Exclusive Interview with Zhang Xue, Motorcycle Angel Investor

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Author | First Financial Gao Yuan

Guest Profile

Founder and Chairman of Gao Xin Capital Cao Bin

Focuses on investments in high-tech fields such as integrated circuits, commercial aerospace, and high-end intelligent manufacturing.

Leading investment cases: Jinghe Integration (688249), Xinxiang Micro (688593), Changxin Storage, Galaxy Power, etc., with a total of 15 listed companies invested. Has generated billions in investment returns for investors.

Bachelor’s degree from Wuhan University of Technology, Master’s from the Chinese Academy of Sciences, Ph.D. from Fudan University.

First Financial Gao Yuan

Recently, China-made Zhangxue motorcycles won championships in top international competitions, marking a peak moment for the brand. Meanwhile, the investors behind it have also attracted widespread attention. Today, First Financial’s “Investor Says” exclusive interview features Cao Bin, the earliest angel investor of Zhangxue motorcycles—founder and chairman of Gao Xin Capital. Mr. Cao, thank you for accepting this interview. I understand that Zhangxue motorcycles are not entirely within your main investment track, as Gao Xin Capital mainly invests in semiconductors and commercial aerospace. I’m very interested in why, in July 2024, just four months after its founding and after parting ways with Kaiyue, you decisively invested 20 million yuan. What was the behind-the-scenes opportunity?

1. Investment Opportunity — “Chasing Cars for Dozens of Kilometers” and the Entrepreneur’s Traits That Moved Investors

Founder and Chairman of Gao Xin Capital Cao Bin

Zhangxue was introduced to us by a very good friend. Once we learned about this, we saw many videos online. His traits are very distinctive—any video of him from the past, those traits just spill out from the screen. Early on, he chased a reporter’s car for nearly a hundred kilometers to become a racing driver. The reporter was eventually moved by him and gave him a chance to audition. After watching these videos, we basically made up our minds to invest in him.

Having done 14 years of investing myself, my deepest feeling is: the essence of investment boils down to two words—investing in people. What kind of person is worth investing in? That’s what we think about most. Someone like Zhangxue fits our judgment of an ideal founder perfectly. His characteristics are very clear: first, focus; second, passion; third, strong resilience; fourth, relentless pursuit. When we invested in him, he was just starting out.

2. “Compound Life” Theory: Improving 30% Annually, Capable of Being 10k Times Stronger at Retirement Than at Graduation

First Financial Gao Yuan

In your risk control system, how do you balance a founder’s persistence in a certain field with whether the overall investment can succeed? How do you weigh this?

Founder and Chairman of Gao Xin Capital Cao Bin

I have a “compound life” theory. Suppose we graduate with a master’s degree at about 25, retire at 60, and have a 35-year career. If during these 35 years, we focus on doing one thing we love and are passionate about, and improve by 30% each year, by retirement at 60, our capability growth value will be exactly 10k times what it was at graduation. This means that most people can become absolute experts in certain niche fields, and initial talent isn’t that important—whether they have family support or background doesn’t matter much.

Why are so many ordinary people in China able to achieve great things through self-made efforts? On one hand, thanks to this great era; on the other, continuous focus, effort, and innate passion are extremely important.

Besides persistence and focus, what else do we value? Whether entrepreneurs have received systematic professional training is also crucial. If someone has never run a company or worked in one before, and starts entrepreneurship right after college, the success rate isn’t very high. From an investment risk control perspective, which is more important—people or due diligence? It’s not a black-and-white issue. People are definitely the main factor; if the person is right, the matter is right. Due diligence is just an auxiliary check to verify whether the understanding is consistent and whether there are biases. Zhangxue motorcycles is a typical case because Zhangxue is an individual with no one else to evaluate; we invested purely based on the person. Practice has shown that entrepreneurs who embrace the “compound life” philosophy are more likely to succeed.

3. Achieving Nearly 700 Million Revenue in Less Than a Year of Entrepreneurship—Zhangxue’s Diligence and Effort Far Surpass Expectations

First Financial Gao Yuan

After leaving Kaiyue, Zhangxue faced a relatively low point in his life. You saw his potential early on and became his angel investor. Without your investment, it might have been very difficult for him to reach today’s level—because it gave him a completely different confidence, backed by capital recognition. And from a capital perspective, 10k yuan is not a small amount. Did you ever hesitate or regret?

Founder and Chairman of Gao Xin Capital Cao Bin

We wouldn’t say we are Zhangxue’s benefactor; rather, we achieved each other. We are very fortunate to be involved in his entrepreneurial journey. When he left Kaiyue, it seemed like a low point, but in our eyes as investors, that was the best opportunity.

