Report by Pulsestacks on March 27
The surge in automotive intelligence is bringing Shen Ziyu into the spotlight.
Best known as the co-founder, chairman, and CEO of Yikatong Technology, Shen Ziyu also holds the helm at Xinqing Technology, Xingji Meizu, and Jixing Technology.
Following Shen Ziyu's news over a period can be intriguing: sometimes he talks about Yikatong, unveiling the full value chain of intelligence; sometimes he discusses Jixing, outlining the future of high-end electric cars; sometimes he focuses on Meizu, declaring that even smartphone companies are going all-in on AI.
Indeed, Shen Ziyu wears many hats, and his business interests cannot be simply summarized in one word. Yet, beneath the various titles, Shen Ziyu doesn't feel the weight of the crown. Instead, he increasingly becomes a practitioner in breaking through industry barriers. These seemingly unrelated businesses serve as his sword, piercing through the barriers on Yikatong's path to intelligence and globalization.
Dialogue with Shen Ziyu: How does Yikatong break through the barriers of intelligence? (Source: pulsestacks)
For Shen Ziyu, being busy has become the norm.
On March 20th, Yikatong held its second Tech Day event in Hangzhou, making Shen Ziyu's schedule even busier. At 1:30 in the afternoon, just after finishing a group meeting and rehearsal, Shen Ziyu raced against the clock to complete our interview in 30 minutes. After the interview, he immediately drove to participate in the next meeting.
In the eyes of his subordinates, Shen Ziyu's work and life have long been intertwined, with his schedule being relentless day and night. "I often don't get home from the office until midnight, only to catch an early morning flight the next day."
This lifestyle began seven years ago. In 2017, when Li Shufu wanted to form a team specializing in automotive intelligence, he approached Shen Ziyu, and together they founded Yikatong Technology.
From its inception, Yikatong existed to prepare for the future intelligence competition in the automotive industry. Upon joining Yikatong, Shen Ziyu and his team of just over a dozen people started with what he was most familiar with, the automotive internet, and in April of the same year, they completed the first cabin product SOP.
During those years, the overall progress of intelligence in the automotive market was still relatively slow. There wasn't the rapid iteration and fierce competition seen today, but competition was brewing, prompting Shen Ziyu to start laying out product matrices.
Being at the forefront of automotive intelligence allowed Shen Ziyu to see the convergence and overlap between cars and smartphones ahead of others. How to make the in-car experience more similar to that of a smartphone? Building an ecosystem became an unavoidable proposition, which also spurred the demand for self-developed chips and self-made phones.
"Mr. Shen actually saw the trend very early on, envisioning the integration of car and driver, even earlier than our competitors," colleagues admire Shen Ziyu's strategic vision and determination the most.
Today, the integration of phones and cars is closer than ever before. Companies like Xiaomi, Nio, and Huawei are venturing into the crossover, while Xiaopeng and BYD continue to develop chips. But a few years ago, few people recognized that the moat of tech companies was built on cross-border cooperation.
"Automobile companies making phones are for defense," Shen Ziyu quoted Nio CEO Li Bin at a press conference. As the intelligence of cars gradually catches up with smartphones, providing users with a "multi-terminal, full-scenario, immersive integration" is what Yikatong believes should be offered as added value.
Shen Ziyu is an extremely diligent person. When he sets a goal, he tirelessly begins to light up new "skill trees."
The year after Yikatong was established, Shen Ziyu founded Chipcore Technologies, specializing in automotive chip design and development. In 2021, Li Shufu established the Stellar Era, and Shen Ziyu once again served as vice chairman, focusing on the creation of intelligent terminals. In 2022, Stellar Era strategically invested in Meizu, and in 2023, officially merged with Meizu to establish the Stellar Meizu Group, with Shen Ziyu still at the helm.
But for Shen Ziyu, this strategic deployment starting with intelligent car systems is far from over. The current layout is more like scattered chess pieces on a board. To achieve the true vision of intelligent cars, it's necessary to integrate all available resources and seamlessly connect various aspects of the automotive intelligence industry chain in one go.
