Rebirth 2010: I taught Mr. Lei how to make a mobile phone

Chapter 649 Master Mo's Class

You have to face what you have to face. Avoiding will not solve any problem.

At the close of June 6, Xiaomi's stock price rose first and then fell, from a peak increase of 25% to a drop of 15.79% below the issue price, drawing a thrilling electrocardiogram. It finally closed at 12% below the issue price, settling at HK$8.

This big negative line hangs over the heart of every investor like a sword of Damocles.

That evening, at the Four Seasons Hotel in Hong Kong, Xiaomi Chairman Lei Jun and a team of Xiaomi executives appeared at the Xiaomi global launch press conference.

Faced with the swarm of media cameras and short guns, the reporters' questions bombarded the Xiaomi people on the stage like a barrage of cannonballs:

“Does the stock price drop mean that the market is questioning Xiaomi’s model?”

“Will the rumor of Samsung’s supply cut severely damage the supply chain?”

"If Xiaomi's stock price remains depressed and fails to recover to the issue price, will Xiaomi initiate a buyback? Or will it consider adjusting executive compensation to be linked to the stock price?"

"There are rumors online that 'they started cutting leeks as soon as the stock was listed' and retail investors were trapped. I wonder what Mr. Lei's response is to this?"

"In its prospectus, Xiaomi calls itself an Internet company, but Internet service revenue accounts for less than 10%. Is Xiaomi deliberately packaging itself with labels to raise its valuation?"

As the press conference progressed, the questions became increasingly harsh and sharp, making Lei Jun and Xiaomi executives exhausted to cope with them. Fortunately, they are all veterans in the business world, and their answers were all official and orderly. They did not seek to make any achievements but to avoid making any mistakes, which was considered a flawless response.

Chen Mo's brows gradually frowned. He felt that this was not good and was a bit like bullying an honest person.

When a reporter asked: "Hello Mr. Lei, I have a question about Xiaomi's valuation. Previously, the market was generally optimistic about Xiaomi, with a valuation of nearly 1000 billion US dollars.

Many people doubt that your valuation is a bit exaggerated.

And compared with Apple, your P/E ratio is relatively high. Can you talk about this issue? Now that Xiaomi's stock price has fallen below the IPO price, do you think Xiaomi's valuation is expensive?"

Lei Jun was just about to pick up the microphone in front of him, but unexpectedly someone got there first. It was Chen Mo, who had been silent for almost the entire session.

"I'll answer this question for President Lei."

His voice was not loud, but it made the whole audience quiet instantly.

As the co-founder of Xiaomi and the head of the Bi'an Group, Chen Mo's dual identity makes every word of great importance.

“As one of the co-founders of Xiaomi, I have witnessed the growth of Xiaomi from its inception to the past five years.

Let me answer your first question first. Regarding whether the valuation is expensive or not, in fact, Xiaomi Group has never said how much we are worth. The market has been speculating in the past few months.

Many people think that the valuation in previous rumors is a bit exaggerated. I don’t know what Mr. Lei thinks, but I think their valuation of Xiaomi is indeed a bit biased.”

Just when everyone thought Chen Mo was admitting that Xiaomi's valuation was indeed high, Chen Mo suddenly changed the subject and raised his voice an octave:

“From my personal point of view, I don’t think Xiaomi’s valuation is overvalued, but the market generally underestimates Xiaomi’s potential. The market currently doesn’t understand Xiaomi at all!

I can put this sentence here. Mr. Lei said before that people who invest in Xiaomi can earn double their returns. I think it is conservative. The future share price of Xiaomi will be the current one.

Chen Mo paused for a moment before slowly saying, "Three times or more!"

These words were like a huge rock thrown into a calm lake.

The sound of shutter clicks suddenly became frequent, and the flash cut his figure into a silhouette of alternating light and dark.

If it were any other Xiaomi executive, the reporter might have refuted it long ago, but the person speaking on the stage had a good previous record, so they did not dare to act rashly.

So everyone wanted to hear why he dared to say such a fantastic and outrageous statement. At this time, even other Xiaomi executives on the stage, including Lei Jun, stared at Chen Mo with wide eyes. Even though he was full of confidence in the future development of Xiaomi, he was still a small witch compared to Chen Mo, and he didn't dare to make such a big satellite.

