With the delivery of Ideal L9 (Parameter | Inquiry), Ideal Official has recently received a lot of feedback about the product experience. A few days ago, LI officially released the ideal L9 product experience improvement plan, including three-screen simulcast, three-screen simulcast, mobile App car control authority and other functions, all of which are planned to be realized through the next OTA upgrade and the fourth quarter.

　　1. Three-screen simultaneous playback and three-screen simultaneous projection function

　　When many people watch videos and play games in the car, the "interoperability" of the three screens is very important. This requires two new functions to support: three screens play the same video or three screens project at the same time.

　　In the fourth quarter, three-screen simulcast and three-screen simulcast will be realized through OTA. Iqiyi will be the first application to support three-screen simulcast, and other video applications will follow. At that time, no matter in the front row or the back row, everyone can enjoy watching videos and playing games.

　　In order to better enhance the screen projection experience, we will also launch "Double Type-C Direct Projection Line" and "HDMI to Type-C Direct Projection Line" in the official mall, which is compatible with more game consoles, mobile phones or tablets. It is expected to go online on September 25th.

　　2. Problems of three-screen scanning code login application

　　At present, the relationship between the three screens in the L9 car is equivalent to the three tablets we use at home, and the applications in each screen need to scan the code separately to log in. For users who have just picked up the car, it is really cumbersome. In order to solve this problem, we have a preliminary solution at present, and some applications can complete the login of three-screen applications in the same screen in the fourth quarter.

　　3. The sharing function of the car control authority of the mobile App.

　　When many people want to use the same car, everyone needs a "mobile phone key", but privacy and convenience need to be taken into account at the same time. At present, we have formed a preliminary plan internally and plan to OTA in the fourth quarter.

　　4. Small refrigerator experience improvement

　　L9′ s mini refrigerator can only be opened in the second row, but we found that the driver and passenger also have the need to use the mini refrigerator. In the parking scene, when people sitting in one row reach for the small refrigerator in the second row to get drinks, the cooling or heating mode may change due to accidental touch.

　　In order to solve this problem, in the fourth quarter, we will increase the switch of small refrigerator door in the central control panel. At the same time, the continuous working function of the small refrigerator after leaving the car will become a long-term setting item, which can keep the small refrigerator working after locking the car only once.

　　5. Air conditioning logic optimization

　　In order to make the automatic air-conditioning function meet more people’s car habits, the automatic air-conditioning function of L9 provides "five automatic grades", with the first gear being the weakest and the fifth gear being the strongest.

　　In the current logic, after the "automatic mode" is selected in the screen, the "automatic 1st gear" is entered by default, so when the car is very hot, everyone will feel that the cooling is not fast enough. In the next OTA, we will optimize it to "Automatic 3rd gear" by default after selecting the automatic mode, which is also the most comfortable air volume level, taking into account the cooling/heating speed.

　　In the remote air conditioning function, the remote air conditioner will be changed to "automatic 5th gear" by default to realize rapid cooling/heating, which will also be optimized in the next OTA.

　　6. The stability of the 5G network of the vehicle is improved

　　L9′ s 5G network uses an Internet of Vehicles card, which is different from our commonly used mobile phone card. In the same area, network service providers have different network configuration strategies for car networking cards and mobile phone cards, so their actual network performance may be inconsistent. In the previous network test, we have covered most cities in China, and at present, we are also jointly conducting road tests in more cities to continuously improve the network stability in various regions.

　　In addition to the operator’s reasons, some strategies of the car itself may also lead to poor network experience, which may cause problems such as slow recovery of the network in and out of the basement and occasional disconnection of the App car control. We will optimize them in the next OTA and the fourth quarter.

　　7. Sound effect optimization

　　Based on L9′ s high-quality audio system hardware capability and everyone’s feedback, we optimized the audio effect, which will be realized by OTA in the fourth quarter.

　　8. Navigation-assisted driving experience is improved.

　　Navigation-assisted driving relies on high-precision maps, but the update speed of maps can’t keep up with the changes of actual road conditions. For example, after the high-speed construction section in a certain place is over, if the map is not updated in time, it will lead to the degradation of navigation-assisted driving, accompanied by sound reminders. This will cause the use of navigation-assisted driving to be interrupted occasionally, which is not continuous enough.

　　In the fourth quarter, we will combine the ability of map positioning and visual perception to greatly reduce the degradation in the use of navigation-assisted driving functions. At the same time, we will greatly improve the accuracy of the speed limit value of navigation-assisted driving.

　　9. Mobile phone Bluetooth key experience optimization

　　In the next OTA, we will further optimize the functions of "automatic locking when leaving the car" and "automatic unlocking when approaching" of the Bluetooth key of the mobile phone, so as to solve the problem that the timing of automatic unlocking is inconsistent with everyone’s daily car habits.

　　Of course, in addition to the new functions and optimization projects mentioned above, we are still planning more new functions and solving some experience problems, such as the occasional car control of mobile App, inaccurate accompanying mileage in App, etc.

    From October 11th to 13th, 2023, the 2023 China Mobile Global Partner Conference and the 11th China Mobile Global Partner Conference were held in Guangzhou Poly World Trade Expo, China. During the exhibition, Huawei terminals brought a variety of products to participate in the exhibition, allowing participants to deeply experience the latest products of Huawei terminals.

    Recently, Huawei Terminal has released the new M7 and Mate60 series in three key areas, namely, new energy vehicles, mobile phones and full-scene smart life, which has boosted the rapid development of the industry.

    At this exhibition, Huawei Terminal brought flagship new products, sports health, government-enterprise solutions, smart home and new M7 in the world to the exhibition. The site is divided into five sections: 1+8 exhibition area, sports health, smart home, terminal government and enterprise, and the new M7 test drive. Huawei also won two awards from China Mobile, the Best Terminal Partner Award and the Most Popular Product Award.

    Mate60 series single ride

    According to the supply chain news, as of the end of September, the sales of Huawei Mate 60 Pro and Mate 60 have exceeded 1.1 million units. At present, the industry is optimistic about the future performance of Mate series.

    The impact of Huawei terminals on the industry lies not only in the market, but also in the continuous sales of Huawei Mate60 series, which has a greater impact on the domestic supply chain. Enterprises such as optics, panels and structural parts are accelerating production to meet the market demand of Huawei Mate60 series.

    Huawei Terminal and China Mobile have always maintained close cooperation, with a high degree of cooperation in the fields of mobile phones, wearables, routers and other products, consumers and businesses, as well as number card business and consumer stickiness. This time, Huawei’s terminal exhibition area also has a terminal government and enterprise area for the live audience to experience, and continue to empower the industry in the field of secure instant messaging with partners.

    Ask the new M7 to turn the tide.

    As the star SKU of Huawei’s smart car selection, Wenjie New M7 has recently ushered in an upgrade and change. After listing, it has become the top stream in the recent auto market with its excellent product strength. The data shows that since its release on September 12th, the cumulative quantity of the new M7 has exceeded 50,000 vehicles.

    Huawei’s smart car selection, especially the series of cars in the world, has experienced a low period, which is basically in line with the current situation of the domestic new energy vehicle market. Often, the technical upgrade of new models is obvious, and then they set sail in a high profile at the initial stage of listing. However, due to the rapid technical upgrade of the industry, as more brands of new products come out one after another, the result will be a rapid suppression of old models, which will lead to the weakness of the latter, and the impact will be to force major brands to continue to invest heavily to ensure the technological leadership of new cars.

    The upgrade of the product strength of the new M7 in the world and the "increasing the quantity without increasing the price" brought by the high cost performance are also the main reasons for detonating the market. At the conference site, Huawei Terminal also set up a new M7 test drive exhibition area for customers with test drive needs to test drive. It is reported that Huawei’s deeply empowered products, such as M9 and S7, will also be available.

