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When millet became a runaway bride, CDR's marriage ended?

via:博客园     time:2018/6/21 21:09:18     readed:431

Wen/Ma Jihua, Public: Nknight

The midfield steals the ball all the way, and the defenders have all been left behind. Xiaomi's goalkeeper, facing the bluffing goalkeeper, did not shoot but returned the ball to his goalkeeper. This scene is not in the World Cup but in China's capital market.

On the second day after the China Securities Regulatory Commission issued the CDR management plan, Xiaomi submitted an application and 12 days later, the China Securities Regulatory Commission rushed to give feedback. However, at the moment when the Shanghai and Shenzhen Stock Exchanges were all ready, Xiaomi chose to flee. On the morning of June 19th, Xiaomi announced that after repeated careful investigations, the CDR application was postponed and Hong Kong was listed first.


This decision actually surprised the entire market and cast a shadow over the unicorn fund that had just been sold out. In fact, just shortly after Xiaomi returned the CDR application, Xiaomi’s valuation was further reduced. It was already less than 70% of the initial publicity and the financing was reduced to about US$6 billion.

There is definitely a reason for Xiaomi to back down. This decision will not only harm Xiaomi’s market confidence but also have a negative impact on the CDR policy itself. It is not a last resort, and Xiaomi would not do anything wrong. Everyone almost agreed that the SFC’s 20,000-word, 84-question “serious” feedback deterred Xiaomi who was about to shoot, because Xiaomi was unable to answer and did not dare to answer all questions.

The China Securities Regulatory Commission is also very serious. The CDR "Feedback" given to Xiaomi not only has a large number of characters, but also includes 84 issues including regulatory, information disclosure and other aspects. It involves competition in the same industry, corporate governance, equity incentives, and related transactions. Each issue is a matter of blood, and almost all of the social challenges of Xiaomi's company have been integrated into this period of time, making it difficult for Xiaomi to parry.

For example, the Securities Regulatory Commission asked Xiaomi to explain that “Is Xiaomi a hardware company or an Internet company?” This is what everyone is most concerned about. Because, during the reporting period, Xiaomi’s Internet service business accounted for only 4.8%, 9.6%, and 8.6% of its operating revenue respectively. The main source of revenue is still the sales of mobile phones and related hardware. Such companies are packaged as “Hardware.” Drainage and Internet-based technology innovation companies are truly incredible.

Millet mobile phone sales during this period is still good, but the main sales are from the low-end red rice mobile phone, that is, in order to create a base for the Internet business, Xiaomi chose to spread the goods with cheap products, not hesitate Sacrificing the brand image and potential value of future customers and using the number of red rice users to serve as "Internet users", using multiplication to enhance company valuation.

According to the feedback from the China Securities Regulatory Commission, Xiaomi needs to publish its own operating income, cost structure, and industry rationality that the Baimao interest rate must be less than 5%, which is awkward. Because, once released, the price of Xiaomi's procurement of Qualcomm chips and other components will be at a glance, allowing the “hardware porters” role and the exposure of internal and external caliber problems. Lei Jun’s “herald cattle” It's hard to round.

According to the disclosure of the prospectus, the company's research and development expenses during the reporting period were RMB 151 million, 2.104 billion and 3.151 billion respectively, accounting for 2.26%, 3.07%, and 2.75% of the operating revenue respectively. The China Securities Regulatory Commission also asked Xiaomi to explain that the aforementioned R&D expenses cover the specific scope and detailed structure and correspond to the expenditures of major R&D projects. That is to say, even if this point is far below the industry level, R&D expenditures are also questioned, and even outsiders speculate that it is possible. There are other expenses that serve as R&D. Millet as a technology company, such a low R & D investment, but it can have so many "black technology", itself is against the basic logic, which is a mishap by Xiaomi.

In the future, if Xiaomi wants to really grow into a respected company, the investment in R&D should be increased to at least 8-10%. However, long-term low-cost products such as red rice-based mobile phones, millet actual profits are difficult to accumulate, it is difficult to have capital investment in research and development, resulting in a vicious circle, which is the so-called "Internet thinking" sequel.

However, in addition to these challenges raised by the Securities and Futures Commission, Xiaomi’s return to the CDR should have other reasons. In the past few days, the mobile phone sales rankings during the 618 big promotion period also caused controversy, Xiaomi announced that he is the first sales, but peers do not think so. The reason is that Jingdong's statistics are "order orders", and some companies will eliminate "6 hours of non-payment and chargeback users" in the statistics, but Xiaomi accepts the peace of mind "possibly". ; A large number of results after brushing.

Even if we do not look at the actual sales figures, but at the crucial moment of the launch of Xiaomi 8's grand launch, Xiaomi's performance in the 618 is also difficult to describe with sparkling. In these years, Xiaomi valued sales, despised quality, attached importance to configuration, and despised quality, and the consequences were getting worse. According to microblogging users broke the news, a few days after the purchase of millet 8, mobile phone screen has been "open plastic". Not only that, in the evaluation of consumers in Jingdong Mall, there are also many comments on the issue of quality control of Xiaomi. Another part of the users stated that the camera of the Xiaomi 8 frequently had problems. The specific phenomenon was that it was impossible to shoot and streaks appeared. Similarly, in the user feedback of JD.com's 8 users, there is the same problem. The user said that even if the program is restarted, the camera cannot be used. More users of Xiaomi 8 stated that dual-frequency GPS is not as splendid as Lei Jun said. Precise positioning does not exist. In the course of use, there has been a positioning drift, and even someone's millet 8 cannot automatically position itself.

In addition, millet's troubles in patents are also constant. On June 15, Ericsson responded to the rumors that the patent dispute had reached a settlement that the patent lawsuit with Xiaomi is still in progress. This lawsuit began in 2014. For the purpose of “temporary licensing”, Xiaomi had to prepay 100 INR for each device to be deposited in the court before it could continue to be sold in the Indian market. At home, Cool has also sued Xiaomi and has not concluded yet. The patent issues accumulated by Xiaomi over the years have become the biggest stumbling block in the future development.

All indications indicate that Xiaomi was unable to respond to the feedback from the Securities and Futures Commission and ignored the product quality checks in the process of spreading the image of the Internet company at low prices for red rice, ignoring the investment in research and development, and ignoring the huge business caused by patent disputes. The risk can only be chosen to escape the bride when the CDR sedan arrives. In the future, we still hope that Xiaomi can face up to the problem and revise its corporate development strategy to create a glory for China.

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