And its unique Eagle Eye function allows car owners to grasp the itinerary in advance and modify the route in time. Daodaotong 3D real map provides a rich real map for Huafeng e-LH700, making it more three-dimensional and intuitive during navigation.

　　At the same time, Huafeng e-Luhang LH700 also supports MP3, video playback, FM transmission, e-book and other entertainment functions.

　　Editor’s comment:Huafeng e-Luhang LH700 has a lot of user-friendly design in function, such as its intelligent switch function, when the car starts, it will turn on the navigation, turn off the flame and automatically switch to power-saving sleep mode. In terms of after-sales services, Huafeng e-Luhang’s E-baby service center, which can solve various problems online, and there are more than 300 joint insurance points across the country to provide consumers with perfect services for purchasing machines.

One second, two seconds, three seconds… Several "code farmers" from Beijing Xinchuang Enterprise sat in front of a laptop, holding their breaths and concentrating, their hearts seemed to beat at the same frequency as the second hand.

At the 14th second, the computer desktop "lit up" smoothly, and the laboratory was suddenly full of joy.

From fighting each other, to clenching their fingers into fists, Tongxin has joined forces with upstream and downstream enterprises in the industry to jointly promote the development of domestic operating systems.

In the rapid iteration of technology, the boot time of domestic operating systems has been gradually shortened, finally achieving a 14-second leap in 2022.

In March 2022, Tongfang laptops equipped with Loongson 3A5000 4-core processor, Tongxin UOS operating system, and Kunlun BIOS firmware achieved a leap in 14-second boot time, representing that the computers of "China Core" and "China Soul" are moving from "usable" to "easy to use", expanding the Chinese people’s place in the information technology industry that Intel and Microsoft have occupied for many years.

Each line of code leaping towards "14 seconds" hides the creativity and ambition of several generations of "Beijing code farmers". They represent Beijing’s "soft power", some are white-haired gentlemen who have been fighting for decades, and some are just entering the industry. The difficulties in the chain of information technology application and innovation are making key breakthroughs in their side-by-side struggles.

Loongson CPU out of the "darkest hour"

Boot speed is the first impression of computer performance to users. 10 years ago, it took 10 minutes or even longer to open a computer equipped with domestic hardware and software.

CPU (Central Processor) is the heart of the computer. If you want to speed up the computer, you must first pass this hurdle. Do Chinese people have their own CPU?

Yes. In the early morning of August 10, 2002, the computer installed with the "Loongson No. 1" CPU was successfully started, ending the history of the Chinese people relying entirely on imported CPUs to manufacture computers. In 2010, the Chinese Academy of Sciences and Beijing jointly funded the establishment of Loongson Zhongke Company, hoping that the R & D results will be accelerated and industrialized.

However, just over two years later, Longxin Zhongke fell into the "darkest moment".

The Loongson team with strong academic taste has been focusing on improving CPU performance, but has not come up with a general-purpose CPU that meets the mainstream needs of the market. The high investment in research and development has made the company’s funds tight, and even unable to pay salaries for a while, resulting in the loss of talent.

"This crisis forced us to recognize the reality." Founder Hu Weiwu realized that the R & D staff of "Shanghai" gave up the establishment of the Chinese Academy of Sciences, but forgot to pay attention to the real needs of the market. In other words, although the organization has been transformed, the concept has not kept up.

Hu Weiwu, Chief Engineer and Chief Designer of Loongson, Institute of Computing Technology, Chinese Academy of Sciences

At that time, the mainstream CPU in the market was a multi-core design. Intel’s main focus was dual-core and quad-core. In order to be superior, Loongson started with eight cores. Hu Weiwu admitted that the premise of "more people and more power" is that everyone must be strong. Although Loongson has eight cores, the performance of each core is not as good as that of humans. Loongson’s CPU was not accepted by the market at that time, and the reason is very simple – it is not easy to use.

