1. Xiaomi formally submitted an IPO application to Hong Kong stocks. Lei Jun currently holds 31.4% of the shares;
On May 3, Xiaomi officially submitted an IPO application to the Hong Kong Stock Exchange. This will be the largest IPO in the world this year. The prospectus shows that CITIC CLSA, Goldman Sachs, and Morgan Stanley are joint global coordinators. Joint bookrunner and joint lead manager.
Millet’s financial data for the past three years reflected the rapid growth of the business. The prospectus disclosed that Xiaomi’s revenue from 2015 to 2017 were RMB 66.811 billion, RMB 68.434 billion and RMB 114.625 billion respectively, and the year-on-year increase was 67.5% in 2017; operating profit was 13.73. Billion yuan, 3.785 billion yuan and 12.215 billion yuan, an increase of 222.7% year-on-year in 2017.
Prospectus disclosure, millet plans IPO to raise funds for 30% of R & D and development of smart phones, television and other core products; 30% for the expansion of investment and strengthening consumer goods and mobile Internet industry chain; 30% for global expansion; 10% Used for general business purposes.
Xiaomi chairman and CEO Lei Jun promised to all existing and potential users in the open letter of the prospectus: 'Since 2018, Xiaomi's overall hardware business (including smart phones, IoT and consumer products) will not have a comprehensive net profit rate every year. More than 5%. If there is an excess, we will give back to the user. 'Public information shows that in 2017, Apple's overall business margin was 21.1%, and Huawei's overall business margin was 7.9%. Even household appliances with a low net profit rate are recognized In the industry, Haier was 6.6% and Midea was 7.7%, both higher than 5%.
As of the signing date of the prospectus, in terms of shareholding structure, executive directors, Chairman of the Board and Chief Executive Officer Lei Jun had a share of 31.4%. If included in the option pool of the total equity ESOP employee stock ownership plan, Lei Jun’s shareholding ratio is 28. %.
On the specific data, Lei Jun holds 31.4124% of shares, Lin Bin holds 13.3286%, Li Wanqiang holds 3.2375%, Huang Jiangji holds 3.2375%, Hong Feng holds 3.2207%, Xu Dalai holds 2.3121%, Liu De holds 1.5494%, Zhou Guangping holds 1.4317 %, Wangchuan holds 1.1149%, Morningside Group holds 17.1931%, other investors hold 21.3430%. (Proofreading/Fan Rong)
2. The largest IPO of Hong Kong stocks, in-depth interpretation of the millet prospectus!
Set Micronet Messaging (Text/Aki) In the ruthless cell phone industry, few companies are able to reverse after the slide! Nokia is working slowly, but it is not the only one.
Xiaomi, known as the 'Chinese version of Apple', announced to the world on May 3, 2018, with a brilliant market share and a formal listing application to the Hong Kong Stock Exchange, that once Xiaomi returned, and it will also Create the largest IPO in Hong Kong's history!
In addition, it is understood that, after listing in Hong Kong, Xiaomi will take out some of the shares in the A shares to issue CDR (China Depositary Receipts). As for the details of the listing, Xiaomi was not announced in the prospectus.
However, according to a report by the Hong Kong Economic Times on May 2, the millet will raise at least US$10 billion in funds. After the completion of the IPO, Xiaomi’s market value will reach US$900-110 billion, and three years ago, Xiaomi’s The valuation is still only 45 billion US dollars.
If this figure is accurate, Xiaomi will become the third largest domestic company after Baidu, Jingdong, and NetEase, second only to Ali and Tencent.
At the same time as the prospectus was made public, Lei Jun also announced an open letter. In the letter, Lei Jun mainly emphasized the following aspects:
What are the business priorities of Xiaomi?
Unlike the mobile phone company in the traditional concept, in Lei Jun's view, Xiaomi is not a pure hardware company, but an innovation-driven Internet company.
'Millet is an Internet company with mobile phones, smart hardware and IoT platforms as its core.'
Specifically, in 2017, based on smart hardware, Xiaomi became the world's largest consumer IoT platform. This mainly relied on a series of hardware products independently provided by Xiaomi and jointly developed with millet ecosystem companies.
In terms of smartphones, the latest figures from Strategy Analytics show that in the first quarter of 2018, Xiaomi’s smartphone sales reached 28.3 million units, accounting for 8% of the global market share, ranking fourth in the world, and increasing by 125% year-on-year, exceeding all major competition. opponent.
The data released by IDC emphasized that Xiaomi ranked fourth in the top five smartphone manufacturers in the world with 8.4%. Among them, Xiaomi’s performance was the most impressive compared to last year, with shipments up 87.8% year-on-year.
The reason why Xiaomi can buck the trend is that, besides the domestic trend, a large part of the reason is due to the rapid development overseas. In the recent report of the Indian mobile phone market released by Counterpoint Research, Xiaomi has exceeded 31%. Market share, ranking first in the Indian market.
How Xiaomi's business model is
Lei Jun emphasized in an open letter that it was precisely through millet's unique 'triathlons' business model that Xiaomi was able to achieve a successful reversal after sales of Xiaohua.
The so-called triathlon refers to: (1) hardware; (2) new retail; (3) Internet services.
Lei Jun pointed out that as of March 31, 2018, Xiaomi established an ecosystem of more than 210 companies through investment and management, of which more than 90 companies focused on research and development of smart hardware and consumer products, connecting more than 100 million devices. .
New retailing means that while focusing on direct online sales of products, Xiaomi has expanded Xiaomi’s coverage and provided a rich user experience through its direct millet house since 2015. At the same time, maintain efficient operational efficiency.
Xiaomi's Internet service is mainly based on its developed MIUI operating system, which opens up the connectivity of various devices and the seamless integration of hardware and Internet services, ultimately providing users with a better user experience.
Millet revenue situation
It is worth noting that Xiaomi disclosed the revenue of 2015, 2016 and 2017 in the prospectus.
The prospectus stated that Xiaomi’s revenue mainly comes from four major business units: smart phones, IoT and consumer products, Internet services and others.
Among them, the smartphone segment's revenue comes from smartphone sales. The sales for the three years accounted for 80.4%, 71.3% and 70.3%, respectively. Smartphones have been declining year after year in Xiaomi’s overall revenue. It can be said that Get rid of excessive reliance on smart phones.
