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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
Xiaomi 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 to Expand its Offline Presence in India

At present, its rival Samsung leads the offline smartphone sales

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Xiaomi.

Chinese handset maker Xiaomi, which is the biggest smartphone seller in India, aims to continue expanding in offline channels as it competes against the likes of Samsung in the country, Manu Jain, Vice President, Xiaomi and Managing Director, Xiaomi India, said here on Tuesday.

“Our biggest success story has been our offline journey, including setting up more preferred partners, more Mi Home stores.

“One of the biggest focus areas for us would continue to be the offline business. We want to hold the 50 per cent share in online and continue to build our share in offline,” Jain told IANS on the sidelines of an event in the Capital.

The smartphone maker currently has more than 50 Mi Home stores and 500 Mi Stores across the country and over 4,000 preferred partner stores in 50-plus markets.

At present, its rival Samsung leads the offline smartphone sales.

The company’s Mi.com portal is the third largest e-commerce platform in India.

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

“We’re also launching new categories. Overall, the company is doing exceptionally well in India. From a smartphone business perspective we are now the No. 1 brand for six consecutive quarters by a huge margin.

“For the entire CY 2018, according to IDC numbers, we were almost 30 per cent bigger than the second largest brand. In Q4, we were 50 per cent bigger than the second biggest brand,” Jain added.

The company currently has a combined manufacturing capacity of up to three smartphones per second during operating hours and 99 per cent of its phones sold here are made in India.

Also Read- Hyundai, Kia Invest $300 mn in India’s Ride-hailing Giant Ola

The handset maker launched 500 Mi Stores across 470 villages in 14 states in October 2018. It had said that to cater to the demands of smartphones and TVs in rural areas, it would increase this number to 5,000 Mi Stores by the end of 2019.

“The government is super excited about what we’re doing. Officials in Meity ask us what else can we do to facilitate this further. We’re in constant conversation with “Invest in India” programme too,”

The company on Tuesday introduced its Android Go smartphone — the Redmi Go in India for Rs 4,499. It is a quad-core Qualcomm Snapdragon 425 chip powered device. (IANS)