After several years of detours, Loongson finally put down its "body" and turned its attention to the CPU in the field of industrial control, and then successfully applied it in the field of information technology. In constant trial and error and iteration, Loongson’s revenue exceeded 100 million yuan in 2015, achieving break-even for the first time.

From 2015 to 2020, the performance of Loongson increased by 10 times, which made it possible to support 14-second boot. Tongfang’s computer, whose boot time was shortened to 14 seconds, was equipped with the CPU of the Loongson 3A5000 series, and its performance was close to the mainstream level of open market CPUs.

Domestic operating system is just emerging

For the majority of computer users, the classic icon of the Windows operating system is deeply etched in their memory. The CPU is the heart of the computer, and the operating system is the soul. If Godson is benchmarking Intel, then who can benchmark Microsoft?

In 2011, when Hu Weiwu was struggling for a higher-level CPU, Liu Wenhuan, general manager of Tongxin Software, decided to start from scratch and build a domestic operating system.

"If conquering chip technology is like climbing the Himalayas, solving the domestic operating system is exploring the Mariana Trench." Before that, he worked in an information security company for more than a decade and increasingly felt that if the operating system bottleneck could not be solved, information security could only be on paper.

In the same period, a group of software companies with the same ideals were born in China. But the ideal is full and the reality is skinny. The first wave of early adopters found that computers equipped with domestic operating systems are not only slow, but also unable to chat, work and play games as normally as Windows. Although new domestic systems continue to be launched, these software companies have fallen one after another in the face of the gap in technology and the cruel choice of the market.

Overcoming difficulties cannot be solved by one’s own efforts. To solve the user pain points of slow boot and short battery life, CPU, operating system and other industries must jointly tackle key problems.

In 2019, Tongxin Software Technology Co., Ltd., jointly established by multiple domestic operating system manufacturers, was established, headquartered in Beijing Economic Development Zone Xinchuang Park, and established technical support institutions, R & D centers, and general software and hardware adaptation centers in Wuhan, Shanghai, Guangzhou, and other places.

From fighting each other to clenching their fingers into fists, Tongxin has joined forces with upstream and downstream enterprises in the industry to jointly promote the research and development of domestic operating systems. In the rapid iteration of technology, the boot time of domestic operating systems has been shortened step by step, and finally a 14-second leap has been achieved in 2022.

"The gap between domestic operating systems and the products of top international manufacturers has narrowed from 10 years or more to three to five years," Liu Wenhuan said.

Today, the Tongxin operating system has been implemented in a number of key industries such as banks and telecom operators, and the latest home version was also unveiled at the beginning of this year. However, the new domestic operating system still faces the risk of "supply cut" in the upstream open-source community, which in turn affects the sustainable development of the industry.

"The reason is that the root community based on Linux open source systems in China is abroad." Liu Wenhuan said that the root community can help operating system manufacturers get rid of the constraints of the upstream open source community and get better protection at the level of information security. To put it figuratively, the "supply chain" should also be secure.

Two months after achieving 14-second boot, based on the world’s three major independent open-source communities, Tongxin released China’s first desktop operating system root community "Deepin Community", starting from "roots", mastering the development rights of open-source operating systems, upstream community dominance, and attracting global enthusiasts to contribute code and ideas for domestic operating systems.

"Raise" an autonomous industrial chain

In 2014, the popular Windows XP system stopped serving, and for a time, a large number of enterprises and individual users were in disarray. Although most functions can still be used normally after the shutdown, they cannot get Microsoft vulnerability patches and system upgrade support, and are vulnerable to viruses and hackers.

Six years later, Windows 10 was discontinued, and the exact same situation played out. This further stimulated Beijing’s drive to build an independent innovation industry system.

Looking back 30 years ago, Hu Weiwu, who was still a doctoral student at the Chinese Academy of Sciences, needed to use a high-performance computing machine that had just been imported from abroad for his experiments, but the computer’s password was in the hands of foreigners and needed to be monitored in a glass house.