Revenue from IoT and consumer products segment includes sales of other self-developed products, including smart TVs, notebook computers, artificial intelligence speakers and smart routers, and other ecological chain products. These products include IoT and other smart hardware products and some consumer products. Revenue. The proportion of sales in these three years was 13%, 18.1%, and 20.5%, respectively. This is an upward trend year after year. It can be said that the effect of Xiaomi's ecological chain is becoming prominent and this part of the future may be further strengthened.
The internet service segment's revenue comes from advertising services and internet value-added services.
The income of other segments mainly comes from hardware product repair services. From a geographical point of view, in 2015, 2016, and 2017, millet has 93.9%, 86.6% and 72% of its revenue comes from mainland China. This reflects from one hand. Outgoing, Xiaomi’s globalization strategy has achieved initial results. As mentioned before, Xiaomi’s first market position in India is a good example.
Why millet suffered a huge loss
At the same time, we also found that from 2015 to 2017, Xiaomi’s revenue was 66.811 billion yuan, 68.434 billion yuan and 114.625 billion yuan, but the net profit was -76.27 billion yuan, 492 million yuan, -438.89 billion yuan.
Why does Xiaomi have a huge loss?
The prospectus stated that Xiaomi’s losses mainly come from the following aspects:
The cost of sales increased. Xiaomi's cost of sales increased from 61.2 billion yuan in 2016 to 99.5 billion yuan, a year-on-year increase of 62.6%. Among them, part of the smartphone sales cost increased from 47.1 billion yuan in 2016 to 73.5 billion yuan in 2017. 56%, mainly due to the increase in related costs caused by sales of smartphones, but also related to warranty expenses and inventory depreciation.
R&D spending increased. Research and development expenses increased from RMB 2.1 billion in 2016 to RMB 3.2 billion in 2017, an increase of 49.8% year-on-year.
Finally, the change in the fair value of Xiaomi’s convertible redeemable preference shares increased from a loss of 2.5 billion yuan in 2016 to a loss of 54.1 billion yuan in 2017, mainly due to changes in the valuation of Xiaomi.
Under the International Accounting Standards, such preferred shares will be reflected as 'debt to shareholders', and the increase in its fair value will be recorded in the losses of the company's books. But in fact, the company did not have such losses and did not actually operate the company. Impact, this so-called 'liabilities' figure will disappear at the moment of listing.
Xiaomi’s equity and senior management
In addition, Xiaomi's prospectus also disclosed Xiaomi’s shareholding percentage before the listing and its major shareholders.
Among them, millet company founder, chairman and CEO Lei Jun holds 31.41%, co-founder, president Lin Bin holds 13.33%, co-founder, brand strategy officer Li Wanqiang holds 3.24%. As counted in the total share capital of ESOP employees In the option pool of the stock plan, Lei Jun’s shareholding ratio is 28%. Through the dual shareholding structure, Lei Jun’s voting power ratio exceeds 50%, which is the controlling shareholder of Xiaomi Group.
On the specific data, Lei Jun holds 31.4124% of shares, Lin Bin holds 13.3286%, Li Wanqiang holds 3.2375%, Huang Jiangji holds 3.2375%, Hong Feng holds 3.2207%, Xu Dalai holds 2.3121%, Liu De holds 1.5494%, Zhou Guangping holds 1.4317 %, Wangchuan holds 1.1149%, Morningside Group holds 17.1931%, other investors hold 21.3430%.
For major shareholders, Xiaomi's board of directors has seven directors, namely Chen Dongsheng, Xu Dalai, Li Jiajie, Lei Jun, Lin Bin, Liu Qin and Wang Jude.
Among them, Lei Jun and Lin Bin are executive directors, Xu Dalai and Liu Qin are non-executive directors, and Chen Dongsheng, Li Jiajie, and Wang Yude are independent non-executive directors.
On the executive side, as early as April 27, Lei Jun issued an internal letter, appoints CFO Zhou as the senior vice president of the company, and announced that co-founders Zhou Guangping and Huang Jiangji resigned from the company.
Although there was speculation in the industry at that time, Xiaomi's move was to prepare the company for listing.
However, Lei Jun quickly clarified that the reason why Xiaomi invited weeks to accept funding as the CFO was mainly due to the need for someone to help him plan strategies, handle investor relations, and manage millet investment.
The birth of a big wave of rich
Although, Lei Jun had very affirmatively stated in March 2016 that Xiaomi would not be listed in 5 years.
But when it came to listing in November 2017, Lei Jun said, 'It will be more comfortable when business is IPO.'
Now, with the Xiaomi IPO, a big wave of rich people is about to be born.
The prospectus shows that as of March 31, 2018, Xiaomi had 14,513 full-time employees, of whom 13,935 are located in mainland China, mainly in Beijing headquarters. The rest are mainly distributed in India, Taiwan, Hong Kong and Indonesia.
The prospectus also disclosed that Xiaomi’s employee wage and benefits expenses in 2017 were about RMB 4.05 billion, a rough estimate. The average annual salary and welfare of Xiaomi’s employees was around 279,000 yuan.
More of it is that the investors behind Xiaomi will also get amazing returns.
From 2010 to 2014, Xiaomi completed a total of six rounds of financing, with many investors, including Morningstar Capital, Qiming Venture Capital, IDG Capital, Temasek, DST, GIC, Hopu Investment, and Cloud Fund, among dozens of VCs. PE agency.
Millet Supply Chain Revenue
With Xiaomi's listing, the listed companies as millet suppliers benefited a lot. According to incomplete statistics, from the beginning of March to the present, many stocks of listed companies of Xiaomi's listed companies have risen steadily, with many daily limits, such as Pu Lutong and Zhuo Yi Technology. And other millet core suppliers.
According to investigations, among listed companies, such as Wentai Technology, Ouffy Technology, BOE, Shenzhen Tianma, Changying Precision, Shengli Precision, Xinwangda, Desai Battery, Sunny Optical (Hong Kong), Lance Technology, Huiyuan Top Technology, Tongda Group (Hong Kong stocks), Sanhuan Group, Sunlord Electronics, Qiu Titanium Technology (Hong Kong stocks), Crystal Optoelectronics, Zhuo Yi Technology, Guanghong Technology, Pulutong, Fenda Technology, Kairun Shares, Hexing Packaging, A total of Electro-acoustic, Bethepower, Jinsheng Intelligent, Laibao Hi-Tech, Ultrasonic Electronics, AAC Technologies (Hong Kong Stock Exchange) and other listed companies are all millet suppliers! (Proofreading/Fan Rong)
3. Lei Junfa open letter: Xiaomi is an innovation-driven Internet company;
Set micro-network news, Xiaomi submitted a listing application to the Hong Kong Stock Exchange on May 3, which will be the world's largest IPO this year.
