You have to gamble hundreds of billions. Lei Jun choked: Building a car is the last battle of my career.

"We can do it if we want to." -Xiaomi CEO &；; Lei Jun, CEO of Electric Vehicle

"Young people's first electric car is coming!" After Xiaomi announced the car, netizens said with emotion.

So, the question is, what will be the name of the "young people's first electric car"? When can it come? What kind of surprise will the price of this car be? ..... At the 202 1 Xiaomi Spring Product Launch Conference, Lei Jun didn't give an answer, but he gave an infinite imagination.

Lei Jun gambled on everything about building a car.

Regarding building a car, Lei Jun told a story with Musk. Lei Jun revealed that he visited Musk twice on 20 13 and became the boss of Tesla. "We seem to be doing what others can do, and Musk is doing something that others can't think of!" Lei Jun once lamented.

Lei Jun confirmed that building a car: holding hundreds of billions of cash, it is shameful to make rice noodles without building a car.

Lei Jun revealed that in 2002 1 year1month, the board of directors suggested to study the prospect of electric vehicles. In this regard, Lei Jun was very resistant at first. Because Xiaomi managed to make the mobile phone business today, and finally became the third in the world, and the battle has not been finished yet, building a car may bring greater risks.

Under such resistance, Xiaomi began to seriously investigate and build cars from 202 1 1 65438+5.

In the matter of building a car, Xiaomi made 85 visits and communication in the industry within 75 days, had in-depth exchanges with more than 200 senior people in the automobile industry, and had four internal management discussions and two formal board discussions. Finally, Xiaomi decided to build a car.

This will be the last entrepreneurial project in Lei Jun's life.

"Next, I will put all my fame and achievements on fighting for Xiaomi car." Lei Jun said.

Why do you want to find a second growth curve when building a car?

Nowadays, it seems very inappropriate for high-tech companies not to make cars. Before Xiaomi announced that it would build a car, Baidu, Ali, Huawei, Apple and other technology companies have been rumored to build a car. On the other hand, Baidu has cooperated with Geely to set up the automobile company Du Ji.

Apple has been rumored to build cars for a long time, and even once it was reported that cooperative manufacturers built cars. Guo Ming Ti, an analyst at Tianfeng International, predicts that Apple will release Apple cars as early as 2025, aiming at very high-end models.

Although Huawei has repeatedly claimed that "Huawei does not make cars, but allows automakers to make better cars", it can be seen that its layout in the automobile industry chain has been very deep. According to the data, as of March 5, 20021year, under the names of Huawei Technologies Co., Ltd., Huawei Terminal Co., Ltd. and Huawei Terminal (Shenzhen) Co., Ltd., 357 patents have been obtained with the keywords of "automobile, autonomous driving, radar and map".

In addition, OV, who is also a mobile phone manufacturer, also expressed strong interest in cars. So, why is everyone interested in building cars at this time?

In addition to the technical level, the automobile industry is facing a once-in-a-century great change, which has greatly lowered the threshold for building cars, made it possible for cars to be intelligent and software-oriented, and made these high-tech enterprises with natural advantages in software and computing power see hope.

Not only that, the smart electric car is an imaginative track. The report from IHS Markit predicts that by 2025, the penetration rate of smart cars in the global automobile market will increase to 60%; The penetration rate of smart cars in China market will reach 75%, which is 15 percentage points higher than the former. This means that the demand for new energy vehicles in China will increase explosively in the next four or five years.

Such a "blue ocean" market makes the capital market excited. Judging from the listed new energy electric vehicle enterprises, the company's market value has achieved substantial growth. According to public information, the market value of Tesla will increase by nearly 7 times in 2020; The market value of Weilai, a new force in making cars, even surpassed that of BMW, which has a history of hundreds of years. The share prices of Tucki and Ideal Company have risen several times. A month after Baidu announced that it would build a car, its share price rose by 67%. This will be a vent that no one wants to miss.

For Xiaomi, this is a once-in-a-century historical opportunity.

Judging from Xiaomi's financial report, from the first day of its establishment until 2020, Xiaomi's annual income has achieved sustained growth. Lei Jun said that Xiaomi was able to earn such income in 10, which definitely created another miracle in the history of business. And "building a car" will be the second growth curve of Xiaomi's growing revenue and another source of power for Xiaomi's "endless life".