After investment, Zhangxue himself was very diligent, working far harder than people imagine. Imagine a company founded only in April 2024, and by 2025, it has nearly 700 million yuan in revenue—that’s almost impossible. This performance is extremely impressive. So, we are always grateful and very lucky. Thanks to Mr. Zhang for giving us the opportunity. Even without us, I believe other investors would have invested in him. China’s capital market is very active and developed now.

4. Phase Losses Are Investments in the Future—R&D Spending at About 10%, Not Common in the Industry

First Financial Gao Yuan

There are some different opinions about his financial situation in the industry. For example, in 2025, the company lost over 20 million yuan, with R&D investment accounting for about 10%. How do you view this financial model?

Founder and Chairman of Gao Xin Capital Cao Bin

From our perspective, the company’s losses are temporary; profitability will be achieved in the future. According to Mr. Zhang’s goal this year, they plan to sell 60k vehicles, many of which are higher-end models, with expected revenue between 1.5 billion and 1.8 billion yuan. If they reach 1.8 billion, the company will likely turn profitable this year—that’s one aspect.

Second, it depends on where the money is spent. The company’s R&D investment is close to 10%, a figure rarely seen in the industry. Many listed motorcycle companies don’t have such a high R&D ratio. This shows that Zhangxue has a very clear vision for the future. Once the goal is set, they will go all out. Our communication with him is almost no-nonsense; conversations rarely exceed three minutes. His catchphrase is “Don’t beat around the bush, just say it.” R&D is an investment in the company’s future, so temporary losses are justified when compared to a bright future.

5. Industry Turning Point—10k Angel Funding Leverages Nearly 700 Million Revenue, Backed by China’s Industry Supply Chain Accumulation

First Financial Gao Yuan

After winning in international competitions, people are wondering: has China’s manufacturing of large-displacement, high-performance motorcycles reached a turning point?

Founder and Chairman of Gao Xin Capital Cao Bin

Indeed, this is a turning point. Many misunderstand the motorcycle industry—because electric bikes and e-scooters are very popular in China, people think the motorcycle industry is disappearing. But that’s not true. The world’s development is highly uneven, and preferences vary greatly.

China’s racing-type motorcycles have a demand of about 150k units annually, while globally, the demand is around 1.2 million. If we can meet this demand with good products, a very promising niche market can be developed. These motorcycles are expensive, starting at around 30k yuan, with some costing 60k, 70k, or even 100k yuan. This niche market is not small. Also, all companies making racing motorcycles also produce regular motorcycles for everyday consumers. From that perspective, the global annual sales are about 65 million units, with China producing 22 million. From this, it’s clear that this is a huge market.

On the other hand, China’s manufacturing industry has accumulated a deep foundation over the past 40 years. Whatever the component, it’s available domestically. Imagine, a company that started with only 20 million yuan in angel funding, and last year, it generated about 700 million yuan in revenue—how was that possible? Such impressive results fundamentally rely on a large, mature supply chain. Without supply chain support, top racing products wouldn’t be possible. So, this is the industry’s inflection point. We believe that over the next ten years, China will gradually transition from a manufacturing powerhouse to a brand powerhouse, with top industrial and consumer brands emerging continuously.

6. Domestic Motorcycles Are Very Close in Technology to International Brands; Consumer Perception Is the Real Barrier

First Financial Gao Yuan

Zhangxue’s success is a result of China’s 40 years of industry incubation. I want to know, how do their bikes compare to international brands like Honda and Kawasaki? How high is the moat?

Founder and Chairman of Gao Xin Capital Cao Bin

The moat was once deeply rooted in consumer perception. From a technical perspective, the technology of top foreign brands and Chinese brands is now very close, and their supply chains are also very similar. Honda sells over 20 million motorcycles annually, a giant, but I believe China will also produce such companies in the future.

Purely from a technical standpoint, there’s no big difference now. It’s just that many people still believe Japanese motorcycles are the best in the world. As Chinese motorcycles win in international competitions, public perception will gradually change. Coupled with national pride and cultural confidence, I believe more people will embrace domestic motorcycles. Once consumer perception shifts, domestic high-end brands will rise rapidly—absolutely, they will surge. That’s the opportunity in the next decade.

7. Electrification Trend—Internal Combustion Vehicles Won’t Disappear; Intelligent and Electric Vehicles Are the Future

First Financial Gao Yuan

Due to geopolitical influences, fuel prices have soared in Southeast Asia, and many regions are transitioning to electric motorcycles. Zhangxue’s bikes are more high-energy fuel racing models. Will you explore emerging markets, including electrification?

