iMobile Mobile Home May 3rd News This morning, Xiaomi officially submitted a listing application to the Hong Kong Stock Exchange and will become Hong Kong's first 'share of the same company'.
The prospectus shows that Xiaomi’s 2017 revenue was RMB 114.6 billion, of which smart phone sales accounted for 70.3%, while CITIC CLSA, Goldman Sachs, and Morgan Stanley were joint global coordinators, joint bookrunners and joint lead managers. .
An open letter from Lei Jun was attached to the prospectus. The following is the full text of the open 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 a mobile phone, smart hardware, and IoT platform as its core. Our mission is to always adhere to the "moving, hearty, and cost-effective" 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. We have been continuously pursuing the ultimate product and efficiency and have succeeded in creating a long-standing 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, and are inseparably integrated. They are far beyond the ultimate product users expect. They can also do 'price kindness' before they can truly 'move people'. Innovative technology and top design are Pursuing the pursuit of millet genes, our engineers are obsessed with exploring techniques and products that have never been attempted by the predecessors. They are repetitively sculpted in every detail, and every product determined to come out is far beyond user expectations. We believe in breaking the old rules. The courage and the belief in excellence are the key to winning and enjoying.
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... The spirit of innovation in Xiaomi flourishes and permeates every corner, and drives us to accelerate the pace of 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. The appearance of a series of industries such as smart phones and smart devices in China has 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.
# The fire was reborn and the millet business model was fully validated
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 a necessary cultivation 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 capabilities 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 revenue 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.
# Always insist that the comprehensive net rate of hardware does not exceed 5%
When Xiaomi was founded, we had 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 hard to understand why the efficiency of production and distribution cannot be improved in the long term. Why do the huge losses in the middle of commercial operations require users to pay? Why are all 'cost down' efforts only carried out at that 10% production cost? And never running to 90% of the useless loss, the transaction cost is open?
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, only sold for $ 300 - when the mainstream 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. As Xiaomi is on the way, we have been thinking: Since ancient times, 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 to the channel layers of increase, real materials, pricing and after all, 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 measure that is reluctant to 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 prospect.
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 It is proved that the millet model has the universality of rapid replication in the world.
Establishing an open globalization of globalization will provide millet with more opportunities for long-term development, wider boundaries and a more stable foundation. The era of big data, artificial intelligence is in sight. We believe that we have a large number of unique consumer and behavioral actions generated by our global ecosystem. The data, which can make us more sensitive and accurate to gain insight into the needs of users, has won tremendous advantages for us 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/her 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
iMobile Mobile Home May 3rd News This morning, Xiaomi officially submitted a listing application to the Hong Kong Stock Exchange and will become Hong Kong's first 'share of the same company'.
The prospectus shows that Xiaomi’s 2017 revenue was RMB 114.6 billion, of which smart phone sales accounted for 70.3%, while CITIC CLSA, Goldman Sachs, and Morgan Stanley were joint global coordinators, joint bookrunners and joint lead managers. .
An open letter from Lei Jun was attached to the prospectus. The following is the full text of the open 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 a mobile phone, smart hardware, and IoT platform as its core. Our mission is to always adhere to the "moving, hearty, and cost-effective" 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. We have been continuously pursuing the ultimate product and efficiency and have succeeded in creating a long-standing 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, and are inseparably integrated. They are far beyond the ultimate product users expect. They can also do 'price kindness' before they can truly 'move people'. Innovative technology and top design are Pursuing the pursuit of millet genes, our engineers are obsessed with exploring techniques and products that have never been attempted by the predecessors. They are repetitively sculpted in every detail, and every product determined to come out is far beyond user expectations. We believe in breaking the old rules. The courage and the belief in excellence are the key to winning and enjoying.
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... The spirit of innovation in Xiaomi flourishes and permeates every corner, and drives us to accelerate the pace of 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. The appearance of a series of industries such as smart phones and smart devices in China has 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.
# The fire was reborn and the millet business model was fully validated
As a young Internet company, Xiaomi’s development is not easy. In 2016, our market share has been declining. We are clearly aware that there are many unfounded foundations behind the rapid development of earlier years, so we take 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 no mobile phone company that can successfully reverse after the sales decline.
After the rebirth of the fire, Xiaomi experienced a necessary cultivation 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 capabilities 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 revenue 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.
# Always insist that the comprehensive net rate of hardware does not exceed 5%
When Xiaomi was founded, we had 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 hard to understand why the efficiency of production and distribution cannot be improved in the long term. Why do the huge losses in the middle of commercial operations require users to pay? Why are all 'cost down' efforts only carried out at that 10% production cost? And never running to 90% of the useless loss, the transaction cost is open?
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, only sold for $ 300 - when the mainstream 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. As Xiaomi is on the way, we have been thinking: Since ancient times, 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 to the channel layers of increase, real materials, pricing and after all, 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 measure that is reluctant to 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 prospect.
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 It is proved that the millet model has the universality of rapid replication in the world.
Establishing an open globalization of globalization will provide millet with more opportunities for long-term development, wider boundaries and a more stable foundation. The era of big data, artificial intelligence is in sight. We believe that we have a large number of unique consumer and behavioral actions generated by our global ecosystem. The data, which can make us more sensitive and accurate to gain insight into the needs of users, has won tremendous advantages for us 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/her 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