Xiaomi chairman and chief executive officer Lei Jun promised to all existing and potential users in the open letter of the prospectus: 'Since 2018, Xiaomi's overall hardware business (including smart phones, IoT and consumer products) will not have a comprehensive net profit rate every year. More than 5%. If there is an excess, we will give back to the user. '
According to public information, in 2017, Apple's overall business net rate was 21.1%, and Huawei's overall business net margin was 7.9%. Even in the appliance industry with a low net profit rate, Haier was 6.6% and Midea was 7.7%, both higher than 5%. .
Lei Jun said that millet is not a closed business empire to build. Xiaomi is not only an innovative technology company, but also the creation and promotion of the lifestyle of the digital age. Let everyone in the world enjoy the beauty of science and technology. Life, to achieve this goal, a small millet is far from enough, need 100 or even more 'millet', together to build a rich and prosperous new business ecology.
The following is Lei Jun public letter:
Hello, Thank you for your attention and support to Xiaomi. When you open this document, you are not only seeing a flourishing company, a flourishing company, but also a new business blueprint supported by courage and trust. .
Here, I would like to explain to you who millet is and why millet struggles.
Xiaomi is not a pure hardware company, but an innovation-driven Internet company.
Specifically, Xiaomi is an Internet company with mobile phones, smart hardware, and IoT platforms as the core. Our mission is to consistently adhere to the "moving, hearty, and pricey" products that enable everyone around the world to enjoy technology. The good life.
For each of the past eight years, the vision of 'making friends with users and being the coolest company in the user's world' has driven us to innovate, and constantly strives for the ultimate product and efficiency, and has created a millet that continues to create a long miracle.
When I set up Xiaomi in April 2010, my partners and I had only one simple idea: to make a smart phone that we like and feel cool. Of our 8 co-founders, 6 were engineers, and 2 were People are designers. They are fans of consumer electronics equipment.
'Touching people's hearts, price and kindness' These eight characters are one of the two sides, inseparably integrated, far beyond the ultimate product that users expect, and can also achieve 'price kindness' in order to truly 'move people'. Innovative technology and top design are With the pursuit of millet genes, our engineers are obsessed with exploring techniques and products that have never been attempted by others before. Every detail is re-engraved. Every product that we are determined to produce exceeds our expectations. We believe in breaking the old rules. Courage and the belief in excellence are the key to our continued appreciation and support.
Beyond technology, we advocate a culture of bold innovation. From cutting-edge exploration of mobile technology, screen and chip technologies, to more than 200 global design awards won over several years; from the 'Triathlon' business model to through the 'eco-chain' 'The company clusters; From the 'user-involved Internet development model' to Xiaomi's online and offline high efficient new retail innovation spirit, Xiaomi flourished and penetrated into every corner, promoting our constant speeding up exploration.
Currently, we are the world’s fourth-largest smartphone manufacturer and have created a number of smart hardware products, many of which have the highest sales volume. We have also built the world’s largest consumer IoT platform, connecting more than 100 million smart devices. At the same time, we also have 190 million MIUI monthly active users and provide them with a series of innovative internet services.
What really makes us more proud is not these numbers. It is the appearance of a series of industries such as smart phones and smart devices in China that have completely changed because of our appearance.
We have promoted the rapid adoption and quality improvement of smart phones in China, which lays a solid foundation for the rapid outbreak of mobile internet in China. The booming development of mobile payment, e-commerce, social networking, and short video industries in China depends on the mobile internet. There are hundreds of millions of people entering the country. In China, the world’s largest market, behind the leap-forward development of the mobile Internet industry, we are also recognized to have made a lot of contributions.
Good companies make profits, and great companies win people's hearts. We are also proud that we are a rare high-tech company with a 'fan culture'. The passionate users of 'rice rice' are not only popular. Globally, the number is huge, and it is very loyal to our brand and actively participates in the development and improvement of our products.
After the rebirth of the fire, the business model of the millet was fully verified
As a young internet company, Xiaomi’s development is not a smooth journey. In 2016, our market share has been declining. We are clearly aware that there are still many foundations behind the rapid development in previous years, and therefore we have taken the initiative. Slow down, make up lessons actively. In 2017, Xiaomi successfully completed the three tasks of “innovation + quality + delivery” and quickly returned to the forefront of the world.
According to our understanding, except for Xiaomi, there is not yet any mobile phone company that can successfully reverse after sales decline.
After the rebirth of the fire, Xiaomi experienced the cultivation necessary for a company that can develop steadily over a long period of time. Our management is more orderly, our talent pool is more abundant, our technology accumulation is deeper, and our supply chain capacity and capacity management capabilities are more powerful.
More importantly, our business model has been tested and fully validated.
Xiaomi is not just a hardware company, but an innovation-driven Internet company. Although hardware is an important user portal, we do not expect it to become a major source of our profits. We put products that are well-designed and superior in performance to the hardware. Cost pricing is directly delivered to users through efficient online and offline new retail channels that are owned or directly supplied, and then continues to provide users with a wealth of Internet services.
This is our original 'Triathlon 3' business model: Hardware + New Retail + Internet Services. Xiaomi’s achievements so far illustrate the strong vitality of this model. In just 7 years, our annual income exceeded 100 billion RMB. This growth rate is something many traditional companies can't match.
The improvement of efficiency comes from operating costs, especially the transaction cost when delivering products to users. Mille's unique business model makes the goods both good and cheap, and creates a basis for user trust.
# Forever insisting that the comprehensive net profit rate of hardware does not exceed 5% of the beginning of millet, we have a grand ideal: To change the general low efficiency in the business world.
A shirt costing $15 is sold at a price of $150 in a Chinese shop. The rate is set at a staggering 10 times. A pair of shoes has to be added 5 to 10 times, and a tie is added to 20 times. Such examples are endless.
However, I always find it difficult to understand why the efficiency of production and distribution can not be improved for a long time. Why does the huge loss in the middle part of the business operation require the user to pay for it? Why are all 'costdown' efforts only carried out at that 10% production cost? Never operating to 90% of the unnecessary loss.
Xiaomi has the courage and determination to promote a profound revolution in business efficiency. In early 2011, when Xiaomi ushered in her first annual meeting, I told the company’s more than 100 employees and their families that we were there to say Performance, experience the best smart phones, for only $ 300 - when the mainstream of smart phones are generally priced at more than 600 US dollars.