Hu Weiwu, chief engineer of the Institute of Computing Technology of the Chinese Academy of Sciences and chief designer of Loongson, accepted an exclusive interview with CCTV

This picture was deeply engraved in his heart. Therefore, when Loongson was just starting out, all the well-known companies that could think of came to Hu Weiwu to discuss technology licensing cooperation. "I understand these behaviors as’surrender the gun and not kill ‘!" He saw that behind the technology licensing was to make Loongson give up the ability to innovate and develop, so he decisively refused.

Thirty years later, the young man in red became a white-haired gentleman, and Hu Weiwu launched another more thorough and difficult "entrepreneurship".

The global information industry is mainly built on Wintel (Microsoft-Intel Alliance) and AA (Android-ARM) two ecosystems based on Instruction Set Architecture and chip design. If you want to produce CPUs that match them, you must first obtain the Instruction Set Architecture "license".

"In order to achieve a fully independent innovation CPU, we must also achieve autonomy at the underlying technical level of the Instruction Set Architecture." In 2021, LoongArch officially released LoongArch, the LoongArch autonomous command system architecture of Loongson, achieving a major technological breakthrough in its ecological construction. This marks that LoongArch has moved from a follow-up development to a completely independent development in terms of independent information technology system and industrial ecological construction.

The Loongson 3A5000, which supports a 14-second boot time, is based on the LoongArch autonomous command system architecture and no longer requires foreign authorization.

One innovation breakthrough after another, tempering the Beijing Xinchuang industry chain: ZTE database, Guoke Tianxun avionics bus protocol chip, QINGTENG and other global benchmarking products were born, the domestic information technology system was initially formed, Beijing Economic Development Zone Tongming Lake National Xinchuang Park, has gathered more than 90% of the country’s information technology leading enterprises, forming a high-performance chip, operating system, database, machine end point, system integration, cyber security services and other industry chain Xinchuang industry ecosystem.

Beijing Economic Development Zone National Xinchuang Park Tongxin Software Technology Co., Ltd. "Ecological Adaptation Dispatch Center"

"Some products are like raising pigs, which can be slaughtered for meat in one year; some products are like raising cattle, which can be plowed and worked in three years; our products are like raising children, which can be raised for 20 years." Hu Weiwu compared technological research to "raising children", which vividly condensed the difficult process of information technology breakthrough, and also foreshadowed that the autonomy of the credit creation industry still has a long way to go.

The "Beijing code farmers" who have worked hard for many years still need to make greater innovation breakthroughs in order to benchmark the international first-class and create a solid "foundation" for China’s economic digital transformation and industrial chain upgrade.

Article | Interesting understanding of business, Li Wenqi

In addition to selling cars, what else can car companies sell? The answer may subvert your perception.

Recently, Huiding Insurance Brokerage Co., Ltd. (hereinafter referred to as "Huiding Insurance Brokerage") changed its corporate name to NIO Insurance Brokerage Co., Ltd. This move has attracted widespread attention because it is understood by industry insiders as the acceleration of NIO’s layout in the insurance sector.

Image credit: Qichacha

In recent years, not only NIO, but also the number of new energy vehicle companies that value the auto insurance market has gradually increased. Xiaopeng, Ideal, BYD and Tesla have all made plans.

Dong Hao, a veteran in the automotive industry, said that compared with traditional property insurance companies, new energy vehicle companies entering the new energy vehicle insurance market have more advantages in vehicle loss assessment and insurance premium estimation. Car companies can use this as a service breakthrough point and develop more high-profit after-car ecosystem services.

But just like the two sides of the coin, can the beautiful new energy auto insurance really help NIO develop the after-car ecosystem? And, how much support will the continuous cross-border NIO give to the auto insurance business after the launch of mobile phones, charging piles and other products? This may be the point that the current industry pays more attention to.

01. Crowded car insurance track, NIO is catching up

According to the latest statistics released by the Ministry of Public Security, as of the end of September 2023, the national new energy vehicle ownership reached 18.21 million, accounting for 5.5% of the car ownership. From the first to the third quarter of 2023, 5.198 million new energy vehicles were registered nationwide, an increase of 40% year-on-year, accounting for 28.5% of the new car registration.

