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Xiaomi Files Prospectus for $10bn Listing in Hong Kong

Xiaomi files for IPO in Hong Kong, aims for $100bn value

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Xiaomi also refreshes 'Mi TV' series in India. (Wikimedia Commons)

Chinese smartphone maker Xiaomi has officially filed for an initial public offering (IPO) in Hong Kong that aims to raise $10 billion in a sale that may value the company at $100 billion.

According to a report in South China Morning Post on Thursday, the move “would catapult Xiaomi past Baidu and JD.com to become the third-biggest Chinese technology company by value, after Tencent Holdings and Alibaba Group”.

“At $10 billion, Xiaomi’s IPO would also be the 15th biggest of all time, or the fourth-largest in Hong Kong,” it added.

According to the regulatory filing with the Hong Kong stock exchange, Xiaomi also reported a revenue of $18 billion and a gross profit of $2.3 billion in 2017.

The company is currently at the fourth position in the smartphone market globally, behind Samsung, Apple and Huawei.

Xiaomi, which means millet in Chinese, will use 30 per cent of its IPO proceeds to develop the ecosystem of its technology business, especially in Artificial Intelligence (AI) and Internet of Things (IoT), the report noted.

Representational image.
Representational image. Pixabay

In the first quarter of 2018, Xiaomi with over 51 per cent growth was at fifth spot in China, Counterpoint Research reported. Xiaomi was the fastest growing brand in China during the quarter.

The growth was driven by Xiaomi’s expansion in the offline segment with aggressive promotions. It also refreshed its Redmi Note series and now has a very strong product portfolio in the mid segment, giving more choice to budget-conscious consumers.

In the first quarter of 2018, Xiaomi once again topped the Indian smartphone market, reporting an over 31 per cent market share — a whopping 155 per cent annual shipment growth.

Also Read: Xiaomi And Jio Top India Market

Xiaomi Chairman, CEO and Founder Lei Jun in April announced that the company will forever limit the net profit margin after tax for the entire hardware sales — including smartphones, Internet of Things (IoT) and lifestyle products — to a maximum of five per cent.

Lei promised its users that the company’s hardware business will have an overall net profit margin that will never exceed five per cent.

“If the margin crosses five per cent, then we will find a way to return the excess above five per cent to our users,” he said in an email to all Xiaomi employees.

“If we sell our products at close to cost and return value to our users, then we can earn the long-term support of our users. Aiming for large volumes with small profit margins will still result in suitable hardware profits for us in the long term,” the Xiaomi CEO added.  (IANS)

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Xiaomi Witnesses Sale of Over 53 Lakh Devices During the Festive Season Sale

Last year, Xiaomi sold over 25 lakh smartphones during the same period and witnessed over 50 per cent growth YoY

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The highest demand among people was for of smartphones, followed by Mi ecosystem devices, accessories and Mi TVs. Wikimedia Commons

Chinese handset maker Xiaomi on Saturday announced that it has achieved a record-breaking sale of over 53 lakh devices during the festive season sale period in India.

“This festive season has been astounding for Xiaomi and we are thrilled that over 5.3 million people decided to celebrate along with us. Every year, we try to make it more joyous for our consumers by offering newer products and attractive offers,” Raghu Reddy, Head of Categories and Online Sales, Xiaomi India, said in a statement.

The company also sold over 38 lakh smartphones in India during the same period, with the Redmi Note 7 becoming the best-selling smartphone series on Flipkart. Xiaomi was also the best-selling smartphone brand on Amazon.

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Xiaomi also refreshes ‘Mi TV’ series in India. (Wikimedia Commons)

This translates to 535 devices sold per second in the same period.

Xiaomi device comprises smartphones, Mi TVs, Mi Band(s), Mi power banks, Mi earphones and other Mi Ecosystem devices and accessory products that were sold across mi.com and partner platforms.

Also Read: PUBG Mobile Combats Cheating with 10-year Ban: Report

Last year, Xiaomi sold over 25 lakh smartphones during the same period and witnessed over 50 per cent growth YoY. (IANS)