Great companies are all about making good things cheaper and cheaper. Every effort is devoted to making good products. Every penny the user pays is worth it.
The user is the core of all our business operations. On the way forward, Xiaomi has been thinking: From ancient times to now, the business world has undergone many changes. Beyond the topic of all kinds of business models, what remains unchanged?
The user's expectation of 'touching hearts, good prices' products, this is Xiaomi's answer.
There are many of our users who say that when they enter Xiaomi House or log into Xiaomi Mall, they can be assured to 'buy with their eyes' because quality and price are always optimal. This is our greatest affirmation and our ultimate pursuit. .
Without the trust of users, there is no efficiency that we pursue. The trust of users is the cornerstone of the millet model. Efficiency is the soul of the millet model. Continuously gaining the trust of users, any of our businesses will be invincible. And a truly world-class An efficient company will have the ability to cross the economic cycle, continue to seize new opportunities in the industry, and maintain long-term operational excellence.
'Touching people's hearts, price and kindness' is not an empty phrase, these eight words are our values and spiritual creed. Here, I would like to promise to all existing and potential users: From 2018, millet's annual overall hardware business synthesis The net rate will not exceed 5%. If there is an excess, we will give back to the user.
Because, we have always firmly believed that compared to the pursuit of one-time hardware sales profits, the pursuit of product experience is more promising; Compared with the channel layers of increase, real materials, and pricing will eventually get more people.
We have always firmly believed that our belief that mass consumer goods should actively control reasonable profits will become an irresistible trend of the times, and that any attempt to cope with high gross margins will move toward a path of no return.
So, I would like to explain to you that we will pay more attention to the maintenance of long-term user value, the business value of Xiaomi and your investment value, and will also continuously expand the source and only the user value.
The fact that the comprehensive net profit rate of the hardware never exceeds 5% is proof of Xiaomi’s efficiency. We know that it will take time for Xiaomi’s idea to eventually become the consensus of the society. However, the time will be a friend of Xiaomi’s. We will stick to it and will continue to invest in it. The implementation will eventually result in an ideal implementation.
Building a global open ecology, our journey is the sea of stars
Today, Xiaomi has reached an important historical node. Looking into the future, Xiaomi’s global business ecosystem has an imaginative and ambitious outlook.
Xiaomi must not build a closed business empire. Xiaomi is not only an innovative technology company, but also the founder and promoter of the lifestyle in the digital age. Everyone in the world can enjoy the beautiful life brought by science and technology. To achieve this goal, one millet is far from enough, and 100 or even more 'millets' are needed to build a rich and prosperous new business ecosystem together.
'Dand not alone, there must be neighbor', through a unique 'ecological chain model', Xiaomi investment, driven more like-minded entrepreneurs, built around mobile phone business mobile phone accessories, smart hardware, consumer products, three-tier product matrix. Now Xiaomi has invested in more than 90 ecological chain companies and has changed hundreds of industries. In the future, this figure will be even larger.
Such changes not only happened in China. Take the smartphone business as an example. In the markets of more than 70 countries and regions that have entered the world, we have already achieved the largest share in India and ranked first in 15 countries. We are and will continue Prove that the millet model has the universality of rapid replication in the world.
The establishment of a globalized open ecology will give millet more opportunities for long-term development, wider boundaries, and a more stable foundation. The era of big data and artificial intelligence is in sight. We believe that we have a large amount of unique data generated by our global ecological platform. Let us be more keen, give a precise insight into the needs of our users and give us a huge advantage in the future.
Xiaomi is a company led by an engineer culture. The dream of engineers is to continuously explore advanced technologies and benefit as many users as possible. It is our vision to be the coolest company in the user's mind. We firmly believe that the benefits of technological innovation and progress should be It can be easily shared by the general public. The nature of the Internet spirit is transparent, efficient and inclusive.
The greatest equality is equal to the experience of everyday life: Let all people, regardless of his skin color, beliefs, where they come from, what education they have, can easily enjoy the good life brought by science and technology.
This is the goal of all the employees of Xiaomi and I continue to struggle day and night.
Thank you for your attention to Xiaomi. Join us in the creation of a new paradigm for business efficiency and use technology to improve the magnificent life of human life. The business promises to be warm, the technology is warm, the Xuan people are happy, our journey is the sea of stars, and it is only now With the first step, we have changed the lives of hundreds of millions of people. In the future we will become part of the lives of billions of people around the world.
Honest people are not too bad luck. Please join us and always believe that good things are about to happen.
Lei Jun
4. HK Stock Exchange 'Different rights in the same stock' attracted Xiaomi;
Ni Hao, a Global Times correspondent in Hong Kong and a correspondent for the Lingde Global Times, followed up on Hong Kong Stock Exchange's initial public offering reforms in 25 years, paving the way for 'shares with different shares', and the Chinese Internet company Xiaomi’s initial public offering ( (IPO) prospectus facilitates the debut of the Hong Kong Stock Exchange's official website on May 3. Xiaomi is expected to become the first share of the "shares with different rights" of the Hong Kong Stock Exchange, and the capital market may also usher in the world's largest IPO since 2014. China's mainland and Hong Kong stock market reforms have been frequently used to attract more and more Chinese technology unicorn enterprises to step up preparations for domestic IPOs.
'Different shares of the same shares' favorable Hong Kong stock development
Unlike the US stock market, HKEx had previously adopted the policy of “same shares with the same rights”. It aims to be fair to all shareholders and avoid minority shareholders from enjoying greater voting privileges. When Alibaba sought a listing in 2013, the Hong Kong Stock Exchange had It was its preferred location for listing, but the proposal of 'same shares' different rights' was rejected by the Hong Kong Stock Exchange. In desperation, Ali turned to the US capital market and soon ushered in the olive branch that the New York Stock Exchange extended.
The incident triggered reflections on Hong Kong's social and financial markets. The Hong Kong Exchange Exchange last year introduced a system called “different shares with the same rights” and finally came into effect on April 30 to accept applications for listing. The Chief Executive of Hong Kong Stock Exchange Li Xiaoga expects that the initial stage will be There are more than a dozen companies listed under the new rules, and the same-share companies with different rights are listed on a larger scale.
Hong Kong’s “Economic Daily” article stated on the 2nd that large investment banks generally favor the 'same shares' different rights' system to facilitate the long-term development of Hong Kong stocks. Citi believes that the new system will help attract new economic enterprises, especially technology, financial technology and Internet related companies to Hong Kong. Listing, an important milestone in the Hong Kong stock market. JP Morgan is also optimistic about the new system, which is estimated to drive an average daily turnover of 3 billion to 4 billion Hong Kong dollars.