   Full scene, new products landing, efficient ecological experience

    This time, Huawei Terminal also moved almost all the new products from the autumn full-scene conference to the exhibition site, so the audience can experience the new products of Huawei Terminal in the first time. Huawei terminals have always had a clear category positioning for each business line, and at the same time, they have also planned more carefully in ecological positioning, further consolidating the ecological moat.

    Huawei MatePad Pro 13.2 inches has a stronger office atmosphere. The new PC-level WPS Office, combined with HarmonyOS intelligent interaction, brings a better PC-level office experience, and realizes the document synchronization between PC and mobile phone for the first time; Huawei WATCH ULTIMATE DESIGN Extraordinary Master Smart Watch is Huawei’s new interpretation of luxury industrial products. As Huawei’s first gold smart watch, this product has made another breakthrough in material technology, blending 18K precious gold for the first time; Huawei FreeBuds Pro 3 TWS headphones use the star flash technology, which improves the physical bandwidth by 4 times and the anti-interference ability by 2 times. Based on the new L2HC 3.0 protocol, it can realize lossless transmission of 1.5Mbps audio and bring lossless sound quality with super CD quality.

    Huawei’s terminal’s understanding of new products in the whole scene, while fully putting cutting-edge innovative technologies into product strength, brings a unique ecological wisdom interactive experience according to category positioning. Under the "1+8+N" system, the central position of the mobile phone is defined, and with the intelligent interaction of HarmonyOS, a number of core technologies are used as the starting point to expand and explore more functions. Huawei terminals have successfully built their own ecological moat.

On November 15th, official website, Ministry of Industry and Information Technology, released the contents of the Announcement of Road Motor Vehicle Manufacturers and Products (the 377th batch) and the Catalogue of Energy-saving and New Energy-using Vehicles with Vehicle and Vessel Tax Exemption (the 56th batch), among which two Xiaomi brand pure electric cars, which have attracted much attention from the market, were officially exposed for the first time.

According to the public information, the two cars exposed by Xiaomi this time are pure electric cars, the models are SU7 and SU7 Max/Pro respectively, the product trademark is "Xiaomi", and the manufacturer is Beijing Automotive Group Off-road Vehicle Co., Ltd.

In terms of size, the length, width and height of the two cars are 4997mm, 1963mm and 1455mm respectively, and the wheelbase is 3000mm, which is positioned as a C-class car.

In addition, the public information shows that the English LOGO with the tail labels "Beijing xiaomi" and "Xiaomi" are also displayed at the rear of the two cars.

In terms of power battery, SU7 is equipped with lithium iron phosphate battery, and the supplier is BYD’s Foday battery. The SU7 Max/Pro is equipped with Contemporary Amperex Technology Co., Limited’s ternary lithium battery;

As for the motor, the motor of SU7 comes from United Automotive Electronics Co., Ltd., and the peak power of driving motor is 220kW. The motor on the SU7 Max/Pro comes from Suzhou Huichuan United Power System Co., Ltd., and there are two power options: 220kW and 275kW.

Although the manufacturers of the above two Xiaomi cars are all Beijing Automotive Group Off-road Vehicle Co., Ltd., the follow-up models of Xiaomi should be produced in their own factories. At present, Xiaomi’s automobile factory in Yizhuang, Beijing is under construction. Recently, there is market news that the construction of the project is divided into two stages. The first stage began in April 2022 and has begun to take shape.

In November, Xiaomi held a closed meeting in the park, and invited related enterprises from the mobile phone and automobile supply chain, including BAIC Group. Xiaomi said at the time that the first car of Xiaomi Automobile would be mass-produced in the first half of 2024.

Now, with the real appearance of Xiaomi Automobile in the public list of the Ministry of Industry and Information Technology, it is also announced that Xiaomi Automobile is progressing smoothly and is expected to be mass-produced and listed in the first half of 2024 as planned.

According to Lei Jun’s plan, the first model of Xiaomi Automobile plans to sell 100,000 vehicles in the first year, and then deliver 900,000 vehicles in the next three years, "entering the first camp in the industry in 2024".

Editor: Xin Zhixun-Linzi

"My Weibo is generated and published by Mind GPT. He is good at surfing the Internet and surfing online. I am responsible for being amiable offline. Weibo’s remarks cannot represent me personally. " Recently, Li Xiang, Chairman and CEO of LI, posted on social platforms.

Li Xiang, Chairman and CEO of LI. Photo courtesy of enterprises

The spring breeze is full of horseshoe disease, and running all the way, LI, led by Li Xiang, has been "super-class" all the way. For a long time, LI has been learning from Apple’s products. Li Xiang said in the first quarter earnings conference call in LI in 2022: "I will look at my own ability after ten years, hoping to make it the same level as Apple."

However, under the pressure of M7, Li wants to lead the team to "learn Huawei in an all-round way" in the second half of 2022. LI, led by the "crazy" Li Xiang, is running wildly in sales, far exceeding Weilai Automobile and Xpeng Motors.

At the same time, LI’s pricing is also "beyond the standard", with the product price range from "150,000 yuan to 500,000 yuan" to "200,000 yuan to 500,000 yuan", and the pricing of pure electric vehicles will exceed 500,000 yuan by the end of the year.

LI’s strategy is also rushing, upgrading from a scale of 10 billion to a comprehensive matrix organization with a scale of 100 billion. Release the "dual energy strategy", build more than 300 high-speed charging stations by the end of 2023, and expand its charging station network to 3,000 by 2025. LI is marching towards 500 billion revenue.

Li Xiang, Chairman and CEO of LI. Photo courtesy of enterprises

Sales are running wild.

"LI has delivered more than 20,000 vehicles for three consecutive months. As of June 18, LI has sold 19,800 vehicles this month, and we will hit the higher monthly sales target of more than 30,000!" Before the Dragon Boat Festival, LI was full of confidence in June sales data.

LI relies on intensive product release. In June, 2022, LI released the Ideal L9, ending the history of living on one car for four years. On the eve of the National Day that year, LI released the ideal L8 of Li ONE replacement model.

At the same time, LI’s "three children" ideal L7 was "premature". At the conference of Ideal L8, LI released Ideal L7 "incidentally". Finally, the ideal L7 came out in February this year.

With the joint blessing of Ideal L7, Ideal L8 and Ideal L9, LI’s monthly sales increased. From January to May this year, the sales volume in LI was 15,100, 16,600, 20,800, 25,700 and 28,300 respectively.

At the same time, Weilai Automobile and Xpeng Motors in Weili met with growing pains. From January to May this year, the sales volume of Weilai Automobile was 8500, 12200, 10400, 6700 and 6200 respectively. In the same period, the sales in Xpeng Motors were 5200, 6000, 7000, 9000 and 7500 respectively.

"All the stocks in Li ONE have been sold out, and the limit of weekly production capacity in June is 7,500 vehicles. The core tasks in the third quarter are: L8 and L9 return to the monthly delivery of 10,000 vehicles, and L7 challenges the monthly delivery of 15,000 vehicles. Li ONE’s inventory sales of more than 600 vehicles per week, L8 Air will all be transformed, and it is not difficult to sell more than 10,000 vehicles per month. " LI Chairman and CEO Li Xiang said.

At the same time, in June, the website of the Ministry of Industry and Information Technology showed that LI was officially granted the qualification of Beijing LI Co., Ltd. According to the current capacity planning, there are two production bases associated with this qualification, namely LI Green Smart Factory in Shunyi District of Beijing and Changzhou Intelligent Manufacturing Base in LI, Changzhou City, Jiangsu Province.

