WEBVTT - Xiaomi Made a Big Bet on Electric Vehicles and Won 0:00:02.000 --> 0:00:07.480 China dominates the electric vehicle market. BYD has overtaken Tesla 0:00:07.560 --> 0:00:11.480 as the world's largest EV maker, and now almost two 0:00:11.680 --> 0:00:14.680 out of every three EV sold globally and made by 0:00:14.760 --> 0:00:19.080 Chinese companies. But what may surprise listeners is that the 0:00:19.120 --> 0:00:22.560 most in demand EV model in China is not made 0:00:22.560 --> 0:00:26.079 by Tesla or BYD. It's actually made by Chaomi, the 0:00:26.160 --> 0:00:29.760 company best known for making budget smartphones and other consumer 0:00:29.800 --> 0:00:34.600 electronic devices. How did Chami create arguably the coolest EV 0:00:34.920 --> 0:00:39.960 in China, What differentiates its car from its competitors, and importantly, 0:00:40.200 --> 0:00:44.040 can the company continue to deliver on high expectations with 0:00:44.159 --> 0:00:47.320 its share price rising over one hundred and seventy percent 0:00:47.520 --> 0:00:51.120 of the last twelve months. You're listening to Asia Centric 0:00:51.200 --> 0:00:55.160 from Bloomberg Intelligence. I'm John Lee in Hong Kong. This week, 0:00:55.200 --> 0:00:58.520 we've got two analysts from Bloomberg Intelligence. We have Johanna 0:00:58.600 --> 0:01:02.040 Chen she looks at the auto, and stevens Son looks 0:01:02.040 --> 0:01:05.199 like technology. Joanna and Stephen Welcome to the show. 0:01:05.640 --> 0:01:08.479 Hi John, Thanks for having me, Hi John, Thanks glad 0:01:08.520 --> 0:01:08.800 to be. 0:01:08.760 --> 0:01:13.160 Here, Joanna. Most of our listeners live outside of mainland China, 0:01:13.240 --> 0:01:16.440 so they probably don't even know that Shallmi makes electric vehicles, 0:01:17.000 --> 0:01:20.720 just tell the audience how popular is the EV in China. 0:01:21.800 --> 0:01:26.320 So basically Shaomi was pretty much very new to the market. 0:01:26.720 --> 0:01:31.720 The shawms first EV only started its debut and also 0:01:31.800 --> 0:01:35.840 delivery back in April last year, and then shall Me 0:01:36.040 --> 0:01:40.120 manage to deliver over two hundred thousand units of those 0:01:40.560 --> 0:01:44.080 Su seven vehicles in China, and that makes the Su' 0:01:44.120 --> 0:01:47.960 saving now one of the most popular EV's and ranking. 0:01:48.000 --> 0:01:50.640 I think it's among the top five model in the 0:01:50.720 --> 0:01:55.600 Chinese EV market. So it is like the company keeps 0:01:55.720 --> 0:01:59.240 beating its targets. And also the wait times are very 0:01:59.280 --> 0:02:02.560 long and contry. Apparently they're willing to wait for this 0:02:02.680 --> 0:02:05.720 new vehicle. That makes the show Me as you saying, 0:02:05.800 --> 0:02:09.160 and also possibly the upcoming next new model very popular 0:02:09.280 --> 0:02:10.480 in the Chinese EV market. 0:02:10.720 --> 0:02:13.680 So if you were to order a show Me model 0:02:13.800 --> 0:02:15.280 right now, how long will it take? 0:02:16.040 --> 0:02:18.680 So that's a very interesting thing. Right now, if you 0:02:18.680 --> 0:02:20.760 want to order a shaw Me car, you have to 0:02:20.840 --> 0:02:24.600 wait about nine to ten months, that's how long the 0:02:24.639 --> 0:02:28.280 waitlist is getting. And in comparison, if you order a 0:02:28.320 --> 0:02:30.799 Tesla you can probably get it under two to four 0:02:30.919 --> 0:02:34.240 five weeks. In general, the EV in China, you only 0:02:34.240 --> 0:02:36.799 need to wait for a month, but show me, that's 0:02:36.960 --> 0:02:39.040 very long waitlist, nine to ten months. 0:02:39.320 --> 0:02:41.200 And I just wanted to confirm this is due to 0:02:41.240 --> 0:02:44.120 the high demand and not due to limited supply. 