Leapmotor Releases 10-Year Shareholding Commitment: Zhu Jiangming's Long-Term SpiritThe global automotive industry is undergoing an unprecedented transformation. In this era, some companies have quietly left the market, and some companies are still running into walls looking for a way out. However, for Leapmotor, they have made a remarkable decision – issuing a ten-year shareholding commitment. This decision not only reflects the confidence of Zhu Jiangming and his team in the future development of the company, but also demonstrates their long-term spirit. The commitment of this decade reflects Zhu Jiangming's firm determination to make cars. Zhu Jiangming is a native of Zhejiang, and he has a typical Zhejiang businessman style - diligence and thrift, hard work and simplicity. They have always adhered to the habit of starting a business, using the wealth they create for investment and development, rather than luxury and pleasure. It is this long-term business philosophy that enables Zhejiang's economy to continue to develop benignly. 29 years ago, Zhu Jiangming, who was only 26 years old, founded the communication company Dahua with 5,000 yuan and his friend Fu Liquan. After years of hard work, Dahua has become a leader in the industry. However, Zhu Jiangming was not satisfied with this, but chose to start again.
He founded Leapmotor and positioned the company as "an intelligent electric vehicle company with global self-development and self-manufacturing capabilities and a high degree of vertical integration". This decision is not easy, because global self-development requires long-term and in-depth technical investment, and the demand for funds and resources is also high, and the risk is greater. However, as an engineer, Zhu Jiangming is well aware of the importance of mastering core technologies for a company. Therefore, he chose this difficult path without hesitation. Zhu Jiangming's persistence and determination were reflected during the Shanghai Auto Show. He incarnated as a driver and personally picked up and dropped off the car owners, demonstrating the quality and performance of Leapmotor. This move has sparked controversy from the outside world, because many emerging car manufacturers have achieved mass production of products through a patchwork scheme. However, Zhu Jiangming believes that only enterprises with global self-research capabilities and vertical integration can be invincible in the fierce market competition. The release of the 10-year shareholding commitment is a reflection of Zhu Jiangming's firm confidence in the future development of Leapmotor. This commitment means that he will invest in and support the company's development for the long term, thereby safeguarding the interests of the public at large.
It is also a commitment to investors, sending them a clear signal that Leapmotor has a long-term development plan and will continue to strive to create better products and services. For the automotive industry, the issuance of shareholding commitments is an important thing. It can not only increase the confidence of investors, but also attract more funds and resources, and provide more support for the development of enterprises. At the same time, it is also a kind of commitment to the future of an enterprise, and it will have more time and energy to invest in technology research and development and product innovation. In the context of the current transformation of the automobile industry, Leapmotor's move is worth pondering. They have chosen an unusual path, insisting on global self-development and vertical integration, and not being subject to short-term interests. This spirit of long-termism is rare in our modern business society, but it is worth learning and learning from. As an editor, I believe that companies should pay more attention to long-term development rather than pursuing short-term profits when facing industrial changes. Only with long-term development planning and investment, can enterprises be invincible in the highly competitive market.
Therefore, I suggest that other companies can also learn from the experience of Leapmotor, adhere to the long-term business philosophy, set more ambitious goals for their future, and formulate corresponding development plans. Finally, I would like to raise a question to guide readers to comment and think: In the context of the current transformation of the automotive industry, do you think companies should focus more on long-term development or short-term benefits? Why? Leapmotor: Breakthrough in self-developed technology Ushering in a major cooperation Against the backdrop of fierce competition in China's new energy vehicle market, Leapmotor has successfully passed the critical first stage with its self-developed technology and firm product positioning. Today, the company adheres to independent R&D and production of core systems and electronic components, and has sufficient voice and pricing power. It is this continuous technological innovation and persistence that has enabled Leapmotor to win the favor of Stellantis, the "world's fourth largest automobile group", and the two parties reached a strategic cooperation agreement on October 26.
Stellantis will invest about 1.5 billion euros (about 11.6 billion yuan) to acquire about 20% of the equity of Leapmotor and establish a joint venture with Leapmotor International, which will sell products under the Leapmotor brand. Zhu Jiangming, the founder of Leapmotor, said, "The cooperation has been negotiated for more than 7 months, which is an unprecedented and very in-depth cooperation in the automotive industry, which will bring great opportunities for our future development. "This cooperation not only verifies Leapmotor's eight-year leading position in global self-developed technology, but also proves Leapmotor's ability to become an OEM and a comprehensive solution provider for intelligent electric vehicles. The reason for choosing to work with Stellantis is that the two companies have a very compatible culture, with a focus on frugality, efficiency, and a focus on product technology. This cooperation is an important milestone for Leapmotor and opens up a broader path for the company's future development. However, the automotive industry itself is in a period of change, and the success of the partnership does not mean that Leapmotor can let its guard down.
