Lei Jun responded to the one billion "gambling" lost to Dong Mingzhu: I have been waiting for Gree's official financial report - The World of Tech

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Wednesday, March 20, 2019

Lei Jun responded to the one billion "gambling" lost to Dong Mingzhu: I have been waiting for Gree's official financial report


On March 20th, at the Xiaomi 2018 annual performance conference, Lei Jun responded to Dong Mingzhu’s 1 billion gambling bureau. He said: “I have been waiting for Gree’s financial report.” Lei Jun said with a smile: “I have been waiting for Gree. Formal financial report." Lei Jun also said that Dong Mingzhu has contacted me.

Lei Jun responded to the one billion gambling lost to Dong Mingzhu I have been waiting for Gree's official financial report

On the evening of March 19, Xiaomi announced the first transcript after listing, showing that in 2018, Xiaomi realized income of 174.915 billion yuan. Two months ago, Gree Electric released its 2018 performance forecast, showing that its total revenue in 2018 was 200 billion yuan - 20 billion yuan. According to the lower limit of Gree's revenue, Lei Jun eventually lost the “billion gambling bureau”.


Chinanews.com client Beijing March 20 (Wu Tao) Lei Jun and Dong Mingzhu gambling results came out! On the evening of the 19th, Xiaomi announced its 2018 financial report. In 2018, its revenue was 174.9 billion yuan, which was at least 25.1 billion yuan less than Gree’s revenue.

On December 12, 2013, the results of the 14th China Economic Person of the Year Awards hosted by the CCTV Financial Channel were officially announced. Lei Jun and Dong Mingzhu were elected. China News Agency issued Futian photo

Lei Jun lost 1 billion gambling

On the 19th, the annual financial report released by Xiaomi Group showed that in the whole year of 2018, Xiaomi Group's revenue was 174.915 billion yuan, a year-on-year increase of 52.6%.

This figure is not in line with Gree Electric's previously announced performance forecast: its total revenue in 2018 is 200 billion yuan - 20 billion yuan.

Losing 1 billion, which is equivalent to losing 1/8 of Xiaomi's annual profit. The financial report shows that Xiaomi Group's net profit in 2018 was 8.55 billion yuan, a year-on-year increase of 59.5%.

I don't know if Lei Jun will regret playing this bet.

On December 12, 2013, Lei Jun and Dong Mingzhu also won the honor of CCTV Finance “China Economic Person of the Year”. At the time, there were many "big names" such as Ma Yun and Wang Jianlin.

Dong Mingzhu sent a question to Lei Jun: "If the factories all over the world are turned off, (Lei Jun) Do you still have sales?"

Lei Jun countered: "In five years if our turnover beats Gree, Dong Mingzhu Dong will lose me a dollar."

Dong Mingzhu immediately responded: "I bet you 10 billion."

Now that the results have come out, everyone wants to ask is whether Lei Jun will pay Dong Mingzhu 1 billion yuan. Is this 1 billion yuan from Lei Jun’s personal outsourcing or Xiaomi company, cash or credit card? After Dong Mingzhu receives 1 billion yuan, he does not have to pay personal income tax? Is the 1 billion gambling budget a big gamble?

Recently, a reporter asked Dong Mingzhu: How to get back this billion yuan?

"This is a false proposition." Dong Mingzhu said.

Where is the loss?

The result of the bet has been set, so let's see why Lei Jun will lose. First of all, Cheng also Xiao Xiao defeated Xiao He. Millet revenue can't keep up with or related to Xiaomi's "hunger sales." Recently, Xiaomi has suspended the sale of Xiaomi 9 because there is no stock. Big Brother, there is no even the goods, which will affect the revenue.

After the Xiaomi financial report was issued, Lei Jun issued a letter to investors. The letter said that the supply of Xiaomi 9 series is expected to exceed 1.5 million units at the end of March.

In addition to revenue, Xiaomi's profit margin is not high. Prior to Xiaomi's promise, Xiaomi's hardware integrated after-tax net profit rate never exceeds 5%. The open letter shows that the 2018 millet hardware integrated after-tax net profit margin is positive, less than 1%.

In addition, Xiaomi or lose the online market. With the impact of new retail, offline markets are redefined. Xiaomi started from the Internet but now has to pay attention to the offline market. According to the financial report, as of the end of December 2018, there were 586 Xiaomi's homes and 1378 Xiaomi authorized stores.

It is worth noting that there are only 62 Xiaomi authorized stores at the end of 2017. The growth rate is 22 times a year. That is to say, Xiaomi was only able to make a force last year. This is obviously worse than the offline sales of Gree.

In addition, the sales of Xiaomi mobile phone in the domestic market is weak. Although Xiaomi's earnings report did not disclose the domestic sales of Xiaomi's mobile phone, the data disclosed by IDC, an international data and consulting organization, showed that domestic shipments of Xiaomi fell by 6% year-on-year in 2018.

Does Lei Jun still have a chance to make a comeback?

Although future gambling is not in the body, the Lei Army still hopes that one day the revenue can exceed Gree. But does Xiaomi have a chance?

First, Xiaomi will rely on the global market. In 2018, global smartphone market shipments fell by 4.1% year-on-year, but Xiaomi's global mobile phone shipments reached 119 million, a year-on-year increase of 30%.

The financial report shows that Xiaomi's overseas revenue share increased from 28% in 2017 to 40% in 2018. The Indian market maintained its number one shipment for six consecutive quarters.

In addition, Xiaomi will want to bet on artificial intelligence and the Internet of Things. The open letter shows that Xiaomi will invest at least 10 billion yuan in All in AIoT.

It is not difficult to see from Xiaomi's product line that Xiaomi has more and more layouts in smart homes. Introducing washing machines, air conditioners, etc., in an effort to find new growth points. At the red rice conference in March, the 799-yuan pulsator washing machine was introduced, and the price of the pulsator washing machine was reduced to 1,000 yuan.

Xiaomi's financial report also showed that TV and computer revenues increased by 118.4% year-on-year to 18.2 billion yuan, which accounted for 41.6% of IoT's total revenue, driven by explosions such as TVs, scooters, and sweeping robots.

"Millet mobile phone is not very good, but the rest of the products are really good." Some netizens gave Xiaomi evaluation. It can be seen that some smart products launched by Xiaomi are still very popular.

However, the capital market does not look like this. After the financial report was issued, Lei Jun said that it was an open letter to investors, but the capital market did not seem to pay. The market value of Xiaomi has dropped from HK$375.9 billion on the first day of listing to HK$291.9 billion. (Finish)

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