On the morning of July 8, Xiaomi will be officially listed on the Hong Kong Stock Exchange on July 9. Xiaomi founder, chairman and CEO Lei Jun today issued an open letter saying that listing is the beginning of Xiaomi's new.
Lei Jun said that more than 100,000 investors actively participated in the subscription of Xiaomi's stocks, including Li Ka-shing, Ma Yun, Ma Huateng and other industry leaders. This is a great trust and trust for Xiaomi's management and employees. We can only continue to struggle. This trust.
The following is the full text of Lei Jun’s open letter:
Xiaomi classmates,
Tomorrow will be an exciting day. After eight years of hard work, we will be listed on the main board of Hong Kong.
Since its establishment, Xiaomi’s journey has been supported by courage and trust. In retrospect, eight years of ups and downs have been vividly witnessed. On April 6, 2010, a small office in Zhongguancun Yingu Building, a family called Xiaomi The small company quietly opened, and I have vaguely remembered it until now, there were only 13 employees, except for me, Lin Bin, Ali and KK, four co-founders, and Fan Dian, Liu Xinyu, Wang Haizhou, Li Ming, Qu Heng, Qin Zhifan, Li Weixing, Sun Peng and Guan Yingzhi are the nine founding team members. Their 9 students are still active in all important positions of Xiaomi today. On that day, we drank a bowl of millet porridge. It’s done. No one thought of this insignificant small company, and since then it has achieved an epic glory.
On June 23, Xiaomi held a global press conference in Hong Kong, 'Mingzhishan has a tiger, and prefers Hushanxing'. We will enter the mobile phone industry as soon as we come up. This is the most competitive industry in the world. For startups, it is undoubtedly Challenge 'Hell difficulty', there are Apple and Samsung in the world, Huawei and Lenovo in the country, each one is a distant giant. Xiaomi, such a small company of more than 10 people, no hardware industry experience at first, all fearless The courage and great innovation took less than three years, and it was unexpectedly the first in China. After only three and a half years, it became the first in India.
In the past eight years, the pigs in the typhoon have been used, and we have been ups and downs. We have also experienced... Numerous facts have proved that we are a team of heroes who dare to fight, indomitable, and constantly create miracles!
In the past eight years, with our participation and promotion, China’s cottage has been completely eliminated; Chinese smartphones, smart hardware are getting better and better, prices are getting cheaper, and they are rising globally; The emphasis on experience is deeply rooted in people's hearts; the rapid spread of mobile Internet applications has deeply penetrated our daily life. Xiaomi has also become the world's fourth largest smartphone manufacturer, changing more than 100 industries through eco-chain products, and fully promoting business efficiency. Upgraded to 74 countries and regions around the world, built the world's largest consumer Internet of Things platform. Not only mobile phones, Xiaomi TV has also won China's first, Xiaomi bracelet, mobile power, balance car, etc. also seized ten Many first, in many fields, proved the advanced nature of the 'millet mode' again and again.
The numbers show everything: In 2017, we earned 114.6 billion yuan. In 7 years, we crossed the threshold of 100 billion yuan. In 2017, revenue increased by 67.5% year-on-year. In the first quarter of this year, the growth rate was 85.7%. Our e-commerce and The revenue contributed by the new retail platform accounted for 63.7%. In addition, Internet service revenue accounted for 8.6%, and reached an astonishing scale of 9.9 billion yuan. This year's Q1 Internet service revenue ratio increased to 9.4%. This fully proves our Internet. Our business capabilities, we can convert the flow of hardware and e-commerce into revenue and profit.
Tomorrow, Xiaomi will be listed. At this moment, I am as excited as every Xiaomi employee!
First, the recent ups and downs of the capital market, the successful listing of Xiaomi means great success.
Xiaomi IPO has an issue price of HK$17, with a valuation of US$54.3 billion. It has become one of the top three IPOs in the history of global technology stocks. It is also the first pilot of the 'shares of different rights' in Hong Kong's capital market. This belongs to all millet people. Great success!
After eight years of hard work, all Xiaomi entrepreneurs will win the fruits of struggle! As of today, we have more than 7,000 employees holding stocks or options. After IPO, everyone will receive the blessing from the capital market.
Huge success also belongs to trusting Xiaomi along the way, supporting Xiaomi's investors. For example, the earliest VC, the first $5 million investment, today's return is as high as 866 times!
I believe that Xiaomi's entrepreneurial story will inspire and inspire more entrepreneurs! If people evaluate Xiaomi 100 years later, I hope they think that the biggest value of Xiaomi is not how much equipment is sold, how much profit is earned. But we change People's life, exploring and practicing the final form of business - making friends with users, achieving the greatest degree of unification of business value and user value, proves the courage of innovation, perseverance, hard work, and solidity can succeed .
Second, listing also means huge challenges and heavy responsibilities.
At the critical moment of the Sino-US trade war, the international capital market has changed dramatically. More than 100,000 investors have actively participated in the subscription of Xiaomi's stocks, including Li Ka-shing, Ma Yun, Ma Huateng and other industry leaders. This is a great deal for Xiaomi's management and employees. Trust and trust. We can only repay this trust if we continue to struggle.
In the future, we will always insist on making friends with our customers. We will always insist on being a good product with a strong price and a good price. We will always insist on innovation and quality. Innovation determines how high we can fly, and quality determines how far we go. Quality is always our lifeline. We will be determined to build a respected Chinese brand around the world.
3. Listing is just the beginning of Xiaomi's new.
The world will silently reward people who are diligent and kind. Tomorrow, Xiaomi will be listed soon, which is part of our reward. But this is just the beginning, listing has never been our goal. We are not fighting for listing, we are listed for better struggle. Successful listing is only a summary of the first chapter of the Xiaomi story, and the second chapter is more gorgeous.
Our executive team has been repeatedly measured and believes that we still have unlimited room for growth in the future. First, our smartphone business ranks fourth in the world, and smartphones only look at stocks is a huge market. We must strive to ensure continuity. The rapid growth, and strive to rush into the world's top three as soon as possible; Second, we will have plans, rhythmically expand the category, there are many hundreds of billions of markets waiting for us to hit the past, continue to move from victory to greater Victory; Third, the international market is promising. In the first quarter, Xiaomi’s international business accounted for 36% of the total revenue. We must further promote internationalization, and achieve international business income as much as half of the total income as early as possible. 3. The three strategies guarantee the future growth of Xiaomi.
Great companies are always born in a great era, and new species always resonate with the new era. Today's China has entered the golden age of entrepreneurs, and has produced a number of new economic companies that lead the world. As a new Internet species, Xiaomi is fortunate. In such soil and environment, it has become a versatile company with rare global, e-commerce, hardware and Internet services. Our ambitions are not limited to this. We came into being in a new era and wanted more. Hands-on advancement of the times.
At this moment, I am very excited. In my heart, there is a slogan from Xiaomi a few years ago:
'Our name is young. On the way to chase dreams, we keep moving forward, fearless, to explore, to change, to fight, to let the world see what we look like, our time is coming!'
I love Xiaomi, I am proud of Xiaomi!
I love you, Xiaomi classmates, I am proud of you!
Tomorrow, let us witness the great moment!
Lei Jun
2018.07.08 Hong Kong