In the marathon race of China's new energy vehicle sector, there emerges a phase winner!
Recently, Li Xiang, the founder of Li Xiang Motors, released the company's financial report, revealing that the annual revenue for the past year reached 123.85 billion CNY, marking a staggering 173.5% year-on-year growth. Moreover, the net profit soared to 11.81 billion CNY, a significant turnaround from the 2.03 billion CNY net loss in 2022, marking the company's first annual profit.
Established less than 9 years ago, Li Xiang Motors has become China's first new energy vehicle startup to achieve an annual revenue surpassing 100 billion CNY.
"Our significant growth in scale, continuous deepening of research and development, and sustained improvement in operational efficiency have propelled us to achieve our best financial performance in 2023 and laid a solid foundation for 2024," remarked Li Xiang, Chairman of Li Xiang Motors.
The automotive industry stands out as one of the most fiercely contested sectors in the Chinese market, with various players engaged in a battle for supremacy in this vast emerging industry. Originally, as the competition intensified, the positions seemed set, and the dust of the battlefield settled. However, with the entry of Tesla, the new energy vehicle sector once again became a bustling arena with numerous contenders.
Among them, Li Bin's NIO, founded in 2014, Li Xiang's Li Xiang Motors established in 2015, and He Xiaopeng's XPeng Motors founded in 2017, have garnered attention for their founders' foresight, innovative spirit demonstrated through multiple entrepreneurial ventures, and unwavering commitment despite being outsiders to the automotive industry. This phenomenon has led to the emergence of the "Big Three" of new energy vehicles, captivating the industry with their fresh approach and innovative energy.
These three individuals, close in age, all born in the 1970s or early 1980s, have successful experiences of taking companies public or selling them to industry giants, and share a passion for refusing to rest on their laurels and continuing to compete vigorously. After a decade of battles, who leads the pack, who lags behind, and who shows signs of fatigue?
Currently, in this long-distance race of new energy vehicles, Li Xiang appears to be the temporary frontrunner.
But who is Li Xiang, and how did he manage to surpass the others?
A Serial Entrepreneur
Li Xiang, born in 1981 in Shijiazhuang, Hebei Province, developed a deep bond with computers from a young age. Growing up in a modest household, he immersed himself in computer books and magazines, spending all his pocket money to stay updated. His first encounter with a computer during junior high ignited his passion, and despite the family's financial constraints, he eventually acquired his own computer for 8,000 CNY, equivalent to several months' salary for his father.
With his newfound tool, Li Xiang began writing articles, starting with a 5,000-word piece on computer assembly techniques, which he sold to professional media for 500 CNY. He became a prolific contributor to leading IT publications such as "Computer World" and "Computer World" despite still being in high school, earning significantly more than the prevailing rate of 60 CNY per thousand words.
By 1997-1998, with the rise of commercial websites like Sohu and Sina, the internet industry began to flourish. Li Xiang launched his personal website, "Graphics Card Home," dedicated to articles on computer graphics cards. Despite the heavy workload of his senior year in high school, he woke up early to update the website before school and conducted product evaluations in the afternoons, eventually earning 100,000 CNY through advertising sales by the time he finished his college entrance exams.
Despite being on the verge of taking the college entrance exams, Li Xiang decided to forgo higher education, supported by his parents, who respected his interests and independence. Following in the footsteps of fellow dropout Han Han, Li Xiang embarked on a unique path divergent from his peers.
The journey of a successful entrepreneur is often marked by trials and tribulations, and Li Xiang's subsequent ventures - PaoPao Network and Autohome - served as crucial milestones before founding Li Xiang Motors.
PaoPao Network, formerly known as "Graphics Card Home," was rebranded to encompass all computer hardware evaluations, leveraging Li Xiang's expertise. While it grew to become one of the top three players in the computer industry, it remained overshadowed by giants like PConline and ZOL. Recognizing the challenges of surpassing these incumbents, Li Xiang shifted his focus to new horizons, ultimately deciding on the automotive industry.
