A $13 billion unicorn on the verge of collapse: Who is the biggest unlucky victim?

Today, while browsing Weibo, I saw that Xia Yiping, the CEO of Jiyue Automobile, was still working. Immediately, a sense of sympathy welled up in me.

Why do I feel sympathy? There are several reasons.

As a unicorn company, Jiyue has been out of funds for a year. However, Xia Yiping's team is still persevering and handling product after - sales services. A user left a message for him saying, "Brother Ping, you're still here." He replied, "I've always been here."

Some people may say, "What are you sympathizing about? It's only natural for a company to provide after - sales services to users even if it has no money." That's true. But I want to emphasize that this is the obligation of the major shareholder and the controller. What reason does Xia Yiping have to stay?

Put it simply, he is just a professional manager (CEO).

Even if he is still a minority shareholder, after fulfilling the responsibilities of a minority shareholder (such as capital contribution and related obligations), he could completely leave the company. Then his obligations would be fulfilled. There's no need for him to keep accompanying the company for a year to clean up this mess, and he has no responsibility to make up for the consequences of the major shareholder's decisions.

Jiyue's business progress in the past year

After all, the controller of this company is from the Geely Group (Zhejiang Geely Industrial Investment). After the adjustment in 2025, it became the sole shareholder. If we compare Jiyue to a child, its real father is Geely, and Xia Yiping is at most an uncle.

Whether Jiyue owes money, owes salaries, or needs to maintain after - sales services, what does it matter to him? Therefore, from this perspective, I really admire this CEO. He has the sense of responsibility and the never - say - die spirit of an entrepreneur.

At the same time, I also want to remind everyone. When senior executives of large enterprises start their own businesses independently, they should be cautious about relying on large companies. It's okay to rely on them, but you must hold the majority stake. No matter how much money the giant invests, whether it's the majority or the minority, you must hold the majority stake.

The interest mechanism of venture capital makes sense: as an investor, one invests a large amount of money but holds a small stake.

Many entrepreneurs may think that since others invest more money, they should hold shares according to the amount of investment. If you want to work for this company, you can consider it - you can not only get a high salary but also hold a small stake.

But if you start a business with the intention of entrepreneurship, I'll tell you clearly: no matter how successful you are in the process, it's only temporary. Eventually, you will end up in failure.

This truth is obvious and common sense, but it's hard to put it into practice. Look, Xia Yiping is also an experienced entrepreneur. He joined Mobike (as a co - founder) in 2015 and left Mobike after it was acquired by Meituan.

I can't quite understand why he joined Jiyue as a minority shareholder. Although Jiyue was once very successful and was a unicorn valued at over 13 billion yuan, the ending is regrettable.

As for the reason, I'll say it again: there's something wrong with this interest mechanism. The founder must be the major shareholder. Even if Geely invested a large amount of money and resources, it can only be a minority shareholder.

For a large company like Geely, you really need to think clearly: if you are the major shareholder, the business won't succeed.

The founder's cognition and time are the most valuable. They are the real operators. Only by making them the first person in terms of "rights, responsibilities, and interests" can the startup have a higher probability of success.

What will happen if they are not the first person in terms of "rights, responsibilities, and interests"? They'll think it has nothing to do with them and just stay aloof. When a big problem occurs, what does it matter to me? I'm not the first responsible person; when a big opportunity arises, what does it matter to me? How much money can I get?

Some people say that the break in Jiyue's capital chain is because the CEO lacks experience and he is the first responsible person.

Actually, it's inaccurate to shift the blame: it has nothing to do with ability because the interest mechanism was wrong from the start.

If I were him, I would think like this: Geely is the big boss. I just need to fulfill my obligation to remind the company about the lack of funds. When the company is really short of money, as a big company, Geely has the responsibility to invest. When there's no money, it will transfer funds - this is the major shareholder's business. Why should I worry about it?

Let me give a more common example. When a child has no living expenses, the real father should fulfill the obligation to support. What kind of logic is it to ask his uncle to pay for the living expenses?

Xia Yiping also mentioned some key facts. At the 2023 strategic meeting, he reminded the shareholders and other parties that Jiyue would incur a loss of 7 - 7.5 billion yuan in 2024. As the major shareholder, once you hear this, you should prepare the money.

Do you still expect Xia Yiping to raise funds? To put it bluntly, this company isn't his. Whether it lives or dies, he bears little responsibility. What kind of determination does he have to raise funds and save this sinking ship?

So, the case of Jiyue further illustrates a truth: when starting a business in partnership with a large company, the interest mechanism must be clearly defined. If you are an entrepreneur, no matter how many resources and funds the other party invests, you should hold the majority stake.

Don't try to go against the rules and think about relying on others first and then becoming independent. First, it's highly likely to fail; second, even if you succeed by chance, it's even more a pity - you've made the greatest contribution but are not the major shareholder, and others will take away the fruits of your victory.

Finally, I'd like to say that Jiyue Automobile still has a chance to turn the tables. On November 24th, its affiliated company, Shanghai Jidu, initiated pre - reorganization. The core purpose is to introduce new investors through judicial procedures.

I hope that after the new investors come in, they can change the interest mechanism. What do you think? Welcome to leave comments in the comment section.

This article does not constitute any investment advice.

This article is from the WeChat official account "Pencil News" (ID: pencilnews). The author is Wang Fang. It is published by 36Kr with authorization.