0:02:44.360 --> 0:02:48.040 One hundred percent correct. So originally when the show Me 0:02:48.120 --> 0:02:51.280 car first debut, the weight list was about six to 0:02:51.520 --> 0:02:54.880 a month, and now it's getting even longer nine to 0:02:54.960 --> 0:02:57.080 ten and people are wondering is it because of their 0:02:57.280 --> 0:03:00.040 too slow in production ramps, just as Tesla did. But 0:03:00.480 --> 0:03:04.000 back in like twenty seventeen, when Tesla first started to 0:03:04.080 --> 0:03:07.240 remp up the production of its Model three, its first 0:03:07.520 --> 0:03:12.240 volume car model, as Elon Mask said himself, it was 0:03:12.240 --> 0:03:15.880 a production hell. There were issues from supply chains to 0:03:15.960 --> 0:03:21.440 manufacturing logistics, shipping, customer experience management. But for shall Me, 0:03:21.560 --> 0:03:26.800 it seems come pretty natural. And also we didn't hear 0:03:27.080 --> 0:03:30.680 any major issues during the ramp up pace in terms 0:03:30.840 --> 0:03:34.120 quality are also good. The ramp up speed. 0:03:33.840 --> 0:03:34.640 Is also good. 0:03:34.960 --> 0:03:39.760 It managed to get to like twenty thousand monthly deliveries 0:03:40.160 --> 0:03:44.120 in just like nine months. So for shall Me, we're 0:03:44.160 --> 0:03:48.280 saying that it's really the consumer demand that is too 0:03:48.400 --> 0:03:52.920 high and that's dragging the way times longer and even 0:03:52.960 --> 0:03:56.240 though they are ramping up the production pretty quick. Even 0:03:56.280 --> 0:03:59.160 though they are beating their sales volume target. Still the 0:03:59.200 --> 0:04:02.520 way times are longer and longer. And hopefully with the 0:04:02.560 --> 0:04:05.960 second factory coming up in Beijing soon, we'll see the 0:04:06.000 --> 0:04:08.800 wait list getting shorter and consumers will be able to 0:04:09.240 --> 0:04:12.160 get their car deliver quicker, and then that will draw 0:04:12.240 --> 0:04:14.840 more consumers to place orders because they don't have to 0:04:14.880 --> 0:04:16.400 wait that long for a car anymore. 0:04:17.320 --> 0:04:21.200 Joina, What makes shall mes Su seven models so popular 0:04:21.440 --> 0:04:23.760 and how does it differentiate from its peers. 0:04:24.560 --> 0:04:29.279 So the first thing is it's a really cool car 0:04:29.800 --> 0:04:33.600 if you look at the exterior design, and of course 0:04:33.680 --> 0:04:36.680 there's some resemblance to the Porsche model. 0:04:36.720 --> 0:04:39.120 You're talking about that Porsche Tyken. 0:04:38.880 --> 0:04:41.920 Yes, right, but still it's a very cool car and 0:04:42.080 --> 0:04:45.800 the boat colors with bright blue, bright pink, the purple, 0:04:46.240 --> 0:04:49.600 and people love it, especially the younger generation and especially 0:04:49.640 --> 0:04:53.040 the female drivers. They are so into the Shell Me 0:04:53.240 --> 0:04:56.159 Su seven car. So it's a cool car, and also 0:04:56.600 --> 0:05:01.679 it has a very smart market positioning. It's a little 0:05:01.680 --> 0:05:05.040 bit affordable, more affordable than the Tesla model. 0:05:04.839 --> 0:05:07.000 Which one you're talking about, the Model three, Yes, the. 0:05:06.960 --> 0:05:10.280 Model three, because both are sedan car it's a little 0:05:10.279 --> 0:05:12.960 bit more affordable than Tesla Model three, but it comes 0:05:13.000 --> 0:05:18.880 with greater room and also more smart tech functions for free. 0:05:18.960 --> 0:05:22.279 For example, you have to pay everything extra for Tesla 0:05:22.440 --> 0:05:25.440 if you want to get the ONUS driving functions, if 0:05:25.440 --> 0:05:28.800 you want to get the better connectivity functions, but in 0:05:28.880 --> 0:05:31.719 a shall Me car, most of them are free. Also 0:05:31.800 --> 0:05:34.800 if you're compared to bid Byde's main battleground is actually 0:05:34.880 --> 0:05:40.279 the mass market where cars are more like priced lower 0:05:40.440 --> 0:05:44.440 and also with less amenities. But for shall Me car, 0:05:44.560 --> 0:05:49.120 basically it kind of like avoided direct competition with BYD 0:05:49.480 --> 0:05:53.480 while it gives a consumers more offerings versus. 