Lei Jun 2025 Annual Speech: Five Years of Transformation at Xiaomi (download pdf)

This article summarizes the key takeaways from the Lei Jun 2025 Annual Speech. The full transcript is available for download at the end of the page.

On September 25, 2025, Lei Jun delivered his sixth annual speech at the National Convention Center in Beijing, themed “Transformation.”

In his address, he reviewed the core driving force behind Xiaomi’s metamorphosis—the major decisions the company made in hardcore technologies like building cars and developing chips.

Lei Jun 2025 Annual Speech on Transformation – 5 Core Takeaways

I. The Great Reflection Five Years Ago

Five years ago, Xiaomi had been publicly listed for two years, with annual revenue exceeding 200 billion RMB, and had entered the “Fortune Global 500.” But at a time when many saw us as successful, my heart was filled with anxiety.

Apple, Samsung, and Huawei stood like insurmountable mountains before us. The team was tired, and online, many criticized Xiaomi as an “assembly plant,” having “no technology,” and “only knowing how to sell cheap goods.”

I decided to face the problems head-on and find a way out.

We spent half a year, held dozens of review meetings, constantly asking ourselves three questions: What did we do right? What did we do wrong? If we started over, what should we do differently?

Ultimately, we defined our direction: Xiaomi must transform from an internet company into a “hardcore technology company,” investing 100 billion RMB in core technology R&D over the next five years.

II. The Chip Journey: From Failure to Rebirth

Xiaomi always had a “chip dream.” In 2014, we established Pinecone Electronics to self-develop mobile phone chips.

In 2017, we launched the “Surge S1” chip, powering 600,000 phones. But later we realized that for self-developed mobile phone chips, focusing only on the mid-to-low end offered no chance. Only by aiming for the highest end was there a glimmer of hope.

Furthermore, collaboration between the chip team and the phone team was difficult at the time. Eventually, we halted smartphone SoC R&D, preserving only a small spark.

In 2021, we decided to start making chips again. Many were worried: the investment is too heavy; could it drag the company down?

But I believed: If we don’t do it, we will definitely lose; if we do it, at least there’s a chance.

We reassembled the team. In the project’s second year, company revenue fell by 15%, and the pressure was immense. But we did not give up.

In May 2023, a peer suddenly disbanded its chip team. Many asked if we would quit too. We immediately held an all-hands meeting to stabilize morale, telling everyone: This time, we must succeed!

In early 2024, our 3nm chip was successfully taped out. On May 22, the first batch of chips returned, and the system powered on successfully on the first try. I received a call from Zhu Dan, the chip lead, made using the Xuan Cheng 01. At that moment, I was overwhelmed with emotion.

In May this year, the Xuan Cheng 01 was officially released, performing at a first-tier level. We named the chip “Xuan Jie” (Mysterious Pledge), representing our determination in chipmaking: persevere for at least ten years, invest at least fifty billion.

III. Car Manufacturing: Challenging the Nürburgring

In 2021, we announced our entry into car manufacturing. Many fans shouted “Beat Tesla,” and we gathered a group of engineers passionate about cars and ambitious.

We set a goal: build the world’s strongest pure electric performance car, benchmarking against Porsche and Tesla.

In December 2021, the SU7 Ultra project was officially initiated, but it was canceled months later due to insufficient resources. In May 2022, we decided to restart it.

An engineer said in a meeting: “Can we build a car to challenge Porsche on the Nürburgring?” This idea ignited everyone.

In October 2024, we finally got our testing opportunity at the Nürburgring. The weather was bad, and we only had a 10-minute window for one lap. It was this single lap where the SU7 Ultra prototype set a record, stunning the global automotive industry.

On April 1, 2025, the Ultra production car challenged the Nürburgring again, achieving two astonishing results. Although the Chinese driver A Can didn’t achieve his ideal lap time, he believes that one day, a Chinese driver’s name will appear on the official Nürburgring leaderboard.

IV. YU7: From “Trump Card” to “Miracle”

In 2022, while the SU7 was still in development, we simultaneously started the YU7 project. If the SU7 failed, the YU7 was our “final trump card.”

At that time, the Ideal L9 was very successful with its “TV, refrigerator, large sofa” design. Many suggested we “copy the homework,” but we decided to take our own path: design a good-looking, fun-to-drive SUV for the driver, while also accommodating family use.

We even took the originally planned long-range Pro version and directly made it the “Standard Version,” increasing the range from 620 km to 835 km while keeping the price unchanged. This is the origin of the “Strongest Standard Version.”

In June this year, the YU7 launched, receiving over 200,000 orders within 3 minutes. It’s not just a car; it’s a “love letter” from the engineers to all who love life.

V. Chen Nian’s Story: It’s Never Too Late to Change

My old friend Chen Nian is the founder of Vancl. Last year I invited him to the SU7 launch event. He said he was in Dalian writing a novel and couldn’t come.

Unexpectedly, he showed up on the day of the launch. Half a year later, he told me that inspired by the launch event, he moved his company to Hangzhou and pivoted to live-stream e-commerce. At that time, the company had only three or four people.

This year, Vancl has ranked in the top three in men’s wear on Douyin. He said, “If Lei Jun can change himself and cross industries to build cars, I can too.”

I genuinely admire him. 55 is still an age to charge ahead.

Lei Jun 2025 Annual Speech Conclusion

Over the past five years, Xiaomi has moved from an internet company to a hardcore technology company, expanding from smartphones to the “Human x Car x Home Full Ecosystem.” We experienced confusion, doubt, and difficulties, but we also gained growth and breakthroughs.

Change is never easy, but as long as you persist and work hard, every person, every team, has the chance to defy fate.

Thank you for your support. Xiaomi will continue to march forward fearlessly.

The content of this article is excerpted and summarized from the “Lei Jun 2025 Annual Speech”. The full transcript is available for download below.