At present, Li ONE, Ideal L9, L8 and L7 are all produced by Changzhou Intelligent Manufacturing Base in LI. Beijing Green Smart Factory in Shunyi officially started construction in October, 2021. The factory was transformed by the former Beijing Hyundai No.1 Factory. The whole project investment exceeded 7.5 billion yuan, and it is planned to be officially put into production this year. After commissioning, it will achieve an annual production capacity of 100,000 vehicles.

In pursuit of victory, LI announced in June that the first pure electric vehicle "Ideal MEGA" will be officially released at the end of this year. "I am confident that it will become the first sales volume of all passenger cars with a price of more than 500,000 yuan, regardless of energy form and body form, breaking the traditional cognition that high-end pure electric vehicles cannot become explosives."

The reason why LI can stand out among the new forces in car manufacturing is that Han Weidong, an analyst at Guosen Securities, believes that LI has adopted the dual-technology route of extended-range electric and high-voltage pure electric, which has well adapted to the needs of customers in the period of automobile electrification transformation. In the case that the problem of charging energy for pure electric vehicles still has shortcomings and cannot adapt to all travel scenarios, extended-range electric vehicles are an excellent transitional choice. It has better cost control ability and higher overall operating efficiency. Compared with the mainstream new force car companies, all business indicators and operating indicators in LI are at the best level.

Prices are running wild.

Under the rush of sales, LI’s pricing ceiling continued to break through. The pricing of the first pure electric vehicle "Ideal MEGA" will exceed 500,000 yuan.

As early as February 2021, the price range of products in LI was 150,000 yuan to 500,000 yuan. In August of that year, when it went public in Hong Kong, the LI prospectus adjusted the price range of smart electric vehicle products. The lower limit of the price range has been raised from 150,000 yuan to 200,000 yuan, that is, "strategically focus on new energy vehicles with prices ranging from 200,000 yuan to 500,000 yuan".

Shen Yanan, co-founder and president of LI at that time, told the Beijing News Shell Finance reporter that it is a fast-growing market to further define the product positioning as family-made cars. The market size of 200,000 to 500,000 yuan will exceed 5 million vehicles this year, and it is expected to exceed 8 million vehicles in 2025. We are more willing to focus on this price range. In addition, pricing is also related to the positioning of luxury smart electric vehicles.

In fact, the prices of ideal L7, ideal L8 and ideal L9 are all between 300,000 yuan and 500,000 yuan. Regarding the firm pricing, Li Xiang once said, "Many people say, why doesn’t the ideal reduce the price to less than 300,000? The same problem, consumers do not accept a good brand of medium and large SUVs sold for more than 200,000. "

However, Li thought it might be necessary to pay attention to a situation. In the first quarter of 2023, LI’s revenue was 18.79 billion yuan, and a total of 52,600 new cars were delivered, with an average price of 357,200 yuan. The average price is equivalent to the pricing of the ideal L7. At present, the sales of the ideal L7 also contribute the most.

The price of "Ideal MEGA" will exceed 500,000 yuan, or it is related to LI’s high investment. LI has previously issued a "dual-energy strategy" which includes two major directions: "intelligence" and "electricity". In June, Liu Qiang, the person in charge of power drive in LI, said, "In terms of power strategy, LI will build a 5C model with a charging time of 9 minutes and 30 seconds and a battery life of 400 kilometers, a 5C super charging network and an automatic charging robot to effectively solve the two major problems of slow charging speed and long-distance charging difficulty."

Zeng Duohong, an analyst in soochow securities, believes that the launch of new pure electric products will improve the layout of the company’s new energy vehicle product line. The L series extended range product line will match the pure electric product line launched in 2024-2025, and rely on core technologies such as 800V high voltage +5C battery +Mind GPT+ scenario NOA to help the overall sales/market share increase continuously.

Zhang Xiang, a visiting professor at Huanghe Institute of Science and Technology, believes that the competitiveness and attractiveness of the first pure electric vehicle in LI may not be as good as that of the extended-range vehicle, because the market development stage and situation are different. At first, there were few competing models of extended-range vehicles, and the market was a blue ocean; At present, there are many competitors in the pure electric vehicle market, such as Tesla and BYD.

"Now the market competition is very fierce, the growth rate of the new energy automobile industry is slowing down, and the growth of LI may also slow down. In order to maintain growth, LI should expand its product matrix, and its products should sink. It can’t just do more than 300,000 yuan, but also sink to 200,000 yuan, otherwise the growth momentum may be slowly lost." Zhang Xiang believes.

The strategy is running wild

Li Xiang has always been a fanatical fruit powder, and his products have always been in line with Apple: the doll strategy of "one configuration" is similar to that of the early iPhone with only one model; Drawing lessons from Apple’s product model, besides the Pro version and Max version, the Air version is launched.

Li Xiang was influenced by Huawei again. In June, Li Xiang wrote, "In the third quarter of 2022, the release and trading of M7 in the world directly crippled Li ONE. We have never met such a strong opponent, and for a long time we have no strength to fight back. HW’s super ability directly caused Li ONE’s sales to collapse and stop production in advance. It lost more than one billion in one quarter, and the team was disabled. I couldn’t sleep at all. Our ability was really poor, and it collapsed in the face of people’s very basic moves, which caused a large number of product experts who struggled in the front line to leave. "

In fact, at the end of June, 2022, LI’s "two children" ideal L9 was released, which was called "the best flagship SUV for home use within 5 million" by Li Xiang, and the delivery volume of LI in August of that year suffered a "waist-cutting" drop. In the third quarter of 2022, the delivery volume was 26,524 vehicles, with a year-on-year increase of only 5.6%; The company’s net loss expanded year-on-year.

In fact, the asking M7, regarded by Li Xiang as a super rival, sells for around 300,000 yuan. At that time, Huawei Yu Chengdong proposed that "the goal of M7 is still to surpass the comfortable and intelligent experience of millions of luxury large SUVs and MPVs."

In the face of pressure, Li Xiang introduced that at the end of September 2022, the company held a strategic meeting to reach a consensus to comprehensively study Huawei, upgrade the matrix organization as soon as possible, and be able to fight positional warfare and bid farewell to guerrilla warfare completely. "Our management team has bought no less than ten public books on HW. We were surprised to find that the painful problems we encountered in product research and development, sales and service, supply and manufacturing, and organization of finance and economics were solved more than ten years ago, even twenty years ago."

Determined to learn from Huawei, in December 2022, LI launched a comprehensive matrix organization upgrade with an annual income of 100 billion yuan. "In the development stage from 0-1, speed is efficiency, and the vertical organization model has helped us achieve a revenue scale of 10 billion, and we have done very well; From the development stage of 1-10, quality has become efficiency. We need to use organizational upgrading to achieve a breakthrough in the scale of billions of income and challenge the scale of trillions of income. " Li Xiang said.

At the Shanghai International Auto Show in April, 2023, LI released a "dual-energy strategy" with two directions: intelligence and electric energy. By 2025, LI will form a product layout of "one super flagship+five extended-range electric vehicles+five high-voltage pure electric vehicles", which will be oriented to a market of more than 200,000.

With the continuous high sales volume, when Li Xiang forwarded the news that "new energy vehicles are exempt from vehicle purchase tax" on June 21, he said, "Very good, and directly gave a four-year stability policy. There is no excuse for our team to achieve the strategic goal of the company in 2025. 1.6 million vehicles/year, 500 billion revenue, verified in early 2026! "

Li Xiang and LI running all the way, all the way "super class".