World's largest IPO since 2014
Hong Kong’s “Letter” reported on the 3rd that the valuation of Xiaomi’s IPO is basically set at more than US$100 billion, which is likely to exceed the valuation of Alibaba in that year and become the IPO with the highest valuation for Hong Kong stocks in the past ten years. If it can eventually be valued at US$120 billion. For listing, its market value will exceed China Merchants Bank’s $117.34 billion, and when it is listed, it will become one of the top ten market capitalization shares in Hong Kong. The Financial Times in the UK believes that Xiaomi’s Hong Kong listing will become the world’s largest IPO after 2014, ranking ahead of history. Within 20 digits.
According to the Xiaomi's prospectus, Xiaomi's annual revenue for the three-year operation period from 2015 to 2017 was RMB 66.811 billion, RMB 68.344 billion and RMB 114.625 billion, respectively, and operating profit was RMB 1.373 billion and RMB 3.785 billion respectively. And 12.215 billion yuan. The prospectus shows that in the past three years, most of Xiaomi’s revenue comes from mobile phone sales. From 2015 to 2017, mobile phones contributed 80.4%, 71.3%, and 70.3% of operating revenue, respectively. 4.9%, 9.6%, and 8.6% of total revenue. Xiaomi chairman Lei Jun emphasized in an open letter published in the prospectus that Xiaomi is not a pure hardware company, but an innovation-driven Internet company.
Xiaomi's board of directors passed a resolution not exceeding 5% of the consolidated after-tax net profit for the overall hardware business each year. Wang Yanhui, the secretary-general of China Mobile, said in an interview with a Global Times reporter that Xiaomi would use a mobile phone hardware company to offer shares. It is detrimental to the valuation in the capital market. Xiaomi IPO positioning the company on the Internet not only opens the imaginary space for Xiaomi's valuation, but also is chased by the capital market.
Where does China's Unicorn go to market?
At the same time as Xiaomi, a group of Chinese technology companies are accelerating the process of IPO. According to the “Wall Street Journal” report, at least a dozen companies have begun planning IPOs and starting with investment banks and investors in the second half of this year or early next year. Consultation. The Wall Street Journal predicted that if these companies can successfully implement IPO, the market value of the entire capital market will expand by 50 billion U.S. dollars.
According to reports, Chinese technology companies are eager to seek listing due to the relaxation of listing requirements for A-shares and H-shares, intensified competition in China's mainland mobile and Internet industries, and the attraction of rising valuations. These unicorns seek listing. ' Including Didi, U.S. group, Tencent music, Lu Jinsuo and Ant Financial.
Dong Dengxin, director of the Wuhan University of Finance and Economics Institute, analyzed with the Global Times reporter on the 3rd that the reform of the Hong Kong Stock Exchange formed a challenge to Nasdaq in the United States. Similarly, as an international capital market, the exchange distance between Hong Kong Stock Exchange and the Mainland More recently, the culture is more similar. Under the background of the escalating trade friction between China and the United States, some companies in emerging economic sectors in China may be more likely to choose to list in Hong Kong. The exemplary role of Xiaomi's IPO in Hong Kong may accelerate Chinese technology. The arrival of a new era of corporate IPO listing.
The Wall Street Journal stated that the reform of the listing system that Hong Kong is making has brought a strong attraction to these companies. The regulators in mainland China have also stated that they will allow overseas registered companies to issue depository receipts in the Mainland. Listing. The Wall Street Journal quoted informed sources as saying that after Xiaomi is listed in Hong Kong, it is expected to soon be listed in Mainland China, becoming one of the first companies to use the CDR format for listing.
5. Global mobile phone sales decline 'Quick hand' millet Libao growth rate;
21st Century Business Herald Ni Yuqing Guangzhou Report
Xiaomi's overseas market, mobile phones and smart hardware will continue to grow; while the growth of mobile phones in the Chinese market is not obvious, but IOT smart home has increased.
Xiaomi is on the upswing and chooses to go public at the best node. On May 3rd, Xiaomi formally submitted a listing application to the Hong Kong Stock Exchange. In its 2017 revenue, smart phone revenue was approximately RMB 80.56 billion, accounting for 70.3%. .
In terms of rankings, Xiaomi’s mobile phone sales are booming in the first quarter of the year. On May 2, IDC released a report showing that in the first quarter, Samsung, Apple, Huawei, Xiaomi, and OPPO ranked among the top five in the world with a market share of 23.4. %, 15.6%, 11.8%, 8.4%, 7.1%, Xiaomi ranked fourth; According to the latest research from Counterpoint in the Chinese mobile phone market, Huawei won 22% of the market share, followed by OPPO and vivo, which accounted for 18% respectively. And 16% share, Apple and Xiaomi ranked fourth, fifth, market share was 14% and 13%.
However, the outside market of Xiaomi’s main business is not optimistic. According to IDC data, the global smartphone shipments in the first quarter were 336.1 million units, down 2.4% year-on-year; and the domestic market’s decline was even more pronounced, Counterpoint’s report Shows that China's smartphone shipments slowed down in the first quarter of 2018, down 8% year-on-year and down 21% month-on-month.
In the mobile phone market with a slight increase or decrease in sales volume, the brand concentration is getting higher and higher, and the brand ups and downs are unpredictable. In addition to the Chinese market, domestic brands also join forces in overseas emerging markets. Since last year, Xiaomi has reached a low point in this year. In the first quarter, it became the fastest growing player. The overseas market was an important support position. The competition in overseas markets became fiercer, and millet faced pressure.
Slow sales
According to Huang Yuxi of the study of mobile storage in the state-level consultancy specializing in mobile memory, the decline in global market demand is mainly due to the small difference between old and new handsets, and it is unable to attract consumers' willingness to change. Maintaining the market share of existing markets and expanding emerging regions will Is the direction of the brand manufacturers in this year's efforts.
On May 3, Counterpoint Research Director Yan Zhanmeng said in an interview with a 21st Century Business Herald reporter that the domestic mobile phone market will grow in the second quarter of this year. 'The bad shipment in the first quarter is normal, and many products will be upgraded next, hardware design, Chips, etc. have been updated to promote the replacement. China's overall market is large in volume and occupies one-third of the world. We expect it to increase slightly by one or two points in 2018 because of the large number of plate bases and the considerable increase in volume.