0:05:53.160 --> 0:05:53.960 A Tesla car. 0:05:54.360 --> 0:05:56.920 And also I think the second thing that's very important 0:05:57.160 --> 0:06:01.880 is that the brand value. People recognize the shell me brand, 0:06:01.960 --> 0:06:06.479 the shehll me name, people like the CEO Laging. So 0:06:06.600 --> 0:06:10.440 the brand value of shall Me is We've never seen 0:06:10.480 --> 0:06:14.000 this in any other Chinese even maker. You know, it 0:06:14.040 --> 0:06:18.240 takes bid almost a decade to build up its brand 0:06:18.400 --> 0:06:21.320 value in China, but for show me, they can just 0:06:21.360 --> 0:06:24.760 transfer it from the smartphone space to the EV space. 0:06:25.400 --> 0:06:28.520 And I wanted to just elaborate on one thing you mentioned. 0:06:29.040 --> 0:06:32.320 It is cheaper than the Model three by Tesla. But 0:06:32.360 --> 0:06:34.599 it's not a budget car in any stretch of the 0:06:34.640 --> 0:06:35.359 means right. 0:06:35.279 --> 0:06:37.560 Now, it's not a budget car. If it's a budger car, 0:06:37.760 --> 0:06:41.200 then it will face direct competition with BID. So shell 0:06:41.279 --> 0:06:44.480 Me was smart enough to price its vehicles and also 0:06:44.520 --> 0:06:48.400 position it's vehicles in this we call me to high 0:06:48.480 --> 0:06:52.280 end market in China so that you don't go directly 0:06:52.360 --> 0:06:54.800 with BID and face its like fierce competition. 0:06:55.880 --> 0:06:59.200 Asia Centric is produced by Bloomberg Intelligence with more than 0:06:59.240 --> 0:07:03.080 five hundred experienced analysts and strategists work around the clock 0:07:03.160 --> 0:07:06.640 to bring you timely, world class research. Our coverage spans 0:07:06.680 --> 0:07:11.000 two hundred market industries, currencies, commodities, and industries, as well 0:07:11.000 --> 0:07:14.000 as over two thousand equities and credits. To learn more 0:07:14.040 --> 0:07:18.280 about Bloomberg Intelligence, visit BI go on the Bloomberg terminal. 0:07:18.800 --> 0:07:21.320 If you like what you're hear, don't forget to subscribe 0:07:21.320 --> 0:07:24.840 and share. Steven, I want to get some background on 0:07:25.000 --> 0:07:28.040 show me as a company. Now most people know this 0:07:28.200 --> 0:07:31.680 as a maker of I would say budget smartphones. I 0:07:31.800 --> 0:07:36.200 also make some cool electronic devices as well. What made 0:07:36.240 --> 0:07:38.200 the company get into evs? 0:07:38.840 --> 0:07:44.200 Actually that's an interesting switch because what happens actually back 0:07:44.240 --> 0:07:47.800 to early twenty twenty one when the US Garment actually 0:07:47.800 --> 0:07:51.280 puts me on the sanctioned list, meaning that show me 0:07:51.360 --> 0:07:55.240 can sell anything in the US, and the company had 0:07:55.240 --> 0:07:57.800 the urgent board meeting, and during the meeting, one of 0:07:57.840 --> 0:08:03.000 the board members say, if we couldn't sell a smartphone, 0:08:03.560 --> 0:08:06.640 what would be our alternative? And then so people kind 0:08:06.640 --> 0:08:08.640 of brainstorm me, and then some people say, wait, why 0:08:08.680 --> 0:08:12.880 not making EV? So there was obviously a bole idea, 0:08:13.120 --> 0:08:19.000 and Leging was not on board immediately because he was hesitant. 0:08:19.120 --> 0:08:22.200 But then he did some homework, he checked with some 0:08:22.200 --> 0:08:25.239 of his friends, did some study, and then even chated 0:08:25.240 --> 0:08:29.440 with son of the EV maker in China, and after 0:08:29.440 --> 0:08:31.960 a few weeks he made a decision that okay, we're 0:08:31.960 --> 0:08:34.960 going to make EV. So that's basically how it starts. 