Han Weidong believes that it is predicted that the company’s total revenue in 2023 will continue its rapid growth in recent years, reaching a scale of about 90 billion yuan, mainly due to the rapid increase in automobile sales again. In terms of profitability, it is predicted that the company will turn losses into profits in 2023. Under the background of increasingly fierce competition in the industry, it is expected that marketing and management expenses and research and development expenses will continue to grow at a high rate, which will erode the total profit scale to some extent. At the same time, it is predicted that the company’s revenue level will continue to grow at a faster rate in 2024, reaching a scale of more than 130 billion yuan, and the profit level is expected to be significantly improved.

Beijing News Shell Financial Reporter Chen Weicheng

Editor Xu Chao

Proofread Liu Jun

On December 28th, the 4th "Make the World Love Made in China" Summit Forum was moved to the headquarters in Gree Electric, Zhuhai, which was the first large-scale event held at the headquarters after the transfer plan of Gree Electric (000651) was finalized.

When interviewed by reporters after the meeting, Dong Mingzhu, the chairman of Gree Electric, said that he was "not satisfied or dissatisfied with the scheme" when talking about the transfer of control rights. She said that the steady development of Gree Electric over the years is not due to a certain shareholder, but mainly depends on the management team. This time, Zhuhai SASAC withdrew from the position of major shareholder in the hope that Gree Electric would become a more market-oriented listed company.

Dong Mingzhu also stressed that after the transfer of Gree Electric’s controlling stake, there will be "three invariants": the integrity of society, the cultivation of employees and the protection of the legitimate interests of shareholders cannot be changed.

Dong Mingzhu, Chairman of Gree Electric　

Withdrawal of state-owned assets: in order to establish a more market-oriented system.

On December 15th, Zhuhai SASAC officially approved Gree Group’s plan to transfer 15% of Gree Electric shares to Zhuhai Mingjun. Gree Electric will become a public company without controlling shareholders and actual controllers.

Dong Mingzhu explained that Zhuhai SASAC sold its shares in the hope that Gree Electric would become a truly public company. Dong Mingzhu quoted Guo Yonghang, secretary of Zhuhai Municipal Party Committee, as saying that the government should "show up immediately when enterprises need it;" When enterprises don’t need it, you are far away and keep a clear political and business relationship. " Dong Mingzhu said that the focus of this transfer of Gree’s control right is not the withdrawal of state-owned assets, but the establishment of a market-oriented system for listed companies to operate and develop better.

In addition, the transfer of control rights in Gree Electric was also promoted under the background of the accelerated development of Guangdong-Hong Kong-Macao Greater Bay Area. "Zhuhai is located in the center of Greater Bay Area. We have more thoughts and positioning for the future construction of Greater Bay Area and the development of Zhuhai. I feel that through this equity transfer, more listed companies will be built for Zhuhai, and (Zhuhai) will become a more market-oriented place that is conducive to the faster development of enterprises. " Dong Mingzhu said that the equity transfer is of far-reaching significance.

According to the announcement on December 2nd, the price for Gree Group to transfer 15% equity of Gree Electric is 41.66 billion yuan. If the transaction is finally made at this price, the takeover party will have a floating profit of 16.6 billion yuan by taking this 15% equity based on the current share price of Gree Electric.

Dong Mingzhu revealed that Gree Electric will build Gree Tower in Hengqin, Zhuhai, to provide some support for the development of Macao. "Although there are more than 10 research institutes and nearly 100 research institutes in Gree Electric, with the diversified development, Gree will build more research institutions. Building Gree Building in Hengqin is a platform to boost Macao’s development and provide talents for the University of Macau and Macau University of Science and Technology. "

Gree Electric launches Gree three-generation mobile phones.　　

Management is the biggest beneficiary? The team is pure.

Gree Electric’s 15% equity was taken over by Zhuhai Mingjun, and behind Zhuhai Mingjun, besides Gaoying Capital, Gree Electric management also participated in the shareholding. Some outsiders believe that the biggest beneficiary of the transfer of control rights in Gree Electric is the management of Gree Electric.

Dong Mingzhu responded that Gree Electric’s management is a pure team. In the past 20 years, it has never been more concerned about the company’s shares. It is bent on making Gree bigger and stronger, and there is no other idea. The development of an enterprise is not supported by capital, but by the innovative culture of the enterprise.

According to CICC’s report, Gree Group’s plan to transfer 15% of Gree Electric’s equity has properly arranged the interests of Gree Electric’s management. Among them, Gree Electric management entity will subscribe Zhuhai Mingjun 2.426 billion yuan, and get 11.10% of the capital contribution; In addition, the management entity obtains 41% of LP investment share (i.e. 20.3% of investment share) from Zhuhai Xianying (GP general partner of Zhuhai Mingjun), and can fully enjoy the management fee and GP income brought by Zhuhai Mingjun. The management entity will distribute 8% of the total GP income to the management and employees who have made important contributions to the listed company. The management entity obtained 41% controlling equity of Zhuhai Yuxiu (GP general partner of Zhuhai Xianying) for RMB 4.305 million, which can indirectly control Zhuhai Mingjun. After the equity transfer is completed, the company will promote the equity incentive plan, with the total amount not exceeding 4% of Gree Electric’s shares.

Are you satisfied with Gaoling Capital? Not satisfied or dissatisfied.

After Gree Electric threw out the intention of equity transfer, Hopu Investment was also very interested in this part of the equity besides Gaoyou Capital, but in the end Gaoyou Capital won.

When asked if he was satisfied with the equity transfer plan, Dong Mingzhu responded that this should be asked to Zhuhai SASAC.

There have been rumors before that the negotiations between Gaochun Capital and Gree management were not smooth. Dong Mingzhu responded: "Any negotiation is not smooth. If it is smooth, it will not be called negotiation." When asked if she was satisfied with the plan, Dong Mingzhu responded: "It is not satisfied or dissatisfied."

When asked how Gree Electric will cooperate or collaborate with its new shareholder, Gaoyan Capital, Dong Mingzhu replied that "at least I don’t see it now", and she further said, "If one capital can solve the problems of enterprises, how can we see that so many capitals are exploding today? Therefore, it is not a capital to support the development of enterprises, but the innovation of enterprises to support development. "

Gree Electric business segment readjusted.

Throw out the new strategy of "Internet of Everything" Gree mobile phone released for three generations.

On the same day, Gree Electric released the "Internet of Everything" strategy, and for the first time demonstrated a complete set of intelligent connected home appliances controlled by intelligent voice.

Gree staff demonstrated how to control refrigerators, washing machines, rice cookers, range hoods and other household appliances by voice with Gree IOT air conditioners and Gree IOT mobile phones as entrances.

Dong Mingzhu also personally released Gree Electric’s third-generation smart phone at the scene. On-site PPT shows that Gree’s third-generation mobile phone adopts a 5.99-inch full HD full screen, emphasizes the night shooting algorithm in taking photos, has intelligent IOT buttons, and controls household appliances by voice.

Dong Mingzhu said that every Gree third-generation mobile phone can directly open the "micro store in Dong Mingzhu". "With Gree’s mobile phone, you should buy Gree’s products, otherwise I will remember you."

There are also many controversies about Gree making mobile phones, but from Gree Electric, mobile phones are just an entrance to Gree’s smart home strategy.

Gree Electric has also publicly released four international leading technologies that have been identified-key technologies and applications of rare earth-free reluctance main drive motor system for new energy buses, high-efficiency reluctance variable frequency scroll compressor technology, high-performance linear servo motor and driver, and high-efficiency pneumatic suspension centrifugal compressor.

The latest information displayed in Gree Electric Exhibition Hall shows that Gree Electric’s business has been re-divided into two parts, one is consumption and the other is industry. Previously, Gree Electric’s four business segments included air conditioning, household appliances, communications and intelligent equipment. This also means that the first three sectors are now merged into the consumer sector, highlighting the overall smart home; Intelligent equipment has expanded into the industrial field.