Soon, Shen Ziyu found a solution. In May 2023, Stellar Meizu announced its entry into the car manufacturing industry and established a joint venture with Polar Star—meaning Shen Ziyu's full set of solutions finally addressed the crux, ushering in a qualitative change in the integration of cars and terminals.
By this point, Shen Ziyu had completed the ecological layout of chips, systems, and terminals, and successfully launched a series of products: Chipcore Technologies released the first 7nm cabin parking chip "Dragon Eagle 1" for vehicles; Stellar Meizu launched the FlymeAuto car system; Yikatong launched the Antola series, Markaru, automotive brain, and other computing platforms; Lynk & Co 08, Polar Star 4, and Volvo EX30 completed mass production, and so on.
Shen Ziyu thus established the latest positioning for Yikatong: the "incremental parts supplier" of the new energy vehicle era. Benchmarking against Huawei's Car BU, with Yikatong as the core convergence point, various products are being implemented.
At the second Yikatong Technology Ecology Day held during the vernal equinox, Yikatong deepened this concept with its latest products.
The Joegory computing platform jointly created with Stellar Meizu is the first to use Snapdragon 8 Gen3, shortening the chip generation gap between cars and smartphones from 3 years to 10 months; the Atlas computing platform based on 8255 and the Pike computing platform based on 8295 can adapt to both the Meizu (Flyme Auto) and Google (GAS) ecosystems, synchronously exerting efforts at home and abroad; the Dragon Eagle AD1000, a car-grade 7nm full-scenario high-end intelligent driving chip jointly developed with Chipcore Technologies, and the introduction of the Light Matrix LiDAR, completing a full-stack layout in the intelligent driving field.
From smart cabins to smart driving, from hardware to software, from in-car systems to sensors, EcarX's product line is becoming increasingly diverse, and its territory is gradually expanding. Shen Ziyu is full of confidence: "By gradually extending from our killer products, our ambitious goal is to cover all incremental components of electric vehicles. This is our core focus."
Looking back on Shen Ziyu's seven years, the level of busyness has only increased. In an interview during last year's Tech Day, Shen Ziyu revealed, "I almost work 20 hours a day."
But the rewards are significant. As of now, EcarX Technology has served 16 global OEMs and 25 brands, with its technical products installed in over 6 million vehicles worldwide. Starting from EcarX, Shen Ziyu has gradually incorporated chips, smartphones, complete vehicles, and in-car systems under his umbrella, turning his vision of automotive intelligence into a concrete reality.
Since its establishment, how to break away from the Geely Group has always been the Sword of Damocles hanging over EcarX's head.
This year, Shen Ziyu brings good news. "Geely and non-Geely revenues account for 70% and 30% respectively. In the near future, we plan to achieve a 50-50 split."
Last year, EcarX's smart cabin and smart driving solutions (Antares 1000 Pro, Celestial Pro) and Flyme Auto were first installed in the Lynk & Co 08 EM-P, marking the first milestone real-world validation since last year's Tech Day, when EcarX's technological boundaries were further expanded. Shen Ziyu felt tremendous pressure. "Implementing all the latest technologies and ideas, and ensuring the success of this vehicle."
Fortunately, the results were exciting, with over 50,000 units of the Lynk & Co 08 EM-P sold within 5 months of its launch, and Flyme Auto receiving widespread acclaim.
Furthermore, among EcarX's milestone models is a special presence—the Volvo EX30 equipped with the Yunshan Cross-Domain System Capability Base. Although nominally part of the Geely Group, Volvo's brand DNA, tone, and even procurement, quality assurance, and R&D systems are different from those of the Geely Group.
For Shen Ziyu, the significance of the EX30 lies in its role as a rehearsal for EcarX's globalization. As it targets international markets, the EX30's mass production involves 77 countries worldwide. Behind this are different customer demands and policy requirements, necessitating full compliance, extremely high safety standards not yet fully perfected domestically, and meeting Volvo's stringent quality requirements.
