On August 11, Lei Jun, chairman and CEO of XIAOMI Group, held a speech on the 10th anniversary of XIAOMI with the theme of "forge ahead" at XIAOMI's headquarters in Beijing.

In the nearly three-hour speech, Lei Jun told the unknown story of XIAOMI's start-up business for a decade, including XIAOMI's original intention, bet with Dong Mingzhu, business philosophy, listing story and so on.

When it comes to setting up a team at the beginning of starting a business, Lei Jun said that looking for someone is not three times, but 30 times.

Lei Jun also mocked himself for doing a lot of stupid things, such as the billion bet with Dong Mingzhu, and Lei Jun officially admitted that XIAOMI had indeed lost. Daring to compare with Gree essentially means that we are inflated.

Lei Jun concluded by saying that what he is most proud of is not going public. It's three things.XIAOMI and all her peers have promoted the popularity of smartphones, XIAOMI's ecological chain model has led to changes in 100 industries, and XIAOMI has even changed the fate of many people.

Lei Jun also looks forward to the new decade:

• The fire of innovation will illuminate every crazy idea, and XIAOMI will become a mecca that engineers yearn for.

• Intelligent life will completely affect all of us, and XIAOMI will become the leader of the future way of life.

• Intelligent manufacturing will further contribute to the rise of Chinese brands, and XIAOMI will become a new force that can not be ignored in China's manufacturing industry.

• XIAOMI will become a long meandering river, flowing through the good life of everyone in the world, to the sea of stars that everyone yearns for.

• XIAOMI will continue to strive for a better life for everyone in the world.

The following is the full text of Lei Jun's speech shorthand (Tencent Technology collated according to shorthand, not officially confirmed by XIAOMI):

This year is the 10th anniversary of XIAOMI, we originally prepared a huge celebration for tens of thousands of people, because the epidemic can only be cancelled. But think about it, the 10th anniversary is still a very important day, life still needs some sense of ritual, life needs us to face it actively.

After thinking about it recently, I decided to hold a speech to commemorate this important day. At the same time, I will also make a complete summary and report to all the friends who care about and support XIAOMI.

The beginning of a dream

I founded XIAOMI with a group of friends ten years ago.

1.1 our Dream

At that time, the mobile phone market was mainly controlled by international giants, such as Nokia, Motorcycle and Samsung. In China, there are also large companies such as China Cool Union, as well as an overwhelming number of copycat manufacturers.

Some time ago, I saw a picture on Weibo Corp, which was particularly shocking. this is the mobile phone market in China more than a decade ago, mainly international brands, and sold at a high price. As a mobile phone enthusiast, I am a little unconvinced. As an entrepreneur, I am even more unconvinced. I was thinking, can we do something great? Make the best mobile phone in the world for half the price so that everyone can afford it.

This is the goal, but it sounds unreliable to think of an entrepreneur who has never been a mobile phone, a small company in Zhongguancun from scratch, to be the best mobile phone in the world. How to achieve this seemingly and seemingly unreliable goal?

At that time, I came up with a good idea. I said, "look, they are all hardware companies. What if we use the Internet to make mobile phones?" What if we knead the software and hardware of the Internet into a whole? Do we have a chance to find another way?

At that time, the best hardware was motorcycle, the best software was definitely Microsoft Corp, and the best on the Internet was Alphabet Inc-CL C. I was wondering if we could make Triathlon if we put all the genes of these three companies together. Of course, this is easier said than done.

1.2 find someone

The first person I was looking for should be known to everyone. The first person I was looking for was Lin Bin, who was vice president of Alphabet Inc-CL C China Research Institute at that time. He wanted to start a business and start an online music company. I said to him, "Brother, let's do a big one." then I drew a picture of Triathlon on a napkin. To be honest, he agreed without much consideration. I found the first person, and Lin Bin became the second employee of XIAOMI.

But such a smooth thing is actually quite accidental. Then I hired ten Alphabet Inc-CL C engineers, some of whom even talked about it two or three times, but none of them came. I was really desperate at that time. Until I talked about the 11th Alphabet Inc-CL C's engineer, who was he? Hong Feng.

In fact, he is usually expressionless and appears to be very calm. As soon as he saw me, he asked three questions. Have you ever made a cell phone? I didn't do it. Do you know Wang Jianzhou, the boss of China Mobile? I don't know. Do you know Terry Gou? I know Terry Gou, but he doesn't know me. This is really what I told him.

As a result, as soon as Hong Feng finished asking these three questions, I was stupid. I was sure there was no chance. Out of courtesy, I chatted with Hong Fengyi for three hours. Finally, Hong Feng stood up and made a summary. He is an engineer. He concluded that your idea is not very reliable, but you can give it a try. To tell you the truth, there were mixed feelings at that moment. I thought I had won the lottery, so I got the second classmate of Alphabet Inc-CL C.

In short, when a layman makes a mobile phone, it is more difficult to find someone than people think. In fact, when I was interviewing these awesome people, they were also interviewing me, which is equivalent to being rejected again and again. One person talked at least ten times in two months, and even talked for more than ten hours a few times. It was with this perseverance and determination that I formed a good team, which was definitely a super luxurious dream team in the start-up company at that time.

In fact, over the years, entrepreneurs and entrepreneurs often complain to me that I can't find someone. I think it's definitely not an easy thing to find someone. If you can't find someone, there's only one reason, that is, you don't spend enough time. In my first year at XIAOMI, I spent more than 80% of my time looking for people, and I was looking for people almost every day.

I would like to share my experience with you that it is not three times to look after the cottage, but thirty times to look after it. If you have my determination, I don't believe that a group can't make a decent team. When our team was ready, we started our own business.