Dong Mingzhu also confirmed the adjustment of the company’s business sector in the interview. She said that the consumer sector is the business that Gree started, and the industrial sector is the heavy weapon of the country. There is no conflict between the two. "Without high-end equipment, you can’t make perfect consumer products, and you won’t be biased."

Lei Jun, chairman of Xiaomi Automobile, responded to "the delivery time of Xiaomi SU7 is too long" during the live broadcast today. "The core problem is that the sales volume is 3-5 times higher than we expected, and an emergency supplier meeting was held a week ago. The original planned standard version and PRO version were delivered at the end of April. In fact, delivery has started today, 12 days ahead of schedule. "

"It’s so obedient that it will automatically open the door as soon as it hears me coming to it. When I wash the car, I have to put my mobile phone far away." On April 18th, at the Shanghai Auto Show, Tang Wei, the owner of Zhiji, shared that the car is smart, but I hope it won’t automatically open the door when washing the car. Tamia Liu, co-CEO of Zhiji Automobile, responded at the scene and iterated at the fastest speed.

Intelligentization brings a lot of convenience to the car. Taking the mobile phone as an example, it can replace the function of the car key, start the air conditioner remotely, unlock it, authorize friends to drive the car, etc. When the owner approaches the car with his mobile phone, there are interactions such as flashing lights, honking horns and opening the car door.

However, just like what happened in Tang Wei, while intelligence brings convenience, it will bring some new troubles due to thoughtlessness. The interaction between Tang Wei as the owner of Zhiji and the brand has also become a vivid scene of automobile intelligence ecology. Automobile intelligent manufacturers have designed many scenes to meet the wishes that can only be imagined but cannot be realized in the traditional automobile era. In the process of using, the owner found unreasonable points, and the comprehensive data was continuously fed and learned. After investigation, design, feedback and promotion, the upgrade iteration was quickly completed.

The intelligent problem raised by Tang Wei is the focus of the release of Zhiji at the Shanghai Auto Show. The AI4M intelligent strategy announced by Zhiji takes "AI" artificial intelligence as the core, so that cars can observe, think and act like "people", and the goal is to let everyone have a dedicated driver.

In order to achieve this goal, Zhiji said that it will rely on the scientific and technological accumulation of SAIC for many years and the core self-research of Zhiji Automobile since its establishment three years ago, and at the same time deepen the strategic cooperation with Alibaba Cloud, Zebra Zhixing, Momenta and other leading forces in the field of intelligent technology in China, actively lay out the whole chain closed-loop innovation of the brand-new intelligent electrical architecture, and launch the "China Intelligent Scheme".

Zhiji believes that the AI era has accelerated the landing speed of artificial intelligence in the real world. In the field of autonomous driving, perceptual intelligence and cognitive intelligence are two key issues that need to be solved urgently. In the past few years, perceptual intelligence has received full attention from the whole industry. While improving perceptual intelligence, Zhiji cooperated with Momenta, a global head intelligent driving algorithm player, to launch the industry’s first D.L.P artificial intelligence decision planning model.

Zhiji took the lead in using deep learning to plan, greatly improving the takeover rate and realizing the driving ability like an old human driver. According to the on-site introduction of Tamia Liu, the current takeover rate is about once per 100 kilometers, and it will increase tenfold every two years. In the future, the takeover mileage will increase to once per 1000 kilometers or even once per 10,000 kilometers.

Based on this strategy, the high-speed elevated NOA (Automatic Aided Navigation System) will be launched on Zhiji L7 at the end of April. The first batch of open cities will be "Shanghai, Jiangsu, Hangzhou, Jiaxing and Lake", and LS7 will be upgraded and promoted to the whole country within this year.

By then, NOA of Zhiji can carry out dynamic path planning for closed high-speed elevated roads, and complete lane keeping, automatic speed adjustment, active lane change overtaking, automatic up-and-down ramp and other behaviors within the design area.

Tamia Liu emphasized that after completing the game calculation of active lane change and gap insertion, the driving quality is actually a highlight of Zhiji. Zhiji NOA’s driving behavior deeply learns from professional drivers, not frequently accelerating and decelerating, but making reasonable and comfortable actions to complete the instructions.

Zhiji said that the intelligent strategy with AI as the core is not just a written plan. In the second half of 2023, an intelligent medium-sized city cross-border SUV will be launched to solve the pain points of users in urban travel with intelligent solutions. An intelligent sports coupe, which is expected to be launched in 2024, is equipped with the latest Qualcomm 8295 high computing power chip, takes the lead in adopting solid-state batteries and adopts a brand-new three-electric system including carbon fiber rotor technology. The car will enter the "2-second acceleration club" and fully reproduce the F1 driving experience. The two models launched in 2025 are based on a new vector magic architecture and a modular magnetic open platform, which reconstructs the vehicle space and allows users to enjoy a subversive intelligent experience.

Upstream journalist sang Jian

Editor: Kevin·Z

Editor: Wu Jian

Audit: Mao Dan

[car home Industry] This week, many new cars have reported the latest news, which makes people feel that even buying a car in the latest year should be prevented from "chopping hands".

Xu Jiayin, whom I haven’t seen for a long time, suddenly appeared for platform 5 of Hengchi. It seems that Boss Xu really loves Hengchi. A whole new generation appeared, and if you can’t afford it, you can only have an eye addiction, but then again, this car really has a little taste. The Q1 financial report was released, and I have to say that it was really profitable. The stock price immediately reached an all-time high. Did you get on the bus?

More exciting, look down.

Hot news this week

■ The Q1 financial report for 2022 was released, and the gross profit margin of automobiles reached a new high of 32.9%.

■ In cooperation with Horizon official announcement, some models will be equipped with Journey 5 in 2023.

■ World premiere

■ Anson China Global Distribution Center was closed due to the epidemic.

■ Contemporary Amperex Technology Co., Limited EVOGO power exchange service started in Xiamen.

■ M7 exposure

■ The Ministry of Industry and Information Technology has set up a "white list" of 666 enterprises operating in Shanghai.

■ Zhiji L7 Dynamic Edition is on the market, with a price of 368,800 yuan.

■ Xu Jiayin Experience Hengchi 5

■ Faurecia and Hella merged to publish the Chinese name "Freia"

New car release

■ M7 exposure

A few days ago, AITO brand officially released the official appearance map of its model M7. The new car as a whole looks atmospheric and is expected to be released within the year.

Judging from the previous declaration, the length, width and height of the new car are 5020/1945/1775mm and the wheelbase is 2820mm respectively. At the same time, the car will adopt a six-seat layout.

In the power part, the new car will also be equipped with an extended-range power system consisting of a 1.5T four-cylinder turbocharged range extender and a motor provided by Huawei. Among them, the maximum power of engine is 92kW, and the rated power/peak power of motor is 72kW/200kW.

■ World premiere

On April 20th, the brand-new 7 Series and pure electric car i7 were launched simultaneously in China, Germany and the United States.

Inspired by China, the i7 is made by German technology, which is the fifth pure electric vehicle released in China. The other four models are iX3, i3, i4 and iX. In terms of body size, the length, width and height of the i7 are 5391*1950*1548mm and the wheelbase is 3200mm. It is the largest 7-series sedan ever.

In the interior, the design of the front row of the new car is exactly the same as that of iX, but Qualcomm’s 8155 chip is adopted for the first time, and a 31-inch movable screen is added in the back row to meet the entertainment needs of the passengers in the back row, and the screen meets the playback effect of 8K video. Iqiyi and Huawei Mall have entered the entertainment system.

