How did Xiaomi save RMB 654.38+008 billion with such a low profit margin?

Xiaomi's profit is divided into several parts. First, the hardware profit is not higher than 5% promised by Lei Jun. In fact, this part of the profit is maintained by making friends, which can guarantee that there is no debt. Followed by high-margin Internet value-added services, basically advertising game finance, the total profit of these two businesses last year was 654.38+0.3 billion. There is also a part of profit that is the equity appreciation brought by the change of equity fair value. Xiaomi spent money to invest in the equity of other companies, which brought a lot of benefits. These three parts made a total profit of more than 20 billion last year. The accumulation of ten years is also considerable. There is also a part of the tens of billions of funds brought by the listing of additional shares. As for the argument that suppliers owe money, just look and smile.

Lao Luo said that making a mobile phone is just making friends and not making money. Mobile phone is just a core, which is related to making money, such as the application mall on Xiaomi mobile phone and Xiaomi loan. ...

There is an accounting period for the purchase and production cost of raw materials, and payment will be made after several months. Selling a customer requires advance payment or cash.

Before others made Xiaomi, they were already billionaires. Xiaomi has invested in hundreds of eco-chain companies, and Xiaomi makes money outside of Kung Fu. The only flaw is that Mi Chat is not done, otherwise the richest man in China may be Reebs!

Xiaomi is only cheaper than mobile phones, and everything else is expensive.

Big volume!

He claimed that the profit of mobile phones was low. In fact, after a thorough study, we know that Xiaomi only saves money on materials and channels for work and spends it on hardware configuration. Because most people only compare hardware configuration, other things are difficult to compare, so I think Xiaomi has the highest cost performance. In fact, many OV models are more cost-effective than Xiaomi, and Xiaomi's repair rate is also the highest among several brands. Except for a few brands, the domestic profit of mobile phones is very low, but Xiaomi shouts loudly. Xiaomi still made a lot of money in his eco-chain enterprise. You think things in Xiaomi's ecological chain are cheap. In fact, if you compare it, you will know that most of the things in the Xiaomi ecological chain are not cheap, and there is no outstanding function or performance. The quality is also average, and their profit is good.

Last year, the advertising revenue was 654.38+0.27 billion.

advertising expense

More conscience than Huawei!