GREE(SZ:000651) Sou Hu Cai Jing·2025-10-31 02:17Core Viewpoint - The competition between Dong Mingzhu and Lei Jun represents a complex narrative in the Chinese business landscape, highlighting the contrasting business models of Gree and Xiaomi, and the evolution of Xiaomi from an online company to a comprehensive consumer electronics and smart manufacturing entity [1][5][12]. Group 1: Historical Context - In December 2013, both Dong Mingzhu and Lei Jun received awards at a ceremony, where a comparison chart showcased Gree's dominance over Xiaomi in terms of factories, employees, and revenue [3]. - The chart indicated Gree's revenue at 100.7 billion yuan, while Xiaomi's was only 30 billion yuan at that time, prompting a remark from Jack Ma about Xiaomi's future capabilities [3]. Group 2: Business Models and Competition - The debate between Dong Mingzhu and Lei Jun centered around the viability of their respective business models, with Dong questioning the sustainability of Xiaomi's approach without physical factories, while Lei emphasized specialization and efficiency [5]. - The famous "1 billion bet" was made, predicting that if Xiaomi's revenue surpassed Gree's in five years, Dong would owe Lei one yuan [5][6]. Group 3: Xiaomi's Growth and Strategy - By 2025, Xiaomi had significantly expanded its physical presence, with approximately 17,000 stores in mainland China, including over 300 automotive outlets [8]. - Xiaomi's transformation into a comprehensive consumer electronics company is marked by its investment in smart home appliances, with plans to achieve a revenue target of 100 billion yuan in this sector within five years [9][10]. - The company has established three major smart factories for smartphones, automobiles, and smart home appliances, with the latter capable of producing high-end air conditioners at a rate of one every 6.5 seconds, with an annual capacity of 7 million units [10]. Group 4: Market Dynamics and Future Outlook - Xiaomi's global workforce has grown to nearly 50,000, with over 40% in research and development, indicating a strong focus on innovation [10]. - The company's revenue for 2024 is projected at 365.9 billion yuan, with expectations for significant growth in 2025 [10]. - The evolving landscape suggests that the competition will intensify among leading brands like Gree, Midea, and Haier, as Xiaomi aims to establish itself as a top player in the home appliance market [9].