0:08:35.640 --> 0:08:38.960 And then obviously spent a lot of the resources and 0:08:39.679 --> 0:08:43.640 he basically lead the project. I think they actually sent 0:08:43.760 --> 0:08:47.160 a message to the organization that they're serious in this 0:08:47.760 --> 0:08:52.520 endeavor apparently is new, so they are studying what other 0:08:52.760 --> 0:08:57.600 global companies are doing. And then they leveraged a lot 0:08:57.640 --> 0:09:01.319 of the supply chain in China. Obviously China already has 0:09:01.360 --> 0:09:05.200 a pretty comprehensive supply chain for electric vehicle at that 0:09:05.280 --> 0:09:08.400 point of time, even though shell me is new, but 0:09:08.520 --> 0:09:13.280 they can basically tap to those resources. And the other 0:09:13.320 --> 0:09:15.280 thing I think is also important, I think is because 0:09:15.320 --> 0:09:18.360 the government support in China. Obviously the new energy vehicle 0:09:18.920 --> 0:09:22.960 is one of the major industry or more focus based 0:09:23.000 --> 0:09:26.560 on the China's twenty twenty five initiative, the Chinese government 0:09:26.880 --> 0:09:30.720 is willing to support shell means initiative. Actually, the company 0:09:31.000 --> 0:09:36.520 baic was initially the major partner to handle the manufacturing 0:09:36.720 --> 0:09:40.640 for shell Me's vehicle before shall Me had its own 0:09:40.679 --> 0:09:44.160 capacity for vehicle. Those are I think the thing that 0:09:44.240 --> 0:09:48.600 why shell me is able to establish their even business 0:09:48.760 --> 0:09:52.600 from scratch. But other than that, the company also coming 0:09:52.640 --> 0:09:55.640 about ten billion remen b in this whole R and D. 0:09:56.480 --> 0:10:01.480 They are actually developing their own technology for electric motors, 0:10:01.520 --> 0:10:04.760 for alloy. They even have a pattern for their own 0:10:04.760 --> 0:10:10.040 alloy and also the casting. Also the office is so 0:10:10.120 --> 0:10:15.240 software ecosystem, which they leveraged their strengths in their electronic 0:10:15.320 --> 0:10:19.440 device business, so they are able to put everything together 0:10:19.720 --> 0:10:22.199 to this new electronic vehicle business. 0:10:22.720 --> 0:10:26.240 Stephen Apple famously or they had an open secret pretty 0:10:26.320 --> 0:10:29.480 much that they wanted to develop electric vehicle for over 0:10:29.520 --> 0:10:32.440 a decade, but they gave up on their plans. Are 0:10:32.480 --> 0:10:35.440 you surprised at a company like Shelmi was able to 0:10:35.520 --> 0:10:38.439 create an electric vehicle in three years and it was 0:10:38.480 --> 0:10:40.560 pretty much a success. It was a home run in 0:10:40.559 --> 0:10:41.280 their first try. 0:10:43.440 --> 0:10:47.040 As I mentioned, the whole thing of this developing EV 0:10:47.160 --> 0:10:51.199 business for Shelm is really because the under pressure they 0:10:51.280 --> 0:10:55.080 have this crisis or survival because if they are not 0:10:55.200 --> 0:10:59.520 able to sell smartphone, they basically get over for the company. Right, 0:10:59.600 --> 0:11:02.120 So that's actually the big pressure for the company. We 0:11:02.200 --> 0:11:04.840 have to say. I mean Apple is never under such pressure, 0:11:05.240 --> 0:11:09.240 So I guess that's a huge difference. Also, I think 0:11:09.880 --> 0:11:13.120 show me itself, once they make a decision of making EV, 0:11:14.040 --> 0:11:18.360 they're actually committed to that goal. Because one example is 0:11:18.400 --> 0:11:21.520 that most of the top managements show me at this 0:11:21.559 --> 0:11:24.640 point they actually has the driver license for the fine 0:11:24.720 --> 0:11:28.720 racing car. Because Laging itself, when he startied this EV business, 0:11:29.200 --> 0:11:32.319 he found out that most of the major leading auto 0:11:32.360 --> 0:11:35.439 company in the world, all the top management are all 0:11:35.640 --> 0:11:39.679 big fan of fin racing cars. So he says, Okay, 0:11:39.679 --> 0:11:42.200 if we want in this business, we have to do 0:11:42.240 --> 0:11:44.840 this right. You have to really have the passion for 0:11:44.920 --> 0:11:47.719 the speed for the car, for the vehicle, so they 0:11:47.720 --> 0:11:51.080 do that. I'm not sure if other auto companies in 0:11:51.160 --> 0:11:55.040 China are actually doing the same thing, but this actually 0:11:55.080 --> 0:11:58.440 is an example showing that they're really committed to what 0:11:58.440 --> 0:11:58.920 they're doing. 