Red Tide

2.1Story of MIUI

On April 6, 2010, more than a dozen of us drank a bowl together in the small office of Zhongguancun and Millet Congee began to make a revolution.

But none of us knew anything about hardware, so we decided to start with the upper software and work directly on the operating system. At that time, we were doing research and development on HTC mobile phones, and the operating system was very complicated. If more than a dozen of us could not live in Hold, what should we do? It doesn't matter, let's just find an open source system to do it.

At that time, Android had just started, and we became the first Android workers in the country. Of course, the operating system or the operating system, its functions are extremely numerous, how to do? Let me tell you, it doesn't matter. Let's just think of MIUI as an Internet application. Let's think about what was the pain point for users in smartphones of that era. What is the most commonly used function for users? Can you do as little as possible? As a result, as soon as we concluded that smartphones at that time were actually very difficult to use, it was enough to be determined to do a good job on the desktop, and it took courage to do only these four functions as an operating system. We really only did these four functions.

We have a team of more than a dozen people, and we concentrate all our resources on these four functions.

As a result, it only took two months for the first edition of MIUI to be ready. After the first version is done, we need to find users to test, so we set up a forum, and then recruit the brave to test. But MIUI is not an APP after all. What is the hardest part of it? To brush the machine, you need to have a smartphone, you have to paint the operating system as ours, and if you don't brush it well, you may even brush your phone into bricks. In fact, not many people dare to brush the machine under such a big risk.

We recruited 100 people in two weeks, and our team was very moved at that time. We are thinking that these 100 people are the most important to us. How can we thank them? At this time, a colleague put forward an idea, can we write their names on the startup screen of the phone? This is a big decision, the general launch screen is the company's LOGO, we think the user is more important than the company's LOGO, so we really did it.

The 100 users downloaded MIUI and painted their phone as MIUI. He was stunned as soon as he saw the interface when he turned it on. Because they were really highly respected by a manufacturer, I believe these 100 people must have been moved by XIAOMI's sincerity at that moment.

At that time, we were a very small company, and we didn't do any promotion. Our MIUI only had 100 users. But these 100 people have special support for XIAOMI, and they spend almost every day on the forum to give us all kinds of opinions.

As long as we thought it made sense, we immediately changed it, released it a week later, and doubled the number of users to 200 in the second week. It doubled again in the third week, to 400 people. Double it again in the fourth week, 800 people. At that time, we were thrilled by the hundreds of users. What is the point of the real outbreak of MIUI? More than a month after the official release of MIUI, one month and four days after its release on September 20, 2010, on a global technology forum, a great god wrote a post that strongly recommended it.

I found this post two days ago. Let's take a look at how he recommended it. The language of this recommendation is extremely exaggerated. Has anyone heard of this ROM? I've never seen such a crazy ROM in my life, it runs fast and smooth, and the interface has been completely redesigned, which is incredible. At that time, there were only a few hundred users in the world. The great god said, have you ever heard of it? He was so shocked that he thought it was the work of a very professional team and it was amazing. At that time, we were just a small company of more than a dozen people just founded in Zhongguancun. Imagine how amazing the first edition of MIUI is.

We take the complex work of the operating system here, when an APP does it, we use a full set of Internet methods, and we have achieved such results. I think these methodologies of the Internet are really very important. With the recommendation of this great god, we began to have a certain influence in the hearts of enthusiasts around the world. at this time, netizens around the world began to translate us into versions in various languages, help us adapt to all kinds of mobile phones, and hold rice noodle forums in various countries. to help us promote, such a vigorous global mass movement began. In less than a year, MIUI has 300000 users worldwide, which has laid a very solid foundation for us to make mobile phones later.

When it comes to this, we say that using the Internet model to make a mobile phone is essentially using the methodology of the Internet to make a mobile phone. What is the most important thing about the methodology of the Internet? This is what I summed up about 15 years ago, that is, focus, extreme, word-of-mouth, fast.

When I was doing MIUI, we emphasized focus, and we condensed the entire operating system to do only four functions. The second is to make the product extreme, so that it looks amazing at first, and at the beginning there are only 100 users, which is rolled up little by little by word of mouth. Another is that as long as users have any comments, we will see right away, iterating once a week, we have completed XIAOMI's first step with this methodology, and this step is very solid. This step is the rice noodle culture that we talked about later, including the fan economy, which started here.

2.2 the story of making a mobile phone

• How to handle the Sharp screen

When MIUI started, we went to great lengths to organize a very good hardware team, which should be the best hardware team we could find. The main backbone came from motorcycles, so we happily started to make mobile phones. As a result, we hit a big nail as soon as we went out. What did we hit?

We want to make the best mobile phones in the world, and of course we have to use the top supply chain. But the top supply chain ignored us, ah, at that time I knew that the top supply chain could not be handled by a small company in Zhongguancun by throwing money. But if we don't fix these top supply chains, how can we make the best mobile phones in the world? We are faced with a great difficulty, at this time I tell you, don't be afraid! We have to fix it.

Let me give you an example. At that time, the best screen was the Sharp screen. When we went to find the screen, people ignored us or even didn't even see each other. What should we do? At this time, I mobilized all my friends to help me find, who knows Sharp senior management, can you introduce me, give me an opportunity to meet and introduce XIAOMI, I will have such an opportunity to introduce.

Finally, we made a big circle. I found Kingsoft Japan's CEO and Mitsui Merchants, and then went to Sharp's senior management. Let's go to Sharp's headquarters in Osaka, Japan on March 26th to meet. We began to prepare seriously, just like preparing for the college entrance examination, how to convince Sharp.

