Shulou(Shulou.com)11/24 Report--

Over the past 20 years, we have made many major investments in a row and have won the bet.

Author: Fei Fei |

Editor: Tang Shi |

A few days ago, Chinese cities have released last year's GDP data, and the GDP of Hefei is 1.2013 trillion yuan. Although it is not conspicuous among the 24 trillion city clubs, Hefei is rising much faster than other trillion cities, and its growth myth, which has increased 30 times in 20 years, is widely praised as the "most awesome venture capital city".

Twenty years ago, Hefei was still an unknown backward city, but in just 20 years, Hefei did not hesitate to spend nearly half of its budget, first betting on BOE, then investing in semiconductors and new energy. Several beautiful investments in succession have made Hefei jump to the trillion level.

01. Long-term backwardness and awkward position to see the current rapid development of Hefei, we should not forget the "awkward" position of Hefei in the past. The backwardness of Hefei is not something that happened after the reform and opening up, but since the founding of New China, Hefei has lagged far behind other cities.

Backwardness seems to be engraved in the city of Hefei. In the years of the planned economy, the layout of giving priority to the development of industry made the railway the main driving force for urban growth, but Hefei lacked resources and population advantage, and was "so poor that it bypassed the railway". In the absence of national trunk railways, it is naturally impossible to form a radiation effect, which seems to be doomed to a backward "destiny".

Due to factors such as economic backwardness and lack of transportation advantages, Hefei once caused discussion about the relocation of provincial capitals, which further put Hefei in an "awkward" position. As far as Anhui Province is concerned, Anqing, Wuhu, Bengbu and other cities all have excellent resources. Wuhu, for example, has a superior geographical location. Wuhu set up customs as early as 1877 and has developed into the economic center of Anhui during the period of the Republic of China.

After the reform and opening up, Wuhu, Anqing and other areas, sitting on the Yangtze River water resources, but also backed by the rapid development of the Yangtze River Delta, the speed of urban development is comparable to that of Hefei. It can be said that until the end of the last century, Hefei still did not fully play the leading role of the provincial capital city.

Therefore, for such a lack of resources, lack of transportation, geographical location and population are relatively weak, in order to develop rapidly, it is doomed to find ways to break the routine and take the unusual route. Fortunately, over the past two decades, Hefei has made continuous bets on emerging industries, such as panels, semiconductors, new energy, automobiles and so on, and almost all of them are "right". In a short period of 20 years, GDP has increased 30-fold, making it a "dark horse" in the history of China's urban development.

02. Repeated bottoms have yielded good returns. In 2020, Hefei's total economic output exceeded 1 trillion yuan, becoming the first city in Anhui Province to break through trillion yuan. Since then, this unknown central city began to enter the national field of vision, and the outside world praised Hefei as "the most awesome venture capital city".

After more than 20 years of layout, Hefei has formed advantageous industries such as new energy and automobiles, artificial intelligence and big data, smart home appliances, integrated circuits and electronic information. In the course of more than 20 years of development, betting on BOE, copying the bottom, and investing in Changxin storage have become important footnotes for the success of continuous investment.

At the beginning of its establishment, Hefei BOE was once faced with the dilemma of capacity digestion. under the multiple pressures of market and capital on JD.com 's side, Hefei did not hesitate to make a "big bet" and invested nearly 20 billion yuan in the construction of the sixth generation line. You know, the budget revenue of Hefei for the whole year was only more than 30 billion yuan. In order to demonstrate its determination to invest in BOE, Hefei was even rumored to stop subway projects in the city, so it is not difficult to see the importance Hefei attaches to the investment industry.

This investment has also set a record for the largest single industrial investment in Anhui Province. after investing in BOE, it has built the first high-generation production line in China. Today, BOE has become the largest panel manufacturer in China, wrestling with Samsung, Sharp and other international giants, and China has also completed the domestic replacement of panels. Hefei has become the agglomeration and development area with the largest panel production capacity in China.

In addition to investing in BOE, betting on Xilai is a good story. In 2019, the capital chain of Weilai car broke, and the stock price fell continuously and almost touched the face value of delisting. In this case, Hefei invested 7 billion yuan directly, which is undoubtedly a "continuation" for Weilai. After completing the investment, Hefei got a 24.1% stake in Lulai Motor. Subsequently, the share price of Weilai Automobile rebounded, and after raising funds, Weilai bought back shares from Hefei in batches. Hefei has made a lot of money in Weilai.

In addition to the return of real money, Lai Automobile has also provided a large number of jobs for Hefei, helping Hefei greatly improve the new energy vehicle industry chain. For example, Weilai has built the "NeoPark Xinqiao Intelligent Electric vehicle Industrial Park" in Hefei. after the completion of the park, the annual output value will exceed 500 billion yuan, and the vehicle production capacity will reach 1 million vehicles per year.

In addition to BOE and Lai Motor, there are many other successful investment cases in Hefei, such as investing in Changxin Storage, making Hefei a key integrated circuit industry development city in the country, and its semiconductor industry output value ranks first in the country in terms of annual compound growth.

03. Make a bet on live e-commerce again.

By investing in BOE, Hefei has become an advanced panel industry base in China; by investing in Lilai Automobile, Hefei has greatly improved the ecology of the new energy automobile industry; and by investing in Changxin Storage, Hefei has the strength to build "the capital of China's IC". These successful investments in history have become footnotes to the rapid rise of Hefei.

From the perspective of the future, what new industries Hefei will develop or what investments will be made are also in the planning stage. But what you can see is that live e-commerce is sure to be on the list.

A few days ago, three sheep network was introduced in Hefei, and "Crazy Little Yang" invested 100 million yuan to build a live e-commerce global headquarters in Hefei. In the live broadcast, "Brother Yang" also said publicly that on the one hand, it is the needs of business development, on the other hand, he wants to build Hefei into an e-commerce city.

The entry of the three sheep is only a typical case. In fact, as early as ten years ago, Hefei has made great efforts to develop the e-commerce industry. In 2012, Hefei gathered a number of e-commerce enterprises with the e-commerce industrial park as the carrier. at that time, it was about to build the largest emerging e-commerce industrial base in the central region. Hefei was approved as a "national e-commerce model city" in March of the following year. By May 2020, Hefei has built the first live broadcast base in Anhui Province.

Nowadays, e-commerce is becoming a new engine for the development of new economy in Hefei. According to the statistics of professional institutions, there are 9500 live broadcast related enterprises in Hefei, accounting for more than half of the total number of live broadcast enterprises in Anhui province. This has helped the economic development of Hefei. Roughly speaking, through live streaming of e-commerce, online retail sales are close to 10 billion yuan in half a year.

Urban development is inseparable from industry. Hefei provides a model for urban development, that is, how to rise against the trend in the absence of transportation resources, population and location advantages. From this point of view, Hefei deserves to be called the "best venture capital city".

This article is from the official account of Wechat: new Research (ID:chuxinyanjiu), author: Feifei

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