0:12:00.120 --> 0:12:02.480 Even what's driving the share price. Is it the EV 0:12:02.720 --> 0:12:04.920 side or is it the consumer electronic side. 0:12:05.760 --> 0:12:09.200 It's definitely on EV side. I mean, obviously they're doing 0:12:09.240 --> 0:12:13.360 great in their smartphone business. They post a very strong 0:12:13.400 --> 0:12:17.000 growth over the past two years. But EV, it's no 0:12:17.120 --> 0:12:20.240 doubt that people actually has a very highest petition on 0:12:20.400 --> 0:12:23.800 EV business, which is why the valuation actually at some 0:12:23.880 --> 0:12:28.480 points are even more expensive than the EV pers in China. 0:12:29.000 --> 0:12:32.200 We did have a note Elaradier mentioned about their EV 0:12:32.360 --> 0:12:38.640 valuation may not necessarily sustainable at that point because at 0:12:38.640 --> 0:12:40.960 one point they're actually traded like a six to seven 0:12:41.640 --> 0:12:44.840 ties price to seals will by it is only like 0:12:45.000 --> 0:12:48.319 one to two ties. Well, now the share price office 0:12:48.320 --> 0:12:52.800 is corrected and valuation wise it become more reasonable. But 0:12:52.840 --> 0:12:57.920 then people are obviously waiting for the next model and 0:12:58.160 --> 0:13:00.000 hopefully they can maintain their momentum. 0:13:01.120 --> 0:13:03.640 And can you give us some background on the chairman 0:13:03.720 --> 0:13:06.800 the founder Leijun for the Western audience. Leijiuon is almost 0:13:06.880 --> 0:13:09.480 known as the Steve Jobs of China. Would you say 0:13:09.679 --> 0:13:13.400 it's his reputation, Yes, he would draw the comparison. Yes, 0:13:13.480 --> 0:13:16.120 he's got a bit of a cult following in China, 0:13:16.200 --> 0:13:20.600 especially in social media. Tell us his background, Yes, I 0:13:20.600 --> 0:13:23.960 think before show Me he he already is a pretty 0:13:24.000 --> 0:13:25.040 well known entrepreneur. 0:13:25.520 --> 0:13:28.960 He's chairman of Kingsoft, which is one of the major 0:13:29.000 --> 0:13:32.559 software companies in China. Also, I think he found an 0:13:32.559 --> 0:13:36.320 e commerce website which was later on acquired by Amazon. 0:13:36.520 --> 0:13:39.400 So before he founded show Me, he has been a 0:13:39.520 --> 0:13:44.360 very experienced its manewer enjoy investors in China. And when 0:13:44.360 --> 0:13:46.840 he founded shell Me, he never considered show Me to 0:13:46.840 --> 0:13:49.680 be a horwad company. He considered showing Me to be 0:13:49.720 --> 0:13:54.640 an internet company. So he focused a lot on the office, 0:13:55.000 --> 0:13:58.440 the ecosystem software, and then, as you mentioned in the 0:13:58.480 --> 0:14:03.200 social media, we are very good in promoting the product 0:14:03.679 --> 0:14:08.079 or promoting some idea through social media. To the fame 0:14:08.160 --> 0:14:12.199 based building, you must have hurt the me fans, which 0:14:12.280 --> 0:14:16.960 are actually very enthusiastic about all the sham prada and 0:14:17.000 --> 0:14:21.480 obviously to some stand that kind of enthusiasm also extends 0:14:21.480 --> 0:14:25.000 into the chairman Beijing. So the whole thing obviously be 0:14:25.120 --> 0:14:28.200 kind of important assets for showing when they move into 0:14:28.480 --> 0:14:32.200 new business, and EV obviously is a clear example that 0:14:32.320 --> 0:14:36.040 they can actually put us off with a relative period 0:14:36.080 --> 0:14:36.880 time because of that. 0:14:37.840 --> 0:14:40.960 Yes, and actually that really helped on the marketing side 0:14:41.000 --> 0:14:44.600 for the s U seven because under this hyper competitive 0:14:44.840 --> 0:14:48.040 environment of China's even market, all the automakers are trying 0:14:48.120 --> 0:14:51.440 so hard and spend so much money on marketing and 0:14:51.520 --> 0:14:55.080 show me with like laging quite vocal on social media, 0:14:55.240 --> 0:14:58.280 got a huge amount of followers on social media, and 0:14:58.360 --> 0:15:01.760 that kind of helped promote the popularity of the Su 0:15:01.880 --> 0:15:05.000 seven and people