To tell you the truth, we were all going to learn Japanese to deal with it, but this is definitely not reliable. A big thing happened as we were scrambling to convince Sharp that the Japanese nuclear power plant leaked after the March 11 earthquake. At that time, the whole of Japan was under the threat of radiation. To tell you the truth, in the case of nuclear radiation, are we going or not? This is a very testing question.

After our careful study, the radiation in Osaka is not so serious. We should be able to go there. But when you think of nuclear radiation, you still get scared. So in this case, we hesitated and hesitated, but Sharp's opportunity to meet was very important to us, and we must take care of it, so we discussed and finally decided that we would go! And it was our three co-founders who went together.

One day, Lin Bin, Liu de and I arrived at the airport. As soon as we boarded the plane, there were only three guests in the whole cabin. When we arrived at the headquarters of Osaka and Sharp, the whole building was empty, only a wave of guests. I especially wanted to find a photo of three people to show to today's audience, but I couldn't find it for a long time. Finally, I found a picture in my mobile phone SD card, which was taken by Liu de.

We have been thinking about it these days because we are too nervous. We may have been thinking about how to convince Sharp during the whole process, but we were not in the mood to take a picture at all. I didn't expect XIAOMI to make such a big speech with his 10th anniversary speech. I would like to remind you that at every important historical juncture, every entrepreneur must take more pictures. In this way, we took care of Sharp, who was impressed by our sincerity. For many years later, Sharp was a very loyal supplier to XIAOMI.

• That's how 1999 yuan came from.

This is how we will get through one supplier after another, and then our supply chain can basically turn around. Maybe everyone knows that the first generation of XIAOMI's mobile phone sold for 1999 yuan, as we all know. What is the story that you may not know? The first-generation XIAOMI mobile phone was originally planned to sell for 1499 yuan. Does everyone know? If you think about selling 1999, the market is boiling at that time. If you sell 1499, will it not burst? So what happened in the middle?

We arrived in August 2011, and our mobile phones were almost ready, and the team came to me and said, the cost ran out, and I said how much did it cost? Our original cost was 1500, but as a result, the cost went up to 2000. I mean, what's going on? 'Because we are looking for a top supply chain, it would be nice for people to be willing to do it for you,'he said. 'can you still bargain with people?' I can't open my mouth, so they will pay us whatever price they give us, and they even have to pay us three months in advance before they are willing to work for us. No way, the cost is more than 500.

I was depressed at that time. Think about it. If a mobile phone with a cost of 2000 sells for 1499, each one will lose 500. at that time, bold and 1499 could sell 300000 units. When you find that the company is losing more than 200 million yuan, the company is bound to close down.

Several of us discussed for several days and nights but could not come to a conclusion, so I went to talk to the investors, and the investors turned out to be quite open-minded. In fact, it doesn't matter, it's just a ticket for you to come in as a layman, just whether you can afford it or not. I think this ticket is a little too expensive, more than 200 million yuan. I really didn't sleep well for several nights. Finally, as soon as a few of us discussed it, who cares, when it was out in the open, we did 1999.

When we made up our mind, we began to prepare for the press conference, and we were always nervous in the process of preparation. The day before the press conference was still under discussion, what if it could not be sold? We tricked Lin Bin and Hong Feng into joining XIAOMI. How to do that? We were really nervous a day in advance.

On August 16, 2011, XIAOMI released it on his mobile phone. When I arrived at the scene at noon that day, I found that the mass base that MIUI had laid for more than a year was too strong. As soon as I arrived at the live press conference, all the three floors and the outer three floors were crowded with people. Do you know how exaggerated it is? I'm the speaker. I can't squeeze in at the door of the press conference. I really can't squeeze out. I had to call four big men. I was quite strong, and I found four stronger colleagues to squeeze in. At that time, I had a good friend who called me and said that he couldn't squeeze in, and we couldn't squeeze in with the tickets.

The strong foundation of MIUI is that when the first generation of XIAOMI's mobile phone was released, there were a lot of supporters and a lot of MIUI on the scene. I just sat down, and the press conference starts in five minutes. One of our co-founders came up to us and said, boss, we have to start right now, or we'll kill people if we don't start. The venue was really crowded, very crowded, and I said, OK, let's get started. This is XIAOMI's first press conference, which starts five minutes in advance. Maybe everyone is used to delaying the start of the event by half an hour, but XIAOMI's first press conference started 5 minutes ahead of schedule.

Then I talked about XIAOMI's mobile phone for more than an hour at the meeting. In fact, I was very nervous. Can this mobile phone sell or not? I announced 1999 on the stage, and the whole audience cheered and applauded for half a minute. At that moment, I was a little at a loss. I basically felt that XIAOMI's mobile phone became and XIAOMI's mobile phone became! Then we couldn't find the video at that time. Not long ago, a classmate contributed this video. He filmed the scene with his mobile phone. I'll show it to you.

I am really very moved. The enthusiasm of the press conference nine years ago may have been rarely seen. In this way, we booked for the first time. We originally planned to sell 300000 units a year, but we ordered 300000 units on our first reservation. After I arrived with this order for 300000 sets, I was both excited and painful. why? We are a small company. first, we do not have enough money to produce these 300000 units, and second, we do not have enough capacity to produce 300000 units. Then we stumbled and stumbled, and as we all know, we often sell only once a week, only for two or three minutes at a time. This is also misunderstood by many netizens, scolding us for hunger marketing.

In order to prepare this PPT, I asked the treasurer to calculate carefully, that is, in such a hungry situation, do you know how many XIAOMI mobile phones sold in the first generation? 7.9 million. At that time, it was only sold for two or three minutes a week, but each time it had to sell 100000 or 200000 before 7.9 million could be sold. And 2012 is our first full fiscal year with revenue, which exceeded 10 billion in the first year. At least until today, I haven't heard of any company with more than 10 billion in revenue in the first row. So imagine how successful XIAOMI's mobile phone was in 2011 and 2012.