Founder and Chairman of Gao Xin Capital Cao Bin

Currently, global motorcycle production is concentrated in Japan, China, and India, each around 20 million units. The trend shows that electrification and intelligentization of two-wheelers are inevitable and will definitely happen. But this doesn’t mean internal combustion motorcycles will vanish. Zhangxue motorcycles is also moving toward electrification and smart features. The company plans to invest 135 million yuan in R&D this year, much of which is dedicated to electric and intelligent motorcycles. By 2027, several electric motorcycle models will be launched—worth looking forward to. Zhangxue is embracing the future.

8. Industry Chain Investment—From Complete Vehicles to Core Components, Like Huawei Driving Upstream Supply Chains

First Financial Gao Yuan

You mainly invest in semiconductors and commercial aerospace. After successfully investing in Zhangxue motorcycles, will you expand more into the industry chain? For example, vehicle-grade chips, high-performance tires, etc.?

Founder and Chairman of Gao Xin Capital Cao Bin

Take a close look at Zhangxue’s racing suits or bikes—there’s a big label “SAFE”—that’s Saifu Braking, a company we invested in. They’ve brought ABS from four-wheel vehicles to two-wheelers, adapting automotive intelligent braking systems for motorcycles, with many original innovations. Almost all ABS used on Zhangxue motorcycles comes from Saifu Braking. As Zhangxue motorcycles develops rapidly, it will drive the industry chain upward, just like Huawei has lifted the entire mobile and computer industry chain.

9. Chain-Owner Effect—Complete Vehicles Drive Supporting Industries; Hefei Model Worth Watching

First Financial Gao Yuan

So, is the investment logic to use complete vehicles to drive supporting industry chains?

Founder and Chairman of Gao Xin Capital Cao Bin

Yes. China has a place that does this very well—Hefei. I learned the term “chain owner” from Hefei. They are very good at attracting chain-owner type enterprises because the rise of chain owners will inevitably promote the development of a series of suppliers.

The successful investment case in Hefei is Changxin Storage, which will likely become a superstar in China’s capital market. Everyone is watching; it might even become China’s most valuable listed company in the future. Changxin’s growth has driven the rapid development of Hefei’s entire storage industry chain.

10. Recently, Many Capitalists Are Looking for You to Dilute Your Shares or Zhangxue’s Shares. How Are the Transactions? Any Information to Share?

Founder and Chairman of Gao Xin Capital Cao Bin

Honestly, few people asked before. By 2025, about seven or eight have inquired. But one person everyone might know is Shen from Zhejiang Venture Capital, who has been in contact with me. At first, I thought he was just asking, but he was very persistent, asking many times. Finally, he expressed his interest, saying he’s also a motorcycle enthusiast. After getting Zhangxue’s approval, I recommended them. Coincidentally, late last year, they invested 90 million yuan at a pre-money valuation of 1 billion yuan. They have very good vision because at that time, this sector and track weren’t very popular.

11. Non-Consensus Investment—“Invest in Disagreement, Sell in Consensus”

First Financial Gao Yuan

Your early investment in Zhangxue was very sharp. Over the years, many investors have been investing in hard tech, and the motorcycle track is very niche. Before, few institutions would invest in such projects, especially since Zhangxue’s team had little chance of raising funds. How do you view this non-consensus investment logic?

Founder and Chairman of Gao Xin Capital Cao Bin

Jinsha River Ventures’ partner once said a very classic phrase: “Invest in disagreement, sell in consensus.” It sounds simple, but it’s very difficult to do. Because of disagreements, you must see what others don’t see, and what you see must align with trends and be realizable in the future. The difficulty lies in two aspects: first, convincing investors; second, convincing the internal team. From a practical perspective, it’s not easy.

12. Exit Planning—Investment Institutions Are “Co-Pilots,” Going Public Should Follow the Trend

First Financial Gao Yuan

What’s your view on Zhangxue’s future path to the capital market—IPO, or partnering with listed companies for capacity or capital transactions? Have you discussed this with Mr. Zhang?

Founder and Chairman of Gao Xin Capital Cao Bin

We are riding as co-pilots; where the company goes is not up to us. We are very clear about this. From what I understand, the company’s main focus is on developing its core business, increasing production scale, and establishing industry position. Going public will be a matter of following the trend. When the time comes, with sufficient revenue and profit, I believe it will be welcomed on China’s main boards.

Video: Hou Tianyi