In 2005, "Autohome" was launched, marking Li Xiang's transition into the automotive sector. With its user-centric approach and focused content, Autohome quickly rose to dominance, becoming the leading provider of automotive content in China. The success can be attributed to several factors, including:
In 2013, Autohome went public in the United States, reaching a peak valuation of over $10 billion, and its latest valuation stands at $3.2 billion.
However, Li Xiang has since departed from Autohome, achieving great success before transitioning to his next venture - founding his own new energy vehicle brand, "Li Xiang Motors," in 2015. In July 2020, after five years of entrepreneurship, Li Xiang's Ideal Auto went public on the NASDAQ.
What did Li Xiang get right?
As a high school graduate from an ordinary middle-class family without the resources of "rich second generation" or "official second generation," and lacking the networking advantage of prestigious schools, Li Xiang started from scratch and managed to build two publicly listed companies in the United States before the age of 40. How did this seemingly low-profile young entrepreneur achieve such success?
Management scholars and market observers have analyzed Li Xiang's success from various angles, summarizing his key traits as follows: long-term vision, customer-centric approach, leadership, and personal learning ability.
Long-term vision: Li Xiang's early entrepreneurship, from writing articles to running websites, initially followed conventional paths based on personal circumstances. The computer industry itself is a large market, but he was able to transition into the broader automotive industry. When Elon Musk opened up Tesla's underlying technology and promoted industry symbiosis, Li Xiang decisively entered the globally acclaimed new field of electric vehicles.
Such vertical entrepreneurial leaps across different periods, environments, and industries require long-term vision, rational decision-making with steady perseverance, and long-term commitment.
Customer-centric approach: He started by reviewing computers to help users make purchasing decisions; when he founded Autohome, it was also to assist potential car buyers by providing comprehensive one-stop services from information gathering to test drives and purchases. With Ideal Auto, the initial model was designed to provide convenient electric driving for urban users, hence the compact design. The subsequent debut model focused on family needs, with a larger body and more user-friendly interior design.
This dedication to serving users' needs has always been at the core of Li Xiang's approach.
Personal learning ability: Heroes come from all backgrounds, and achieving great things doesn't necessarily require a diploma. However, it's truly remarkable for a high school graduate to thrive in the business world for 20 years and continue to progress.
As someone who was once "very introverted, even a bit reclusive," he initially preferred to focus on his work, even using QQ to communicate within the same office. Being somewhat self-assured, he always thought he was right. Consequently, during the early days of PConline, a situation arose where half of the staff resigned overnight.
Upon reflection, Li Xiang took responsibility for this, realizing that his lack of communication skills and understanding of others' perspectives led him to simply convey his ideas without proper dialogue or consideration of others. From then on, he forced himself to change his personality and approach, avoiding autocratic behavior and instead listening more and speaking less.
In terms of business and management, he also grew into a multi-disciplinary expert. He handles interactions with investors and capital markets with ease. It's said that he has one key advantage: taking responsibility for problems first, without shifting blame or making excuses.
Leadership: Li Xiang is generous, advocating for "dispersing wealth to gather people." Both PConline and Autohome had numerous minority shareholders. When inviting Qin Zhi to join Autohome as CEO, Li Xiang even considered, "Even if he has more shares than me, I'm willing." His focus was on getting things done rather than solely profiting himself.
When inviting investment from Australian telecommunications, Li Xiang's equity was eventually diluted to single digits. Of course, this also laid the groundwork for future entrepreneurial endeavors.
In addition to his generosity, Li Xiang's trust and empowerment practices are commendable. He delegates authority absolutely, allowing individuals to make decisions independently regarding budgets, personnel, and work assignments. It's said that after 2008, almost no one from his management team resigned.
Li Xiang believes, "Trust is 100% of leadership." He formulated a simple equation: a person's value = knowledge × wisdom × trust.
Furthermore, Li Xiang's management has a special emphasis on family. He spends weekends at home with his family, and team members largely follow suit. It's said that during his tenure at Autohome, out of 11 senior executives, none divorced in a decade, with an average of two children per family.
