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News EO
Jun 21, 2020
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News EO
Jun 21, 2020

Xiaomi’s Lei Jun Steps Down as Executive Director at Kingsoft

As business data aggregator Tianyancha reported on June 20, Chinese entrepreneur Lei Jun (雷军) has resigned as an executive director at Kingsoft Corporation (3888:HKEX). The resignation underscores the fact that Lei Jun is one step closer to yielding control to the next generation of management teams. Being the chair of the company, Lei Jun served as the CEO at Kingsoft during the period of 1998 – 2007. Under his leadership, Kingsoft has spun off several businesses, including Kingsoft Office (688111:SH) and Kingsoft Cloud (KC:NASDAQ) and Lei also became an entrepreneur who has chaired four public companies – he is the Chair of Xiaomi (1810:HKEX). His resignation from Kingsoft is a successive story of his resignation plan. At the end of 2019, Xiaomi restructured its senior management team – Wang Xiang (王翔) was assigned the president of Xiaomi Group and the new management team led by Wang was expected to undertake more responsibilities for the group’s development. Similarly, at Kingsoft, the new-gen of the management team is led by Zou Tao (邹涛), who has been in the position for years, and Lei Jun successively quit from positions at Kingsoft’s subsidiaries. The passing of control will be on the go until Lei Jun’s full retirement. After Jack Ma (马云)’s retirement from Alibaba, some of the first generation of Chinese Internet entrepreneurs are also in the process of ‘retiring’ from their companies: the founder of JD.com (JD:NASDAQ) Liu Qiangdong (刘强东) has resigned from over 40 positions at JD.com-controlled companies since 2019, and the chair of Xiaomi, Lei Jun has quit multiple roles in non-Xiaomi-related business. Behind their resignations, the goals are different. Jack Ma and Liu Qiangdong are eliminating their unique ‘iconic’ influence on their companies' operation by retirements because their characters have become an ‘intangible asset’ of their companies – which might cast great impact (both positive and negative) on companies' long-term development. After Lei Jun’s ‘retirements,’ he is still central in the game played by Xiaomi: with the new structure, Xiaomi will emphasize global consumer electronics markets more its IoT ecosystem.

News EO
Jun 17, 2020
report
News EO
Jun 17, 2020

Xiaomi Supplier Huami Launches New Wearable AI Chip

On June 16, during its first AI Innovation Conference in Hefei, Huami Technology (HMI:NYSE) released five AI-based biological data engines, an optical sensor and a new generation of AI chips customized for wearables – Huangshang-2. Huami was incubated by Xiaomi Corporation (01810:HKEX) and is publicly considered one of the key actors in the consumer electronics giant's ecosystem. As the R&D and hardware provider for various types of Xiaomi devices, Huami has collected enormous revenue from Xiaomi’s purchase orders. Though the revenue generated from Xiaomi's orders went down from 92% in 2016 to 72% in 2019, Huami's downstream structure is still imbalanced.  Being the second-largest shareholder of Huami, Xiaomi continued its mutually beneficial cooperation in the recently published Mi Band 5, which embedded the Huami-empowered health assessment system Huami-PAI. As the core part of wearable devices, the Huangshan-2 can help take full advantage of five AI biological data engines, including Huami-PAI. Firstly, it has two advantages: high computing efficiency and low power consumption. Compared with the ARM Cortex-M4 architecture processor commonly used in wearable devices, the overall computing efficiency has been increased by 38%. Secondly, the performance of local AI data calculation is improved and recognition speed accelerated. For instance, Huangshan-2’s Atrial Fibrillation recognition speed is seven times that of Huangshan-1 and 26 times that of other software algorithms on the market. Finally, in theory, the overall power consumption of Huangshan-2 may be reduced by 50%, improving the endurance capability of wearable devices.

