Why did Xiaomi suddenly raise $1 billion after the crazy “spending money”?

Choosing to start a business is an unfinished dream in my heart.

With the dream of transcendence, Lei Jun spent ten years building Xiaomi from nothing, and then made it into a Fortune 500 company. After becoming famous, Lei Jun ended his career as a “beijing drifter”, bought real estate for Xiaomi, and then successfully changed from an entrepreneur to an entrepreneur.

Entrepreneurs today do not mean that they always have money to eat. At the end of the era of mobile Internet, the faster and faster technological changes make every entrepreneur tired of catching up.

As a result, Dong Mingzhu learned to live broadcast with goods, and it exceeded 40 billion in the area. And Lei Jun is not too much. At the beginning of this year, Lei Jun chose to re-open a road outside the mobile phone – he chose to build a car.

The road to building a car is not alone. This road is crowded with various traditional and non-traditional enterprises. Lei Jun chose to build a car at this time, which not only avoided the confusion in the early stage, but also avoided the endless burning of money because of technology or patents.

The first phase is 10 billion, and the investment is 10 billion US dollars within ten years. This is the price that Xiaomi Lei Jun offered to build a car.

But whether this price is enough or not, no one knows.

At present, car building has become a “famous brand”. Everyone knows that this is the biggest outlet in the next ten or twenty years. There is no such thing. Therefore, all companies with a little money will go all out to build cars. As for the future Whether an independent brand can be created in a red sea, no one can guarantee it, just like the rush to build mobile phones back then.

In July 2018, Lei Jun led Xiaomi, which had been in business for 8 years, to land on the Hong Kong Stock Exchange. Before the listing, Jack Ma, Li Ka-shing and others all subscribed for Xiaomi’s shares.

Therefore, Lei Jun once boasted that he would double the profit of investors who bought Xiaomi stock. What Lei Jun did not expect was that Xiaomi, after its listing, was not recognized by the market. The question of whether Xiaomi is an Internet company or a manufacturing company has been debated in the market and still has no answer.

Waiting is painful, and the stock price is also painful. Lei Jun once revealed that he was reluctant to see people for a long time, and he couldn’t sleep all night.

In order to bring Xiaomi’s stock price back up and allow investors to more than double their earnings, Lei Jun has thought of many ways, including continuous repurchases and extending his stock lock-up period.

In mid-2020, a surge in technology stocks led to a surge in Xiaomi’s stock price. In less than a year, Xiaomi’s share price soared from HK$10 per share to HK$35.9 per share. At that time, many voices in the market even shouted the slogan of a trillion millet.

In 2021, the correction of technology stocks and white horse stocks will make Xiaomi a little further away from the trillion-dollar market value. But Lei Jun is no longer anxious about the market value at this time, because he has arranged a new life direction for himself – building a car.

Lei Jun’s car building is not limited to PPT.

Some time ago, Xiaomi opened a large-scale emergency recruitment in Beijing, and the positions were all related to autonomous driving. Yao remembers the education industry with an annual salary of one million last year, and now it has moved to the automobile industry.

In order to attract more talents, Lei Jun, who has always been “stingy”, began to “spray money” frantically.

On July 2, Xiaomi announced the grant of more than 70 million shares to 3,904 employees;

On July 5, each Jinshan employee received 600 shares, for a total of 4.8 million shares;

On July 6, Xiaomi once again issued a new equity incentive plan. 122 core employees received 119.65 million shares of Xiaomi, with an average of 24 million yuan per capita.

Behind the madness, Xiaomi Group immediately announced that the company plans to issue US dollar bonds to raise up to US$1 billion. In December last year, Xiaomi Group launched a refinancing plan of US$4 billion, which even exceeded its IPO. amount of financing.

So, why does Xiaomi, which is not short of money, frequently raise financing?

The answer lies in the possibility of building a car. At present, the mobile phone track has been fixed, and the place where Xiaomi will spend the most money in the future will undoubtedly be building a car, so take advantage of the current moment to stock up on cash, and wait until the critical moment of car building. effect.

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