Dialogue with Yuan Jinhe: What changes are the Auto Parts City going through (text version)

Original title: Dialogue with Yuan Jinhe: What changes are the Auto Parts City going through (text version)

host:What kind of business does Aotu mainly do now?

Yuan Jinhe:Aotu mainly focuses on the real estate of the automobile industry. It provides investors and governments, including some developers, with a full value chain service for the real estate of the automobile industry. Some cost calculations, feasible research reports, and some architectural plans and designs of the project. We don’t do basic engineering. Of course, we also do some marketing and agency for these projects, and do some investment promotion, which also includes some later stages. Operations,host:So what pain points can this business help customers solve? Why do these customers ask us to do it?

Yuan Jinhe:Our team has always been deeply cultivating the automotive aftermarket, including our group’s Eastern Auto Parts City. Actually, we also wanted to go to the capital market at the earliest. We started in 2003, because the theme of the car has been developed throughout the country to be replicated and promoted. Such a model of standardization.Through our group for more than 20 years and 40 cities, we have done more than 10 million square meters of development. Then, we can save these developers from taking some detours. For some developers who want to enter the automobile industry, we will An inappropriate analogy, we are like a childcare worker, a project is planned from the screening of the project

The site selection can ensure the successful landing of the project and the smooth opening of the project.

host:In fact, the work that Aotu is doing is in industrial real estate. Just before opening, it will do some market research, do some planning, help them sort out, how to layout this work will do a little more.

Yuan Jinhe:exactly

host:After the start of construction, I will also do some sales work, right?

Yuan Jinhe:Yes, because of the needs of this different city and different types of needs, we must have done some in the early stage, and some requirements for site selection. Of course, automobile real estate is also a large category of real estate. We look at the population in the long-term, and we look at this lot in the mid-term. Looking at finance in the short term, in the same way, when our car is selecting a location, we will also choose some suitable places according to a city's population, economy, and society, including some factors of technological development, and some changes in the market. The second stage is after entering the land purchase, including our design and product conceptual planning, building detailed construction plans to construction drawings, our Aotu organization, there are three companies under its control, one is our Aotu management consulting company, Second, we have a planning and design company because it is doing the automobile park, so I just mentioned it. Relatively speaking, he has higher requirements for the industry. For the automobile industry, the height and depth, including the actual use, are all There is a great professional attribute of such an industry

host:Some attributes of the profession

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Yuan Jinhe:So in this section, some of the well-known design institutes in the United Nations have specially set up a design institute for the automotive industry. Then this kind of words surround us, some of the proprietary attributes of the automotive industry, and help companies do something. Talking about some conceptual planning and design, architectural plan construction drawings. The third is our mid-to-late operation, because the current product is from development to management, and what is more important, we must operate it. There is an Autoway brand

This commercial management company, then our brand management company of Autoway, is mainly based on the investment and sales of the entire automotive aftermarket park, as well as the operation of the park.

host:That means that the work of our Aotu is mainly divided into three parts. One is that there is no consultation before land acquisition, planning after land acquisition, and some subsequent operations are mainly divided into these three parts.

Yuan Jinhe:Right, right, right, after you take the land, you build the sales and investment promotion of your property, and then operate it. Then this is such a sector in the middle and late stages, so we will continue to serve customers.

host:So among the customer groups you have served in the past, do they have a large proportion of the automobile city that specializes in industrial real estate or is it purely that the real estate developer has more customer groups?

Yuan Jinhe:In the past, it was mainly this kind of extensive development. First of all, there was such a market and some small developers came in to do this business. Then, with the development of this industry in recent years, the country's 100 billion-level real estate enterprises Including some listed companies before, like Greenland, including Times China, Country Garden, Evergrande, Baoneng have all entered the auto industry real estate. So in the past, it was an extensive development in the past. Our auto park has experienced a point, line, and area. The so-called point of the three-dimensional development process of the Internet is the original 4S store model. At present, there may be about 60,000 4S stores in China, so there are more than 20,000, this kind of block-type car park. Some of us are in some neighborhood-style parks such as Youyi Avenue or the main road of the city, national highways, provincial highways, and airport avenues. Also, the third piece is that some people with stable property rights can be transferred to the city and enter the park. The fourth is basically to be able to enter some multi-format integration.

host:I also heard President Yuan’s introduction just now that some real estate development companies in Greenland Baoneng Country Garden have poured into the development of the automobile industry. Behind this, it means that the market is relatively large or that there are many places in the country. Haven't been developed?

Yuan Jinhe:In fact, it has gone from extensive development to high-quality development. It has experienced such a process. So just now we talked about scale, divided into these sections, but we also divided into some, for example, exhibition and trade base type. Like the exhibition and trade base type, it is, for example, our national-level strategic export base, the country’s development zones where OEMs are located, more than 100 national-level auto parts, and In some places where the national auto parts industry bases are relatively concentrated, such as auto parts parks and auto supplies parks, there should be about a thousand large and small in the country. Therefore, we use this industrial chain to make the national government also start to transform. Upgrade to a strong investment chain, protect the chain and supplement the chain, to create this type of industrial park of this type of exhibition and trade base with a cluster of industrial sites. The second one is more, that is, some circulation-type automobile parks in the country. That is, this is to meet the automobile consumption of the vast automobile aftermarket. These places with a population of over one million are mushrooming from the blank market. One by one, this Auto Life Plaza Auto City, this Auto Park.The third is that as the country has created a new type of urbanization requirement, what have we done? It is a car town type, called a multi-functional business format, which not only meets the largest consumption of a family, such as cars The problem