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Jun 11, 2020 · 21JINGJI
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Jun 11, 2020 · 21JINGJI

Xiaomi Enters the Mutual Aid Industry

News EO
Jun 11, 2020
report
News EO
Jun 11, 2020

Xiaomi Launches Virtual Bank Airstar, Expands Financial Services Scope

Airstar Bank, a Hong Kong-based virtual bank, officially started operation on June 11, 2020. The bank, formerly known as ‘Insight Fintech,’ is jointly established by Xiaomi Corporation (01810:HKEX) and AMTD Group, a local asset management institution. This is one of Xiaomi’s recent attempts (in Chinese) to expand its scope outside of the company’s traditional area – consumer electronics. A virtual bank is defined as a bank that primarily delivers retail banking services through the Internet or other forms of electronic channels instead of physical branches. The introduction of virtual banks is a key pillar supporting entry into the smart banking era. There are three major services currently provided by Airstar Bank: current deposit, time deposit and personal loans. For a savings account, the first HKD 20,000 in savings enjoy a 3.6% interest rate during the promotion period, which starts from 11 June 2020 to until further notice. Other preferential policies include zero extra fees for early uplift of time deposit and 24x7 FPS (Faster Payment System) instant transfer. Personal loans with APR (Annualized Percentage Rate) 2.99% are fast borrowings at a bank rate. The various currency accounts, namely the HKD, USD and CNY accounts available proved Xiaomi’s financial services are targeting on a global scale. Xiaomi has shown ambition in its financial service segment. Except for banking services, the company also covers consumer finance, supply chain finance, mobile payments and online insurance. In the consumer finance area, for instance, the app, ‘Xiaomi Finance,’ provides to-consumer financial services such as micro loans, personal wealth management and health insurance. Unlike Alipay, Xiaomi has a value chain that connected with the supply, production, e-commerce platform and retail distributors of its smartphones and other electronic devices. Along that stream, the company has many chances to develop the supply chain finance for more efficient capital flow. In October 2019, Huatai Securities underwrote Xiaomi’s first supply chain asset-backed securities (ABS), marking a successful trial in the integrated financial product area. Though thoroughly planned, Xiaomi in financial service is a latecomer. How to attract users from Alipay and other well-established consumer finance service provider remains ambiguous. Besides, the low-profit margin questioned Xiaomi Finance’s risk tolerance and the user’s asset security might be a concern.

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Jun 2, 2020 · donews
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Jun 2, 2020 · donews

Yang Zhe Joins Xiaomi as CMO in China

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May 31, 2020 · ifeng
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May 29, 2020 · tianyancha
News EO
May 23, 2020
report
News EO
May 23, 2020

‘Up to the Sky, Down to Earth’

► On May 21, the CEO of Xiaomi Corporation took part in the National People’s Congress (NPC). ► He touched upon the development of China’s space science, the disaster warning system, better financing for SMEs and foreign talent acquisition for China's 14th Five Year Plan. As a National People’s Congress (NPC) Deputy of China, Mr. Lei Jun gave his proposals covering four areas:  space science, disaster warning system, better financing for SMEs and foreign talent acquisition, which we believe somehow reflects his blueprints for Xiaomi. First Mr. Lei suggested that the ‘Internet of Satellites,’ as an emerging industry, should be one of the priorities in China's 14th Five Year Plan. The concrete measures include encouraging commercial space science, optimizing and simplifying the satellite network declaration, opening satellite-related business to private sectors, and setting national development funds for private space companies. Earlier this year, EqualOcean reported on Xiaomi’s intention to increase investment in 5G and IoT-related technologies. Consequently, the company’s new-gen smartphones with lower cost and more competitive price may have opportunities to preemptively take over a bigger 5G smartphone market share.  Then construction of a disaster warning system, which will be realized through smart terminals, was the following point. Connected with the world’s largest earthquake monitoring (in Chinese) sensor network, warning signals, along with instructions on how to escape, can be sent to smartphones, TVs and other types of smart devices once an earthquake is detected. In January 2020, Xiaomi declared to be the first in the world that connected it's AIoT and operating platform with an earthquake warning system. With the national support in the future, a more comprehensive and multifunctional IoT of Xiaomi can be achieved.  Financial services for SMEs are calling for improvements regarding convenience and price efficiency. Mr. Lei suggests setting more differentiated panels for financial institutions and SMEs for a more efficient financing match. Meanwhile more favorable policies should provide banks specialized in services for small and micro business with a lower capital cost. Driving venture capitals, equity investments and supply chain finance is another effective way for the better finance of China’s SMEs. For Xiaomi, building a business ecosystem by investing in Xiaomi eco-companies has been a core strategy. If a more radiant  financial mechanism can be achieved with government’s policy assistance for the following five years, Xiaomi will have the opportunity to benefit from its investment income and business expansions into every corner of the ‘smart life’ as well.  For globalization, it is essential for both stepping out overseas and letting the world into China’s universities, enterprises and research institutions. Lei Jun believes creating a community where is comfortable for global talents to work and live will stimulate market vitality in Beijing, Shanghai and Shenzhen. This suggestion reveals Lei Jun’s ambitions and long-term plan in Xiaomi’s global business, for talents are always the most important element to drive development. The first quarter of 2020 witnessed a 50% amount of revenue generated from overseas; more operations and investments are very likely to be conducted in the future. At the same time, risks of international politics turbulences, exchange rate fluctuations and the macroeconomic environment around the world should be noticed if the proportion of Xiaomi’s international business keeps growing. 