If it really reaches that level, wouldn't it be a sure thing for him to be the richest man in China?
Just like performing a skit, leaving time for the audience to savor the experience, when the discussion gradually died down, Chen Mo continued with a smile,
"I know what you are thinking. Some of you may think that Chen Mo is just bragging and that it is easy for him to talk without any pain. But considering what I am going to say, you can make your own judgment.

First of all, Xiaomi is a company that has been growing rapidly.

Mr. Lei just mentioned that our revenue grew by 87.5% year-on-year last year, and the accelerated growth in the first quarter reached 119%.

Please note that this is only the domestic market. The domestic market alone has helped Xiaomi rank third in the world, and there is still room for continued growth in the mobile phone market.

Next month, Xiaomi will hold a global launch conference for the international market. Part of the funds raised in the stock market will be used to develop the international market. Xiaomi has so far proven that we have the ability to seize huge market opportunities.

This is one of them. "

Chen Mo made a "yeah" gesture, "Secondly, we are a rare company in China and even in the world that can make mobile phones, home appliances, and the Internet.

In addition, we are pursuing a high-efficiency and cost-effective route, so we can achieve sustained and stable growth. However, this does not mean that the company will not make money with such a low gross profit margin. The company's net profit margin was 4.7% last year, which is still in line with Mr. Lei's previous promise that the standard for hardware will not exceed 5% in the future.

Therefore, Xiaomi makes friends with time and does not compete for a short period of time. We also hope that the majority of shareholders will make friends with Xiaomi. Time will give you the answers you want.

Finally, I would like to talk about Xiaomi's 'people and home' ecosystem.

I have seen the data before. Xiaomi's mobile phone revenue ratio dropped to 70% last year, but this does not mean that the mobile phone revenue has declined. Instead, the proportion of smart home IoT devices and consumer goods has exceeded 20%, and the number of connected IoT devices has exceeded 1 million. This is a very important indicator. "

With data first, supplemented by cases and concepts, Chen Mo's words are full of persuasiveness.

"Everyone can imagine this." His voice suddenly became soft, with a hypnotic magic.

“When you push open the door and your fingerprint touches the door lock, the lights in the entrance and living room light up softly one after another, with just the right brightness, neither glaring nor dim, dispelling your fatigue after a day’s work.

You just need to call out softly: "Xiaomo, I'm back." Xiaomo's speaker will respond softly: "Welcome home, I've switched to home mode."

Then, the Xiaomi smart home system in the house quietly starts up, the curtains slowly close, the air conditioner is adjusted to the most comfortable temperature, and the TV automatically plays the owner's favorite light music, preparing everything for you."

Internet of Things, when lights, curtains, audio-visual entertainment, kitchen waste and other equipment are connected in series through the power of technology.
The whole audience was silent, and everyone was brought into a future world by his description - a smart home dream woven by Xiaomi.

Chen Mo's tone was not excited, but there was an unquestionable certainty in his words.

It seemed as if what he was talking about was not a vision of the future, but a reality that was already here.
Lei Jun sat aside, frowned slightly, and then relaxed.

The effect of his own answer to this question might not be half as good as Chen Mo's.

Is this what I planned? It seems so. Well, no matter whether it was before, it is now.
He looked sideways at Chen Mo, with admiration and a hint of regret in his eyes.
Therefore, Lei Jun sighed in his heart for the umpteenth time: If this guy was still in Xiaomi, there would be no worries about not achieving great things!!!
Chen Mo was unaware of Lei Jun's thoughts. He continued to advance his own pace and began to finish according to the usual practice.
".From entering the door to falling asleep, Xiaomi smart home integrates silently into every life scene.

It is not ostentatious, but it is everywhere; it does not disturb, but it is always with you.

Let everyone enjoy the fun brought by technology - this is the Xiaomi Smart Home of the future!

It is not cold technology, but the real lights of thousands of homes!
"If this is the case"

Chen Mo raised a faint smile at the corner of his mouth.

"Do you still think that the Xiaomi stock price I predicted before is expensive?"

After the last word fell, he gently put down the microphone.

Snapped.
silence
Absolute silence.
(End of this chapter)