Actually, there are two main reasons for the upgrading of electronic products such as computers and mobile phones by users. First, due to active demand, product upgrades due to the need to use; second, passive upgrades due to the consumption environment. Promote, even if the current product is enough, also need a better product to keep up with consumption upgrades. Whether active or passive, under Moore’s Law, the demand and supply are often cause and effect.
Specific to the mobile phone replacement cycle, the main reason that can cause large-scale replacement, including design, technology and marketing. The emergence of smart phones has brought about a decade of semiconductor and IT industry dividends, this wave of dividends due to the extensive flattening of technology , Already basically exhausted. But in order to be able to continue to launch products to boost market sales, marketing tools have come to fruition. Domestic manufacturers are also relying on the introduction of small updates, such as full-screen non-breakthrough improvements to increase sales.
However, it cannot be overlooked that the growth of the entire mobile phone market is almost at an all-time high. To sum up the changes in the past, there are mainly the following waves. One is the upgrading from functional machines to the first generation of high-priced smart phones, mainly from the iPhone and Samsung. The second is the low-cost smart machine to expand the user base, the typical representative is Xiaomi, China Cooldown; the third is from the low-cost smart machine to 4G smart machine, large-screen smart machine upgrades, including OPPO, vivo, Huawei, Apple; Fourth, the current product homogenization period, because the products are the same, leading users to re-select cost-effective.
The first three waves are large-scale upgrades. The fourth wave is Xiaomi's 'rejuvenation.' Not so much Xiaomi's wave performance is the wise decision of Lei Jun's strategic adjustment. It is better to say that mobile phone innovation is weak and serious homogenization. Caused users to replace the phone had to consider the cost performance.
How to continue to grow?
In addition to the cost-effectiveness line, Xiaomi achieved good results in the first quarter and overseas markets contributed a lot of power. Overall, according to the prospectus, Xiaomi’s overseas market revenues in 2015, 2016, and 2017 were RMB 4.05 billion respectively. 9.15 billion yuan, 32.08 billion yuan, including 2017 overseas market revenue rose 250%.
In terms of mobile phones, Xiaomi’s official data is currently 31% of its share in the Indian market. Yanzhan Meng told reporters: 'Millet’s overseas sales of mobile phones accounted for about half, first of all, Xiaomi’s massive acquisition of parts and components at the supply chain level. Supply capacity, and also put a lot of goods to India and other countries. Millet in India, South East Asia, there is still much room for growth, and now India has a lot of users of the functional machine. Xiaomi also built a lot of millet home overseas, not only to sell in India Mobile phones, also sell smart hardware products. 'He therefore believes that millet's overseas markets, mobile phones and smart hardware will continue to grow; while China's mobile phone market growth is not obvious, but IOT smart home has increased.
As for the acceleration of Xiaomi, on May 3rd, Sun Yanji, dean of the first mobile phone industry research institute, mentioned that on the one hand, the market will begin to be in the 4G closing period in 2017, and the products will be homogenized on the 4G level. The users need a moderate price and moderate performance. Cost-effective products, while Xiaomi’s main product is the cost-effective brand. On the other hand, in the new retail, Xiaomi's home has expanded to Southeast Asia after it has achieved success in China. 'In India, for example, the home of millet and each state of India With the cooperation of the largest local retailer and fierce competition, OPPO and vivo also began to make strategic adjustments in the Indian market. Vivo began to arrange online channels, and OPPO chose ODM manufacturers to cooperate on low-end and mid-range products. According to my understanding, this machine is now Already done, mainly for the Indian market. '
According to many industry insiders, Xiaomi will continue to grow in overseas markets. On May 3rd, in an interview with a 21st Century Business Herald reporter, the old Chinese mobile phone company's secretary-general Lao Jie said: 'Millet has grown rapidly in the Indian market in the past two years. The Indian market is the fastest growing market in the world, and this trend will continue until the end of the year.
However, after entering overseas markets with a cost-effective, low-premium strategy, it is still difficult to obtain more stable profits and break the growth bottleneck in emerging markets. From the perspective of mobile phone profits, Counterpoint’s report stated that in the fourth quarter of 2017, Apple Accounted for 86% of the total mobile phone market profits.
In the eyes of Daddy, Xiaomi's smart hardware ecological chain and channels have formed their own style. In the future, Xiaomi will enter the overseas market in large quantities. However, in addition to India, how to break through in other countries is a problem that Xiaomi has to face. , In the e-commerce channel developed markets are doing well, such as India, but Vietnam, Indonesia, where e-commerce channel is not developed, is not very good. And OPPO did a good job in Indonesia, Chinese brands go overseas are first From the countries that they can adapt to, there will be bottlenecks in the expansion process. Therefore, for OPPO, vivo, Huawei, and Xiaomi, it is necessary to think about how the future will become an international brand rather than a regional brand. '
On the other hand, Xiaomi also expands its Internet service business beyond hardware. However, Daddy also pointed out that Xiaomi's hardware foundation is not stable enough. 'Now Xiaomi’s mobile phone business is still too large, and it is too dependent on mobile phones. The decline in the mobile phone business, which cannot match the growth of other services such as Internet services, will raise doubts among investors. This is also the biggest risk for challenging BAT in the future. Objectively, from the past 20 years of history, mobile phones have been seen every four to five years. There will be peaks and troughs, and millet needs to prove that the basic card is stable.
6. Nuggets in the 'Iron Triangle' model: game opportunities for investment in millet concept stocks;
Reporter Rao Shouchun, Beijing Report
On May 3rd, Xiaomi Group (hereafter referred to as Xiaomi) submitted a listing application to the Hong Kong Stock Exchange. This Internet company with operating profit of more than RMB 12.2 billion was considered to be probably the world's largest IPO this year. Will become the first batch of listed companies with different rights of the Hong Kong Stock Exchange.
The news of Xiaomi’s listing in Hong Kong also made it possible for the A-shares to get a share of it. According to the data from the Wind, among the 40 unlisted millet stocks of the A-shares, 33 were up, and the proportion of the stocks rose as high as 82.5%. Technology (18.950, 1.72, 9.98%) (002635.SZ) and other two daily limit.
On May 3rd, China Mobile’s China Union’s Secretary-General Daxuan told reporters in the 21st Century Business Herald that although Xiaomi’s listing could not change the pattern of domestic mobile phone manufacturers in the short term, its “Iron Triangle” business of 'hardware + internet service + new retail' Model, in the next decade or the profound impact on the Internet ecology.