• The first generation red rice is not really the first generation red rice.

When XIAOMI mobile phone made a little achievement, at the beginning of 2012, several competent departments assigned me a new topic, saying that you XIAOMI mobile phone is so popular, can you drive the domestic industrial chain? you can't use the world's top supply chain every day! At that time, I thought that our company is a small company, has only been working for more than two years. With such thin bodies, can we withstand the great pressure here? But I am too embarrassed to say, go back and think about it, forget it, do it!

Then we set up the red rice plan, that is, to select the domestic industrial chain to make mass mobile phones. This project has been working for almost a year and has been put forward. But I used it for a while, and I'm not satisfied with it. I think its user experience falls behind my requirements. I decided to redo it without hesitation, and many of my colleagues were surprised at the time, which meant that more than 40 million of R & D costs were lost, which was more than 40 million in 2012.

I told them that I think domestic mobile phones must achieve the quality of products made out of the global supply chain. If not, it will smash not only the XIAOMI brand, but also the domestic industry brand. At that time, the domestic industrial chain was just beginning to rise, and there were indeed many things that were not done well, so the first generation of red rice mobile phones that we bought later were called H2 internally, which was already the second generation of internal research and development. Then we worked hard to do it again, making the second generation of red rice, which of course was called Hongmi Mobile phone 1 when it was released.

On July 31, 2013, Hongmi mobile phone was officially released, and the price is 799. At that time, we did not prepare any market expenses, not even the cost of holding a decent press conference. At that time, we spent all our money on the product and asked all the suppliers to support us to do it well. Let me take a picture and take a look at the launch of Hongmi mobile phone. What should I do? We borrowed a conference room in Jinshan Software, only spent 200 to 300 yuan to make a backplane, and then even the projector was useless, it was still a TV set, so we released the Hongmi mobile phone.

But how powerful is this red rice mobile phone? Once released, it caused an earthquake in the whole industry! Because no one thought that such a powerful mobile phone would only cost 799. At that time, domestic mobile phones of the same quality were sold for 2000 to 2500. As soon as the whole red rice mobile phone was released, it became popular all over the country. How popular was it? Let me borrow an example from you, because we borrowed the conference room of Kingsoft, and even the stock of Kingsoft soared the next day.

At that time, when we started jointly with Qzone, the reservation in Qzone exceeded 10 million in a week. Finally, the first generation of the entire Hongmi mobile phone sold 44.6 million units. This is an astronomical figure, such a huge quantity for the domestic smartphone industry chain that has just started, it is a long drought and rain, so it has played a huge role in promoting the entire industry chain.

Speaking of this, what you may see is the success of XIAOMI's mobile phone and the success of Hongmi mobile phone, but behind this is countless difficult choices, and there are huge risks behind each choice. What am I trying to say? There is no success without taking risks, and only by facing up to the risks can we have a chance to succeed.

Ladies and gentlemen, think again, if we do not take the risk of nuclear radiation to take care of Sharp, to take care of all the core suppliers, how can we be a layman to make a mobile phone to make the first generation of XIAOMI mobile phone such a powerful function? If we don't make up our mind to change the original plan from 1499 to 1999, we run the risk of not selling it. Add a piece of information, when the first generation of XIAOMI's mobile phone was released, the average price of domestic mobile phone was 700yuan, and the price of 1999 was already three times more expensive.

In addition, if the first generation of Hongmi mobile phone had been an unsuccessful version developed by ourselves, it would not have achieved such a good reputation and great power here. When I was summing up the key to the success of XIAOMI's mobile phone business, I think it is to face all the risks and have the determination to work openly.

2.3The whole people learn from XIAOMI.

In that era, XIAOMI almost became a phenomenal topic. And there was a group of people struggling to learn from XIAOMI. At that time, all kinds of Internet mobile phones appeared in the whole society, which were strange. At the end of last year and the beginning of this year, Wang Xiaoyan, the founder of Xiao Pepper, joined XIAOMI. At a small internal sharing meeting this year, he told us how she learned that year. To tell you the truth, everyone roared with laughter. It made us understand how to learn Internet mobile phones at that time.

I think they have done a good job even if they have only scratched the surface of XIAOMI's mobile phone. So in the process of XIAOMI of the whole people, while Wang Xiaoyan was talking, our colleagues photographed it with XIAOMI 4Pro. the picture quality was not bad. I'll show you. Very funny!

2.4 the story of the ecological chain

In that era, everyone was learning from XIAOMI, and many entrepreneurs and entrepreneurs came to XIAOMI to learn. Of course, almost all mobile phone colleagues have also come to XIAOMI to communicate, when every guest comes to our XIAOMI, we are full of knowledge and endless words. To be honest, we hope that the Internet model can help every enterprise and promote social progress. One entrepreneur challenged me and said that XIAOMI's model is too complex, and only Lei Jun can do it. I said it's impossible. I'll show you.

We established an eco-chain plan in early 2014, hoping to incubate at least 100 eco-chain companies and change 100 industries in five years, which is our goal in early 2014. After more than six years, we have incubated more than 100 ecological chain enterprises and made a dazzling variety of good products, and behind each product is a very professional ecological chain enterprise. up to now, these ecological chain enterprises also have 10,000 or 20,000 engineers. Everyone bought a lot of goods with XIAOMI Mi Family and Redmi brand in XIAOMI Mall, which are all made by the very professional ecological chain company behind us.

You may be curious about how we did it. Let me give you a small example. For example, in 2014 and 2015, a hot topic, many Chinese came to Tokyo to snap up rice cookers, which became a social phenomenon. I wonder, China is the factory of the world, why do we need to go to Japan to buy a rice cooker? Isn't our Chinese industry very strong? Can't you even make a rice cooker?