Charles Handy, a master of management thought, once said that if organizations and enterprises can find the "second curve" that leads enterprises to take off twice before the first curve reaches the peak, and the second curve must start to grow before the first curve reaches the peak to make up for the resource consumption in the initial stage of the second curve, then the vision of sustainable growth of enterprises can be realized.

According to media reports, CITIC Securities analysts also pointed out that as Xiaomi gradually touches the ceiling in the smart phone business, its valuation is limited, and it is inevitable to find new growth points in the smart field. Judging from the current market situation, new energy smart cars are undoubtedly one of the main outlets for future development.

Previously, Xiaomi realized the "mobile phone +AIoT" Internet of Everything, and then Xiaomi will realize the "mobile phone +AIoT+ car" Internet of Everything. Xiaomi will draw a bigger plate on the original basis.

Not only that, no matter from the follow-up or the sound volume, due to the pressure of the industry, Xiaomi decided to build a car. After all, Huawei has penetrated into the core of the industrial chain in terms of "building cars", and Xiaomi is one or two years late.

The arrow is on the string, ready to go.

In the previous interview, Lei Jun once commented on his "extreme radicalism under extreme conservatism". "When the risk is controllable, Xiaomi is moving very fast. When the risk is uncontrollable, we are very careful."

For the smart electric car track that has been determined, Xiaomi needs to solve two problems: capital and technology.

It is understood that Xiaomi has invested 1000 billion yuan in the car track. The latest financial report shows that the cash reserve in 2020 has reached 654.38+008 billion. According to the announcement, Xiaomi initially invested 65.438+0 billion yuan, and it is estimated that it will invest 65.438+0 billion US dollars in the next 65.438+00 years.

Li Bin, CEO of Weilai Automobile, once said that you should not build a car without 20 billion yuan. But from the actual situation, 20 billion is far from enough. Judging from the statements of Weilai, Tucki and Ideality, their accumulated financing amounts are 83.5 billion yuan, 45.8 billion yuan and 36.2 billion yuan respectively. Weilai, established five or six years ago, has never lost money so far. The financial report shows that Weilai's net loss in 2020 was 5.304 billion yuan, and the accumulated loss since its establishment has exceeded 30 billion yuan.

It can be seen that it is necessary to prepare enough ammunition to build a car. This is not a big problem for Xiaomi. Lei Jun even said in a domineering voice: We can afford it.

But what is difficult is stronger technology accumulation. It is reported that Xiaomi has begun to accumulate relevant technologies. According to the data of Wisdom Bud, there are currently 834 automobile-related patents of Xiaomi Group, of which more than 96% are invention patents, and the fields are concentrated in wireless communication network, digital data processing, digital information transmission, image communication, traffic control system, ranging, navigation and other fields.

According to the patent value analysis of Wisdom Bud, Tesla's patent value in new energy vehicles exceeds 200 million US dollars, Weilai's patent value exceeds 65.438+08.64 million US dollars, and Xiaomi's patent value exceeds 65.438+00 billion US dollars.

However, it is worth mentioning that Xiaomi's current technology accumulation is mainly in car networking and car service, but it is still lacking in automatic driving. Compared with car companies, Xiaomi's patent on smart electric vehicles still needs to be improved.

"We can do it if we want to." Lei Jun gave everyone confidence at the press conference.

Who is the most nervous about Xiaomi's car?

There is no doubt that the market of new energy vehicles will exceed 1000 billion in the future, but the trend theory that ignores the time factor is hooliganism.

In other words, this is an absolute trend, and fuel vehicles will inevitably become a thing of the past. But the number of people buying new energy vehicles has not yet formed a huge scale. It is expected that within five years, automobile manufacturers will still grab a "small cake".

According to incomplete estimates, up to now, the cumulative delivery volume of Weilai Automobile has reached 88,000, that of Li has exceeded 40,000, that of Xpeng has exceeded 50,000, and the annual delivery volume of fuel vehicles is10 million. China's goal is that the sales of new energy vehicles will reach about 25% in 2025. The Long March has just begun.

Therefore, if Xiaomi releases a car, it will definitely affect the whole sector of new energy vehicles, especially Xpeng Motors, Volkswagen series electric vehicles and even Wuling Hong Guang MINI EV.

The sales volume of Wuling Hong Guang MINI EV exceeded 200,000, which is equivalent to the delivery volume of four full brands of Xpeng Motors. The price butcher is the real king. Whether Xiaomi can win this "feverish" market and become the "Pinduoduo" of smart cars, in a sense, determines the success or failure of this campaign.

