December 12th news, XiaoMi Group partner and president, Lu Weibing, issued a post today introducing the background of XiaoMi's independent car-making efforts. He stated:
In February 2021, following Xiaomi's decision to enter the automotive industry, there were numerous internal discussions about whether to finance the venture using Xiaomi's own funds or to establish a separate company for fundraising.
After numerous discussions, a consensus was finally reached: As a crucial part of Xiaomi's ecosystem, the car business must be entirely within the Xiaomi system, and thus, it must be funded using Xiaomi's own capital.
At the March launch event, President Lei announced an investment of $100 billion (about 70 billion yuan) into the automotive business, as we believe that this is the threshold to get a seat at the table in the face of the century-long transformation of the automotive industry.
The current value is approximately 726.97 billion RMB, equivalent to 100 billion USD.
Additionally, Lu Weibing posted yesterday, "We fully understand the importance of cash flow for a company's healthy operation. After announcing our entry into the car industry in 2021, our cash reserves have increased from 100 billion to 150 billion over more than 3 years. Not only is the automotive industry undergoing a rapid reshuffle, the smartphone industry is far from over. All industries are undergoing rapid changes, and only constant self-revolution can adapt to these changes."
Xiaomi released its third quarter financial report in November, reporting revenue of 92.51 billion RMB, exceeding the estimated 90.28 billion RMB, with a year-on-year increase of 30.5%. The net profit of Xiaomi Group for the third quarter was 53.5 billion RMB, surpassing the estimated 47.3 billion RMB, marking a year-on-year growth of 4.4%. This figure includes an adjusted net loss of 1.5 billion RMB from innovative businesses such as the smart electric vehicle.
Additionally, the 2024 Xiaomi "Human-Car-Home Full Ecosystem" Partner Conference will be held on December 27th at the Beijing National Convention Center. The theme of this conference is "Travel Together, Thrive into the Future," focusing on Xiaomi's new Pailab OS technology, IoT and ecosystem chain, and internet business collaborations. It will feature one main venue and seven sub-forums.