We decided to incubate an ecological chain of pure rice, focusing on rice cookers, which must be better than that of Japan. In this way, we worked for a year and a half, and the rice cooker was released in 2016 with a price of 999. A Japanese television station bought several sets and did a blind test on the street with Japanese rice cookers worth 5,000 to 6,000 yuan, that is, they used these two rice cookers to cook, and invited everyone to eat and try on the street. 60% of the people said that the rice cooker was well made. Later, our rice cookers were sold to Japan, and they also sold well in Japan. We found very professional people to work for a year and a half, and we also found Japanese experts to work together. This is how we made a series of famous products such as XIAOMI bracelet, sweeping robot, balance car, portable battery and so on.

The path winds along mountain ridges

3.1 about Dong Mingzhu

During that time, it was really a sunny day, and there were many beautiful things in retrospect. Of course, during that period, we also did a lot of stupid things, such as making a bet with Dong Mingzhu. This is the first time I have talked about it in public, and I want you to know the whole story. At the end of 2013, I was selected as CCTV's economic person of the year. This is the highest honor that Chinese entrepreneurs can get at that time. I am very happy to receive the award.

In the background of receiving the award, the choreographer and director called me and Dong Mingzhu together and said, can you two make it a little more lively? Ma Yun and Ma Huateng bet lively for a year the year before, and when I heard it, we knew very well what other people meant. Gree is a veteran manufacturing giant who has worked for 30 years. XIAOMI, representative of the New economy, worked for three years. If these two enterprises are put together, there will be a topic. I said yes. I said, Mr. Dong, let's also make a bet on whether XIAOMI's turnover can exceed Gree's in five years. At that time, XIAOMI had a turnover of more than 20 billion and Gree 120 billion, and we were a small change. Sister Dong agreed without even thinking about it. As soon as she came to the stage, she said that she wanted to bet one billion yuan. I was confused when I thought about it. It didn't follow the script.

Betting a dollar is a quick joke. What is betting a billion dollars? To what extent does betting a billion become a social topic? Many netizens left messages with me that you openly gambled a huge amount in CCTV. Anyway, I didn't take it seriously. I really didn't take it seriously. But Sister Dong took it seriously. She took it very seriously! Every now and then I pay special attention to XIAOMI. They all care so much. When I read this report every day, I was very depressed. I really didn't know what to do. I felt like I fell into the pit.

After that, I became an Internet celebrity. As long as I appeared with Dong Mingzhu, all the media cameras stared at it. You can't even imagine the painting style. It's all like this. After the whole society is serious, we have to be serious, so we compare Gree's results every quarter. But we are a small company, and we have gone from more than 20 billion to 174.9 billion in five years, an eightfold increase. I actually think XIAOMI is quite amazing. But Gree, as a veteran manufacturing giant, is also very fierce, from 118.5 billion five years to 198.1 billion, also increased by 60%, in fact, also did a good job.

After five years of work, we put it together. Although XIAOMI did a good job, we still lost. So on this occasion, I officially admit that we did lose. What may be more dramatic is that we won the next year. People said that you would bet with Sister Dong not to bet for five years, but for six years.
Every time I think of this bet, I feel very regretful and guilty. I think why should we mess with Big Sister Dong? You didn't ask for it? Recently, after a period of reflection, I have figured it out step by step. XIAOMI in 2013 is in his heyday, full of confidence, and daring to compare with Gree essentially shows that we are inflated.

I think sometimes success is really easy to expand, expansion will do a lot of stupid things. Not long after, XIAOMI encountered a lot of difficulties. I think it has a lot to do with inflation when we reflect on it today.

After these five years of betting, I really have a better understanding of manufacturing and Gree, and I think Gree has done a very good job. Internally, I also repeatedly asked my colleagues to seriously learn from Gree.

3.2 hit rock bottom

Not long after the bet ended, we, XIAOMI, encountered a lot of growing pains. First of all, let me show you a picture. We have been growing rapidly in the past few years. In 2016, our sales plummeted and XIAOMI was in trouble. In fact, in the mobile phone industry, no company can reverse after a decline in sales. Generally speaking, when this kind of situation is encountered, people basically feel that this enterprise is failing, so XIAOMI is in the midst of life and death. The main reason is that XIAOMI's rapid growth in the past five years covered up many problems, which all broke out in 2015 and 2016.

At that time, there were ups and downs and great pressure. In May 2016, I personally jumped to the front line and directly took over the mobile phone department. After careful research and analysis, I promoted the process of large-scale reflection, summary, make-up lessons and improvement. Anyway, the process was miserable.

This was the oath meeting of the whole mobile phone department held by us at that time. In fact, "the situation is serious" was written on the first page. I think everyone knows very well that our situation is very serious. The process was so painful that I won't go into the details. I just remember that during that time, I went to work at more than 9 o'clock in the morning and had a meeting in the office at one or two o'clock in the morning. When I got off work one night, I thought on the way that I had 23 meetings that day. Even I find it incredible. When I was writing PPT, one of my colleagues asked me to list all 23 of them. I said no, some of them are trade secrets, and it's not a good thing, so I became a model worker.

3.3Story of MIX

After such a down-to-earth adjustment, XIAOMI's internal morale recovered step by step, and by the end of October 2016, XIAOMI's reversal of the charge was sounded. What is it? XIAOMI Note2's press conference was held on October 25, 2016, and Liang Chaowei's endorsement was lightened. After the press conference, One more thing appeared on the screen, and the audience was very quiet. When this screen is displayed on our screen, it lights up a little bit, and the whole audience begins to cheer. XIAOMI Mix release, the world's first comprehensive screen release.

