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Construction has begun on the site where Xiaomi's Beijing factory is located, and land consolidation is under way on the site, about 45 percent of which has been completed, according to the Financial Associated Press. It is reported that the Beijing Municipal Planning and Natural Resources Commission issued an announcement on the auction of the YZ00-0606-0101 site in Yizhuang New Town, Beijing Economic and technological Development Zone, on March 17. According to the announcement, the land will be provided in the form of "six links and one level" for the construction of an intelligent manufacturing industrial base project, with a land area of 718046.1 square meters, with a total lease and transfer life of 50 years, with a starting price of 610.339185 million yuan. Five days ago, Xiaomi became the "would-be landlord" of the land.

A year ago, on March 30, 2021, Xiaomi Group resolutely announced that it had officially entered the field of car manufacturing and planned to set up a wholly-owned subsidiary to take charge of the smart electric vehicle business, with an initial investment of 10 billion yuan and an estimated investment of US $10 billion over the next 10 years. At the launch of Xiaomi's new products in spring, Lei Jun said that Xiaomi will make every effort to build Xiaomi cars with its existing cash reserves of 108 billion yuan, a research and development team of more than 10000 people, the top three mobile phone business in the world and the best smart ecology in the world.

On September 1st, 2021, Xiaomi Automobile Co., Ltd. was officially established with a registered capital of 10 billion yuan. Lei Jun, chairman and CEO of Xiaomi, served as the legal representative. On November 18, 2021, Xiaomi Automotive Technology Co., Ltd. was established with Lei Jun as its legal representative with a registered capital of 1 billion yuan. Its business scope includes vehicle manufacturing of new energy vehicles, technical research and development of vehicle parts and components, etc. The company is registered in Beijing. On November 27, 2021, the management committee of Beijing Economic and technological Development Zone signed a contract with Xiaomi Science and Technology, officially announcing that Xiaomi Motor had settled in Beijing Economic Development Zone. According to the plan, the Xiaomi automobile project will build Xiaomi automobile headquarters, sales headquarters and R & D headquarters, and will build a vehicle factory with an annual output of 300000 vehicles in two phases, with a production capacity of 150000 vehicles in the first and second phases respectively. The first car is expected to be offline and mass produced in 2024. On January 6, 2022, the fifth session of the 15th Beijing Municipal people's Congress opened. According to the meeting, in 2022, Beijing will promote the construction of Xiaomi cars and ideal cars, accurately support the development of innovative enterprises and cultivate more hard-tech unicorns.

As a cross-border car maker, Xiaomi still has many problems to solve. From the perspective of the current market, car building needs an industry with technology as the foundation, capital as the support, and more competitiveness as the guarantee, so there are higher requirements for cross-border car building, but the threshold for car building is not high. as long as you have money, you can buy technology, production qualifications, factories, etc., but the era of relying on imitation, trickery and luck has passed. From the perspective of the new energy vehicle market, although Xiaomi is a world-renowned technology company with strong capital and technology, it is a pure "rookie" in the field of car building. Xiaopeng, ideal and NIO have all built their own brand awareness and complete product research and development system. Dongfeng, BAIC, SAIC and Changan have launched electric vehicle brands with high-end intelligence, and related products have landed one after another. Judging from the timing of Xiaomi's automobile product planning, it will face a fierce competition.

However, Lei Jun still has a lot of confidence in Xiaomi building cars. According to related reports, Lei Jun said at an internal meeting that Xiaomi would sell 100000 cars in the first year, and then maintain the pace of pushing one new car a year for the next three years, with a total sales of 1 million. Taking the delivery data of the New Power brand in 2021 as an example, Xiaopeng took the lead in sales with the annual delivery data of 98155 cars, with the delivery of 91429 and the ideal of 91429 and 90491 respectively. The delivery volume of the three new power brands increased significantly compared with 2020, but none of them broke through the 100000 mark, while Xiaomi's first car will reach 100000 in the first year, which is almost the result of three years of hard work by the new car-building company. Of course, it is certain that the mass production of Xiaomi cars will be listed sooner or later. At the same time, we can also see that the internal expectations of Xiaomi cars are very high. As to whether Xiaomi cars can achieve the desired goals, the market will naturally have the answer.

Earlier, Lei Jun said in an interview with the media that doing the automobile business is not for the "limelight". Now the electric car has changed from the machinery industry to the information industry. Coupled with the fact that some peers are already doing it, Xiaomi will be eliminated if it is not done. Xiaomi, from smart phones to smart homes and smart offices, is a fully intelligent ecology. If it is well integrated with electric cars, it will have a strong expansibility. When Guan Xuan entered the automobile industry market, Lei Jun also set up Flag: this is the last major start-up project in his life, and he is willing to bet all his reputation to lead the team to fight for Xiaomi car. As for the measures that may be encountered on the way to building cars, Lei Jun said bluntly, "We can afford it."

On March 22, 2022, Xiaomi Group announced its financial results for 2021. According to the financial report, Xiaomi Group's total revenue in 2021 was 328.3 billion yuan, an increase of 33.5 percent over the same period last year, and its net profit was 22 billion yuan, an increase of 69.5 percent over the same period last year.

On January 4, 2021, Xiaomi Group closed at HK $35.3, the highest since its listing. On that day, Lei Jun seriously said to his employees, "Futu, Tiger, flush, Snowball, Big Wisdom, and optional stocks. All these stock software can be uninstalled. I don't have to care about the stock price anymore!" However, it was also from that day that Xiaomi Group's share price began to decline. Xiaomi Group shares rose 2.2 per cent on March 30, 2021, while as of the latest trading day, Xiaomi shares closed at HK $12.36, down 6.36 per cent, with a total market capitalization of HK $308.76 billion, down 65 per cent from its peak.

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