going on social media checking out the cars, 0:15:05.040 --> 0:15:07.360 and then they go to the retail stores trying to 0:15:07.360 --> 0:15:09.480 get a test drive, and some of them even before 0:15:09.480 --> 0:15:11.480 they get a test drive, they will place orders for 0:15:11.560 --> 0:15:14.400 the Su seven. That's how popular it is now. 0:15:14.480 --> 0:15:17.760 Joanna, you alluded to the fact that it's really competitive 0:15:17.880 --> 0:15:20.760 to trying to make it EV successful in China. I 0:15:20.760 --> 0:15:24.160 think there's over one hundred electric vehicles companies right now. 0:15:24.760 --> 0:15:28.760 Now you just went to the Shanghai order show. Tell us, like, 0:15:29.120 --> 0:15:32.520 what are the differentiating factors right now for Chinese evs? 0:15:32.680 --> 0:15:34.880 Can companies actually differentiate themselves. 0:15:35.720 --> 0:15:38.600 That's a really good question. So it's getting more and 0:15:38.600 --> 0:15:43.960 more difficult for EV companies to differentiate themselves. And you know, 0:15:44.040 --> 0:15:47.560 the technologies are improving so fast. Most of the even 0:15:47.600 --> 0:15:50.840 models they claim to have fast charging capabilities, they are 0:15:50.880 --> 0:15:54.600 seeing their owns driving capabilities improving. And if you look 0:15:54.640 --> 0:15:58.480 at the exterior and also interior design, it's getting more 0:15:58.560 --> 0:16:03.600 similar or going for there's futuristic and text savvy looks, 0:16:03.960 --> 0:16:05.880 so that's why it's getting more and more difficult. And 0:16:05.920 --> 0:16:09.040 shall Me car really stands out because of the very 0:16:09.040 --> 0:16:12.920 cool design, the boat colors, the sports car feeling vibe. 0:16:13.320 --> 0:16:16.600 And if you look at the crowd, even though Leiging 0:16:16.840 --> 0:16:21.200 wasn't there at the Shanghai Auto Show, shall Miss booth 0:16:21.360 --> 0:16:24.720 still get the largest crowd. If you go in the 0:16:24.800 --> 0:16:27.920 afternoon when all the people crowd into the venue, you 0:16:28.040 --> 0:16:30.800 have to wait like thirty minutes to get into the 0:16:30.840 --> 0:16:34.240 show me both and you can hardly see the car 0:16:34.360 --> 0:16:37.480 because there were so many people in the booths surrounding 0:16:37.520 --> 0:16:40.760 the vehicles checking it out inside out. We can definitely 0:16:40.800 --> 0:16:44.920 tell even though Leiging wasn't there, it's the busiest booth 0:16:45.080 --> 0:16:48.080 among all the venues. At the Shanghai Auto Show. 0:16:48.720 --> 0:16:52.040 And you just mentioned the fast charging av batteries, Now 0:16:52.040 --> 0:16:55.600 what's the latest. There was big use that BYD launched 0:16:55.600 --> 0:16:58.520 a battery that can fully recharge in five minutes. That's 0:16:58.560 --> 0:16:59.480 an amazing step. 0:17:00.600 --> 0:17:03.880 Yes, so b why they launched its fast charging even 0:17:03.920 --> 0:17:07.920 battery technology, you know, like four hundred kilometers under five 0:17:07.960 --> 0:17:11.760 minutes of charge. And then you know, say, atl the 0:17:11.880 --> 0:17:16.160 largest battery maker in China, also launched its fast charging 0:17:16.200 --> 0:17:18.800 battery just one months later, saying that it can charge 0:17:18.840 --> 0:17:22.120 to five hundred kilometers under five minutes. So you can tell, 0:17:22.240 --> 0:17:25.680 like how fast the technologies are involving in China, and 0:17:26.280 --> 0:17:29.199 automakers they have to keep up. They have to go 0:17:29.480 --> 0:17:35.080 with really fast R and D and technology innovation and 0:17:35.240 --> 0:17:40.520 also upgrading their products pretty fast to stay competitive in 0:17:40.560 --> 0:17:43.200 the market and keep attracting consumers. 0:17:43.760 --> 0:17:45.320 And let's talk about the future. 0:17:45.440 --> 0:17:45.600 Now. 0:17:45.600 --> 0:17:48.560 They've just got one model right now. To give listeners 0:17:48.600 --> 0:17:51.800 some background, shallmy's share prices being one of the best 0:17:52.040 --> 0:17:54.359 in the Hangsing index and I've mentioned before it's up 0:17:54.440 --> 0:17:57.600 one hundred and seventy percent over the last twelve months. 