EX30 is highly popular overseas, with monthly sales reaching 30,000 units. Shen Ziyu and his team face global supply pressures and quality assurance challenges. Despite the difficulties, Shen Ziyu chooses to accept the challenge. Overseas markets are particularly concerned about information security, functional safety, and compliance. EcarX leaves no room for doubt, even if it takes 3-4 years to integrate with Google Automotive Services (GAS).
"I'm grateful that projects like this can enhance our overall R&D capabilities," Shen Ziyu reflects with gratitude and pride. "So, I dare say, we are currently the first real case of a Chinese Tier 1 enterprise 'going global.'"
Internationalization has always been Shen Ziyu's goal.
"It's very inevitable for Chinese tech companies to go global because we have the ability to dominate in China, which is a strategic advantage overseas."
Going global is a rational necessity for EcarX to position itself as a global enterprise, with sufficient advantages to support it.
Under Shen Ziyu's leadership, EcarX gradually built a strong team within seven years, nurturing a large number of talents in new fields. "With professionals in areas like mechatronics control, vehicle control, and electromechanical safety, we have a huge advantage," revealed Zhang Rongbo, Senior Vice President of EcarX Technology.
This laid the foundation for EcarX's strong ecosystem creation and multi-round iteration capability. For example, at last year's Tech Day, EcarX introduced the Antara series computing platform based on the Dragon Eagle I, which took less than two years from chip fabrication to mass production. This puts them at the forefront of the industry in terms of efficiency and pace, adapting well to the rapid pace of vehicle iteration today.
The successful certification of GAS is also a vivid proof. "Google's entire certification process typically takes 18 months even for overseas suppliers, but EcarX only took 8 months," Shen Ziyu remarked. Initially, Google doubted this goal could be achieved, but with EcarX's determination, through global delivery of the Volvo EX30, EcarX Technology became the only Tier 1 enterprise in China with experience in deploying GAS in the global market.
Regarding product support, Shen Ziyu has endowed it with sufficient flexibility and agility to quickly adapt to the needs of different countries and enter local markets.
"From SoC to overall solutions, and providing computing platforms, we can offer customers various customized solutions through a layered approach," explained Zhang Rongbo. "At the same time, we can empower customization in different countries, languages, and regions."
In addition to EcarX's own layout, Geely's global layout is also a unique advantage for EcarX. Today, Shen Ziyu has already established operations in Malaysia, Sweden, the UK, the US, and Germany. They have set up a global research and service layout, with 11 operating centers worldwide and over 2000 employees globally, with 70% being R&D engineers.
Shen Ziyu has an exceptionally keen perception of going global. "Being a global enterprise doesn't mean selling your products worldwide, but integrating into the global supply chain. Your employees are from different countries and regions, the supply chain is different, and you manage with your culture and philosophy. That's what makes a global enterprise."
In Shen Ziyu's view, the EM-P of Lynk & Co 08 and the Volvo EX30 are two pivotal cases that vividly demonstrate EcarX's capabilities, respectively targeting domestic and overseas markets.
At the Tech Day, Shen Ziyu brought more good news. EcarX and FAW Hongqi's strategic cooperation has been upgraded, jointly building an intelligent computing platform and Hongqi OS ecosystem; Geely Galaxy will launch a new model equipped with the Antara 1000; the Antara 1000 Pro will be installed on LEVC; Lynk & Co 07 will also use EcarX products, continuing the collaboration from the Lynk & Co 08 project; smart's new pure electric models will feature the Marklar computing platform.
Youth has always been an important label following Shen Ziyu.
As an '80s generation, deeply trusted by Li Shufu, he manages multiple companies. These descriptions seem incompatible for a young person.
However, colleagues see Shen Ziyu's age merely as one side of the label; the more important aspect is the word "senior."