The logic of Xiaomi's car is also here. These are exactly what Xiaomi is good at. After all, his mission is to make things for young people, supply chain management, and cost control. He will definitely hand over the smart car that Lei Jun often says is "kind price". In the future, Xiaomi will sell smart cars as low as smart speakers and air-conditioned TVs.

References:

Inventory LatePost "Xiaomi Determined to Build a Car"

Electronic information industry network "Xiaomi builds a car into" Rashomon ""

Bloomberg Businessweek "Why do mobile phone manufacturers choose to build cars?" 》

Intelligent competition intensified in the second half of the Southern Metropolis Daily "Building a Car"! Huawei, Tencent and Baidu entered the market one after another.

How much did Tesla, Weilai, Tucki, Ideality and Evergrande spend on building cars? 》

Related reading:

Xiaomi holds 100 billion cash flow reserve 202 1. The average annual salary of employees is 450,000 yuan.

Jingjing/Wen

On the same day, both Xiaomi and Tencent released their 2020 financial reports. Although they are in different orbits, they are inevitably compared. Tencent's income and profits are natural. Compared with itself, Xiaomi has also achieved double growth in revenue and profit. In particular, Xiaomi has the fastest growth in overseas markets, with a year-on-year increase of 34. 1%. And overseas income accounts for nearly 50%. No wonder Lei Jun shouted: "Xiaomi has become a truly global company!"

Throughout Xiaomi's financial report, various businesses have achieved different degrees of growth, and the data exceeded market expectations. It is particularly noteworthy that Xiaomi has also achieved a cash reserve of more than 1000 billion, and can directly buy a 360. It can be seen that Xiaomi is ready for a bloody battle of 202 1. The mobile phone market of 202 1 is doomed to be a bloody year.

Key information:

1.In 2020, Xiaomi Group's revenue was 245.9 billion yuan, a year-on-year increase of19.4%; The net profit was 654.38+03 billion yuan, a year-on-year increase of 654.38+02.8%.

2. In 2020, Xiaomi's global smartphone shipments were 654.38+464 million units, up by 17.5% year-on-year, and ASP was 1039.8 yuan, up by 6. 1% year-on-year.

3. In 2020, Xiaomi's overseas income was 65.438+0224 billion yuan, a year-on-year increase of 34. 1%, accounting for 49.8% of the total income.

4. In 2020, Xiaomi invested 9.3 billion yuan in R&D, a year-on-year increase of 23.5%.

5. In 2020, Xiaomi had 22,074 full-time employees, and the total salary expenditure was RMB 9,965,438+RMB 500 million.

Climb high-end ASP to achieve year-on-year growth

In 2020, Xiaomi's mobile phone revenue reached 65.438+0522 billion yuan, a year-on-year increase of 24.6%, and smartphone shipments reached 65.438+0464 million units, a year-on-year increase of 654.38+07.5%. At the same time, Xiaomi also disclosed a data: In 2020, Chinese mainland shipped100000 high-end smartphones with a price of more than 3,000 yuan or overseas prices of more than 300 euros. The annual ASP (average selling price) of Xiaomi also increased year-on-year, with 6.8% being 1039.8 yuan.

According to Xiaomi's previous financial report, Xiaomi smartphone ASP broke through 1,000 yuan for the first time in the first quarter of 2020, reaching 1038.0 yuan, and continued to rise in the second quarter, and broke through 1,000 yuan in the third and fourth quarters, thus achieving year-on-year growth in 2020.

This year is also the first year for Xiaomi to get rid of price constraints and rush to the high-end market.

At the beginning of 2020, Xiaomi released the first product that hit the high-end market-Xiaomi 10 series. Xiaomi revealed that during the 618 shopping festival in JD.COM, Xiaomi 10 won the sales champion in the price range of 3,500-4,500 yuan. Xiaomi 1 1, the high-end flagship model launched at the end of the year, also broke through 1 10,000 within 2 1 day.

It can be seen that Xiaomi's dual-brand strategy has achieved initial results, but there is still room for improvement in the speed of Xiaomi's climb to the high end.

The proportion of hardware is too high, and it is difficult to make a breakthrough in profit growth.

According to the financial report, in 2020, the revenue of Xiaomi's smartphone business was 65.438+0522 billion yuan, and the revenue of Internet of Things and consumer products was 626.5438+000 billion yuan, accounting for 665.438+0.9% and 27.4% of the total revenue respectively, accounting for 89.3% and nearly 90% of the total revenue.

