How Lei Jun Bounced Back After Losing 10 Billion Yuan Bet to Gree's Dong Mingzhu
Bastillepost · 1 SOURCESabout 2 hours ago8 MIN
Summary
Xiaomi founder Lei Jun (雷軍) publicly reflected on the infamous 10 billion yuan bet with Gree chairman Dong Mingzhu (董明珠) at the 2026 Beijing International Book Fair on June 21, 2026, stating he regretted making the joke with "Sister Dong." The 2013 wager, made during a CCTV economic awards ceremony, saw Lei Jun lose when Gree's 2018 annual revenue of 198.1 billion yuan outpaced Xiaomi's 174.9 billion yuan by 232 billion yuan. What followed was a remarkable turnaround: Lei Jun pivoted Xiaomi from an asset-light internet model to heavy manufacturing, culminating in the SU7 electric vehicle launch that garnered 88,898 orders in just 24 hours. By 2025, Xiaomi's total revenue of 457.3 billion yuan stood at 2.7 times Gree's, with the automotive division posting its first annual profit and deliveries exceeding 700,000 vehicles.
Key Points
- Lei Jun, born in 1969 in Xiantao, Hubei, graduated from Wuhan University's Computer Science program and became general manager of Kingsoft at age 28
- The 2013 CCTV bet originated when Lei Jun wagered one yuan that Xiaomi would surpass Gree within five years; Dong immediately raised it to 10 billion yuan
- Xiaomi faced its first crisis in 2016 when smartphone shipments dropped 36% year-on-year, falling from China's top brand to fifth place
- Lei Jun personally took over the mobile and supply chain divisions, reportedly attending up to 23 meetings daily while sleeping fewer than four hours
- Xiaomi went public on the Hong Kong Stock Exchange (stock code 1810) in July 2018 at 17 HKD per share, immediately falling below issue price and hitting a low of 8.28 HKD in September 2019
- Lei Jun announced the EV initiative on March 30, 2021, committing 10 billion yuan initially and 10 billion USD over ten years
- The SU7 launched on March 28, 2024, starting at 215,900 yuan, with 88,898 orders in 24 hours; the YU7 SUV followed, with combined deliveries reaching 700,000 by July 30, 2026
- Xiaomi's 2025 total revenue hit 457.3 billion yuan with first annual automotive profit, while selling 6.8 million air conditioners
- Dong Mingzhu has never collected the 10 billion yuan, once saying "I don't want the 10 billion; let's bet for another five years"
Why It Matters
The Lei Jun comeback story demonstrates how an entrepreneur can absorb a public defeat and transform weakness into strategic advantage. By directly addressing Gree's manufacturing expertise—Dong's pointed question about "if all factories closed, what would you sell?"—Lei Jun built his own factory, ultimately answering her challenge with tangible production capability . For Hong Kong investors who witnessed Xiaomi's painful 2018 IPO debut and subsequent stock decline, the journey to a 457.3 billion yuan revenue empire illustrates that market setbacks need not define long-term trajectories, particularly when founders demonstrate willingness to fundamentally restructure their business models in response to competitive criticism.
The Lei Jun comeback story demonstrates how an entrepreneur can absorb a public defeat and transform weakness into strategic advantage. By directly addressing Gree's manufacturing expertise—Dong's pointed question about "if all factories closed, what would you sell?"—Lei Jun built his own factory, ultimately answering her challenge with tangible production capability . For Hong Kong investors who witnessed Xiaomi's painful 2018 IPO debut and subsequent stock decline, the journey to a 457.3 billion yuan revenue empire illustrates that market setbacks need not define long-term trajectories, particularly when founders demonstrate willingness to fundamentally restructure their business models in response to competitive criticism.