Exclusive interview with Zhang Xue, angel investor in the motorcycle industry

Total word count: 4,622; reading time is about 8 minutes

Author | First Financial Daily Gao Yuan

Guest profile

Cao Bin, Founder and Chairman of Gxin Capital

Focuses on investments in high-tech fields such as integrated circuits, commercial space, and advanced manufacturing.

Led investment cases: Jinghe Integrated (688249), Xinxiang Micro (688593), Changxin Memory, Galaxy Power, and others, with a cumulative investment in 15 listed companies. Has cumulatively created investment returns of tens of billions for investors.

Graduated with a bachelor’s degree from Wuhan University of Technology; completed a master’s degree at the Chinese Academy of Sciences; and completed a PhD at Fudan University.

First Financial Daily Gao Yuan

Recently, the Zhangxue motorcycle manufactured in China won in an international top-tier competition, bringing a bright spotlight to the brand. At the same time, the investors behind it have also drawn widespread attention. Today, in an exclusive interview on First Financial Daily’s “Investors Talk,” we sit down with Zhangxue’s earliest angel investor—Cao Bin, Founder and Chairman of Gxin Capital. Mr. Cao, thank you for accepting this interview with First Financial Daily. I understand that Zhangxue’s motorcycle isn’t entirely within your core investment track. Gxin Capital mainly invests in semiconductors and commercial space. What interests me is that in July 2024, Zhangxue had only been established for four months, and he had already parted ways with Kaixue, yet you still decisively invested 10k. What was the opportunity behind it?

1. Investment opportunity—Entrepreneurial traits that impressed investors by “chasing the car for dozens of kilometers”

Cao Bin, Founder and Chairman of Gxin Capital

Zhangxue was introduced to us by a very, very good friend. We learned about this information and also saw a large number of videos online. His traits were extremely clear—if you watch his past videos, those traits practically overflow from the screen. In the beginning, when he wanted to become a race car driver, he chased the reporter’s car for nearly a hundred kilometers. The reporter was ultimately moved by him and gave him a chance to audition. After watching these videos, we basically made up our minds to invest in him.

I personally have been doing investments for 14 years, and the deepest feeling I have is: the essence of investing is just two words—invest in people. What kind of person is worth investing in—that’s what we think about the most. People like Zhangxue fit very well with our judgment of an ideal company founder. His characteristics are very distinct: first, focus; second, love; third, extremely strong resilience; fourth, going all in. When we invested in him, he was just getting started.

2. The “compound-life” theory: 30% improvement each year; when retiring, ability is 10k times what it was at graduation

First Financial Daily Gao Yuan

Within your risk-control system, how do you balance the founder’s determination in a specific area against the question of whether the overall investment will ultimately succeed? How do you weigh it?

Cao Bin, Founder and Chairman of Gxin Capital

I have a theory of “compound-life.” Suppose we normally read all the way through a master’s degree and graduate at about age 25, then retire at 60, meaning we have a 35-year career. If over those 35 years we focus on doing something we like and truly love, and improve by 30% every year, then by the time we retire at 60, our capability growth would be exactly 10k times what it was when we first graduated. This means that most people can become absolute experts in certain niche fields; initial endowment isn’t as important—whether or not your family supports you, whether there’s a background, or whether there are parents backing you, actually isn’t that important.

Why does this era in China have so many ordinary people who start from scratch and go on to achieve great careers? On the one hand, we should thank this great era. On the other hand, continuous focus and hard work by individuals—and a love that comes from deep within the bones—are also extremely important.

Besides obsession and focus, what else do we value? Whether an entrepreneur has received systematic professional training is also crucial. If someone has never run a company, never worked at a company, and starts a business right after graduating from university—objectively speaking, the success rate is not high. From the perspective of investment risk control, which is more important: the person or due diligence? This is not a black-and-white relationship. People are definitely the main factor; once the person is right, the matter will be right. Due diligence only serves an auxiliary role, to verify whether your understanding is consistent and whether there are deviations. Zhangxue’s motorcycle is a typical case. Because Zhangxue came out as an individual, there wasn’t much due diligence to do. It was entirely about the person. And practice has proven that entrepreneurs who embrace the “compound-life” philosophy are more likely to succeed.

3. Within less than a year, revenue of nearly 700 million—Zhangxue’s diligence and hard work are far beyond what anyone could imagine

First Financial Daily Gao Yuan

After Zhangxue left Kaixue, he was relatively at a low point in life. You guys had the sharp eye to spot potential—he was your steed. Without this investment from you, Zhangxue might have been hard-pressed to reach the level he has today—because this gave him completely different confidence, and there was also capital recognition behind it. From the perspective of capital, 20 million is not a small amount either. Did you hesitate or regret it?

Cao Bin, Founder and Chairman of Gxin Capital

We can’t say we were Zhangxue’s steed. We mutually made each other successful, and we’re very fortunate to be able to participate in his entrepreneurial process. He came out of Kaixue. To outsiders, that looks like a low point, but in our eyes as investors, this is the best opportunity.

