Interview 51Auto founder: 5 words melt to more than 40 million

——— interview 51Auto president and founder Li Haisu

God seems to favor some people, they always seem to be overlooked in places to find huge business opportunities. The 32-Year-old Li Haisu is such a lucky guy. In the 1999, Li Haisu and its partners founded the British Snooker Technology Co., Ltd. and the handheld limited, and in March 2004, the handheld was successfully listed in Nasdaq, USA. Today, the Li Haisu is building China's largest used car network platform ——— 51au-to.

Can he create a business miracle again? To this end, we interviewed the 51Auto president and founder Li Haisu.

Four or five words to understand

Shanghai Securities Daily: 51Auto is what type of enterprise?

Li Haisu: 51Auto is an integrated three-dimensional cross-media second-hand car information platform, through the magazine, network, television, radio and other media to the audience to provide a huge, real, professional and efficient second-hand car information.

Shanghai Securities Daily: 51Auto the establishment of less than a year to get a lot of venture capital? How much is the venture capital holding?

Li Haisu: We started soon to venture capital. September 1, 2005, the company was founded, and two venture capital (DRAGON GROOVE INC) disc Dragon, Germany and the capital signed a financing agreement; January 2006, April, two venture capital amounted to 5.4 million U.S. dollars (about more than 40 million yuan) of funds to account. At present, the German capital and Japan's Fund shareholding is more than 10%, the original shareholder still absolute holding.

Shanghai Securities Daily: Both are very well-known venture capital companies. Disc Dragon is Japan SoftBank Group president son brother soon-tan Tibetan company, Germany and Capital Partners established a fund once invested in Wuxi Suntech Power. Why are they throwing money so readily?

Li Haisu: Because my business model is very clear, only four or five words can be understood. I think a good business model should be a simple model. Of course, one of the reasons that I was identified by them is that they are willing to vote for 51Auto.

Shanghai Securities Daily: What four or five words did you say at that time?

Li Haisu: At that time, it was the profit model of second-hand car information charging. We are doing second-hand car information release platform, the profit point is to collect second-hand car information release fee. If each second-hand car issued 1 times information charged 100 yuan advertising fees, then 1 million used cars is 100 million yuan; if each car on 2 ads, then 1 million second-hand car information fee is 200 million yuan. The next 3-5 years of second-hand car trading is likely to reach Chiwan. According to data published by the Ministry of Commerce, 2004 China used car trading volume of 1.3408 million vehicles, if the annual growth rate of 50%, the 2008-year second-hand car trading volume is 1000多万辆. If the annual growth rate of second-hand car trading is 20%, then the 2008 used car volume is 800多万辆. As long as 51Auto in the second-hand car site market share first, our income is considerable.

or Japan Gem listed

Shanghai Securities Daily: Is there any enterprise similar to 51Auto in foreign countries?

Li Haisu: Japan, the United States, Russia have. The largest U.S. market is autotrade,1997 years, with 3.5 million second-hand cars online. AutoTrade created a miracle that continued to grow by 20% after the dotcom bust in 2000. The second largest in the American market is cars.com. Dominating the Japanese second-hand market is car Sensor, a subsidiary of Licouroute (recruit), a Japanese company. In 2005, recruit sales earned about 3.5 billion dollars, of which 10% came from car Sensor.

Shanghai Securities Daily: 51Auto mode is exactly the same as these enterprises?

Li Haisu: Not exactly the same, we are made up of four channels of Internet, print media, TV and radio. The circulation of the magazine is now 300,000 copies. There are 7 of each period: divided into national version, East China (Shanghai, Zhejiang, Jiangsu) 3, to Beijing as the center of North China, Guangdong as the center of South China, including Chengdu, Chongqing, Yunnan Southwest version.

Shanghai Securities Daily: You have said that the enterprise has three stages: the market cultivation period, the expansion market share period, the enterprise profit period. At what stage is the 51Auto in?

Li Haisu: We have passed the first stage, to expand the market share this stage, but also the most expensive stage. At present, 210 employees, about half are responsible for sales and information gathering staff. To do a good job of print media and website, cost at least 100 million, but in the future my income will be 5 times times or 10 times times higher than the second.

Shanghai Securities Daily: When does 51Auto enter the profit period?

Li Haisu: We plan to make a profit in the 2007 fiscal year, with sales reaching $100 million trillion.

Shanghai Securities Daily: 2007 Profit! Before making a profit, will 51Auto be listed overseas? Will you go to America for sale?

Li Haisu: Not necessarily the United States, Japan's gem is also possible.