And after its release, the phone shocked the global scientific and technological community, and even was collected by three major design museums around the world, namely, the National Design Museum of Finland, the Pompidou Art Center in France, and the International Design Museum in Munich, Germany. XIAOMI MIX represents the future direction of mobile phone development, said the curator of Finland's National Design Museum. As of today, you should not find any mobile phone that has won such an honor, which has been collected by three design museums, which I have never heard of.

What I'm going to tell you today is the story behind Mix. How did MIX get here? In fact, it is quite simple. At the beginning of 2014, several engineers of XIAOMI chatted about a very profound question, that is, what will the mobile phone look like in five years' time? In fact, we discuss this problem every year. At the beginning of 2014, they had a heated debate, and finally a mainstream idea came out, that is, five years later, the front of the phone was full of screens, which was put forward in early 2014. With this bold idea, but there are a lot of difficulties, they came to me and said, boss, what do we do?

As soon as I listened to them, I thought they had a point. Although this idea is earth-shattering, if it can be done, it can promote the development of the global mobile phone industry. I told them to start work immediately, don't think about the budget, don't think about the timetable, don't think about mass production, until it's done. These are the four things I told them at that time.

I didn't expect to work for almost three years, but they really did it. After this matter Mix release, XIAOMI this kind of huge innovation ability shocked the whole world, also shook the entire industry, and then sounded the charge of XIAOMI's reversal.

Today, I would like to share with you that XIAOMI is such a small start-up company, where is the driving force of its innovation? XIAOMI put engineers, engineers as XIAOMI's most important assets. We respect every crazy idea. When they have this idea, they can just push open the CEO door and say, "I want to do this." this will be approved, even though it takes three years to do it, so that only the company that puts talent in the most important position can do it. I think this is XIAOMI's most valuable engineering culture.

Therefore, in order to make engineers' flame of innovation and exploration brighter and brighter, we have established the company's highest award, called XIAOMI Technology Award. How much is the bonus? The bonus is $1 million in restricted shares, that is, XIAOMI's shares are worth $1 million. Last year we awarded the prize to Mix Alpha's pre-research team.

Here, I am also entrusted by the Technical Committee to make an advertisement for them. They said, because the founder of XIAOMI, these eight people are all technical background, so we understand engineers, we have the best engineer culture here, and you have a chance to realize any crazy ideas. As long as you love technology, as long as you are skilled, welcome to XIAOMI to realize your technological ambitions and dreams!

3.4 about quality

During that time, our business recovered step by step, but the difficulties were not solved. Performance-to-price ratio is XIAOMI's powerful weapon, in fact, it is also our softest weakness. Why would you say that? It is because there is an old saying among Chinese people that there is no good goods at cheap prices.

In other words, what you sell cheaply is the original sin. This makes us very easy to be attacked by our competitors and very easy to smear. I wonder, in the long journey in the future, how can XIAOMI be invincible? Only by making world-class quality can we have a chance to survive.

Since 2017, XIAOMI has launched a vigorous quality campaign, and quality has become our top priority. Of course, the improvement of quality is a very painful and tedious process. Kungfu is worth the effort of those who set their minds to it. One hard work and one harvest. In 2018, we, XIAOMI, won the first prize of quality Technology of China quality Association, and I personally won the honor of Chinese quality figure in 2019. To this day, we still put quality above all else, and quality is the lifeline of the whole company.

Maybe when I say this, people think I'm talking big. I'm not going to talk about today's quality issues. I have a very important experience I want to share with you. When a company is in trouble, many people may come up with strange ways to reverse it. I think when you encounter difficulties, steady position is the most important, quality is your position. Only when you stabilize the quality can you make a breakthrough. Innovation can determine how imaginative the enterprise is, but quality determines whether you can live or not.

This sentence is a very important slogan within us, that is, "Innovation determines how high we fly, and quality determines how far we go." quality and innovation are equally important.

International situation

411 million inventory

We all know that we have done a very good job in internationalization. Let me talk to you about the process of our internationalization. In the second quarter of 2014, we reached the top of the smartphone market in China and became the number one in China, in only two and a half years. Our sales in China alone ranked third in the world, and at that time investors were very bullish on us and gave us a very challenging task. Can XIAOMI model be replicated all over the world?

After thinking about it for some time, we decided to start in India. Officially entered the Indian market in June 2014, of course, the Indian market is the same as we imagined, XIAOMI went strong and soon became the most dazzling star in the Indian market. Of course, the good times didn't last long, and we soon encountered a great difficulty. I don't know if you still remember the art journey of a steel plate, XIAOMI 4. XIAOMI 4 was very popular after it was released in China in July 2014. There was also a serious shortage of demand, and the newly established Indian team hoped that the headquarters would support it. 500000 units were specially approved to India.

In January 2015, when this product was released in India, no one thought it would sell, resulting in an inventory of more than 1 billion yuan. This is a disaster for newly established Indian companies. I was confused when I heard that, what should I do? At that time, 3G mobile phones were no longer sold in the Chinese market, and they were all changed to 4G. The goods specially approved by India were 3G mobile phones, which could not be sold in China. 500000 flagship mobile phones!

After reviewing repeatedly afterwards, the main reason is that the time we entered India is too short, the accumulation of the user base, the potential energy of the brand, the ability of the channel are not available, so we have to work on 500000 flagship machines, which is too exaggerated! But what should we do if we have to solve this 1 billion of the inventory? We urgently set up an international fire brigade with three people at first, and we are looking for the 3G market around the world to digest this inventory.

In the first few months, these three colleagues traveled to 40 or 50 countries, were shut out countless times, and finally found a group of partners who were willing to work with us. Later, they summed up with me that there are mainly three types of people who are willing to work with us, and the first-class players ignore us. Which three categories?