There is no doubt that the outbreak of the new energy vehicle market has made new energy vehicle insurance a huge blue ocean market. Soochow Securities estimates that by 2025, the scale of new energy vehicle insurance premiums will reach 186.50 billion yuan, accounting for 17.9% of the total proportion of vehicle insurance premiums; by 2030, this scale will reach 454.10 billion yuan, accounting for 32.1% of the proportion of vehicle insurance premiums.

For this huge and promising market, a number of new energy vehicle companies have entered the market.

In July 2018, XPeng Motors established Guangzhou XPeng Motors Insurance Agency, which was later renamed Guangzhou Smart Choice Consulting Services Co., Ltd.; in 2020, Tesla Insurance Brokerage Co., Ltd. was established in Shanghai; Li Auto also fully acquired Yinjian Insurance Brokerage Co., Ltd. in June last year, and later changed its name to Beijing Ideal Insurance Brokerage Co., Ltd. At the 2022 Annual General Meeting, BYD Chairperson Wang Chuanfu said that BYD would enter the new energy automobile insurance industry.

There are many benefits to the deployment of new energy vehicles in the field of auto insurance – after obtaining the relevant insurance license, new energy vehicle companies can configure insurance through car owners to form a complete closed loop of car manufacturing, sales, and after-sales services, which is expected to become a new profit growth point for car companies.

In this context, it is logical for NIO to accelerate the layout of insurance. As early as the beginning of 2022, NIO invested in the establishment of NIO Insurance Brokerage Co., Ltd., with a registered capital of 50 million yuan; but unfortunately, until the company was cancelled, the company did not obtain relevant qualifications, let alone carry out related insurance business.

The reason is actually very simple. Insurance qualifications themselves are a scarce resource. In recent years, the insurance intermediary market has developed rapidly, but there are also pain points of uneven operation quality of intermediaries. Regulators have tightened the approval of insurance intermediary licenses.

But this did not discourage NIO’s determination to explore the insurance market, and instead looked for a "curve" entry route. In December 2022, Anhui NIO Data Technology Co., Ltd., controlled by NIO founder Li Bin, wholly invested in Huiding Insurance Brokerage, and then the original executives also withdrew one after another. It was not until September this year that Huiding Insurance Brokerage changed its name to NIO Insurance Brokerage, and NIO finally went official in its own insurance business.

Picture source: NIO Insurance Broker official website

For this acquisition, NIO did not disclose the specific transaction amount. But according to the market situation, it will not be too low. For example, when BYD transferred 100% equity of Yi’an Property Insurance this year, it spent 4 billion yuan to invest in insurance licenses with higher "gold content". In this regard, some market analysts said that the application for relevant license qualifications in the insurance industry is relatively long. NIO’s operation of Huiding Insurance Brokerage is behind "using money for time". It is naturally easier to buy chickens and lay eggs than to raise big chickens and then lay eggs.

"But the insurance industry is more complicated, and it’s not a one-day job." Zhang Xiang, a visiting professor at the Yellow River Institute of Science and Technology and an automotive industry research institute, said to "Interesting Business": "NIO obtains qualifications through acquisitions, and then opens up sales, insurance, after-sales and other links. For the insurance business, it can deeply cultivate the precise customer group, which is a big advantage. But it should be noted that new energy vehicle insurance is not a profitable business at the moment."

02. Is there enough "ammunition"?

The license qualification is grafted through the "banknote ability", and the subsequent challenges that NIO has to face are the financial ability, technical ability and network layout. No matter what, stronger "banknote ability" is required. "Especially the financial ability level is a big test for new energy vehicle companies," said Mr. Fei, an industry insider.

Because behind the blue ocean of new energy vehicle insurance, there is a hidden high compensation pressure and the resulting general loss. Shenwan Hongyuan Group’s research report shows that the current new energy vehicle insurance compensation rate generally exceeds 85%, and the industry is facing greater underwriting loss pressure.