The problem of houses, there are also some consumer experiences of children, combined with some of the functions of education and culture, such as culture, travel, residence, and residence, are built into it, that is, combined with the automobile town advocated by our country. As for the first-tier cities, basically you can see that we are retreating from the city to the outskirts. It is from the past that the park is in the center of the city. So many cities are from the original, such as a planned economy. When the company is in this block style, what kind of park is it going to, then the provincial capitals and first-tier cities across the country are basically retreating to the suburbs, and comprehensive renovation. For some parks, the past is chaotic and poor, then it has become a plan. Some car towns with beautiful surroundings are those that enter the city and enter the park. The gradual transition from a single business type to a multi-functionality to a multi-business integration model, then provincial capital cities and some hub cities are also moving abroad, which is to coordinate with the process and development of urbanization to give birth to a large number of these cities. Kind of transformation and upgrading. So the third thing is that I just mentioned the vast county-level cities and some blank markets. Then these places are not there. If you don't talk about it, then you can just plan from a high starting point.

host:Is our client type capital-intensive? He will have multiple partners. For example, there is a government to intervene in urban investment transactions, and there are so many commercial investment enterprises to jointly build this automobile industry park?

Yuan Jinhe:exactly

host:So in the course of Mr. Yuan’s dealings with these users, what characteristics do you find that these users have compared with those of ordinary enterprises?

Yuan Jinhe:First of all, I think it is this type of platform-based company, who pays more attention to it is a long-term thinking

It is a long-term mechanism, so for some short-term these behaviors, there will be relatively few, then the second one is

He can mobilize more resources, including policy support, industry support, and some industrial funds have been issued in some places. Then the third thing is that he can organize some scale exhibitions, some business conferences, and some This kind of matchmaking event, he has the advantage of some resources, it is precisely that he does not have much experience.

host:Do you think there is still room for a single auto parts city in the future?Will it all turn to comprehensive

This kind of multi-format auto industry park Auto Parts City?

Yuan Jinhe:We also found that with the development of the entire Internet and logistics

A supporting system of convenience and perfection, our traditional product market is gradually transforming into a service market

In the future, the model of Auto Parts City is basically simply selling products and simply moving the customers of brick middlemen. His living space is getting smaller and smaller. They may follow this development, and auto parts cities across the country will also In the continuous reshuffling, it is more in the form of auto parts logistics park, because some manufacturers have already made some pre-warehouses, which can reach a 1.5-hour delivery circle.

His network has been transferred from the provincial capital city to the prefecture-level city to the county-level city or even the township, and the supporting circle around 1.5 hours can be delivered in time, which greatly reduces some inventory of the maintenance plant, and of course also includes the development of e-commerce. In the future of the auto parts city segment, we believe that more in the future, in the form of an auto parts logistics park, it will be developed more in the form of warehouse sales and warehouse distribution.

host:Each automobile town or automobile town faces different problems. So, are there any towns that have been successfully built, besides their superior location, what characteristics do they have?

Yuan Jinhe:He is like this, the most important thing is that we still have to lock in the administrative package, because the administrative package is a place that all practitioners have to come to, such as car control, driving control, driving training, driving test, and testing. The recycling and dismantling of end-of-life automobiles, and the extension of automobile insurance and finance, as we are now advocating, is a one-stop service. So as long as the administrative facilities are introduced, we think that it is basically a part of a park. What is the main function is there, because as a large city and county with a population, they may have a population of one million, and there is only one administrative supporting center. Then this is a gathering place of people flow, it is the daily flow of me. Go to the project site and go through the various project procedures, and then the popularity will rise. I think this is also the most important and key factor in building an automobile park.

host:Mr. Yuan has been in this industry for so long, what is your biggest feeling in this industry?

Yuan Jinhe:Personally, I think that a period of more than ten years of entrepreneurship has made me more tolerant, more cautious in doing things, and able to consider issues more from the other side. What is the plan for the next few years should be three. Businesses in all sectors are advancing side by side. With the development in recent years and the implementation of projects one by one, the entire consulting category is a cornerstone of our long-term development. In recent years, we have also started to go to the middle and late stages of the entire park. After the landing is completed, our sales, we are not just a traditional consulting agency like the domestic one, I may just be responsible for the landing after consulting, we just did one thing, we are responsible for all aspects of the implementation of the landing For a consulting agency, we will not only follow up and introduce operations, but also enable them to have a long-term development and continuous service. This is what we may focus on in this regard in the future.

host:It is equivalent to saying that in this industry chain, not only in the preliminary planning, including the mid-term investment promotion to the later operation, they will fully participate in this matter?

Yuan Jinhe:Yes, yes, most of the domestic consulting agencies, their basic plan is actually floating in the air and can’t fall to the ground.

, Are all in PPT, a report in this form, a form of PPT or a consultation case, after submitting it, a project may be deemed to be over, and for our project, this type of proposal is only the first One step, then we still have to rely more on the existing resources, how can we assist Party A to assist our partners and be able to empower.

host:Mr. Yuan may become cautious about some of his feelings about starting a business for so many years. Is it this industry? In fact, its fault tolerance rate is relatively low. Once a lot of decisions are made, once a lot of things are sent out, it is possible to withdraw. The price is relatively high. Relatively speaking, the requirements for the founder's mental strength will be relatively high.Low fault tolerance means

For new employees, the space for trial and error is very narrow. No mistakes are allowed. There will be such a feature in it.

I don’t know if my understanding is right?

Yuan Jinhe:That’s right. Of course, our industry did just talk about it. Because it is capital-intensive, a lot of content must go ahead. We can’t wait until the project has been completed and the buildings have been completed before considering these issues, so we must It is planning first and operation consideration first.

host:Okay, thank you and thank Mr. Yuan for accepting our interview today.

Yuan Jinhe:thanks, thanks.