After the investment, Zhangxue also worked extremely diligently, far beyond what everyone could imagine. Think about it: a company established only in April 2024, and by 2025 it generated nearly 700 million in revenue—almost impossible to achieve. This performance is extremely, extremely impressive. So for us, we’ve always been grateful, and also very lucky. We thank Mr. Zhang for giving us the opportunity. Even without us, I believe other investors would still invest in him. China’s capital markets are currently very active and developed.

4. Losses in stages are what you buy—the future; R&D spending at 10% is not common in the industry

First Financial Daily Gao Yuan

At present, the industry also has some different voices about his financial situation. For example, in 2025 the company lost more than 10k, and R&D spending accounts for about 10%. How do you view this financial model?

Cao Bin, Founder and Chairman of Gxin Capital

From our perspective, the company’s losses are phased. It will definitely achieve profitability in the future. According to Mr. Zhang’s target this year, it will sell 60k vehicles, and many of them will be higher-end models. This year’s revenue expectation is between 1.5 billion and 1.8 billion. If it truly reaches 1.8 billion, then the company will most likely be profitable this year—that’s one.

Second, you need to see where the money is being spent. The company’s R&D investment is close to 10%, and you can hardly find that number in the industry. Many publicly listed motorcycle companies also don’t have such a high R&D allocation ratio. This shows that Zhangxue has a very clear vision for the future. Once the goals are set, he will charge forward at any cost. Our communication with him is almost without wasted words. We generally don’t chat for more than three minutes; his catchphrase is “Don’t beat around the bush—just say it directly.” R&D is buying the company’s future. So compared with a beautiful future, we will definitely embrace future-oriented action, even if there are temporary losses.

5. Industrial turning point—A 20 million angel round unlocked nearly 700 million in revenue; behind it is China’s industrial supply-chain accumulation

First Financial Daily Gao Yuan

After winning in an international competition, people are now thinking: in the field of big-displacement, high-performance motorcycle technology manufactured in China, has it already reached a turning point?

Cao Bin, Founder and Chairman of Gxin Capital

Yes, it is indeed a turning point now. Many people misunderstand motorcycles (motorbikes)—because China’s electric vehicles and electric two-wheelers are so advanced that you don’t see many people riding motorbikes. Some think the industry has disappeared, but that’s not the case. This world’s development is severely imbalanced, and people’s preferences are hugely different.

Chinese racing motorcycle models have a market demand of 60k units per year, and globally the market demand is 150k units. If we can satisfy these people’s needs well and make truly great products, then we can open up a very good niche market. These motorcycles are expensive—basically starting from 30k, while the more expensive ones are 60k, 70k, or even 100k. This niche market itself is not small. Also, every company making racing-style motorcycles makes ordinary motorcycles for the general public. From that angle, globally 65 million units are sold each year, and China produces 22 million units each year. From this perspective, it’s a massive market.

On the other hand, over the past 40 years, China’s manufacturing industry has formed deep industrial groundwork. No matter what parts and components you consider, they exist domestically. Think about it: in the early stage, the company relied only on 20 million in angel funding, and last year it still managed to create around 700 million in revenue. How did it do that? At the core of such astonishing performance is the support of a large, mature supply chain. Without supply-chain support, you can’t produce top-tier racing products. So what’s happening right now is an industrial manufacturing turning point in China. We believe that over the next 10 years, China will gradually shift from being a manufacturing giant to becoming a brand giant, and top-tier industrial goods and consumer products will keep emerging.

6. Domestic motorcycles are already very close to internationally known brands in technology; consumer mindshare is the real moat

First Financial Daily Gao Yuan

Zhangxue’s success is, more importantly, the result of 1+1>2 created by 40 years of dormancy in China’s manufacturing industry. I want to know: compared with international brands like Honda and Kawasaki, how deep is the moat?

Cao Bin, Founder and Chairman of Gxin Capital

The moat used to be deeply hidden within consumers’ recognition. From a technological standpoint, the technology between top overseas automakers and China’s automakers is already very close, and so is the supply-chain level. Honda sells more than 20 million motorcycles per year—definitely a behemoth. But I believe that in the future, China will also produce companies of that kind.

Purely from a technological standpoint, there’s currently not that big a difference. It’s just that in many people’s minds, Japanese motorcycles are still considered the best in the world. With Chinese motorcycles winning in international competitions, many people’s views will gradually change. Combined with national confidence and cultural confidence, I believe more people will embrace domestic motorcycles. Once consumers’ perceptions change, local high-end brands will surge upward at high speed—absolutely they will. That is the opportunity for the next decade.

7. Electricification trend—Gasoline vehicles won’t disappear; intelligent electricification is the future

First Financial Daily Gao Yuan

In the Southeast Asian market, due to geopolitical influences, oil prices have surged, and many regions are pushing for the transition and moving toward electric motorbikes. Zhangxue’s vehicles are more like replicas of racing bikes powered by high-energy fuel. In the future, will you explore emerging markets together, including the path of electricification?