Used to sell oil and natural gas, by the way, want to sell some mobile phones. I want to sell oil and natural gas. How can I sell mobile phones? I don't understand. The second category also depends on music, selling computers and notebooks and selling mobile phones by the way. But we all know that it is basically unreliable. These two channels are two kinds of channels. The third category is the second-rate and third-rate or unclassy ones who are willing to sell XIAOMI in various markets. But we didn't make a move, ah, it was such a seemingly rabble that helped sell XIAOMI 4 around the world. After a year and a half of hard work, 1 billion of the inventory suffered heavy losses, but it was finally sold out.

In fact, there are two major risks in the mobile phone industry, the first is quality, and the second is inventory. Because we sell "seafood", how much will the loss be when we have it in stock? For example, the cost of XIAOMI 4 is 2000, and the cost of processing after the last year and a half is less than 800 yuan. This is the biggest loss of inventory I have ever dealt with, and it is the first time I have dealt with such a huge inventory. It was very painful at that time.

If you lose your horse, you can't know the good or the bad. Our international fire brigade, the channel for selling inventory everywhere, unexpectedly became the advance team of our international business, which greatly accelerated XIAOMI's international business layout around the world. Within a few years, XIAOMI's international business has grown rapidly all over the world, and today XIAOMI has reached 90 countries and regions. This is all due to the opportunities brought about by the crisis created by this batch of inventories at that time.

4.2 R U OK
Of course, the international business is not all bumpy, there are also a lot of happy times. For example, in May 2015, I was on a business trip to India and attended a press conference held in India. As soon as I heard that I was there, the atmosphere was extremely warm. Our colleagues in India temporarily arranged for me to go on stage to say hello to everyone, and as a result, I blurted out "Are you ok", and the whole scene was very lively. I have not yet returned home, this video returned to China quickly went popular, Bilibili Inc. has a UP master also made a ghost convulsion video, all of a sudden I became a famous singer of Bilibili Inc., let's enjoy it.

So the whole international business has experienced ups and downs on the one hand, and a lot of joy on the other, and everyone has come to this day singing and dancing. Today, our mobile phones from 50 countries and regions have entered the top five of the market. The first market we entered was India. It took us three years to achieve the first place in the Indian market. We are now the first in the Indian market for several years in a row. In the past two years, we have focused on Europe because we need to prove that XIAOMI can win the first place not only in developing countries, but also in developed countries. I believe that there will be more countries in the future, and we will rank first in the market.

The whole process of internationalization may be different from what people think. Success is often not planned by you, and crisis is an opportunity that you can't imagine. When you encounter a huge crisis, it may create new opportunities for you to face and solve it with a positive attitude. I think XIAOMI is so internationalized. Today, I think that without the inventory of 1 billion RMB at that time, huge difficulties would not have been solved, we would not have rolled out so quickly, nor would we have made so much progress today.

Highlight moment

5.1 three unforgettable highlights

• 1. be listed

Today, on the occasion of the tenth anniversary, I ask many of my colleagues, what was your most unforgettable moment in the past decade? Everyone agreed to go public.

Listing is indeed the most unforgettable thing for Xiaomi people. But for me, the most important thing is the 5% thing on the eve of the listing. On the eve of listing, on April 25, 2018, I held a press conference at my alma mater, Wuhan University, and announced a board resolution that XIAOMI's comprehensive net profit margin on hardware will always exceed 5%. All the excess will be returned to the user.

At that time, XIAOMI will be on the market soon. Isn't it wrong for you to think about XIAOMI's cake if he doesn't go out for a good roadshow, but he wants to card his own profit margin? Every generation of managers from XIAOMI is cold to follow this principle. After we have formed this preliminary opinion, we will talk to the shareholders. Shareholders will explode as soon as they hear this. Do you still want to go public? this may have an impact on the listing. It is too late! Someone else told me that it was terrible to say that when I invested in you, you didn't say that. I knew you only earned 5%, so I wouldn't invest.

We had a lot of emergency conference calls in a row, and we couldn't talk about it a few times. I said this to you for the last time. I told shareholders, "A good company makes a profit, and a great company wins the hearts of the people." If you agree to my proposal, what you own may be a company destined to be great. In this way, 5% of the decision was supported by all shareholders, and finally I chose to hold a press conference at my alma mater, because my personal dream came from Wuhan University, so I held a press conference at Wuhan University. Announced the decision. When this decision was released, my moments were scanned by 5%. Of course, there is also some ridicule, there is also some sarcasm, we will not talk about it.

• two。 Beijing drifters buys a house
  

What was the second unforgettable moment? It's moving, moving to our own home, XIAOMI Science Park. XIAOMI Science and Technology Park opened in July last year. After we moved in, XIAOMI students all liked this office very much and thought it was beautiful. We affectionately call XIAOMI Science and Technology Park "Qinghe Sanlitun". Anyway, we are far away from Sanlitun.

I am also very excited, I wrote a Weibo Corp "Beijing drifters, struggling for more than nine years, finally bought a house!" 8 buildings, 340000 square meters, 5.2 billion cost ", this Weibo Corp hair, caused a huge resonance among netizens, the number of reading reached 33 million times. I know that in every Beijing drifters's heart, there is a dream of buying a house, so they are sincerely applauding XIAOMI.

There is a group of people who are more excited than me and turn harder than me. Which group of people is it? Real estate agent. They say this is the most inspirational story of Beijing drifters, who has been able to buy 8 buildings for more than 9 years!