As we all know, as early as 20 18, Xiaomi made a promise that the comprehensive after-tax net profit rate of hardware will never exceed 5%, and in 2020, the comprehensive after-tax net profit rate of Xiaomi hardware will still be lower than 1%.

This means that in terms of profit, Xiaomi can hardly rely on the breakthrough growth of hardware and can only hope for the Internet business. However, the proportion of Xiaomi's Internet business has not increased significantly.

The increase in overseas income highlights global advantages.

In 2020, Xiaomi's overseas market revenue was 65.438+0224 billion yuan, up 34. 1% year-on-year, accounting for 49.8% of the total revenue, close to 50%. No wonder Lei Jun shouted: "Xiaomi has become a truly global company!"

According to the financial report, Xiaomi's products have been sold to more than 100 countries and regions by 65438+February 3, 2020. According to the statistics of Konas, in the fourth quarter of 2020, Xiaomi ranked among the top five smartphone shipments in 54 countries and regions around the world.

In the fourth quarter of 2020, Xiaomi's smartphone market share ranked among the top three in the European market for three consecutive quarters. The European market is also a strategic highland for domestic mobile phone manufacturers to compete. Especially after Huawei gradually withdrew from the market, OPPO entered the European market on 20 19, and vivo officially entered the European market in 2020.

According to the latest data from Counterpoint Research, in the European smartphone market in 2020, due to well-known reasons, Huawei's mobile phone shipments dropped by 43%. Huawei's excess market share was taken away by Xiaomi and OPPO.

The data shows that in the fourth quarter of 2020, the shipments of Xiaomi mobile phones in the European market increased by 85%, and the annual data increased by 90%. A large part of this credit is that Xiaomi took over Huawei's market share in Spain and Italy in the past, which also made Xiaomi the third largest smartphone manufacturer in Europe.

Xiaomi's overseas market revenue accounts for nearly 50%, but Xiaomi's overseas mobile phone sales have exceeded 70%.

According to the data of the third party (IDC), in 2020, Xiaomi sold 39 million mobile phones in the China market; The global sales volume of Xiaomi in 2020 is 6.5438+46 million units. This means that Xiaomi's overseas mobile phone sales are 65.438+0.07 billion, accounting for 73%.

In this way, the domestic market, which accounts for only 30% of the total sales, contributes more than 50% of the income, while more than 70% of the sales abroad contribute nearly 50% of the income. This means that most of Xiaomi's high-end smartphones are sold to the domestic market.

Hold 1000 billion cash flow reserve 202 1

The financial report shows that as of the third quarter of 2020, Xiaomi's cash flow was only 75.5 billion yuan, and Xiaomi increased its cash flow by 32.5 billion yuan in one quarter. Prepare for a bloody battle of 202 1.

202 1 The mobile phone market in China is doomed to be a bloody year. OV, Xiaomi, iQOO and One Plus are all charged at the high end. Before the end of the first quarter, OPPO released the annual flagship FindX3, and it is said that OPPO has invested huge marketing funds to promote the product. One Plus also launched a one plus nine series to seize the high-end mainstream market. It is revealed that the marketing investment on this mobile phone even exceeds the investment of the previous year.

Xiaomi's financial report also shows that in 2020, Xiaomi's sales and promotion expenses will increase by 4.0 1% to 145 billion yuan. The main reason is that the advertising expenditure increased by 63.2%, mainly to further strengthen the promotion of high-end smart phones and improve brand awareness.

On the basis of good products, those who win the momentum will win the market, and every momentum can not be separated from strong capital promotion.

The per capita annual income is about 450,000, and Tencent is 8 1 10,000.

On the same day, both Xiaomi and Tencent released their 2020 financial reports. Although they are in different orbits, they are inevitably compared.

According to the financial report, as of June 65438+February 3, 2020, Xiaomi had 22074 full-time employees, of which 15363 employees held equity incentives (accounting for 6.959%), and Xiaomi's total salary expenses (including equity salary expenses) were RMB 9910.50 billion.

From this calculation, the average annual salary of Xiaomi is about 449 1000 yuan, and the average monthly salary is 37,400 yuan.

Tencent has 85,858 employees in 2020, of which the total salary cost is RMB 69.638 billion. On a simple average, the average annual salary of employees is as high as 8 1 10,000, and the average monthly salary is 67,600.

The annual salary of Xiaomi employees is only half that of Tencent employees.