In the article, Lei Jun wrote in bold that he hopes that after 100 years, people will evaluate Xiaomi, not how much equipment they sold, and how much profit they have earned. Rather, we have changed people's lives and explored and practiced the end of business, that is, making friends with users and achieving the greatest degree of unification between business value and user value.
Finally, I shared several data. Xiaomi's revenue in 2017 was 114.6 billion yuan, a year-on-year increase of 67.5%. In the first quarter of 2018, revenue increased by 85.7% year-on-year, of which Internet service revenue accounted for 8.6%, reaching 9.9 billion yuan.
Xiaomi IPO has an issue price of HK$17, with a valuation of US$54.3 billion. It ranks among the top three IPOs of global technology stocks in history, and is the first “individual shareholding power” innovation pilot in Hong Kong's capital market.
The following is the full text of Lei Jun’s open letter:
Tomorrow will be an exciting day. After eight years of hard work, we have to be listed on the main board of Hong Kong.
Since its establishment, Xiaomi’s journey is a miracle supported by courage and trust. Looking back on the past, eight years of ups and downs are vividly in sight.
On April 6, 2010, in a small office in Zhongguancun Yingu Building, a small company called Xiaomi quietly opened. I still vaguely remembered that there were only 13 employees, except me and Lin Bin. In addition to the four co-founders of Ali and KK, there are nine founding team members, Fan Dian, Liu Xinyu, Wang Haizhou, Li Ming, Qu Heng, Qin Zhifan, Li Weixing, Sun Peng and Guan Yingzhi. Still active in all important positions of Xiaomi.
On that day, we drank a bowl of millet porridge and started to dry. No one expected that this insignificant small company has since achieved an epic glory.
On June 23, Xiaomi held a global press conference in Hong Kong.
"When you know that there is a tiger in the mountains, you are inclined to go to Hushan." We will enter the mobile phone industry as soon as we come up. This is the most competitive industry in the world. For start-ups, it is undoubtedly a challenge to “hell difficulty”. There are Apple and Samsung in the world.HuaweiAnd Lenovo, each one is a distant monster.
Xiaomi, such a small company of more than 10 people, had no experience in the hardware industry at the beginning, and with less courage and great innovation, it took less than three years to unexpectedly achieve China's first. 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; China’s smart phones and smart hardware are getting better and better, prices are getting cheaper, and it is rising globally; The emphasis on experience is deeply rooted in the hearts of the people; the rapid spread of mobile Internet applications has deeply penetrated our daily lives.
Xiaomi has also become the world's fourth-largest smartphone manufacturer. It has changed more than 100 industries through eco-chain products, and has promoted the improvement of business efficiency. It has entered 74 countries and regions around the world and 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 won more than a dozen first, in many areas once again proved the advanced nature of the "millet mode".
The numbers show everything: in 2017, we earned 114.6 billion yuan, and in 7 years we crossed the threshold of 100 billion yuan. In 2017, revenue increased by 67.5% year-on-year, and the year-on-year growth in the first quarter of this year was as high as 85.7%. Our e-commerce and new retail platforms accounted for 63.7% of revenue.
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 demonstrates the business capabilities of our Internet, and we can convert the traffic generated by 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.
The IPO price of Xiaomi is 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. Moreover, it is the first pilot project in Hong Kong's capital market to “individually share different rights”. This is a great success for all Xiaomi people!
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 the IPO, everyone will receive a blessing from the capital market.
Huge success also belongs to investors who trust Xiaomi and support Xiaomi along the way. 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 that they think that the biggest value of Xiaomi is not how much equipment is sold and how much profit is earned. Rather, we have changed people's lives and explored the end of business practice – making friends with users and maximizing the unity of business value and user value, proving the courage to persevere in innovation, perseverance, and down-to-earth. Kindness can be successful.
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 stock, including Li Ka-shing, Ma Yun, Ma Huateng and other industry leaders. This is a great management of 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 users, and always insist on making good products that are touching and fair in price, and 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 committed to building a respected Chinese brand around the world.
Third, the listing is only 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, and 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.
Xiaomi listed roadshow team in New York
Our executive team has been repeatedly measured and believes that we still have unlimited room for growth in the future.
First of all, our smartphone business ranks fourth in the world, and smartphones only see stocks as a huge market. We must strive to ensure sustained high-speed growth and strive to rush into the world's top three as soon as possible;
Secondly, we will have a planned and rhythmic expansion of the category, and there are many hundreds of billions of markets waiting for us to fight and continue to move from victory to greater victory;
Third, the vast sky of the international market is promising. In the first quarter, Xiaomi’s international business accounted for 36% of total revenue. We must further promote internationalization, and realize the international business income as early as half of the total income. Only these 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 e-commerce, hardware and Internet services. Our ambitions don't stop there. We came into being in the new era and want to promote the advancement of the times.
At this moment, I am very excited. The echo in my heart is a slogan of Xiaomi a few years ago:
"Our name is young. On the road of chasing dreams, we are constantly 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!
2018.07.08 Hong Kong