0:17:57.960 --> 0:18:00.240 They are launching a model, a new model in the 0:18:00.240 --> 0:18:01.560 next few months. What's the latest. 0:18:02.040 --> 0:18:05.040 Yes, so currently the SU seven is a sedan model 0:18:05.160 --> 0:18:09.600 and then Shami will soon launch its next suv model 0:18:09.800 --> 0:18:13.240 between June and July. And so far what we know 0:18:13.520 --> 0:18:16.400 is that the SU seven also has a pretty cool 0:18:16.480 --> 0:18:22.000 exterior design. Again, very cool color offerings, and the size 0:18:22.200 --> 0:18:25.280 is also like a miss size suv that comes a 0:18:25.400 --> 0:18:29.520 little bit larger than Tesla, but probably the market is 0:18:29.560 --> 0:18:34.240 expecting slightly lower prices so make the car more attractive 0:18:34.280 --> 0:18:39.600 to consumers. Unfortunately, we didn't see the Yu seven being 0:18:39.640 --> 0:18:42.400 displayed at the Shanghai Auto Show, so what we're only 0:18:42.440 --> 0:18:45.919 seen so far are the commercials on social media. But 0:18:46.000 --> 0:18:47.560 we'll get to see the car pretty soon. 0:18:48.240 --> 0:18:51.320 And Steven, given the fact that Shami is a technology company, 0:18:51.359 --> 0:18:54.000 does that give it an added benefit or an advantage 0:18:54.040 --> 0:18:57.360 over Piece in terms of AI autonomous driving and its 0:18:57.359 --> 0:18:58.159 operating system? 0:18:58.600 --> 0:19:01.479 I think so. I mean, if you compare to the 0:19:01.760 --> 0:19:09.400 existing autol maker, obviously they have this creative image as 0:19:09.440 --> 0:19:13.560 a technology company, and if you compare to the new 0:19:13.760 --> 0:19:17.320 start up in the EV market, show me even though 0:19:17.320 --> 0:19:20.399 they are new in EV, but they do have the 0:19:20.960 --> 0:19:25.080 clear try records in the smartphone business and also they 0:19:25.080 --> 0:19:28.439 have a very strong brain recognition, So those are the 0:19:28.520 --> 0:19:33.560 advantage versus those new EV startups. So obviously they're in 0:19:33.600 --> 0:19:36.640 a very good position now. As long as they make 0:19:36.680 --> 0:19:39.840 the product right, they are actually will be able to 0:19:39.880 --> 0:19:42.960 make a very clear impact in the market, which is 0:19:42.960 --> 0:19:46.040 basically what s U seven is still in now. And 0:19:46.080 --> 0:19:49.040 then going forward, I think as long as they keep 0:19:49.080 --> 0:19:51.760 the pace of launching a new product, they are able 0:19:51.840 --> 0:19:56.000 to become a very solid player in this very competitive market. 0:19:56.520 --> 0:19:58.520 And when are we going to say, show me cars 0:19:58.560 --> 0:19:59.640 in other countries? 0:20:00.840 --> 0:20:04.360 Obviously this is on their to do lists. Legend does 0:20:04.400 --> 0:20:09.400 say that they are definitely going to launch the product overseas. 0:20:09.600 --> 0:20:11.560 I think it is said that they want to sell 0:20:11.600 --> 0:20:15.119 the product in Europe by twenty thirty, and I think 0:20:15.280 --> 0:20:17.919 we won't be surprised if we see Shamis EV to 0:20:17.960 --> 0:20:22.160 be sold in some Asian countries. But they are obviously 0:20:22.320 --> 0:20:27.400 very careful in executing this overseas expansion. Obviously they want 0:20:27.440 --> 0:20:31.200 to understand the market before they actually devoted resources there. 0:20:31.640 --> 0:20:34.680 At the moment, I think they will launch their EV 0:20:35.480 --> 0:20:39.160 in those countries where Shami's smartphone actually has a high 0:20:39.200 --> 0:20:42.920 market share because they can actually leverage the channel there. 0:20:43.320 --> 0:20:45.680 So I guess that's what has happening actually, and they 0:20:45.840 --> 0:20:49.679 already set up an R and D and design center 0:20:50.480 --> 0:20:55.200 in Germany. Even though it's very early stage, you can 0:20:55.200 --> 0:20:58.119 tell that that they're very serious in overseas expansion. 