Zeng Yi, general manager of China Pacific Insurance Property and Casualty Insurance, has also publicly stated that the insurance rate of new energy vehicles is nearly double that of fuel vehicles, and the year-on-year increase in automobile travel in the first half of this year has posed a certain pressure on the underwriting cost of new energy vehicles. China Pacific Insurance’s 2022 interim results show that the new energy vehicle insurance premium grew rapidly in the first half of last year, accounting for 6.6%. However, the new energy vehicles underwritten by Pacific Insurance Property and Casualty Insurance are still losing money.

A set of data obtained by the reporter of the Economic Observer also shows that the insurance rate and compensation rate of new energy vehicles are at a high level. In the first half of 2023, the number of new energy vehicle insurance settled compensation cases increased by 1021.9% year-on-year, and the average compensation for resolved cases was 5801 yuan, an increase of 764 yuan compared with the same period in 2022. However, the average insurance premium for new energy vehicle insurance was only 4081 yuan, a decrease of 47 yuan compared with 2022.

All kinds of phenomena have confirmed that the new energy compensation amount is currently much higher than the insurance premium income. This also means that all players entering the new energy vehicle insurance field must prepare sufficient ammunition. So, is NIO ready?

At the end of August this year, NIO-SW (09866) announced its unaudited financial results for the second quarter ended in the first half of 2023. Data show that NIO’s revenue in the second quarter of 2023 was 8.7717 billion yuan, a year-on-year decrease of 14.8%; gross profit was 870 billion yuan, a year-on-year decrease of 93.5%; net loss was 6.0558 billion yuan, an increase of 119.6%; adjusted net loss was 5.4457 billion yuan, an increase of 140.2%.

Image source: Screenshot of earnings report

From the perspective of the general environment, new car-making forces have shown varying degrees of losses; in the first half of this year, Li Auto’s total revenue was 47.44 billion yuan, and its net loss was 3.24 billion yuan. In comparison, NIO’s loss situation is much more serious.

According to the annual report of NIO-SW (09866), between 2018 and 2022, although NIO’s total revenue is growing, it has been in a state of loss. The losses in the five years were 23.328 billion yuan, 11.413 billion yuan, 5.3041 billion yuan, 4.02 billion yuan and 144.37 yuan. By the first half of this year, NIO’s net loss has exceeded 10 billion yuan, which is 10.926 billion yuan.

What can be seen is that in the context of the recovery of the new energy vehicle market in the first half of this year, NIO still maintained a situation where revenue and gross profit continued to decline and losses continued to expand. Whether it is a single quarter or the entire first half of the year, NIO’s net profit attributable to the parent set a record low for the same period in history.

In terms of delivery, NIO’s situation is also not optimistic. According to public data, NIO delivered 15,641 vehicles in September this year, an increase of 43.8% year-on-year and a decrease of 20% month-on-month. It was the most severe decline in the sales list of new energy vehicles in September.

Revenue decline, delivery decline, but NIO did not reduce investment. According to the financial report data, in the second quarter of this year, NIO’s development investment reached 3.34 billion yuan, close to Tesla’s 3.98 billion yuan, but significantly higher than the ideal 2.43 billion yuan and XPeng Motors 1.37 billion yuan. Statistics can be seen from the previous data, starting from the fourth quarter of 2022, NIO’s R & D expenses have exceeded 3 billion yuan for three consecutive quarters.

It is equivalent to saying that behind NIO’s bet on auto insurance, NIO’s own financial performance and delivery are not optimistic. In the future, whether it can provide support at the auto insurance level depends on the importance of the business in the NIO ecosystem.

"If NIO’s main business is doing very well and can give greater support to the auto insurance business, then overall, auto insurance must be the icing on the cake for NIO," Mr. Fei added: "On the contrary, if its own losses increase, coupled with the high underwriting pressure of auto insurance, the pressure on NIO will be relatively large in the short term."

