AUGUST 16 IS A SPECIAL DAY FOR XIAOMI — AN OPEN LETTER

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An open letter from Lei Jun (雷 军), Founder, Chairman and CEO of Xiaomi on the company’s plans in the next decade

Dear Xiaomi colleagues,

August 16 marks the 9th and 10th birthdays for Xiaomi’s first smartphone and first generation of MIUI operating system respectively. On this particular day, we would like to share a few important announcements regarding our next decade.

Firstly, over the next decade, Xiaomi will have an upgraded core strategy “Smartphone x AIoT”.

From the very beginning, our dream has been to “make the world’s best phones and sell them at half the price, so that everyone can afford them.”

Over the past decade, the smartphone business has been our core. In the foreseeable future, as a personal smart device with the single most significant market size, smartphones will continue to serve as a personal mobile computing hub for everyone. It is a control center with which everyone frequently interacts, and an accompaniment that stays with everyone. Smartphones are critical to our success, and is a cornerstone for our business model.

As such, I want to call on every Xiaomi colleague to show their utmost courage and determination, two values necessary for us to conquer this battlefield. In the meantime, our AIoT business will revolve around smartphones to build up a smart living ecosystem, amplifying our company’s reach.

As intelligent connectivity becomes more integrated into our lives, our “Smartphone x AIoT” core strategy will reap synergistic benefits. The relationship between our core smartphone business and AIoT ecosystem will be mutually beneficial, bringing about symbiotic changes beyond incremental benefits. Our AIoT business will help our smartphone business expand into more application scenarios, winning the hearts of more users, and eventually creating economic moats for our business model. This will truly let everyone in the world enjoy a better life through technology and make us truly lead the future way of living.

Secondly, the “three guiding principles” we will stick to over the next decade.

From our earliest days to becoming the youngest Fortune Global 500 company, we have achieved one miracle after another. Facing our next decade, when the world is faced with uncertainties and we are facing some unresolved issues as well as highly intense competition, how do we move forward and thrive?

Five days ago, I highlighted in my speech delivered in commemoration of the company’s 10th anniversary, that we will resolutely stick to “three guiding principles”:

We will never cease to explore and innovate, and bring everyone the most innovative technologies.

We will continue to offer products with the best price-to-performance ratio.

We will seek to make the coolest products.

We firmly believe that no matter what, the pursuit of technological innovations will always be the prerequisite for Xiaomi’s competitiveness; offering amazing products at accessible and honest prices is an evergreen strategy throughout economic cycles; and making the coolest products is inherent to our engineering culture. These three principles guarantee Xiaomi’s high quality growth ahead, and are our manifesto for the next decade.

Thirdly, over the next decade, we will be a start-up once more with a “Partnership Program” and the “New Decade Entrepreneur Program”

Since its early days, Xiaomi has set up a start-up and partnership culture. Over the past decade, we have attracted a lot of talents, resulting in a diligent and highly capable start-up team, energizing our fast growth with remarkable achievements along the way.

In the upcoming decade, we will once more become a start-up, and continuously replenish our talent pool to form strong teams. With this strong ownership and sense of dedication, we will pass down our engineering culture, our core values of sincerity and passion, and our keys to success in the internet era — Dedication, Perfectionism, Word-of-mouth and Agility. These talents will also be leading Xiaomi to explore other uncharted areas, and renew the company’s drive to carry our dreams into the future.

As a result, we are expanding our partner team to include those excellent colleagues with a strong sense of duty, a great sense of responsibility, unbeatable track records and performance, and a high recognition of Xiaomi’s culture and core values, to share benefits and shoulder risks together.

Just now, new members of this partner team took the oath and officially started their positions:

Mr. Wang Xiang (王 翔), President of Xiaomi Group, he joined the company in July 2015.

Mr. Chew Shou Zi (周 受资), Senior Vice President of Xiaomi Group, and President of International, he joined the company in July 2015.

Mr. Zhang Feng (张 峰), Vice President of Xiaomi Group, Chief of Staff, and Chairman of the Group Procurement Committee, he joined the company in September 2016.

Mr. Lu Weibing (卢 伟冰), Vice President of Xiaomi Group, President of China Business, and General Manager of Redmi, he joined the company in January 2019.

The new Partnership Program is not only a corporate-level decision making body, but also an inheritance of the company’s culture and values, as well as its internet mindset. With new partners, we will improve the company’s core management skills, increasing our strategic capability and operational vitality in the next 10 years. In addition to the five partners we have, we appointed four new ones today, this nine-strong team will be an engine that drives the company forward and upward.

Besides the Partnership Program, we have also kicked off the “New Decade Entrepreneur Program”. A total of 100 highly capable, potential, and best-performing colleagues who represent Xiaomi’s mission, visions and core values will be selected and rewarded with an early entrepreneur package, an incentive aimed at encouraging them to dedicate with an entrepreneurial spirit and bring the company to new levels in the upcoming decade.

A famous proverb says, “If you want to go fast, go alone. If you want to go far, go together.” We have to be consistent in introducing, spotting and nurturing new talents to form a capable, ambitious, empowered, and responsible team, laying the foundation for our continuous growth. We will offer all levels of talents the freedom to grow and the rewards to match, so that every colleague can live up to the full potential.

Over the next decade, we are sure that Xiaomi’s successful journey ahead will be due to our new wave of talents.

Dear colleagues, we must believe in ourselves, and make the fullest efforts to realize our hopes and dreams in the future!