The two sides still need to take a longer-term mindset and continue to promote the implementation of cooperation to adapt to market changes and technological developments. In the announcement of the founding team of Leapmotor, it was clearly stated that "the shares of the company held by it will not be transferred or ** in any way in the next 10 years." This commitment, which can be said to be a ballast stone, has stabilized the development direction of Leapmotor and provided a solid foundation for its future development. The success of Leapmotor has also brought enlightenment to China's new energy vehicle market. As an innovative enterprise, Leapmotor has created competitive products through independent R&D and technological breakthroughs, and has successfully attracted cooperation from global automotive giants. This shows that China's new energy vehicle industry has a certain strength and influence, but it still needs more companies to continue to invest in research and development and improve the technical level to better meet the needs of consumers. In addition to the breakthrough of self-developed technology and the success of cooperation, Leapmotor also faces other challenges. The market is highly competitive, and consumers' needs and preferences for new energy vehicles are constantly changing. Leapmotor needs to pay attention to market dynamics at all times and flexibly adjust its product positioning and marketing strategies to remain competitive.
In addition, there are still certain deficiencies in the construction of charging infrastructure for new energy vehicles, which also brings certain inconvenience to users. Leapmotor can cooperate with ** and related enterprises to jointly promote the construction of charging infrastructure, improve user experience, and promote the popularization of new energy vehicles. Overall, Leapmotor has made major breakthroughs with its self-developed technology and successfully reached a strategic cooperation with Stellantis, the world's fourth largest automotive group. This cooperation not only verifies the technical strength of Leapmotor, but also provides more opportunities for its future development. However, Leapmotor still needs to remain vigilant at all times, constantly adapt to market changes and technological developments, and improve product competitiveness. At the same time, ** and related enterprises should also increase support for the new energy vehicle industry, promote the construction of charging infrastructure, and provide consumers with a better experience. For China's new energy vehicle market, how to maintain competitiveness in the fierce competition and achieve sustainable development is an important issue, which is worthy of our in-depth thinking and development. How do you think the competitive landscape of China's new energy vehicle market will evolve? How should new energy vehicle companies respond to market challenges? Feel free to leave a comment to share your views and suggestions.
Leapmotor: A leader in the new energy vehicle market and a global layoutThe vigorous development of China's new energy vehicle market has attracted global attention. As a leading domestic new energy vehicle brand, Leapmotor has not only achieved great success in the domestic market, but is also accelerating its global layout. Different from the "punch-card going overseas" of other new power enterprises, Leapmotor has chosen a more stable path of globalization. It is reported that the latest delivery data of Leapmotor shows that the company's delivery of new cars in October 2023 reached a record high, with a year-on-year increase of 159%. This achievement further strengthens Leapmotor's position in the mass new energy vehicle market. At the same time, Leapmotor has also made a counterattack in terms of financial data, and the third quarter financial report shows that the delivery volume of Leapmotor increased by 24% year-on-year5%, and the total income reached 565.6 billion yuan, an increase of 31 percent year-on-year9%。It is worth noting that on the occasion of its listing on the Hong Kong stock market for one year, Leapmotor successfully achieved a positive gross profit margin, which proves that the company has significantly improved its cost control ability and hematopoietic ability, and also indicates that Leapmotor is about to usher in a new stage of development.
As a leader in China's new energy vehicle market, Leapmotor not only ranks first in the world in terms of production and sales in the domestic market, leading the world for eight consecutive years, but also has made great progress in the international market. In the first half of this year, China's new energy vehicle exports reached 5340,000 units, up 160% year-on-year. This data shows that the competitiveness of Chinese new energy vehicle brands in the global market is gradually increasing. However, Leapmotor is not only satisfied with its success in the domestic market, but also actively accelerates the pace of globalization. Unlike other companies, Leapmotor is not in a hurry to export its products to overseas markets, but has chosen a more stable path of globalization. To achieve this goal, Leapmotor recently entered into a strategic partnership with the Stellantis Group. According to the cooperation agreement, the single largest shareholder group of Leapmotor is still composed of Mr. Zhu Jiangming, Mr. Fu Liquan, Ms. Liu Yunzhen (Zhu Jiangming's spouse), Ms. Chen Ailing (Fu Liquan's spouse) and the enterprises controlled by them, with a shareholding ratio of 2746%。This means that the cooperation with Stellantis Group will not change the controlling stake of Leapmotor, nor will it change the company's management decision-making mechanism.