03. Crossing the border all the way, what is NIO in a hurry?

To the outside world, NIO is less and less like a car company. This indifference is mainly due to NIO’s full range of crossovers – mobile phones, charging stations and now car insurance business.

In June this year, it was reported that the NIO mobile phone had passed the MIIT radio approval; as expected, on September 21, NIO Innovation and Technology Day, NIO released the first ship mobile phone, NIO Phone. According to Li Bin, "NIO makes mobile phones not because mobile phone companies cross the border into the automotive industry, nor do they rely on mobile phones to make money, but NIO users need a mobile phone that is undoubtedly linked to NIO."

But in the eyes of many users, this is not the case. On social platforms, many netizens complained that "it is easier to adapt NIO to more models. The probability of buying another mobile phone alone is not high, and buying a car and giving a mobile phone is almost the same." "It is obviously something that can be done by an app, but you have to develop a mobile phone!" The topic of who the NIO mobile phone is sold to has also triggered widespread discussion.

Image source: Weibo

In addition to the heavy injection of mobile phones, NIO also continues to invest in the field of supplementary energy. By the end of 2022, NIO had 1,315 replacement stations; in early 2023, Li Bin put down his big talk and wanted to build another 1,000 replacement stations. According to NIO’s official data, as of October 20, NIO has arranged a total of 1,969 replacement stations, 3,252 charging stations, and 936,544 third-party charging piles.

Industry analyst Yu Shengmei said that the current construction of power stations is fragmented and chaotic, and the industry is expected to enter the fast lane after the establishment of the national standard. Whoever has the first-mover advantage will be able to enjoy the dividends first.

But at present, it is difficult for the NIO power exchange model to rely on itself to make profits in the short term. According to the calculation of Oriental Securities, generally speaking, the power station reaches break-even, and the utilization rate is about 20% or more, that is, each station needs to serve 88 times a day to barely make a loss. According to NIO President Shen Fei, the break-even line of NIO power station is about 50-60 orders a day, and the current average daily order volume of NIO power station is 35-36 orders.

From a product perspective, this is indeed a good story, but so far, this good story has not brought much benefit in business practice.

As early as 2013, Tesla had experimented with replacing power stations in the United States, but was troubled by factors such as construction costs and profitability, and finally chose to give up. Similarly, behind the replacement of power by NIO owners is the reality that NIO "keeps changing power and loses money". Because the cost of adding replacement stations is extremely high, it is a typical asset-heavy business.

The data shows that the cost of the first generation of NIO substation is about 250-3 million, about 205 are established, and the cost of the second generation substation is 1.50 million yuan, and the number is 1100. According to this data, NIO has roughly invested more than 5 billion yuan in the substation.

Since June this year, NIO’s third-generation power station has maintained a construction speed of 120-150 seats per month. If the cost of the second-generation power station is estimated, NIO’s investment in the construction of power stations in 2023 is expected to be more than 1.50 billion yuan.

In addition to power station equipment, battery storage, battery depreciation, etc., it also requires personnel costs, site expenses, and commercial electricity bills. This is equivalent to saying that NIO has invested more than 10 billion yuan in power station replacement.

Moreover, this business, which was originally intended to be blessed by NIO’s "service", has also become a point of complaint for car owners. In April this year, NIO made adjustments to user rights and interests. Since June 1, the number of free power changes for the first owners of some models has been adjusted to 4 times per month. Previously, this right corresponded to 4-6 free power changes per month according to whether charging piles were installed.

According to NIO’s explanation, free power exchanges will gradually decline until they are fully charged on demand. From a business perspective, this is understandable, but at the same time, such adjustments also make NIO, which has always won by "service", more passive.

Auto insurance, mobile phones, and energy supplementation systems are all major projects worth tens of billions of dollars. At present, whether it is just starting auto insurance, mobile phones that have already launched products, or power stations that have invested tens of billions of dollars, they have not brought profits to NIO. Instead, they are likely to become a drag on NIO’s business.

Standing at the moment, the bigger question from the outside world is, what should NIO, which is gradually tearing off the "service" label, use to impress users?

