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May News on the 3rd, this morning, the Hong Kong Exchange website published the prospectus of Xiaomi Group, and Lei Jun published an open letter in the prospectus. He said that Xiaomi has the courage and determination to promote a profound business efficiency revolution. “Great companies make good things cheaper and cheaper, put every energy into making good products, and let users spend every moment of their income.” Every penny is worth every penny.” Lei Jun also said that Xiaomi is not a simple hardware company, but an innovation-driven Internet company; it will always maintain a comprehensive net profit margin of hardware not exceeding 5%; Xiaomi’s journey is a sea of stars.
Attached: Full text of the public letter
Public letter from the chairman
Hello! Thank you for your concern and support for Xiaomi. When you open this document, you will see not only a prosperous and prosperous Liberia Sugar company; A copy of Courage and LR Escorts A new trade blueprint supported by trust.
Here, I would like to explain to you who Xiaomi is and what Xiaomi is fighting for.
Xiaomi It is not a simple hardware company, but an innovation-driven Internet company
Specifically, Xiaomi is an Internet company with mobile phones, smart hardware and IoT platforms as its core. Our mission is to always insist on being “exciting.” , good products at affordable prices, so that everyone in the world can enjoy the wonderful life brought by technology.
Every day for 8 years, the vision of “making friends with users and becoming the coolest company in users’ minds” They all drive us to innovate hard, constantly pursue the ultimate products and services, and achieve a Xiaomi that continues to create and create miracles of developmentLiberia SugarLiberia Sugar a>.
When we founded Xiaomi in April 2010, my partners and I had a simple idea: to make a smartphone that we like and feel cool enough. , 6 of them are engineers, and the other 2 are designers. Liberia Sugar Daddy are all “enthusiasts” who are enthusiastic about consuming electronic equipment.
The eight words “exciting and affordable” are two sides of the same, inseparable whole. The ultimate product that far exceeds user expectations can only be truly “exciting” if it can also be “affordable”. Cutting-edge technology and top design are pursuits in Xiaomi’s genes. Our engineers are obsessed with exploring technologies and products that have never been tried by future generations. They work hard on every detail and are determined to produce every product that is far superior to others. User expectations. We believe that the courage to break conventions and the confidence to continuously improve are the keys to our ability to continue to win the appreciation and support of users. Not just technology, we value the culture of bold innovation from the forefront of mobile phone technology, screens and chips. Exploration, from “triathlonLiberia Sugar Daddy” business model, to the company cluster through the “ecological chain”; from the “user-involved Internet development model” to Xiaomi’s efficient new online and offline integration The spirit of wholesale innovation flourishes in Xiaomi and penetrates into every corner, driving us to continue toLiberia Sugar Daddy‘s fast-exploring program.
Currently, we are the fourth largest smartphone manufacturer in the world and have invented many smart hardware products, many of which rank first in sales in many categories. We have also built Liberians Sugardaddy 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 doubly proud is not these numbers, but the face of a series of industries such as China’s smartphones and smart devices that have completely changed due to our presence.
We have promoted the rapid popularization and quality improvement of smartphones in China, which has laid a solid foundation for the rapid explosion of China’s changing Internet. The vigorous development of mobile location payment, e-commerce, social networking, short video and other industries in China all depend on the influx of hundreds of millions of people into the mobile location Internet. In China, the world’s largest market, we are also recognized as having made a lot of contributions behind the rapid development and maturity of the changing Internet industry.
A good company makes profits, and an outstanding company wins people’s hearts. What makes us even more proud is that we are a rare high-tech company with a “fan civilization”. The passionate users known as “Mi Fans” are not only spread all over the world and have a huge number, but they are also very loyal to our brand and actively participate in the development and improvement of our products.
Reborn from the ashes, Xiaomi’s business model has been fully verified
As a young Internet company, Xiaomi’s development has not been smooth. In 201Liberia Sugar Daddy, our market share has declined. We are soberly aware that there are still many fundamentals that have not been solidified behind the rapid development in the past few years, so we actively accelerate and make up for the lessons. In 2017, Xiaomi successfully completed the three major make-up tasks of “innovation + tool quality + delivery” and quickly returned to the forefront of the world.
As far as we know, apart from Xiaomi, no mobile phone company has been able to successfully reverse the decline in sales.
Resurrecting from the ashes, Xiaomi’s experience has demonstrated the necessary training for a company that can develop steadily over the long term. Our management is more orderly, our talent reserves are more abundant, our technology accumulation is deeper, and our supply chain capabilities and production capacity management capabilities are stronger.
More importantly, our business model has been tested by events and has been fully verified.
Xiaomi is not a simple hardware company, but an innovation-driven Internet company. Although hardware is our mainusers import, but we do not expect it to become an important source of our profits. We desigLiberia Sugarn products with high quality, outstanding performance and qualityLR Escorts closely follows the cost of hardware pricing and delivers it directly to users through efficient online and offline new wholesale channels of its own or direct supply, and then continues to provide users with rich iLR Escortsnternet services.
This is our original “triathlon” business model: hardware + new retail + internet services. Xiaomi’s achievements so far illustrate the strong vitality of this model. In just 7 years since we started our business, our annual revenue has exceeded RMB 100 billion. This growth rate is beyond the reach of many traditional companies.
The improvement in efficiency comes from operating costs Liberia Sugar, especially the huge reduction in transaction costs when delivering products to users. . Xiaomijit’s business model enables products to be both good and cheap, creating a foundation for user trust. Liberia Sugar Daddy
Always keep the comprehensive net profit rate of hardware not exceeding 5%
When Xiaomi was founded, we had A grand fantasy: to transform widespread inefficiencies in the trading world.