■ The listing price of Zhiji L7 Dynamic Edition is 368,800 yuan.

On April 17th, Zhiji Automobile announced that L7 was officially listed. After the price of L7 Pro version was 408,800 yuan on March 29th, this time, Zhiji Automobile announced that the price of L7 Dynamic was 368,800 yuan.

Users who have not locked the order can freely change the purchased model, and users who have locked the order can also contact the user to change the model as needed. The deadline for angel wheel users to lock the order is May 29, the deadline for A wheel users to close the order is April 29, and the deadline for locking the order is June 17.

In appearance, the length, width and height of Zhiji L7 are 5098*1960*1485mm, the wheelbase is 3100mm, and the drag coefficient is 0.21Cd. In addition, it is worth mentioning that the DLP light projection headlights equipped with Zhiji L7 pro version have a projection resolution of 2.6 million pixels and an AI vision chip with 3 TOPS computing power. At the same time, the ISC front and rear interactive lights can realize 255 levels of brightness independent adjustment, two-color control and 30000nits ultra-high brightness. It can realize the interaction between lights and words in navigation, distance reminder, electricity reminder, pedestrian comity and other scenes.

Attack the main engine factory.

■ In cooperation with Horizon official announcement, some models will be equipped with Journey 5 in 2023.

On April 21st, it announced that it has reached a fixed-point cooperation with Horizon, and will carry the Horizon autopilot chip Journey 5 on some of its models, so as to create an integrated parking and navigation scheme and realize high-level autopilot function.

According to the plan, the model equipped with Horizon Journey 5 will be listed as early as mid-2023. It also became the first car company to officially launch Horizon Journey 5.

By the end of 2021, more than 1 million AI chips had been pre-installed and shipped. Journey 5 is its third-generation car-level chip, with a single AI computing power of up to 128TOPS, supporting 16-channel camera sensing calculation, and supporting multi-sensor fusion, prediction and planning control required by autonomous driving.

On April 20th, Horizon unveiled its high-speed NOA pilot-assisted driving scheme. The system is called Pilot 3, and it is equipped with three Journey 3 chips, and finally the power is 15TOPS. The sensor is equipped with 6 cameras, including 1 front view, 1 rear view and 4 side views, and is used in conjunction with the high-precision map from Gaode.

■ The Q1 financial report for 2022 was released, and the gross profit margin of automobiles reached a new high of 32.9%.

On the 20th local time, the financial report for the first quarter of 2022 released by the United States showed that the company’s revenue in this quarter was US$ 18.756 billion, up 81% year-on-year. The gross profit margin of the automobile business was 32.9%, a record high.

The financial report shows that the company’s revenue in the first quarter was 18.756 billion US dollars, up 81% year-on-year, exceeding the market expectation of 17.8 billion US dollars. The net profit in the first quarter was 3.318 billion US dollars, far exceeding the 438 million US dollars in the same period last year. In the first quarter, the revenue of automobile business was 16.861 billion US dollars, an increase of 87% compared with the revenue of 9.002 billion US dollars in the same period last year. The gross profit margin of the automobile business reached a record 32.9%.

It is said that the increase in the company’s revenue is partly due to the increase in the number of cars delivered and the increase in the average selling price.

CBS reported that in 2021, a record 936,000 vehicles were delivered, an increase of 87% over 2020. Earlier this month, it was reported that the company delivered a record 310,000 vehicles in the first quarter of 2022, a year-on-year increase of 68%. In the earnings conference call, CEO Elon Musk and CFO Zachary Kirkhorn said that they are still confident that the delivery volume will increase by at least 50% on the basis of 2021 this year.

■ Xu Jiayin Experience Hengchi 5

According to the official news of Hengchi Automobile, on April 21st, three Hengchi 5s appeared in Guangzhou Evergrande Center, and Xu Jiayin, Chairman of Evergrande Board of Directors, and the management team experienced Hengchi 5s in all directions.

According to Liu Yongzhuo, President of Hengchi Automobile, all the work of Hengchi 5 is progressing smoothly, and the pre-sale is about to be fully launched. The first batch of exhibition experience centers and sales centers of Hengchi will be opened in 15 key cities such as Tianjin, Shanghai and Guangzhou in the near future.

Prior to this, Evergrande Group held a high-profile global creditors’ conference call, and before this important meeting, Xu Jiayin specially presided over the mobilization meeting of Evergrande Automobile to "achieve Hengchi 5 mass production in three months". Xu Jiayin once asked the Evergrande team to work hard for three months and mass-produce Hengchi 5 on June 22nd, laying a solid foundation for the healthy and sustainable development of Evergrande.

Supplier dynamics

■ Anson China Global Distribution Center was closed due to the epidemic.

Anson issued a circular letter on April 18th, stating that with the government’s tightening of closure measures, especially in Shanghai, our global distribution center in China was forced to close, which affected our business.

Previously, Shanghai distribution center was responsible for the distribution of goods in Shenzhen, Suzhou and Leshan. According to the data of Anson official website, Anson Shanghai Solution Engineering Center (SEC) was established in 2010, focusing on the development of power management solutions, focusing on automotive applications and providing a development platform.

It is reported that Ansenmei has three factories in China, which are located in Leshan, Suzhou and Shenzhen. In addition to the closure of these places affecting local business, smaller cities have also begun to strengthen their closure. The company is also closely responding to the interruption of suppliers of materials, equipment and services.

■ Faurecia and Hella merged to publish the Chinese name "Freia"

On April 22nd, FORVIA, the seventh largest automotive technology supplier in the world, announced that the Chinese name of the group was Freia.

On January 31 this year, Faurecia completed the acquisition of the controlling equity of Haila. On February 7th, Faurecia and Hella announced that the merged new group was named FORVIA. FORVIA stands for action and required agility, as well as the commitment, confidence and measures of the new group to promote the transformation of road travel mode.

The Chinese name of the new group, Freya, combines the Chinese transliteration of its English name FORVIA. At the same time, it is also the inheritance and continuation of Faurecia brand and culture, which indicates that the new group will continue to highlight the core elements of Faurecia and Haila brands. In addition, the word "Rui" in the Chinese name is originally meant to be a token made of jade, and at the same time represents auspicious signs.

According to Freya officials, under the names of FORVIA and Freya, the new group will integrate the complementary technological and industrial advantages of Faurecia and Hella and become a reformer who foresees and realizes the transformation of travel.

■ Contemporary Amperex Technology Co., Limited EVOGO power exchange service started in Xiamen.

On April 18th, the EVOGO power exchange service was officially launched in Xiamen. The first four quick-change stations that started the service were located in Siming District, Huli District and Haicang District of Xiamen. It is estimated that by the end of this year, 30 quick-change stations will be completed in Xiamen. By then, there will be a quick change station within every 3 km service radius on Xiamen Island.

It is reported that at present, the lowest monthly rental price of chocolate battery replacement blocks is 399 yuan/block, and the rental price will be dynamically adjusted according to the different usage conditions of users. The service price of the quick change station is equivalent to that of the quick charge station, and will be dynamically adjusted according to the site and time of the station.

In January of this year, Times Electric Service, a wholly-owned subsidiary of Contemporary Amperex Technology Co., Limited, released the power exchange service brand EVOGO and the overall solution of combined power exchange. The overall solution of combined power exchange consists of three products: "power exchange block, quick exchange station and APP". Chen Weifeng, general manager of Times Electric Service, said that the first batch of EVOGO power exchange services will be launched in 10 cities.

■ The Ministry of Industry and Information Technology has set up a "white list" of 666 enterprises operating in Shanghai.