As one of the three giants of the "new car manufacturing forces", NIO’s story is very good, but returning to the essence of business, performance is the basic set. Especially, as the industry competition intensifies, NIO, which has been expanding its own boundaries, and its own performance pressure, may become more and more difficult.

References:

1. Qubit, "Reassessing NIO, It’s Time"

2. International Finance News, "Cars can’t be sold," Loss King "NIO wants to make mobile phones across borders"

3. Finance and Economics Eleven, "While making large losses and investing heavily, what does NIO think?"

4. Shanghai Securities News, "Is NIO going to sell insurance?"

There is such a game, there is no competition, no level, no task, only purely focused on "beauty and enjoyment" itself.

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Don’t think you’re talking about the popular Traveling Frog these days – these comments are two feature games given by professional gamers to the domestic independent team Tag Design: "Mortise and Mortise" and "Folding Fan".

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Unlike those games that emphasize competition, "Mortise and Mortise" and "Folding Fan" are popular science products with the theme of introducing traditional Chinese culture and craftsmanship. Players only need to swipe or click from start to finish, and the operation cannot be simpler. However, players can get a lot of satisfaction: "Mortise and Mortise" and "Folding Fan" provide detailed 3D models for each handicraft for users to watch and split 360 degrees; in simple swiping and clicking, players can learn all the structural characteristics, production process and related history of "Mortise and Mortise" and "Folding Fan"; in "Folding Fan", they can even participate in the 16 steps from choosing bamboo to making a fan.

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"Mortise and tenon" game screen

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"Folding Fan" game screen

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That’s right, "Mortise and Mortise" and "Folding Fan" are both functional games, and they are online game types that have gradually emerged in China since this year. When many people regard online games as "monsters", functional games can often make people "treat each other differently" because they not only make people realize the value of "education and entertainment" again, but also make games play a role in cultural protection, technological innovation and other fields.

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Functional games drive the transformation of the game industry

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If traditional online games emphasize entertainment, then functional games refer to those categories of games whose main purpose is to solve real social and industrial problems. Therefore, if traditional entertainment games and functional games are divided, even if they do not emphasize competition, "Travel Frog" still belongs to the former, while "Mortise and Mortise" and "Folding Fan" belong to the latter.

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Since the beginning of this year, the term "functional game" has begun to enter people’s field of vision, which is not unrelated to a message released by Tencent at the beginning of the year: Tencent announced that it will carry out a comprehensive layout of functional games from 2018, take functional games as one of the business Strategy and Development Direction, and plan to launch five categories of functional game products such as traditional culture, cutting-edge exploration, scientific exercise, scientific popularization, and parent-child interaction. Systematically explore and explore the positive social value of online games.

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In fact, "functional games", which are still a new term in China, have been relatively mature in the international development. Functional games are playing an increasingly important role in different fields. In layman’s terms, functional games can become a new medium for people to receive knowledge and skills through entertaining and entertaining, opening up new perspectives for people in terms of shortening the learning curve, accelerating the dissemination of professional knowledge, innovating scientific research models, improving corporate productivity and solving social problems.

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From the perspective of the international development of functional games, governments, enterprises and institutions in many developed countries and regions have regarded them as important skills training tools: the functional game "US Army" is used by the US Department of Defense for recruitment; "Emergency Commander" is used for drills for emergency disaster relief; "Code Orange" is used to train doctors to deal with mass casualty incidents; "Virtual Training Bank" provides financial analysis and risk management training for banks; functional game "Gabarello" for therapeutic purposes is used by Zurich Children’s Hospital for rehabilitation of brain injury patients….

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Industry insiders believe that with the wide application of functional games, functional games are driving the transformation of the game industry. In the United States, functional games have been in the forefront of the world in various market segments such as corporate training and education since 1994. In the UK, functional games have become a professional discipline and entered institutions of higher learning. In Switzerland, about 30% of game designers are engaged in the field of functional game design.

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Look, these are functional games.

