On April 9, according to Hong Kong Ming Pao, Xiaomi group announced its first notice of the annual general meeting of shareholders after its listing on April 8. According to the notice, the highest employee of Xiaomi has an annual salary of at least 9.818 billion yuan. A spokesman for Xiaomi disclosed that the employee with an annual salary of 10 billion yuan is Lei Jun, chairman of Xiaomi.
The circular disclosed that the four executive directors and non-executive directors of the group, including the founders Lei Jun and Lin bin, did not receive any directors' robes, including discretionary bonus. The annual salary of other independent non-executive directors was HK $500000.
However, last year, the annual salary of the group's five highest paid employees rose more than 50 times to 10.218 billion yuan. Among them, the annual salary of the four employees with lower salary ranged from 30 million to 100 million yuan, but one employee's annual salary was marked between & lsquo; 150 million yuan and 15 billion yuan. According to this calculation, the annual salary of the highest paid Xiaomi employee was at least 9.818 billion yuan.
Ming Pao said that compared with 2017, only one employee of Xiaomi had an annual salary of more than 100 million yuan. Xiaomi responded that the employee with the highest salary in 2018 was Lei Jun himself, but did not disclose the actual annual salary of Lei Jun.
Last year, Lei Jun was awarded a batch of Xiaomi B shares as compensation, involving about 9.827 billion yuan, which led to a 3.23-fold increase in employee welfare expenditure to 17.115 billion yuan. In addition to the equity incentive granted to Lei Jun, Xiaomi finance, a subsidiary of Xiaomi, also granted 42.07 million shares to Lei Jun on June 17 last year, with a subscription price of 3.8325 yuan, equivalent to 42.07% of the issued shares of Xiaomi finance.
On April 8, Xiaomi closed at HK $11.75, down 0.68%. Since the beginning of the year, it has dropped nearly 10% and its market value has evaporated by HK $10.293 billion. At the same time, it has dropped about 30.88% from the listing price of HK $17.
In addition, Lei Jun wrote the "open letter of the chairman of the board of directors" again, reiterating the group's commitment that the comprehensive net interest rate of its hardware will never exceed 5%.
This commitment was first made on April 25, 2018, when Lei Jun announced at the Xiaomi 6x press conference of Wuhan University that the comprehensive net profit margin of Xiaomi hardware would never exceed 5%. If there was any excess, all the excess would be returned to users.
On March 20, 2019, Xiaomi group released its financial report for the whole year of 2018. Under the situation of declining global smartphone shipments and fierce domestic competition, Xiaomi still achieved growth. During the reporting period, Xiaomi achieved a total revenue of RMB 174.9 billion, an increase of 52.6% over the same period last year, and an adjusted profit of RMB 8.6 billion, an increase of 59.5% over the same period last year.
In the financial report conference call after the meeting, Zhou Shouzi, CFO of Xiaomi company, responded to why Xiaomi made a promise that the net profit of hardware business would not exceed 5%. He said that the reason why Xiaomi made the commitment that the net profit of its hardware business would not exceed 5% was to ensure that Xiaomi's mission of 'always being a good product with touching people's heart and good price' would be engraved in Xiaomi's DNA for a long time.
According to IDC, the Market Research Institute, Samsung, apple, Huawei and Xiaomi ranked the top four in terms of mobile phone shipments in the world last year, while the comprehensive net profit rate of the top three mobile phone manufacturers in the world was higher than that of Xiaomi. Apple's comprehensive net profit rate was 22.41%, Samsung's 18% and Huawei's 8.23%, all higher than Xiaomi's 7.75%.