Heavyweight! Lei Jun Resigns as Chairman of Xiaomi Electronic Products Company

On January 28th, according to Tianyancha App, recently, Beijing Xiaomi Electronic Products Co., Ltd. underwent industrial and commercial changes, and Lei Jun stepped down as chairman.
The company was established in January 2012, with the legal representative being Zhang Feng. Its business scope includes research and development of computer software and information technology, mobile phones, sales of self-developed products, etc., and is wholly owned by Xiaomi H.K. Limited.
Last month, the news that Lei Jun successively withdrew from the positions of legal representative, executive director, or chairman of several Xiaomi affiliated companies attracted attention, including Guangdong Xiaomi Technology Co., Ltd., Guangzhou Xiaomi Communication Technology Co., Ltd., Guangzhou Xiaomi Information Service Co., Ltd., and Zhuhai Xiaomi Communication Technology Co., Ltd. According to shareholder information, Guangzhou Xiaomi Information Service Co., Ltd. is wholly owned by Beijing Xiaomi Mobile Software Co., Ltd., while the remaining three companies are wholly owned by Xiaomi Communication Technology Co., Ltd.
It is worth mentioning that not long ago, Lei Jun resigned as the legal representative, executive director, and general manager of Xiaomi Technology (Wuhan) Co., Ltd., which is also wholly owned by Xiaomi Communication Technology Co., Ltd.
At that time, Wang Hua, the head of Xiaomi’s public relations department, responded in a public development article on Weibo, saying, “It’s just a normal change. Mr. Lei’s energy this year is mainly focused on matters related to car building, and senior executives can already share some of the relevant work and responsibilities.”
“This is a gesture, but also an action,” Wang Hua said. At the previous investor meeting, Mr. Lei happily disclosed, “Currently, the progress of Xiaomi’s car building is faster than I expected.”
On March 30, 2021, Xiaomi Group announced that it would establish a wholly-owned subsidiary and be responsible for the high-quality intelligent electric vehicle business. The initial investment in Xiaomi’s car building is 10 billion yuan, with an estimated investment of 10 billion dollars in the next 10 years. Lei Jun said that he would also personally lead the team and pledge his entire reputation in life.
In fact, since the announcement of the construction of the car, Lei Jun has successively started his exit action, concentrating on “building the car.”. In July 2021, Lei Jun resigned as the executive director of Chongqing Xiaomi Commercial Insurance Co., Ltd. Since the official establishment of Xiaomi Automobile on September 1st, its withdrawal has become increasingly frequent. According to enterprise investigations, from October 16 to 22, Lei Jun withdrew from three companies, including Shanghai Xiaomi Finance and Xiaomi Credit, within six days; On December 7th, he no longer served as the legal representative, executive director, and general manager of Xiaomi Technology (Wuhan) Co., Ltd.
From December 9 to December 12, Lei Jun successively resigned as the legal representative, executive director, or chairman of Guangdong Xiaomi Technology Co., Ltd., Guangzhou Xiaomi Communication Technology Co., Ltd., Guangzhou Xiaomi Information Service Co., Ltd., and Zhuhai Xiaomi Communication Technology Co., Ltd.
But the new energy market is already crowded with competitors, and none of them can be underestimated. Tesla, Weilai, Xiaopeng, and Ideal have established their foothold, and Alibaba, Huawei, and Baidu have also taken a step forward. The car building time cycle is longer than that of the mobile phone, and Xiaomi has lost its first mover advantage by starting at this time.
Specifically, in January 2021, Baidu officially announced its entry into the automotive industry as a complete vehicle manufacturer, and later it was revealed that a headhunter company had recruited car building talents for it in the Jiangsu, Zhejiang, and Shanghai regions. In October 2020, Huawei released its smart car solution brand, HI, which can cooperate with automotive companies in depth. A month later, Alibaba and SAIC launched Zhiji Automobile.
The time gap with the pioneers may be the biggest test for Xiaomi, and the long cycle of the automotive industry has further amplified this gap. In contrast to the new forces of domestic car manufacturing, Weilai, Xiaopeng, and Ideal Automobile were established in 2014 and 2015, respectively. From their establishment to the delivery of the first mass production vehicle, the shortest one took three years. This is also the timetable set by Xiaomi for himself. Lei Jun stated in an interview that it takes a long time to make a car, and it takes three years to make it faster. That is to say, under optimistic circumstances, Xiaomi’s first car will leave the factory in 2024.
In addition, Xiaomi Group’s Hong Kong shares plunged by more than 5% to HK $16.5 per share, breaking a one-year low and once again falling below the issue price.https://store.stoneitech.com/
During the period when Huawei was under pressure from the United States, Xiaomi had a high light moment. There was a segment on the Internet that said, “Huawei fell, Xiaomi was full.” After Xiaomi’s share price hit a new high of 35.9 Hong Kong dollars per share early last year, within a year, its share price fell by more than 54%, and its market value evaporated by more than 485 billion Hong Kong dollars (approximately 395.2 billion yuan).