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Compared with the foreign functional game market, the development and promotion of functional games in China is in the ascendant. Many people don’t even know what a "functional game" is. In this regard, the relevant departments of Tencent listed several functional games for reporters to illustrate the rich connotation of functional games:

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In terms of traditional culture and protection, the two functional games "Mortise and Mortise" and "Folding Fan" can make people more intuitively understand the subtlety of traditional skills; and in the function of "education and fun", the ingenious ideas of functional game developers are equally amazing.

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For example, "Moana" developed by the Belgian team Fishing Cactus is an educational functional game that specializes in exercising users’ typing skills. Players will play a little girl riding a fox in the game and go on an adventure in a 2.5D origami world. In different level scenarios such as snow, mountains, forests, etc., players need to use the special method of "typing" to fight monsters and solve puzzles. "Moana" is based on spelling and includes 8 different languages including Chinese, English, and French. The spelling of characters in the game will also be redesigned according to the setting language. Whether you are a typist or a beginner, you can find fun in the game.

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"Moana" game screen

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Also, "Euclidean Geometry" developed by the Russian team Horis is a mathematical game that uses rulers to draw and solve geometric puzzles. In the game, players need to make vertical lines, tangents, angle bisectors, circles and other geometric shapes on the plane through the rational use of drawing tools, and complete the level challenge in rigorous geometric logic. At the same time, players can continuously optimize the design to get the most elegant and concise solution in as few steps as possible. Overall, players can not only appreciate the beauty of geometry in the game, but also improve their logical thinking ability. Therefore, whether students or players who have left school can feel the mystery of geometry in the game.

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"European Geometry" game screen

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Tencent also revealed that in their functional game development plan, including the cooperation of Lego, they will launch functional games related to Lego building blocks through complementary advantages, so that more people, including parents and children, can learn while playing. Such games can not only educate and entertain, but also facilitate parent-child interaction.

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Functional games are a big industry

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In fact, the reason why functional games have developed rapidly in the international market is not unrelated to the economic value they contain. Tencent Research Institute has compiled statistics on more than 130 functional games and found that the combination of education and games is the most extensive, accounting for about 43% of the total, of which more than half of functional game products are used in primary and secondary education; about 19% of functional games are used in enterprises and business; medical functional games are ranked third, accounting for more than 16%. Among them, children’s medical games are the main ones, with content ranging from knowledge popularization to disease treatment. In addition to the above three fields, functional games are also widely used in different fields such as military, culture, and social management, involving all aspects of social life.

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The "cross-border" collection of games and different industries has generated huge economic value. Some institutions predict that games with cross-border applications will develop at a compound annual growth rate of 16.38% between 2015 and 2020, and the market size will reach 5.45 billion US dollars. In contrast, the development and application of functional games in our country is still in its infancy and needs to be vigorously developed.

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It is worth noting that the development of functional games is not only the task or interest of game companies. In recent years, the cross-border development of some enterprises has also further revealed the value of functional games. For example, IBM, Johnson & Johnson, Cisco and other companies have launched their own functional games, not only using them to train employees, but also combining games with their main business. For example, IBM has widely used games in internal businesses such as sales and Customer relationship operations, business information and data analytics; at the same time, in 2010, it first launched the cross-border game "CityOne" (literal translation: a city), which was designed, developed and produced by itself, to find urban planning solutions through role-playing. In addition, IBM has also integrated various new technologies developed by itself, such as process management, cloud computing, and collaboration, into the game, allowing players to learn how to use new technologies to help cities become smarter. After the launch of "CityOne", more than 8,000 people participated in the pre-registration process.

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Industry insiders therefore propose that the development of functional games is worthy of "admiration" from the outside world for the value of online games. For a long time, the domestic game industry has been burdened with huge social pressure, and traditional entertainment games have been controversial. But these views should not affect the development of functional games. In this context, it is necessary to improve the motivation and enthusiasm of industry and academia to develop functional games at the policy level, develop high-quality content, and then drive the whole society to gradually raise awareness of functional games and gradually accept their application in all walks of life.