40% of Xiaomi's revenue comes from mobile phone sales, with a profit contribution accounting for nearly half. Meanwhile, the growth of its new energy vehicle SU7 has brought a high premium to the shares in recent years. However, Xiaomi has always been characterized by its high cost-effectiveness, and its gross profit margin is not high. Once the cost increases and it cannot be completely passed on to consumers, it will have a significant impact on its profitability. In addition to chips and memory, metal prices have skyrocketed in recent years, causing the prices of metal materials for mobile phones, household appliances, and cars to rise simultaneously.

In other words, Xiaomi is being impacted by rising costs in all directions. Because of this, even though Lei Jun used 100 million HKD to "bottom out" at the end of November last year, it once stimulated Xiaomi's stock price to rebound by nearly 10% and a half, but by now it has almost fallen back to its starting point.