On April 16th, the Shanghai Economic and Information Committee issued the "Guidelines for Prevention and Control of Epidemic Situation of Industrial Enterprises in Shanghai (First Edition)", which promoted enterprises to resume work and production in an orderly and effective manner, and required all district governments, towns and parks to actively support the resumption of work and production.

Previously, the Ministry of Industry and Information Technology has sent a working group in front of Shanghai to promote the stable production and resumption of production of key industrial enterprises and ensure the smooth operation of the supply chain of the industrial chain.

On April 5, the Ministry of Industry and Information Technology set up a "white list" of key enterprises in the field of industry and information technology, and concentrated resources to give priority to ensuring that 666 key enterprises in key industries such as integrated circuits, automobile manufacturing, equipment manufacturing and biomedicine resumed production.

In the "white list of the first batch of key enterprises in Shanghai" circulated on the Internet, there are 250 automobile-related enterprises, such as GM and others, among which Lingang is listed as "discontinued enterprises that need to resume work". (Text/car home Cheng Gong)

On the preferential promotion channel in Nanning, car home, we are pleased to announce that preferential activities are under way! As an SUV model that has attracted much attention, the highest discount of Xingyue L in Nanning reached 15,000 yuan, and the lowest starting price was only 122,200 yuan. This is an excellent opportunity for you to buy this excellent model at a more affordable price. If you want to know more details about Xingyue L, please click the "Check Car Price" button in the quotation form to get a higher discount.

The exterior design of Xingyue L car series is very unique, and the front face adopts a large-size air intake grille, which shows a strong sporty atmosphere. The air intake grille is decorated with chrome trim strips, which further highlights the luxury of the car. The body lines are smooth and the overall style is very fashionable. With the sliding back design of the roof, the whole car looks more dynamic. The side of the car body is outlined by a number of smooth lines, and the visual effect is excellent. The rear part of the car adopts a streamlined shape, which makes the whole car look more atmospheric. The taillights are designed through, which is very recognizable. In a word, the exterior design of Xingyue L car series is excellent, and it is a model worth looking forward to.

Xingyue L is a medium-sized SUV with a body length, width and height of 4770*1895*1689mm and a wheelbase of 2845mm respectively. The lines on the side of the car are smooth and strong, showing movement and strength. The front and rear wheel tracks are all 1610mm, the front tyre size is 235/50 R19, and the rear tyre size is also 235/50 R19. The overall design is fashionable and atmospheric, and it is an impressive SUV model.

The interior design style of Xingyue L car series is fashionable and dynamic, paying attention to the driver’s comfort and convenience of operation. The steering wheel is wrapped in leather, which feels comfortable and the position can be manually adjusted up and down and back and forth. The central control screen has a size of 12.3 inches and is equipped with a voice recognition control system, which supports multimedia, navigation, telephone, air conditioning and skylight operations. The front and rear rows are equipped with USB and Type-C interfaces, which is convenient for users to connect devices. The seat is made of imitation leather. The main seat supports the adjustment of front and rear, backrest, height and lumbar support. The auxiliary seat supports the adjustment of front and rear and backrest. The driver’s seat is also equipped with heating and ventilation functions, which can be electrically adjusted and memorized. The backrest of the second row of seats can be adjusted, and the rear seats can be laid down in proportion, providing a more flexible space combination. Generally speaking, the interior design of Xingyue L car series is simple and fashionable, with both comfort and practicality, bringing users a better driving experience.

Xingyue L is equipped with a 2.0T 218 horsepower L4 engine with a maximum power of 160kW and a maximum torque of 325 N m.. It uses a 7-speed wet dual-clutch gearbox to provide a smooth shifting experience. This engine has excellent power performance and high efficiency, bringing drivers a more comfortable and pleasant driving experience. Whether it is daily city driving or high-speed driving, it can be easily competent. At the same time, the engine of Xingyue L also has the advantages of low noise, low vibration and low fuel consumption, allowing drivers to enjoy a quieter and more environmentally friendly driving experience while driving.

In the evaluation of the owner of car home, it can be seen that his love for Xingyue L 2021 2.0T EVO Two-Drive Wisdom Edition is beyond words. He mentioned the advantages of the car, such as rich configuration, advanced appearance and large enough space. At the same time, it also showed excellent stability and comfort during actual driving. Car home owner @ Chengdu Cheyou 0964484 also specifically mentioned the excellent performance of the car in complex road conditions, which can be easily handled whether it is starting from the urban area, running the expressway, taking the national highway, entering the rural road or climbing up the hill and potholes, fully demonstrating the advantages of extra large space in the trunk. Driving the stars with my parents everywhere for a ride is full of praise for the elderly, which further proves the comfort and practicality of the car. On the whole, Xingyue L 2021 2.0T EVO two-wheel drive Zhizun Edition is a model worthy of recommendation, which can bring excellent driving experience and comfort to car owners whether driving in the city or traveling long distances.

Source | Cyberblue

Contributed by | Fu Qingzhu

How to break the industry difficulties when the signal of centralized collection of Chinese patent medicines comes out?

On August 9, 2021, the National Medical Insurance Bureau issued the Reply of the National Medical Insurance Bureau to Recommendation No.4126 of the Fourth Session of the 13th National People’s Congress, stating that "on the basis of improving the quality evaluation standards of Chinese patent medicines and formula granules, we will adhere to quality priority, take clinical demand as the guide, and start with high-priced and large-quantity varieties to scientifically and steadily promote the centralized procurement reform of Chinese patent medicines and formula granules".

The introduction of this reply means that the procurement of Chinese patent medicines and even granules has been put on the agenda. However, as the first batch of people in China who participated in centralized drug bidding and purchasing and engaged in big data research of traditional Chinese medicine for a long time, the author is not optimistic about the procurement of traditional Chinese medicine in the short term.

Say so, we might as well stroke the train of thought:

01

What is the quantity purchase of traditional Chinese medicine?

"Drug procurement with quantity" refers to defining the procurement quantity when bidding or negotiation is carried out in the process of centralized drug procurement, so that enterprises can quote according to the specific quantity. This procurement method is also the goal that China has been striving to achieve for many years. In fact, this method is also an upgraded version of the centralized bidding and purchasing of drugs in medical institutions nationwide since 2000, which is no stranger to the vast number of pharmaceutical and medical device manufacturers at home and abroad. However, it is really a new thing for domestic Chinese medicine production enterprises, especially Chinese medicine decoction pieces enterprises.

Let’s start with the following basic definitions of popular science:

First, which Chinese medicines can be included in the quantity procurement? The "traditional Chinese medicine" that can be included in the quantity procurement mainly includes Chinese patent medicines and Chinese herbal pieces (including new-type pieces and formula granules) used in clinical practice in medical institutions.

Second, what is quantity procurement? Procurement with quantity is relative to centralized procurement, which can be understood as large-scale "group purchase" or "group purchase", that is, many hospitals form a "procurement consortium" to conduct similar "group purchase". At present, in areas where quantity procurement is implemented, the purchased products need to account for 60%-70% of the total usage, which is equivalent to a big "group purchase". Purchase with quantity, specify the purchase quantity, and the manufacturer will quote and negotiate, and the lowest price will win the bid. Enterprises can reduce the price of purchased drugs and increase the market share of products through market-oriented bidding with quantity, which is beneficial to both supply and demand sides and drug users.

Third, which institutions can carry out centralized procurement and quantity procurement? At present, it is mainly enforced in non-profit medical institutions under the supervision of medical insurance and medical and health authorities (note that it is not non-profit or non-profit). Social organizations such as retail pharmacies can also spontaneously organize "purchasing consortia" to carry out "group buying", which is referred to as "GPO purchasing" for short, but it is often not mandatory by policy.

