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Total Assets06.09 Xiaomi's Pengcheng, could be the era-defining work for cars
"How to make a car truly comfortable? This was the core question we repeatedly asked ourselves when Xiaomi Pengcheng was being planned and initiated in early 2023. The answer we gave is to define space with intelligence, creating a 'living space.' The space inside the car shouldn't be fixed; it should be able to change freely according to your needs and wishes." — I was deeply moved when I saw Mr. Lei's explanation about Pengcheng this morning. Our continuous attention and tracking of Xiaomi actually guessed many things right.
Mr. Duan's statement, 'The business of four wheels is not a good business,' left a very deep impression. When Xiaomi started making cars, I believe many people discussed this issue. I even repeatedly discussed this topic with AI. Two points are still fresh in my memory. One is that Mr. Duan was right because heavy assets, low turnover, and low fault tolerance are right in front of us. The other is that Mr. Duan's correctness has temporal and spatial limitations. His answer was for cars in the traditional sense, and he himself focuses more on the investment field, not being a frontline entrepreneur. In a new era and new environment, there might be new answers.
Mr. Lei is certainly very aware of these characteristics of the automotive industry, so why still make cars? There are no official details, but there are many clues to consider: Everyone is familiar with HyperOS. Besides optimizing smoothness, it has been increasing bandwidth in recent years. Due to computing power constraints, many AI models can't run on hardware devices, but the computing power carried by cars is relatively ample, capable of running a local large model. Mimo has recently made great optimizations in speed. Xiaomi has already laid out smart factories capable of high-precision manufacturing of various AIoT. All these directions share some common goals... So Xiaomi's car is not a car in the traditional sense, but a car within the 'Human x Car x Home' strategy. Perhaps 'mobile free intelligent space' is more appropriate. Maybe this is the meaning of SkyNomad.
Now, in a period of low stock price pressure, Xiaomi's launch of SkyNomad has a feeling of 'meeting you again in the season of falling flowers.' The floating losses I face come from a lack of understanding of investment volatility, the Hong Kong stock market, and industry cycles when I optimistically added positions at high levels. But this is also the source of both profit and loss. The reason why, like many Mi fans, I still hold firm at low levels when US tech stocks are soaring to the sky and Chinese tech/Hang Seng Tech is generally considered not doing well, is that even though beaten by the market, based on continuous observation, my positive view of Mi's working style, strategic determination, and future potential remains unchanged. This year, during the pressure cycle, I aim for a staged rebound. After going overseas, it's onward to the vast sea of stars!
$XIAOMI-W(01810.HK)
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