At the same time, a number of brokerage analysts believe that although several listed companies have disclosed a cooperative relationship with Xiaomi, the number of companies with core business contacts is not large, both in the ecological chain and the supply chain, as reflected in the stock price. The change may not be too great.
Concept stocks rise
On May 3rd, after Anjie Technology opened in the morning, the stock price has been hovering on the flat line, and began to move higher around 10:15. At 2 o'clock in the afternoon, it has pulled straight and hit the daily limit, or an increase of 9.98% to close at 18.95 yuan/share.
The daily limit of Anjie Technology was considered to be closely related to the news of Xiaomi's listing in Hong Kong in the morning. At the beginning of March this year, Anjie Technology stated on the interactive platform that the company and Xiaomi are mainly in the small metal and large metal parts of smartphones, etc. The product has a cooperative relationship, and the company will grow with the rapid development of customers such as Xiaomi.
On the same day, Anjie Technology’s securities department told 21st Century Business Herald that the cooperation between the company and Xiaomi was mainly completed by its subsidiary Weibo Precision Technology Co., Ltd. ("Weibo Precision").
Weibo Precision was wholly acquired by Anjie Technology in 2017 with a total investment of RMB 3.4 billion. However, due to the lack of expected performance of the former, the latter made a provision of RMB 119 million for impairment of goodwill in the annual report of last year. From 2014 to 2016, Weibo Precision's sales revenue to the top five customers accounted for more than 90% of its operating income. The terminal products were mainly domestic brands such as OPPO, VIVO, Huawei, Xiaomi, and Lenovo.
In 2018, the cooperation between Weibo Precision and Xiaomi will further deepen, and the proportion of revenue will increase accordingly. Xiaomi is likely to become the largest customer of Weibo Precision.
Although not as high as the daily limit of Anjie Technology, Pulutong (17.950, 0.80, 4.66%) (002769.SZ), which is the main supplier of supply chain, also recorded a gain of 4.66%.
According to Su Baoliang, an analyst at Guojin Securities (8.970, 0.20, 2.28%), in 2014, Pulutong’s revenue from Xiaomi’s services accounted for 75.86% of the total revenue of service-related businesses. Xiaomi’s gross profit contributed to Puluotong accounted for all gross profit. The proportion is 45.75%. Because of this, the shift in the volume of Xiaomi's mobile phone shipments also has a significant impact on the performance of Puluotong.
In 2017, Xiaomi’s handset shipments rose by 123% against the trend, which resulted in a substantial increase in Pulutong’s service fee income. Financial data showed that Pu Lutong’s revenue grew by 49.67% year-on-year to RMB 5.381 billion.
In addition to the two companies mentioned above, stimulated by the news of Xiaomi's listing on May 3rd, among the other 38 related stocks in the same day's Wind Information, 31 stock prices rose, accounting for more than 80%. Among them, the stock price rose. There are 7 more than 5%, accounting for 17.5%.
In addition, at the performance level, of the 40 millet stocks, 37 achieved year-on-year growth in operating income last year, accounting for 92.5% of the total; the net profit attributable to shareholders of the parent company increased 26% year-on-year, accounting for 65% of the total.
True and false concept stocks
In fact, after the news that Xiaomi will be listed on the Hong Kong Stock Exchange on May 3, it will include Smart Power (26.400, 0.10, 0.38%) (300686.SZ), 263 (6.630, 0.15, 2.31%) ( 002467.SZ) A number of A-share listed companies responded to the problem of cooperation with their existence on the interactive platform.
But not all millet concept stocks are 'millet concept stocks'. Take Fentat Technology Inc. (9.410, 0.86, 10.06%) (002681.SZ) with a daily limit on the 3rd as an example. Before that, the outside world has been rumored that the company will build for Xiaomi. Produce a new speaker, and is expected to produce more than 700,000 units a year.
A person at Fenda Technology on the same day told reporters in the 21st Century Business Herald that the company had indeed cooperated with Xiaomi in 2014, and that the amount of product that the two sides cooperated at the time was quite large, but gradually escalated thereafter.
'There may be some misunderstandings from the outside, and now the company and Xiaomi have a small amount of cooperation, accounting for the proportion of company revenue is almost negligible.'
A strategic analyst of GF Securities (15.960, 0.32, 2.05%) believes that Xiaomi is a mobile phone manufacturer compared to the outside world. In recent years, it has invested to build three directions including smart hardware, internet services and new retail. The business model, the company that really owns the Xiaomi branding concept stock should also be based on this.
The aforementioned GF Securities strategist further explained that with the promotion of policies such as manufacturing powers, new retailing, and industrial strategic trends, the listing of Xiaomi will benefit the eco-chain end-product manufacturers the most, followed by the OEM companies with a large proportion of businesses. Finally, the supply chain component company.
From an investment point of view, in addition to the huge growth potential of Xiaomi itself, it is necessary to look for relevant investment opportunities along the three dimensions of millet ecosystem end-product companies, millet system OEMs and millet system core supply chain companies. Strategy analyst said.
According to incomplete statistics from the 21st Century Business Herald, in the Xiaomi Ecological Chain End Products Company, Kairun shares (77.150, 0.76, 0.99%) (300577.SZ) cooperated with it to create a '90-point travel box'. The B2C business has become the company's new growth pole. In addition to the above-mentioned Pulutong, there are also a number of A-shares such as Orpheus Technology (17.710, 0.39, 2.25%), Shenzhen Tianma, and BOE. The company; In addition to the core suppliers of home appliances, Xiaomi’s distribution of water purifiers, TVs, air purifiers and rice cookers, including Xinbao shares (9.720, -0.06, -0.61%) (002705.SZ), wheat Gemmet (38.800, 0.21, 0.54%) (002851.SZ) and other companies are also worthy of attention.
Mr. Lao said that Xiaomi’s IPO may hardly have a big impact on the domestic mobile phone market, but in the case of financing convenience, it also has an effect on Xiaomi’s internationalization. He also believes that Xiaomi’s IPO also heralds the upstream of the industry chain. Investment has only just begun.
'(Millet's listing) will have a profound impact on China's Internet landscape in the next decade, and will have an ecological impact on the Internet that will be greater than the impact of the hardware ecology.' Lao Yu said. (Editor: Yang Zhijin, For comments or suggestions, please contact: yangzj@21jingji .com) 21st Century Business Herald
7. See how AI mobile phones can build differentiated competitive advantages from glory 10;
Set Micronet reported on May 2 (Reporter Zhang Yiqun) In today's AI, it seems that it is difficult to escape from it in every area. The mobile phone industry will have an outlet every few years. Today's AI will be like a spring night, and the whole industry of AI in the mobile phone industry will show up. In front of the world.
