Xiaomi’s listing in Hong Kong has deconstructed the environment over and over again, and Xiaomi’s ecological chain, which Xiaomi started investing in 2013, has also become a point of concern. Xiaomi mentioned in the prospectus as of March 31, 2018. Xiaomi invests or incubates more than 210 companies, including 90 companies focused on the development of smart hardware and consumer products to strengthen the Xiaomi ecosystem.
In last year's Xiaomi Eco-Chain Notes, published by the Rice Barn Academy, the metaphor of Xiaomi’s metaphor and the relationship of ecological chain companies: “Xiaomi conveyed various nutrients to ecological chain companies through the root system developed by the bamboo forest. The bamboo in the bamboo forest is intertwined with underground roots.
IResearch's statistics based on shipments in 2017 pointed out that millet mobile power, air purifiers, electric scooter, and smart wearable devices in mainland China are the companies that Xiaomi invests in. Most of these millet's ecological chain companies invest in Named after a certain m, which is represented by purple rice, Zhimi, Huami, Yunmi, etc.
In fact, as long as you visit the official millet store of Xiaomi, you can find that the products around Xiaomi Company and Xiaomi Ecological Chain Co., Ltd. have extended to many fields. Xiaomi Mall ranks second only to Taobao Tmall and Jingdong in the domestic e-commerce platform.
However, in the huge product library, Lei Jun mentioned on more than one occasion that the proprietary products belonging to the Xiaomi brand are only mobile phones, tablets, notebooks, TVs, and routers. The majority of products sold by Xiaomi Mall come from Millet ecological chain of business.
Among them, Huami Technology officially landed on the New York Stock Exchange in February this year and became the first company in the eco-chain company in the United States to list in the United States. Lei Jun congratulated through Weibo: 'Wami Technology's listing in the United States is a huge ecosystem model for Xiaomi. Victory. 'After a word, it shows the current attitude of Xiaomi to ecological chain enterprises.
According to external analysis, the huge ecological chain seems to help Xiaomi uplift its valuation, but there is a delicate relationship between the ecological chain and Xiaomi.
One step away from '5 years 100'
In this prospectus, Xiaomi disclosed for the first time the link with the Xiaomi ecological chain company.
For the purpose of raising funds, Xiaomi said that 30% of the raised funds are used for R&D and development of core products, 30% for investment to expand and strengthen the ecological chain such as IoT and consumer products and mobile Internet services, and 30% for global expansion. 10 % for working capital and general company use.
In 2013, Xiaomi launched the eco-chain plan, set a goal of investing in 100 ecological chain companies in five years, and laid out the Internet of Things represented by smart hardware and home appliance products, trying to find another pole beyond the growth of the mobile phone business. As of March 31, 2018, Xiaomi has invested or incubated more than 210 companies, including more than 90 ecosystem companies focused on the development of smart hardware and consumer products. It is only one step from Xiaomi's goal of '5 years and 100'. Away.
However, Xiaomi Investment Eco-Chain Company is mainly based on a small proportion of strategic investment forms, and there are very few cases in which the stake exceeds 30%.
Earlier, relevant stakeholders of Xiaomi's ecological chain once told Time Finance that 'Our investment in ecological chain companies mainly insists on investing in non-controlling ways'. For these companies, Xiaomi will pass professional experience in brand, capital, supply chain, product design and management. And online and offline retail networks provide support.
On July 11, 2017, at the Alibaba.com Internet Business Conference in Hangzhou, Lei Jun first proposed Xiaomi's new map of 'Triathlon', from the original 'hardware, software, Internet service integration' model to 'IOT hardware, new. Retail channels, Internet services', ecological chain businesses and products are grouped into IOT hardware and products.
In the industry's view, the halo of eco-chain companies such as cross-border products, new retail, etc. will play a key role in raising the valuation of Xiaomi Group. E-commerce observer Lu Zhenwang believes that millet mobile phones, TVs and other supporting hardware systems, Xiaomi Mall , Millet House, Mi Jia Youpin carries the new retail platform, MIUI, mutual entertainment, cloud services, finance and other services to build an ecological chain of Internet services.
Wang Yanhui, secretary-general of the China Mobile Alliance, said that Xiaomi’s new business model of “Triathlon” has a profound impact on China’s Internet landscape in the next decade and will have a greater impact on the Internet than the hardware ecology.
Limited contribution to ecological chain performance
On the day of the publication of the prospectus, Lei Jun also published an open letter in his personal account. He mentioned again in the letter that Xiaomi is not a pure hardware company, but an innovation-driven Internet company.
Although Lei Jun has repeatedly emphasized this, the data shows that in 2017, the proportion of Xiaomi’s smartphones, IoT and consumer products, Internet services, and other revenues were 70.3%, 20.5%, 8.6%, and 0.6%, respectively, from the revenue structure. Look, millet still relies heavily on the mobile phone business.
According to the data, at present, Xiaomi has 55 eco-chain companies that have released products, and more than 40 products are being researched and developed. The four Xiaomi eco-chain companies including Zimei, Huami, Zhimi, and Nunnbo reached a unicorn. The company's standard, valuation of more than one billion US dollars, which Huami Technology was listed on the US New York Stock Exchange in February this year.
According to the contents of the prospectus, Xiaomi also mentioned part of the cooperation with Zhimi Science and Technology, from which it can be seen how Xiaomi cooperates with ecological chain enterprises.
Chimi Technology, one of the unicorns, sells rice air purifiers, Xiaomi smart inverter air conditioners, Zhimi DC floor fans, Zhimi humidifiers and other products, millet eco-chain endorsements, Zhimi. 90% of its product shipments are almost exclusively from Xiaomi's channels.
The price of the products produced by Xiaomi and Zhimi co-production is determined on a cost-plus basis, and the profit rate must not exceed 2%. At the same time, Xiaomi will share profits with Zhimi, and in 2015, 2016, and 2017, Xiaomi will share with Zhimi Technology. Total profit was 481 million yuan, 10.27 billion yuan and 1.931 billion yuan, respectively.
However, some accountants in the accounting industry told Era Finance that revenue sharing between Xiaomi and eco-chain companies is mainly reflected in the business of 'IoT and consumer products', but this business still dominates Xiaomi's own TV, routers, notebooks and other products. The entire 'IOT and consumer products' accounted for only 20.5% of revenue, just over 20 billion yuan. Xiaomi hopes that ecological chain companies will increase their IPO valuations will be limited.
Although Xiaomi insists on holding shares but does not control any ecological chain companies, Liu Dezeng, the founder of Xiaomi and the head of the ecological chain, stated in the interview that he will not rule out the use of ecological chain companies to stabilize the solid system. Are very good assets'.
However, starting from the listing of Huami Technology in the United States, there has been a continuous increase in the number of eco-chain companies wishing to be independent or increase their own brands. Huai Huang, a CEO of Huami, stated in the company’s listing that “A startup company still has to rely on itself. The complete capabilities in all fields have the basis for future development.
Huami’s listing reflects the complex mentality of many millet ecological chain companies that rely on Xiao Mi’s dependence and dissociation, whether it is under its control, or is it allowed to develop independently? This is after the explosive growth of the ecological chain over the past five years, Xiaomi has begun to face The problem.