0:20:58.840 --> 0:21:02.000 And let's not forget consumers in China are still waiting 0:21:02.080 --> 0:21:04.560 nine to ten months for the shall Me cars, so 0:21:04.600 --> 0:21:08.640 they definitely have to feel the domestic demand first before 0:21:09.040 --> 0:21:13.320 really going abroad getting the capacity enough for overseas expansion. 0:21:13.920 --> 0:21:16.000 The story has been all very positive, but I wanted 0:21:16.000 --> 0:21:19.200 to focus on the other side. A couple of things. 0:21:19.560 --> 0:21:23.960 What's the build quality, like really shell Me versus say, 0:21:24.320 --> 0:21:26.240 you know European or Tesla. 0:21:26.880 --> 0:21:30.520 Well, that's a tough one. Well, people have their own opinions. 0:21:30.720 --> 0:21:36.840 But from my personal opinion, obviously compared to the Europeans 0:21:37.200 --> 0:21:40.840 who have built the cars for so many, so many years, 0:21:41.359 --> 0:21:45.119 a new startup like shall Me, it will be very 0:21:45.200 --> 0:21:50.639 difficult to match the same craftsmanship you're seeing probably in 0:21:50.640 --> 0:21:53.040 a German car. Well, it shouldn't come. 0:21:53.000 --> 0:21:54.760 As a surprise much cheaper. 0:21:54.840 --> 0:21:57.840 Yes, yes, and also like the cheaper so if you 0:21:57.880 --> 0:22:02.680 look at the interior and and also some like very details, 0:22:03.200 --> 0:22:07.960 probably you don't see the bill quality as that good 0:22:08.359 --> 0:22:11.800 as a German car, but still like we don't hear 0:22:12.000 --> 0:22:15.960 a lot of complaints from the Shami car. People are 0:22:16.040 --> 0:22:19.919 overall satisfied with the quality of their manufacturing and we 0:22:20.080 --> 0:22:25.360 don't see like major issues being reported on the manufacturing side. 0:22:25.960 --> 0:22:29.480 And Stephen, the share price had a big correction earlier 0:22:29.480 --> 0:22:31.720 this year, though it has recovered somewhat, and this was 0:22:31.840 --> 0:22:34.600 on the back of a tragic accident. Can you give 0:22:34.680 --> 0:22:37.359 us some details of that accident and it seems like 0:22:37.440 --> 0:22:40.480 it hasn't really impacted business, you know, tell. 0:22:40.359 --> 0:22:43.320 Us, Yeah, I think there's obviously something to do with 0:22:43.440 --> 0:22:47.000 a very unfortunate accident of three college girls. Basically, the 0:22:47.080 --> 0:22:51.080 cars at the crash and burn into flame, and somehow 0:22:51.119 --> 0:22:54.520 the door was locked so those girls can knock it 0:22:54.520 --> 0:22:59.560 out and hence the tragedy. Obviously, now the scenes are 0:22:59.640 --> 0:23:04.240 under investigation. But then, like you said, it didn't really 0:23:04.760 --> 0:23:09.399 have any material impact on the EV demand, and we 0:23:09.520 --> 0:23:12.760 do see similar assident for other major brand like Testla 0:23:12.840 --> 0:23:15.960 for example. They also have such accidant from time to time. 0:23:16.040 --> 0:23:20.199 So maybe people are not necessarily right off show me 0:23:20.240 --> 0:23:23.440 as an EV brand because of that issue, but certainly 0:23:24.040 --> 0:23:27.680 that can be an issue. I mean, going forward, if 0:23:27.880 --> 0:23:32.680 that happened again or a similar situations happen again, then 0:23:32.720 --> 0:23:35.240 you know the company may be under bigger pressure. Hopefully 0:23:35.280 --> 0:23:38.320 it won't happen again, but going forward, I think the 0:23:38.359 --> 0:23:42.840 company right now just have one model, but when they 0:23:43.080 --> 0:23:47.120 start to expand their product line up, definitely the card 0:23:47.200 --> 0:23:51.480 users that we have scrutiny on their quality, safety tray record. Yeah, 0:23:51.520 --> 0:23:53.720 so that's definitely something that we need to keep an 0:23:53.760 --> 0:23:54.040 eye on. 0:23:54.520 --> 0:23:57.160 Okay, before I let you go, I wanted to ask Joanna, 0:23:57.480 --> 0:23:59.120 would you buy show Me EV? 0:24:00.280 --> 0:24:00.560