• 3. Selected as one of the top 500 in the world

Then we were selected into the Fortune 500. let's take a look at XIAOMI's achievements in the past nine years. What a beautiful and high-spirited curve it is. This is how we entered the Fortune 500s. When I wanted to write a letter to the whole staff, a colleague said to us, "Boss Lei, can we be modest and pretend we don't care?" "I said," Let's not pretend this time! "

I started my business as soon as I graduated from college, and I didn't have the opportunity to go to work in the top 500. I said I still envy Lin Bin and them, Microsoft Corp and Alphabet Inc-CL C, no chance! Today, it is not easy for our own company to become the top 500, and I also have the opportunity to work in the top 500. Do I think we have to show off? Yesterday I temporarily changed the PPT, because we were selected into the Fortune 500s again yesterday.

XIAOMI, as the youngest top 500, is often compared with some established top 500, such as Apple Inc, Samsung and Huawei. I am very depressed, to tell you the truth. I admit, I'm not as good as them. Do you agree? At least I'm not as good as them today, but it doesn't matter! If you want to take a closer look at XIAOMI's words, I believe XIAOMI actually did a really good job.

Let me show you several listings. The first is BCG. Among the top 50 innovative companies in the world, there are five Chinese companies, namely Huawei, Tencent, BABA, JD.com and XIAOMI. XIAOMI ranks 24th in the world. The second and very authoritative list is called Derwent Global Innovation Top 100 list. Only three Chinese companies were selected, namely Huawei, XIAOMI and Tencent. XIAOMI was selected for the second time and Tencent for the first time. The third is the BradZ Global Top 100 Brands list. XIAOMI ranks 81st in the world, with a total of 17 Chinese companies selected.

These three lists are very authoritative, enough to show XIAOMI's achievements in innovation and brand.

5.2 what has XIAOMI changed in the past ten years?

XIAOMI's decade is the decade of the mobile Internet, and it is XIAOMI's honor to go with the great times. Looking back over the past decade, what we are really proud of is not going public, not moving, not these things, but three things:

First of all, XIAOMI, together with all his peers, promoted the popularity of smartphones and accelerated the take-off of the mobile Internet.On one occasion, Cheng Wei, the founder of DiDi Global Inc., said that everyone must thank XIAOMI. XIAOMI is one of the promoters of China Mobile Limited's Internet. Anyway, I was quite moved by these words. I think the new generation of Internet leading enterprises like DiDi Global Inc., Meituan and Bytes are in fact huge opportunities brought by the mobile Internet.

Second, XIAOMI's ecological chain model has led to changes in 100 industries, resulting in a large number of entrepreneurs.For example, Changjing, a young man came out of a big company to start a business five years ago. XIAOMI ecological chain invests him and gives him resources to help him grow. In just five years, he has become a global leader in floor-sweeping robots. In February this year, he joined Science and Technology Innovation Board with a market capitalization of 41.1 billion yuan. There are still a lot of enterprises like this in XIAOMI's ecological chain, so this is the second point that I am most proud of.

The third thing, XIAOMI even changed the fate of many people.This is Ellyana, a female worker of XIAOMI's Indonesian production line. Her husband died a few years ago, and one has to support three children. Life is extremely difficult for her. She was very happy when she finally got a job in an Indonesian factory two or three years ago, because with this job, her three children had the opportunity to eat well and go to school.

Moreover, with this job, I have met new friends, broadened my horizons, and my status in the village has been greatly improved. 90% of our production lines in Indonesia are women, and I am particularly proud that XIAOMI's career has changed the lives of many people.

5.3 Biography of XIAOMI

There have been so many stories in the past ten years that a speech is difficult and difficult to tell. Fortunately, we have a way to let people who want to know about XIAOMI know more about XIAOMI. In February 2019, Fan Haitao, a famous biographer, interviewed XIAOMI's team and published a biography of XIAOMI in a year and a half. this is XIAOMI's first officially authorized biography. the title of this album is "Indomitable". Thanks to Fan Haitao and CITIC Publishing Group.

This book will be the premiere at 09:30 this evening. The whole book has 360000 words. It is very informative and has many wonderful stories. In my speech today, there are actually many stories in this book, because time is limited, we can't tell so many stories.

XIAOMI, who has been growing up for ten years, has grown up year after year. Today, I can proudly tell you that our R & D budget this year has exceeded 10 billion yuan.

Maybe many listeners don't understand what 10 billion means. I checked this afternoon. Among all the listed companies in China, among the domestic listed companies, the top 10 companies with R & D investment are 10 billion, plus the unlisted enterprises with more than 10 billion R & D investment listed overseas. I think it's basically in the top 20. I think XIAOMI a ten-year company in R & D investment, ranked in the top 20 in China, I am still very proud.

XIAOMI has a strong culture of innovation and exploration, coupled with 10 billion of R & D investment, there will be more and better products for you.

New product release

• XIAOMI 10 Supreme Commemorative Edition¥5299起

Many initial technology and innovation features are integrated, with mirror, transparent, glass classic material elements as the carrier, through the industry's top technology to present XIAOMI's outstanding technical attainments.

• Redmi K30 Supreme Commemorative Edition¥1999起

Continue the Redmi K flagship pedigree, Tianji 1000+ flagship chip, 5G connectivity and strong performance into one core; coupled with 120Hz ultra-high refresh rate, stereo dual speakers, using hard core strength to reshape the flagship standard.

• milletTransparent televisionXIAOMI TV Master Series¥49999

XIAOMI transparent TV is the world's first mass-produced transparent OLED TV. Mass production of products that previously existed only in science fiction films is XIAOMI's exploration of the ultimate form of television in the future.

• Go-kart No.9 ProLamborghini customized version¥9999

It is always XIAOMI's mission to be the coolest company in the heart of rice noodles. The custom version of No. 9 go-kart Pro Lamborghini is another cool toy that presents rice noodles after XIAOMI popularized the geek-exclusive balance car.

• There are also the following new products