A shirt costing US$15 can be sold for US$150 in a Chinese store, with a fixed multiple of an astonishing 10 times. A pair of shoes costs 5 to 10 times, a tie costs more than 20 times, and there are countless examples.
But I have always struggled to understand why the effectiveness of childbirth and circulation has not been improved for a long time Liberians Sugardaddy? Why should users pay for the huge costs at the core of business operations? Why do all the “cost down” efforts only focus on the 10% of childbirth costs, but never the 90% of operating and transaction costs that are wasted unnecessarily?
Xiaomi has the courage and determination to promote a profound revolution in business efficiency. At the beginning of 2011, when Xiaomi held its first annual meeting, I told the more than 100 employees and their families present in the company that we would make a smartphone with the best performance and experience for only 300 yuan. US dollars – At that time, mainstream smartphones were generally sold for more than 600 US dollars.
Great companies are making good things cheaper and cheaper, devoting every energy to making good products, so that every penny spent by users is worthwhile.
Users are the focus of all our business operations. On the road to Xiaomi’s progress, we have been thinking: From ancient times to the present, the business world has changed a lot. Apart from the various topics of business models, what has remained unchanged?
Users’ expectations for “exciting and affordable” products are Xiaomi’s answer.
Many of our users say that they can “buy with eyes closed” with peace of mind after entering Xiaomi Home or logging into Xiaomi Mall, because the quality and price must be the best. This is our greatest affirmation and our ultimate pursuit.
Without the trust of users, there will be no efficiency we seek. Users’ trust is the cornerstone of Xiaomi’s model. Efficacy is the soul of Xiaomi model. If we continue to win the trust of our users, any of our business will be successful. A company that truly achieves world-class efficiency will have the ability to transcend economic cycles, continue to seize new opportunities emerging in the industry, and maintain excellent operating performance over the long term.
“Exciting and affordable” is not nonsense. These eight words are our values and spiritual creed. Here, I want to make a promise to all existing and potential users: starting from 2018, Xiaomi’s annual comprehensive net profit rate for its entire hardware business will not exceed 5%. If there is anything beyond the department, we will give it back to the users.
Because we have always believed that pursuing product experience is more promising than pursuing one-time hardware sales profits; compared with increasing prices through channels, genuine materials and aggressive pricing are ultimately more popular.
We have always believed that our belief – that people consume goods and should take the initiative to control reasonable profits – Liberia Sugar will become unstoppable With the tide of the times, any move that is greedy for high gross profits will lead to a road of no return.
Therefore, I would like to clarify to you that we will pay more attention to the protection of long-term user value. Xiaomi’s commercial value and your investment value do not and only originate from the continuous expansion of user value.
The comprehensive net profit margin of hardware never exceeds 5%, which is proof of Xiaomi’s efficiency. We know that it will take time for Xiaomi’s philosophy to finally become the consensus of society, but time will be Xiaomi’s friend. Our tenacious persistence, continuous investment, and resolute execution will eventually lead to the realization of our ideals.
To build a global open ecosystem, our journey is a sea of stars
Today, Xiaomi has reached a historically important node. Looking to the future, the global business ecosystem established by Xiaomi has extremely imaginative and long-term prospects.
What Xiaomi wants to build is by no means a closed trade empire. Xiaomi is not only an innovative technology company, but also a creator and promoter of lifestyles in the digital age. Let everyone in the world enjoy the wonderful life brought by technology. To achieve this goal, XiaomiIt is far from enough, and 100 or more “Xiaomi” companies are needed to build a rich and prosperous new business ecology.
“Virtue cannot be isolated, but there must be neighbors.” Through the unique “ecological chain model”, Xiaomi has invested and attracted more like-minded entrepreneurs to build mobile phone accessories, smart hardware, and consumer products around the mobile phone business. Three-layer product matrix. At present, Xiaomi has invested in more than 90 ecological chain companies, changing hundreds of industries. In the future, this Liberia SugarThe numbers will be even bigger.
Such changes are not only happening in China. Take the smartphone business as an example. Among the more than 70 countries and regions that we have entered in the world, we have ranked first in market share in India and ranked first in 15 countries. We are and will continue to prove that the Xiaomi model is universal and can be quickly replicated around the world.
Establishing a global and open ecosystem will give Xiaomi more opportunities for long-term growth, a wider gap, and a more solid foundation. The era of big data and artificial intelligence is just around the corner. We believe in Liberians Escort the large amount of unique data generated by our global ecological platform. It allows us to gain a more sensitive and accurate insight into user needs and gain huge advantages for us in the future.
Xiaomi is a company led by engineers. The dream of engineers is to continue to explore advanced technologies and benefit as many users as possible. It is our vision to be the coolest company in the minds of users. We firmly believe that the benefits brought about by technological innovation and progress should be easily shared by the public. The essence of the Internet spirit is transparency, efficiency, equality and universal benefit.
The greatest equality is the equality of daily life experience: let everyone, no matter what color he/she is or what belief he/she has Liberians Sugardaddy, no matter where they come from or what their education is, they can easily enjoy the wonderful life brought by technology. This is the goal that all Xiaomi employees and I continue to work for day and night.
Thank you for following Xiaomi and joining us in the glorious cause of creating a new paradigm of business efficiency and using technology to improve human life. Let business be honest, let technology be warm, let people be happy, our journey is a sea of stars, and we have just taken the first step. We have changed the lives of hundreds of millions of people, and we will become a global leader in the future. A fewLiberia SugarDaddyPart of the lives of a billion people.
The fate of mean people will not be too bad. Please join us and always believe that wonderful things are about to happen.
Lei Jun
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