Fourth, what does "4+7" procurement with quantity mean? It refers to the first batch of 11 pilot cities promoted by the state, including 4 municipalities directly under the central government and 7 provincial capital cities: Beijing, Tianjin, Shanghai, Chongqing, Shenyang, Dalian, Xiamen, Guangzhou, Shenzhen, Chengdu and Xi ‘an, which basically covers half of the domestic clinical drug circulation. These cities will take out more than 50% of the purchasing share every year, which has a great relationship with the market share of production enterprises and is a matter of life and death.

Therefore, once the country promotes the "4+7" or even nationwide procurement of traditional Chinese medicine, it will surely become a key event for Chinese medicine enterprises, which is expected to cause a major reshuffle of the Chinese medicine industry, and the industry must pay attention to it.

02

Why is it difficult to implement the procurement of traditional Chinese medicine for a long time?

Before answering this question, we must clarify two points:First, the centralized bidding and purchasing of proprietary Chinese medicines has been carried out around 2001, and the effect of reducing fees is very obvious, but it has not yet been included in the "4+7" procurement; Second, the centralized bidding and purchasing of Chinese herbal pieces. As early as 2001, the documents No.308 and No.309 jointly issued by five ministries and commissions in the State Council all proposed to "actively explore the centralized bidding and purchasing of Chinese herbal pieces".

However, it was not until 2018 that attempts were made in Shanghai, Gansu and other places, and the effect was not obvious; In July 2020, 12 provinces, including Shandong and Inner Mongolia, directly established a platform for the joint collection and purchase of Chinese herbal medicines, and prepared to carry out large-scale procurement activities of Chinese herbal medicines. However, the thunder and the rain are too small, and there is no more.

Why can’t centralized bidding or quantity procurement of traditional Chinese medicine products be promoted?

The apparent reason is that the overall purchase volume of Chinese medicine products without proprietary Chinese medicines is small, and the overall purchase volume of pieces of Chinese medicine in medical institutions nationwide is less than 56 billion yuan, which is only a fraction of the total purchase volume of chemicals and medical devices, and it lacks attention. But the deep-seated reason is that there are two bottlenecks, and there is no breakthrough for a long time:

The first is the standard issue.

Traditional Chinese medicine (TCM) is a practical weapon of TCM, and its personalized demand is very obvious. A large number of raw medicinal materials and even decoction pieces are agricultural and sideline products, which are non-standard products. You may say that the Pharmacopoeia has the standard of decoction pieces, but that is only the minimum quality threshold, and it can’t cover the complicated and changeable commodity circulation specifications of Chinese herbal medicines at all.

For example, 280 and 380 pieces of Lycium barbarum, Ningxia goods and Qinghai goods, new goods and old goods, although they all meet the pharmacopoeia standards, can they be regarded as the same commodity? Without a unified standard, how to divide the quality levels? If we simply use the Pharmacopoeia standard to evaluate products, it will undoubtedly lower the quality level of Chinese patent medicines and granules as a whole and destroy a large number of well-known brands of Chinese medicine.

Shanghai, Zhejiang and other places are going to separate the products using raw materials from GAP base or traceability base, but everyone in the industry knows that the construction of GAP base in China is difficult to land, and the construction of traceability base is just in its infancy. The concept is bigger than the essence. Can it be used as a criterion at this stage?

At the same time, even if you establish a commodity circulation standard, will this standard be recognized by both the supply and demand sides? How to run through the whole process of Chinese herbal medicine raw materials, Chinese herbal pieces, granules, production enterprises, products and demand side is a very difficult and grand project, which can not be straightened out by a single link.

The second is the price issue.　

The price problem is divided into three levels:

The first is how to define the cost of different quality Chinese herbal medicines. Origin, growth cycle, harvest time, content, appearance and processing technology will all affect its pricing. This problem is actually closely linked to the circulation standard and is an extension of the standard problem.

Secondly, the price fluctuation during the period of centralized mining. The nature of agricultural and sideline products of most Chinese herbal medicines leads to the reality that they still have to "eat by the sky". In the past five years, the price amplitude of Chinese herbal medicines in China has reached more than 18.5%. In August 2020, the same kind of forsythia was 55 yuan (kg price, the same below), and it will rise to 115 yuan in 2021; The raw land has skyrocketed from 11 yuan to 35 yuan. How do you let the successful bidder complete the distribution at the original price?

Allowing the price increase violates the rules of the game of winning the bid at a low price under the same quality, and how to accept the price increase basis? If the price increase is not allowed, the winning bidder will be miserable and it is very likely to lose money to perform the contract; If the roasted seeds and nuts add fuel to the fire and monopolize the raw materials of the winning products to raise the price, the enterprise will even lose the pants, and finally the severe consequences of "winning the bid is death" will not be ruled out.

More crucially, the higher the bid, the higher the price. At present, the principle of "bidding and bidding, the lowest price for supply" is generally adopted in raw material procurement of production enterprises, and all kinds of arrears and deduction of suppliers’ payment for goods have also existed for a long time, so as to minimize the cost of raw materials. If we really realize the so-called "genuine quality and conscientious processing" through centralized purchasing activities, and make the raw material sources and costs of those brand enterprises known to the world, we will inevitably face the embarrassing situation of "more recruitment and higher fees" due to the improvement of quality. Originally, centralized purchasing wanted to reduce prices and control fees, but as a result, the price of centralized purchasing rose sharply. Can the medical insurance department accept it? This is really a paradox.

To sum up, when designing the centralized collection activities of traditional Chinese medicine, the operators often fail to consider the complexity of traditional Chinese medicine products, especially in terms of standards and prices, and lack of fundamental countermeasures and convincing evaluation system, so there are many obstacles in the actual promotion, and most attempts eventually end in vain.

03

How to break the traditional Chinese medicine collection?

It is precisely because of the complexity of the centralized collection of traditional Chinese medicine that the procurement of traditional Chinese medicine in medical institutions has been in a blind spot or even a "gray zone" for a long time.

The so-called "high-end decoction pieces" and "selling granules with gold" such as Niuhuang, Cordyceps sinensis, Saussurea involucrata, etc. have long been an open secret in the industry, seriously damaging the principle of "openness, fairness and transparency" in drug circulation. Therefore, the centralized collection of traditional Chinese medicine must be implemented as soon as possible. But in the face of many practical difficulties, how to break the game?

The author believes that the key to the breakthrough of centralized collection of traditional Chinese medicine lies in rationalizing the industrial chain by using the big data platform of traditional Chinese medicine industry, and realizing the bottom logic of traditional Chinese medicine products from raw material production, processing, circulation to sales, thus achieving a closed loop.

In this closed-loop front-end, it is an order agriculture based on the concept of blockchain, which is directly linked to the annual orders of demanding enterprises. When the commodity codes are sold out, external capital cannot intervene at all to ensure the stability of supply prices; In the circulation link, it is the two-dimensional code traceability of the whole process; In the sales link, we encourage order agriculture and full traceability with high quality and good price, so that the traceability input of enterprises is worth the money; Finally, basic functions such as standardized warehousing and logistics and third-party testing should be completed.

In this closed-loop system, the construction of big data platform for Chinese medicine industry is very important and is the core grasper. All information such as origin information, product information, price fluctuation, employee data, supply and demand data, quality standards, etc. will be included in this big data platform, and the bottom layer will realize the whole process with unified coding.

Only after the above preparations are completed, can the centralized collection of traditional Chinese medicine have the basis for implementation, and can the original intention of the medical insurance department to raise quality control fees be realized.

I believe that the centralized collection of traditional Chinese medicine will surely make a breakthrough on this basis.