Cao Bin, Founder and Chairman of Gxin Capital

At present, global motorcycle production is mainly concentrated in Japan, China, and India, with roughly 20 million units each. Looking at the development trend, electricification and intelligentization of two-wheel vehicles are the trend of the times and cannot change—this is 100% the future. But that doesn’t mean gasoline motorcycles will disappear. Zhangxue’s motorcycles are also moving toward electricification and intelligentization. This year, the company will invest 135 million yuan in R&D expenses, and a large portion of that will go toward the electricification and intelligentization of motorcycles. In 2027, some electric motorcycles will come out—worth looking forward to. In this trend, Zhangxue is also embracing the future.

8. Investing along the industrial chain—from complete vehicles to core components; like Huawei, driving the supply chain to make an upward leap

First Financial Daily Gao Yuan

You mainly invest in semiconductors and commercial space. After successfully investing in Zhangxue’s motorcycle, will you do more layout along the industrial chain? For example, areas like automotive-grade chips and high-performance tires?

Cao Bin, Founder and Chairman of Gxin Capital

Everyone can take a close look at Zhangxue’s racing suit or motorcycle and you’ll see a pretty big logo called “SAFE”—that’s Saifu Braking, and it’s a company we invested in. It took ABS from four-wheel vehicles to two-wheel vehicles, and it also rolled out the intelligent braking devices that were previously used in automobiles downward to two-wheel vehicles. Of course, the product needs a lot of original innovation based on two-wheel vehicles. The two-wheel ABS used in Zhangxue’s motorcycle comes from Saifu Braking in almost 100%. As Zhangxue’s motorcycle develops at high speed, it will definitely drive the industrial chain to make an upward leap—just like Huawei driving the entire smartphone and computer industry chain to rise together.

9. The “chain leader” effect—Complete vehicles drive supporting industries; the Hefei model is worth paying attention to

First Financial Daily Gao Yuan

So the investment logic is to drive the supporting supply-chain industries through complete vehicles?

Cao Bin, Founder and Chairman of Gxin Capital

Yes. Hefei has something it does particularly well—that is Hefei. The term “chain leader” is also something I learned from Hefei. Their招商招商 efforts especially like chain-leader-type companies. Because when a chain leader’s development and rise happen, it will definitely drive the development and rise of a series of suppliers.

In the future, the investment case for Hefei that stands out most is certainly Changxin Memory. It will likely become a super star in China’s capital markets in the future. Everyone should wait and see. It could even become the listed company with the largest market value in China in the future. Changxin’s development has driven the high-speed growth of an entire storage industry chain in Hefei.

First Financial Daily Gao Yuan

Recently, I believe many investors are looking for you, hoping to dilute your stake or the stake held by Zhangxue. How is the deal situation? Is there any information you can share?

Cao Bin, Founder and Chairman of Gxin Capital

To be honest, not many people used to inquire. In 2025, probably seven or eight people asked. But there’s one thing everyone might know: Mr. Shen from Zhechuang Venture Capital. He has been contacting me. At first, I thought he might just be asking around, but he was very persistent. He asked many, many times. In the end, he expressed his intention and said that he is also a motorcycle enthusiast. After getting Zhangxue’s consent, I recommended them. And it happened to be a good timing. At the end of last year, they invested 90 million at a pre-money valuation of 1 billion, right before the round. They had very good judgment, because at that time the sector and track were not particularly popular.

10. Investments outside consensus—“Buy when there is disagreement; sell when there is consensus”

First Financial Daily Gao Yuan

You invested in Zhangxue at the very beginning. Your eye for opportunities was very sharp. Over the years, many investors have been investing in hard-tech, and the motorcycle track has been quite niche. Before this, few institutions would invest in projects like this—especially with Zhangxue’s team having a very low chance of raising funding. How do you view this non-consensus investment logic?

Cao Bin, Founder and Chairman of Gxin Capital

An associate partner at Jinchuan Venture Capital once said a very classic line: “Buy when there is disagreement; sell when there is consensus.” In theory it sounds simple, but in practice it’s extremely difficult. Because there are disagreements, you must see what others haven’t seen. And what you haven’t seen must also align with a trend—something that can be realized in the future. The difficulty lies in two areas: first, convincing investors; second, convincing the internal team. From the perspective of practice, this isn’t easy to do.

11. Exit plan—Investment institutions are “in the passenger seat”; going public should follow the trend

First Financial Daily Gao Yuan

What do you think is the likelihood that Zhangxue’s motorcycle will move toward the capital market in the future—an IPO, or a production-capacity match with public companies, or capital transactions? How do you plan it? Have you discussed this with Mr. Zhang?

Cao Bin, Founder and Chairman of Gxin Capital

We’re in the passenger seat. Where the company goes isn’t something we decide. We’re very clear about this positioning. As far as I understand, the company still focuses on developing its main business first—building production scale and its industry position. As for entering the capital market, I believe it should be something that follows the trend. When the time comes, with sufficient revenue and profits, I believe being on the domestic main board should also be well received.

Cameraman: Hou Tianyi

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