Recently, "Black Myth: Wukong" has gained immense popularity, with everyone discussing the monkey character. Its magnificent combat skills, intricate battle sequences, and unyielding spirit have deeply impressed audiences, making the monkey the star of Journey to the West and its derivatives.

But as the saying goes, "Some live for face, while others live for substance."

Take, for example, the monkey's master, Tang Sanzang, the first internet celebrity of the Tang Dynasty, the chosen one to retrieve the Buddhist sutras, and the Bodhisattva of the Sandalwood Tree. He was both a mentor and a friend to Wukong, reciting the Tightening Headband Spell and sewing leopard-patterned robes for the monkey. Though lacking combat skills and even unable to defeat an ordinary mortal, he persevered through 81 trials and tribulations to obtain the true sutras.

Similarly, Lei Jun has also attained the "true sutras." Xiaomi's second-quarter financial report surpassed market expectations, and its automobile venture finally offered hope to investors. Yet, this is merely the beginning of "Black Myth: Lei Jun."

01

"This is Xiaomi's best quarterly report in history! Thank you all for your support."

After Xiaomi released its second-quarter financial report, Lei Jun jubilantly expressed his delight on Weibo. In the second quarter of 2024, Xiaomi achieved revenue of 88.9 billion yuan, a year-on-year increase of 32%, with adjusted net profit reaching 6.2 billion yuan, up 20.1% year-on-year. This is an impressive performance by any metric.

This makes Lei Jun resemble Tang Sanzang even more.

Though Tang Sanzang was an internet celebrity of the Tang Dynasty and a favorite of the emperor, the monkey character was undoubtedly more charming to readers. Game products, including "Black Myth: Wukong," revolve around the monkey. Cultural works often seek dramatic conflicts, and compared to Tang Sanzang, who can seem boring, the monkey provides endless excitement.

Yet, Tang Sanzang was a man of action. He was indispensable to the pilgrimage team.

In many ways, Lei Jun resembles Tang Sanzang.

1. Clear goals and unwavering beliefs.

As children, we remember many classic stories from Journey to the West, such as the Monkey King's three battles with the White Bone Demon, the True and False Monkey King , and the contest in the Kingdom of Chechi. It's commonly believed that Sun Wukong was the protagonist, while Tang Sanzang was seen as a burden.

However, with life experience, one realizes that Tang Sanzang was the most determined pilgrim, the only one who believed in the existence of the true sutras from the start to the end. Without him, the story of Journey to the West might have ended after the "Four Great Sages Test the Mind of the Pilgrims."

Whether at Kingsoft or Xiaomi, Lei Jun has always had a clear vision for his companies. He achieved Kingsoft's listing goal and pushed Xiaomi to become a top-five global smartphone brand. The same determination drives his automotive venture.

Unlike trend-following internet entrepreneurs, Lei Jun capitalizes on hot topics in marketing while maintaining his own pace in business operations.

2. A team capable of overcoming 81 trials and tribulations.

Leading the pilgrimage team was challenging due to its diverse members:

Sun Wukong, powerful yet temperamental;

Zhu Bajie, a laid-off factory worker, eloquent but lazy;

Sha Wujing, the former bodyguard of the Jade Emperor, quiet and possibly a spy;

Bai Longma, a wealthy young heir, focused solely on his duties while secretly preparing for the civil service exam.

Such a team could barely travel together, let alone undertake a pilgrimage. Thus, Tang Sanzang was an exceptional leader with firm beliefs and a clear vision.

He promised that as long as they reached the West, their mission would be accomplished.

He vowed that upon completion, they would all achieve official status.

From smartphones to automobiles, Lei Jun has overcome supply chain challenges, demonstrating his ability to inspire like Tang Sanzang.

3. Skilled in persuasion and preaching.

Before embarking on the pilgrimage, Tang Sanzang was already a renowned internet celebrity in the Tang Dynasty, with followers including Emperor Taizong, Li Shimin. He delivered speeches annually, drawing crowds and acclaim. Even without the pilgrimage, he was an industry leader and iconic figure.

Similarly, Lei Jun delivers annual speeches, a rarity among his peers. Older entrepreneurs are less active, while younger ones lack the confidence.

4. Appearance, though a lesser similarity.

People have noted his resemblance to Wang Yue, who portrayed Tang Sanzang in the 1986 TV series. During a trip to India, he donned local attire, resembling the pilgrimage leader even more.

02

"Black Myth: Wukong" tells a new story after the monkey completes his pilgrimage. With this quarterly report, Lei Jun has led Xiaomi into a "post-pilgrimage era."

The first phase has been successfully completed. The second-quarter financial report proves that Xiaomi's "People-Car-Home Ecosystem" strategy, announced in October 2023, has taken root.

The three scenarios of people, cars, and homes correspond to personal devices like smartphones, tablets, and wearables; automotive devices centered on cars; and home appliances.

These businesses collectively grew in the second quarter, demonstrating initial synergy. Specifically:

Smartphone revenue was 46.5 billion yuan, up 28.1% year-on-year;

IoT and lifestyle consumer products revenue was 26.8 billion yuan, up 20.3% year-on-year;

Internet services revenue was 8.3 billion yuan, up 11.0% year-on-year.

Innovative businesses like smart cars generated 6.4 billion yuan in revenue, with a gross margin of 15.4% and an adjusted net loss of 1.8 billion yuan. Some media calculated that Xiaomi loses over 60,000 yuan per Su7 sold, but this calculation overlooks upfront costs.

Xiaomi's 15.4% gross margin in the second quarter surpassed Xpeng's 14%. Xiaomi aims to deliver 120,000 vehicles this year. As deliveries increase and marginal costs decrease, revenue and profit figures should improve.

Synergy is evident in Xiaomi's total second-quarter revenue of 88.9 billion yuan, up 32% year-on-year, with an adjusted net profit of 6.2 billion yuan, up 20.1% year-on-year. As of June 30, 2024, Xiaomi had cash reserves of 141 billion yuan, an increase of 38 billion yuan since announcing its automotive venture in Q2 2021.

Xiaomi knows how to make money, and so does Lei Jun. He focuses on growth while managing costs efficiently. "Frugality" is a compliment here.

The importance of cost control is clear to every business owner. I often share this with peers:

Only frugal operators can succeed in today's business landscape because customers have become more cost-conscious, prioritizing value for money over mere price.

After Xiaomi's financial report, its share price rose 9%, a rare positive market response.

Some short-term investors made 8% gains, but I'm holding on for more potential growth. Jokingly, I've said I'll leave my Xiaomi shares to my son, but there's truth in that statement.

However, just as Wukong embarks on a new mission in "Black Myth," Lei Jun faces new challenges with little time to celebrate.

The road ahead may be even tougher.

In Journey to the West, Tang Sanzang was named the Bodhisattva of the Sandalwood Tree, responsible for spreading Buddhist teachings and guiding sentient beings with his merits and wisdom.

Those who've worked in large corporations know that vague KPIs make year-end reports difficult. For example, how many Buddhist teachings must be spread? How do we prove 50 events are optimal, not 52? There are countless judgment points.

Lei Jun faces a similar situation. Xiaomi's automotive success has elevated him and the company to a higher level, raising market expectations.

The journey ahead is undoubtedly more challenging.