Follow-up speculation does not contribute to product innovation and industry development. Recently, President Zhao Ming of Glory blew up the 'Follow-the-Fly' AI at the Global AI Leaders Summit of the 2018 Global Mobile Internet Conference (GMIC), thinking that it would cause interference to consumers and Cause confusion.
Zhao Ming stated that AI is a complete system composed of chips, algorithms, systems, etc. The construction of a real AI capability system, hardware, intelligent systems, and AI applications are indispensable. Only through the use of hardware from the bottom layer to the top layer and ecology The systemic innovation can create a subversive experience for consumers, thus establishing the 'moat' in the AI era. This is the key to establishing a differentiated competitive advantage in mobile phone products competition in the AI era.
The glory of the latest flagship product released last month was 10, which not only achieved two-minute online platform sales, total platform sales of more than 400 million yuan, and the same hot online sales. There were even a lot of foreign consumption in some physical stores. In addition to the AI chips on the glory 10, the rich and practical AI application is also an important factor attracting them.
Today, AI mobile phones are being highly regarded by consumers around the world. It is through the construction of the AI ecosystem from hardware to software that Glory Mobile has gradually established its leading position in the era of AI mobile phones.
Glory AI2.0: Breakthrough from Chip to Ecosystem
In a narrow sense, AI is actually an accelerator. It is an enabling unit that can significantly increase the speed of data processing. But this does not mean that AI is only defined from the software level. The hardware basis is to provide strong AI computing power. , is also the basis for all applications of mobile phone AI. The lack of support for AI computing will severely limit the imagination of developers and restrict the development of AI applications.
At the end of last year, Huawei integrated the artificial intelligence processing unit NPU for the first time in the mobile SoC. Its AI performance density was significantly better than that of the CPU and GPU. The HiAI heterogeneous mobile computing architecture was innovatively designed to greatly increase AI computing power. From the demonstration, The NPU's superior computing power can identify 2005 photos in one minute, which is 20 times faster than traditional CPUs.
This kind of empowerment brings a qualitative improvement to mobile applications. In glory of the newest product glory 10, it can realize more than 500 kinds of scene recognition, which is undoubtedly obvious compared to the previous general mobile phone products only supporting a dozen scene recognitions. Evolution. Based on this, features such as portraits, portraits, face recognition, AI Makeup, etc. are also coming. The support of the underlying hardware opens up a huge space for mobile applications.
In fact, from 2012 when Huawei established the '2012 laboratory', Glory began its exploration in the field of artificial intelligence. In December 2016, Glory released the industry's first AI mobile phone to explore the glory Magic, taking the lead in the AI field. .
In November 2017, Glory released the Glory V10. The powerful computing power provided by AI further enabled the camera and other functions.
If the release of the Glory V10 was at the level of the AI concept introduction, the introduction of the NPU opened the era of the AI mobile phone 1.0. In Glory 10, Glory began to focus on the AI2 from the underlying technical capability building to application experience and ecological construction. 0 era. Based on the powerful AI computing power provided by the NPU chip, AI application development presents an explosive growth trend. The consumer's mobile phone application is fully AI-based and brings users a richer application experience.
For example, based on the AI capabilities of Glory 10, Kingsoft Office WPS Office has developed an AI application that can complete angle correction in 2 seconds by glorying 6 different angles of PPT images captured on 10 cell phones. Can complete the transformation from pictures to PPT. This provides great convenience for mobile office.
The implementation process of this innovative application is WPS Office's computer vision-based AI capability built into Glory 10 to instantly perform calculations to accurately identify the image content in the photo, achieve a maximum 45-degree angle position correction and 9 times the image. Super resolution quality enhancement. Final completion of rapid conversion from picture to PPT.
It can be seen that this feature of WPS is easily honored by AI on Glory 10. This is because the mature capability interface of HUAWEI HiAI Eco has directly saved the time and cost for model training in the WPS Office team. , WPS Office access HUAWEI HiAI capability takes only 4 hours.
It is worth mentioning that these capability interfaces of HUAWEI HiAI Ecology have been open to ordinary developers. It includes graphic recognition, speech semantics, natural dialog decision-making, and state context awareness. Developers can use Huawei's computing power at any time. Detonation application. At the developer conference held in Hong Kong in March, Huawei also released HiKey 970, the world's leading artificial intelligence development platform. HiKey 970 will provide developers with powerful AI calculations, support for hardware acceleration, and strong performance. Open source development board to help build AI applications.
Glory 10: Advanced from ordinary users to experts
The AI established under the support of powerful hardware and ecological systems can be said to have something to offer. While providing users with a rich and colorful application experience, it also opens the era of smart life.
As Zhao Ming said, the future AI will become a coprocessor of the human brain. This will further shorten the gap between users and experts. The sense of enjoyment and satisfaction with mobile phone use experience will increase significantly.
Taking Glory 10 as an example, AI photography is the main breakthrough in innovation and brings new upgrades in the photography experience. Under the blessing of AI, each shot will be segmented according to the semantics of the captured image, and then the photos will be implemented. Partitioning, one beat and two, each time a beat will bring high-resolution photos based on 24 million pixels and artificial intelligence optimized photos based on AI 2.0 evolution. The whole process is like a good photographer from a creative one The composition of the blockbuster, lighting, shooting, to the end of the shooting, use Photoshop to optimize each scene in the photos of green leaves, blue sky, sunset, and portraits.
Thanks to the support of AI's powerful computing power, Glory 10's AI album can be classified by smart portrait, face recognition, and single/photo group collection. It can also be classified according to smart scene, image content recognition, birthday support, and party , Graduation, Night Outing, Sports, Weddings, Tourism and other scenes, automatically categorize, and also self-select photos and background music. AI smart search photos feature is also very powerful, and even the text in the screenshot can also be found.
In addition, the introduction of AI also allows smart phones to bring true smart life to the user. Glory AI 2.0 supports AI smart screen recognition function. With two-finger press, you can purchase goods immediately. AI travels smarter, more consumers Bring a new experience, support voice, guides, Raiders, location recommendation, covering 391 popular scenic spots. This experience will undoubtedly give users a good impression on mobile phones.