Shockingly, a counterfeit factory has produced a 3-nanometer chip.

Chapter 171 Rice Financing Meeting

Just as Shenyang Aircraft Corporation was preparing to "sell its technology," the Kyoto Ginga Building...

The rice company's Series A financing conference was officially held.

There were more than a dozen people sitting in the conference room, including Liu Ting from Morningside Venture Capital, Zhou Quan from IDJ, Qi Ziping from Qiming Venture Partners, and a few foreign faces.

The success stories of Huawei and Transsion made them optimistic about the Chinese mobile phone market, making it a real hot spot.

The premium is very high...

Lei Jun sat in the main seat, with Lin Bin, Li Wanqiang, and several other co-founders beside him.

Before the financing conference began, Liu Ting offered her congratulations:

"Mr. Lei, the first generation of rice has now surpassed 100 million units in sales. Congratulations!"

"Thank you. The current shipment volume is 43 units for the first generation and 128 million units for the youth version."

This sales volume is mainly due to tight production capacity, not because we lack customers.

Liu Ting and the other investors all showed caution. Was the data survey wrong?

It's gone up so much, it looks like it'll probably have to go up again!

"Six months, sales approaching 200 million. For a startup, that's a very fast figure."

Lei Jun shook his head: "Not fast. Transsion S2 sold more than 100 million units in just one month."

Honor, at the same price point, is still consistently selling hundreds of thousands of units.

Our actual sales period was only a little over a month, and this result is far from our maximum potential.

"Mr. Lei is right. It's mainly because Qualcomm dragged us down. Otherwise, if we only consider the sales of the standard version, it would have already exceeded 300 million," Lin Bin added.

IDJ Zhou Quan wasn't stupid either, and immediately poured cold water on their enthusiasm:

"President Lin, President Lei, you can't say that. Transsion has factories and distribution channels, so high sales are only natural."

Most importantly, they have their own self-developed technology, and the market accepts that.

If the rice is indeed released in May, with the Honor Play already on the market, whether its sales can pick up is a question.

However, the first generation sold quite well, selling over 200 million units in six months, with another 200 million orders, which is already quite remarkable.

Lei Jun didn't respond...

Qi Ziping asked, "President Lei, what's the next step for the rice company? This will affect the valuation we give."

Lei Jun stood up, straightened his clothes, and announced the official start of the financing conference.

He walked up to the whiteboard: "I have a very detailed plan in mind for the future of rice."

First, rice shipments continue, and Qualcomm's supply chain is nearing stability; at least another 500 million units can be sold in the second half of the year.

He wrote on the whiteboard: 500 million units.

"Step 2: Rice 1s, to be released at the end of the year, with an upgraded imaging system and an added front-facing camera, still priced at 1999."

He wrote down some specifications for the rice: keep the basic hardware unchanged, slightly modify the appearance, and add a front camera, with a target of 400 million units.

"Next year's task is the Mi 2. This phone will definitely not be hampered by supply issues, and we will strive to sell more than 1000 million units."

"Our long-term goal is to achieve an average annual shipment of 6000 million units within three years."

After Lei Jun set the goals, the investment bank representatives in the conference room applauded in admiration.

"Mr. Lei, a shipment volume of 6000 million units within three years is a huge number." Liu Ting applauded again.

Whether it can be achieved smoothly is still a question.

"Currently, it seems that both of Huawei's phones are in a bit of a predicament, and Xiaomi..." Zhou Quan shook his head while holding the project proposal.

"I also have some doubts. I feel that setting it at 3000 million would be more appropriate," Qi Ziping said.

Although none of the parties were particularly optimistic, no one wanted to withdraw.

Other mobile phone manufacturers are either flush with cash or have already sold 50% of their products. As for other brands, they all have some issues and are not worth investing in.

[Huang Zhang: They're making fun of me again...]

"I know everyone is a bit hesitant about this plan, but do you know how big the Chinese mobile phone market is?"

Everyone saw Lei Jun's direction.

"This market is bigger than you can imagine."

Last year, China sold 2.8 million mobile phones. This year, sales are projected to exceed 3 million.

"60 million only accounts for 18% of the market, less than one-fifth. This target is not ambitious."

Take our competitor Transsion, for example. They're expected to sell 4000 million units this year, and that's only their first year back in the domestic market.

He took a step forward: "The goal of rice is not to be number one, but to gain a foothold."

An 18% market share is enough for us to live a very prosperous life.

With this goal in mind, and by expanding into other markets, annual sales can definitely exceed 100 million within 5 years.

The screen displayed a large "1" followed by a string of zeros.

Zhou Quan asked again, "The goal is good, but what is the moat of rice? Hardware can be copied, systems can be imitated, but what makes you think you can retain your users?"

"You've hit the nail on the head," Lei Jun replied with a smile.

"MIUI and Mi Fans, this is now Mi's greatest asset."

He looked at them: "MIUI users have exceeded 350 million. These 350 million are not ordinary users, but enthusiasts."

They flash the firmware weekly, provide suggestions daily, and test every version.

He thought for a moment: "These people buy rice phones not because they are cheap, but because they are phones created for consumers."

We will listen carefully to their suggestions. These people have been completely won over by us. There's even a joke online that they are our "Mi Family Army."

Zhou Quan and the others nodded. It sounded like a joke, but it was true. Mi Fans were indeed more active than any other company.

"As long as we release a new product, these people will help us promote it for free, help us improve it, and help us criticize our competitors."

They are the moat protecting rice.

He sat back down, a confident expression on his face: "Everyone, you're not voting for the rice phone, you're voting for the MIUI community."

A phone can have its operating system changed or be reinstalled, but these millions of users are tied to DaMi (a mobile payment platform).

After saying that, Lei Jun sat there confidently, letting them think about it carefully.

"Mr. Lei, is this number really that high? Does it include those counterfeit phones...?"

"this……"

"We have already put those counterfeit phones under supervision. They can no longer directly flash MIUI, and they have now switched to other customized systems."

These 350 million are all genuine Mi Fans.

Of course, what Hong Feng didn't say was that while manufacturers can't manipulate data, Mi Fans can.

The negotiations lasted for more than three hours, and finally the parties reached an agreement. The rice company was valued at $7500 million, and the sale of 10% of its shares raised $7.5 million.

Liu Ting, Qi Ziping, and Zhou Quan each hold 2.5% of the shares, while the remaining 2.5% is divided among several foreign companies.

After signing the document, Liu Ting looked at Lei Jun and said, "Mr. Lei, I have a question."

Leibus looked at her: "Ask away."

"You just said you want to reach 6000 million units in sales within three years. What if you can't achieve that?"