This cooperation provides Leapmotor with a more reliable partner to help it move forward more steadily in the process of globalization. The reason why Leapmotor has been able to achieve such great success in the domestic market and is accelerating its globalization layout is mainly because of the prosperity of China's new energy vehicle market. The scale of production and sales of China's new energy vehicle market is far ahead of the world, ranking first in the world for eight consecutive years. In the first three quarters of this year, the sales of new energy vehicles reached 62780,000 units, with a penetration rate of nearly 30%. While production and sales in the domestic market are strong, the export volume of Chinese new energy vehicle brands is also climbing, with a year-on-year increase of 160%. This provides a huge opportunity for the development of Leapmotor in the domestic and foreign markets. In addition, Leapmotor also focuses on improving its core competitiveness. The company has made significant progress in cost control and hematopoietic capabilities, and has successfully achieved a positive gross profit margin. In addition, net cash from operating activities continued to flow in, and a number of indicators of corporate operations grew strongly. These figures show that Leapmotor has not only been successful in terms of sales, but has also made great strides in terms of financial figures. This provides strong support for Leapmotor's competition in the global market.
In general, as a leader in China's new energy vehicle market, Leapmotor is accelerating its global layout. The company has achieved great success in the domestic market, ranking first in the world for eight consecutive years, and has also made great progress in the international market. The strategic cooperation with Stellantis Group provides Leapmotor with a more reliable partner to help it move forward more steadily in the process of globalization. The company has made significant progress in cost control and hematopoietic capabilities, and its financial data has also shown a counterattack trend. However, as the global new energy vehicle market becomes more and more competitive, Leapmotor needs to further improve its technology research and development capabilities and strengthen its brand influence to maintain its competitive advantage. At the same time, the company also needs to continue to deepen international cooperation, actively expand overseas markets, and achieve a broader space for development. In the context of the rapid development of the global new energy vehicle market, what are your views on the global layout of Leapmotor? How do you think Leapmotor should further enhance its competitiveness? Please leave your comments and suggestions. Leapmotor: An ambitious road to the sea Judging from the data released by JATO, none of the 28 European countries in the sales ranking list in the first half of 2023 is a Chinese independent brand.
This shows that it is not easy for Chinese car companies to break into the European market. However, Leapmotor decided to challenge this dilemma and obtained an investment of about 1.5 billion euros through its partnership with Stellantis Group, seeking more room for its development in the global market. Zhu Jiangming believes that this cooperation will enable Leapmotor to continue to make efforts to provide better products and technical services in R&D, sales, and services, so as to attract more global consumers. In addition, the joint venture company has the exclusive right to export, sell and manufacture Leapmotor products locally to all other markets around the world. This undoubtedly provides strong support for Leapmotor to achieve its influence in the global market. However, it is not easy to succeed in the European market. Europe, as the birthplace of human beings, has a deep accumulation of automobile culture, especially in countries such as Germany, France, Italy and the United Kingdom. Consumers in these places have a very high level of brand loyalty, and there are differences in market environment, policies and regulations, and user habits between each European country. As a result, Chinese automakers need to take a slow and gradual approach to the European market, rather than hoping for overnight success.
Still, Zhu believes Leapmotor's asset-light model could work wonders. The smart car revolution is in its infancy, and major car companies are vying to seize market share, and it is difficult to predict who will have the last laugh. However, Zhu Jiangming took the lead in making a commitment of "ten years will not be the best", which shows Leapmotor's confidence in the future. He believes that only by unswervingly investing in technology research and development and market expansion can we occupy an advantageous position in the fierce competition. The cooperation between Leapmotor and Stellantis Group will open up new prospects for Leapmotor in the global market. As a world-renowned automotive group, Stellantis has a rich business layout and sales network, which can provide valuable support and resources for Leapmotor. Through the partnership, Leapmotor can leverage Stellantis' proven experience and channels in other markets around the world to achieve the brand's global influence. In addition, the joint venture company has the exclusive right to export, sell and manufacture Leapmotor products to all other markets, which will further expand Leapmotor's market share and influence. However, as mentioned earlier, Chinese automakers face a number of challenges in the European market.
In addition to the problems of high competition and high consumer loyalty, there are also differences in market environment, policies and regulations, and user habits. All of these factors require in-depth research and understanding by Chinese automakers in order to develop a marketing strategy and product positioning suitable for the European market. In addition, Chinese automakers also need to focus on improving product quality and service levels to win the trust and praise of consumers. To sum up, the cooperation between Leapmotor and Stellantis Group provides an opportunity for Leapmotor to seek greater development in the global market. However, in order to succeed in the European market, Leapmotor still needs to be fully prepared and continue to work hard. Only by continuously investing in technology research and development and market expansion to improve product quality and service levels can we stand out in the fierce competition. Finally, let us look forward to whether Leapmotor can achieve its grand goals on the road to the sea and make more contributions to China's globalization process. Question guidance: What do you think is the biggest challenge faced by Chinese car companies in the process of going global? How do you think they should overcome these challenges?
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