In his 16-year career, Shen Ziyu has been involved in the field of connected cars. He participated in the deployment and integration services of the first domestic connected car system in China and established intelligent networking systems for a batch of Chinese domestic and joint venture companies, including Geely Borui.
With a technical background and deep industry involvement, Shen Ziyu is undoubtedly a senior industry expert, making him the backbone and spiritual leader in the eyes of EcarX engineers: "Even in the face of challenges, with Old Shen around, everyone has confidence."
"Old Shen" is the nickname colleagues have for Shen Ziyu. Privately, he is not a boss with airs. Colleagues respect and admire him. In areas beyond technology, Shen Ziyu is seen as an all-around boss by his subordinates. "He understands technology, products, business, and the market."
In 2022, EcarX went public on the NASDAQ with the stock code "ECX," becoming the first Chinese automotive intelligence startup to be listed on the US stock market, officially putting its name on the same stage as Qualcomm, NVIDIA, Microsoft, and other companies.
Entering the capital market coincided with the "opening" of the automotive market, putting even more pressure on Shen Ziyu, as how to continue moving forward became his top priority.
EcarX's revenue continues to rise steadily. In 2022, revenue was 3.56 billion CNY, a 28% increase, and in 2023, total revenue was 4.67 billion CNY, a 31% increase. Over the past three years, the compound growth rate has remained above 30%, with gross profit increasing at a high double-digit rate year-on-year. CFO Zhou Jing of Yikatong Technology feels that this rapid growth hasn't come easily: "It's closely related to our prudent operation, product technology layout, supply chain management capabilities, diversified customer revenue, and our commitment to all-electric." Internally, stability is crucial, and cost and expense management must be on point. "We must control costs at the top and add value at the bottom through technological differentiation and core competitive advantages," says Shen Ziyu, shifting towards a capital mindset.
Shen Ziyu's forward-thinking product technology layout has now become a crucial "opening move." The AD1000 chip is standardized, and the intelligent cockpit extends the standardization of L1 and L2 intelligent driving, while the Longying-1 and Antolla 1000 Pro fusion cabins integrate berth and parking, achieving cost control through highly standardized, platform-based, and scalable delivery. "This is currently the most cost-effective and cost-advantaged offering we provide to users," says Shen Ziyu.
At the same time, the advantage of Car-Phone Connectivity is also evident, "We can allocate the R&D investment on mobile phones to cars because the investment in intelligence is significant, which is why the advantage of phone companies entering the automotive industry is so apparent."
The reliability and cohesion of the team have also become important pillars of Yikatong's steady operation. Shen Ziyu explains, "I only provide support in terms of the board of directors, strategy, strategic coordination, strategic goals, and product definition," while day-to-day operations rely more on an excellent team to drive the smooth operation of each sector. Many executives and key personnel in the team were personally "recruited" by Shen Ziyu, hence, "Mr. Shen attaches great importance to talent development and has strong appeal among employees."
Established for seven years and listed for one year, the years of accumulation of Yikatong have formed economies of scale, and its self-replenishment capability continues to strengthen, giving Shen Ziyu confidence in the future.
"I hope our equity becomes more diversified, facing the global, societal, and automotive industry as a whole. But this takes time. We need to solidify our technology, make our products solid, and empower more customers and globalization," Shen Ziyu says.
There's a common curiosity surrounding Shen Ziyu: how does he manage to stay so young yet stand so tall in the forefront of the trend?
In fact, as described by Shen Ziyu's colleagues, his success is attributed to three key factors: a deep understanding of the industry, a strong strategic vision and determination, and an unparalleled work ethic, all of which contribute to the future of Yikatong.
With the ongoing evolution of automotive intelligence, "disruptors" like Shen Ziyu are continually emerging.
In this race towards intelligentization, Shen Ziyu's dream is simple: "To capitalize on the absolute advantage of vehicle intelligence and lead China's intelligentization to the global stage. That's what I really want to do."