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May 23, 2020 · IFENG
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May 23, 2020 · IFENG

Xiaomi's Market Value Surpasses Baidu

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May 23, 2020 · EGSEA
News EO
May 21, 2020
report
News EO
May 21, 2020

Xiaomi Triumphs Overseas, Encounters Profit Downturn in Q1 2020

► Total smartphone shipments increased by 4.70%, as the global market declined. ► Revenue from all the major segments – smartphones, IoT products and Internet services – increased. The overseas business grew as well. ► Operating profit went down by 35.70%, mainly due to the 82.30% increase of cost related to the Internet services. ► The coronavirus outbreak in India, Western Europe and Africa is threatening Xiaomi’s sales in these regions. Xiaomi Corporation (01810:HKEX), a Chinese consumer electronics company, announced the consolidated financial results for the first quarter of 2020. Growing by 13.60% year-on-year, its revenue reached nearly CNY 43.76 billion. Half of this volume was brought by international sales, for the first time in the company’s 10-year history. Accounting for 11.90% of the total revenue, revenue from Internet services hit CNY 5.9 billion. On the flip side of the coin, the cost of sales related to this segment offset 40% of this figure. Another encouraging result comes from its smartphone business. With 29 million units shipped between January and March, Xiaomi was among a few handset makers that reported a year-on-year increase of 4.70%. According to Canalys, Xiaomi ranked fourth globally in terms of smartphone shipments in that period. There were some other extremes. For one, the explosive growth numbers in Africa (+284.90%) and Latin America (+236.10%). Though Xiaomi successfully drove its revenue by boosting its smartphone shipments and Internet services, the operating profit went down by 35.70%. The report reveals that the cost of sales is growing simultaneously with the revenue, which means that, though the company’s business is expanding, it has not yet realized economies of scale.  As widely acknowledged, Xiaomi has long stuck to its efficiency strategy. Yet it does not seem to be that efficient in terms of reducing unit cost. An 82.30% increase of costs related to Internet services is quite alarming, though that was explained in the report as a consequence of increased sales of gaming and fintech businesses. The overseas performance might be adding more doubts to Xiaomi’s upcoming second-quarter earnings. As indicated in the first-quarter report, 50% of the total revenue mainly comes from India, Indonesia, Western Europe, Latin America and Africa. The COVID-19 outbreaks in these regions are two to three months behind China, it will take tolls on Xiaomi’s second-quarter performance. For example, India has imposed severe lockdown policies and canceled most of its international trading with China, especially for non-necessities like smart devices.  For the long term, more expansions of business into the world must be considered positive, but for the near future, if Xiaomi relies too much on its global business, there should be foreseeable performance setbacks up ahead. 

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May 21, 2020 · finance.sina
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May 21, 2020 · news.windin
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