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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 refreshes 'Mi TV' series in India. (Wikimedia Commons)
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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 Becomes The Top Smartphone Brand in The Indian Market

The offline segment registered a slower annual growth of 6.6 per cent in the third quarter

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Xiaomi leads India market in Q3, smartphone prices to grow: IDC.

Chinese smartphone maker Xiaomi shipped 11.7 million units and became the top brand in the Indian market with 27.3 per cent share in the third quarter this year, with Samsung at second spot, the International Data Corporation (IDC) said on Thursday.

According to the IDC “Quarterly Mobile Phone Tracker”, the smartphone market in India reached an all-time high of 42.6 million unit shipments in the third quarter (ending September 30), registering a 9.1 per cent year-on-year (YOY) growth.

This is the first time when the smartphone market is at par with the feature phone market, each contributing 50 per cent to the overall mobile phone market.

With the growth in the smartphone segment came a warning.

“With the duty hikes in place and the dollar fluctuation, smartphone vendors are expected to raise prices of devices in the coming months rather than absorbing the cost or clocking it under cash backs and financing schemes,” said Navkendar Singh, Associate Research Director, Client Devices and IPDS, IDC India.

In the wake of the depreciating rupee and rising input costs, Realme and Xiaomi have already increased prices of some of their handsets.

Xiaomi increased the prices of its budget smartphones Redmi 6 and Redmi 6A, along with Mi Powerbank 2i and Mi TV (32-inch Pro and 49-inch Pro variants).

Online-focused Chinese smartphone maker Realme increased the prices of its two popular budget handsets in India. The Rs 6,999 Realme C1 is now priced at Rs 7,999 while Rs 8,990 Realme 2 (3GB variant) is priced at Rs 9,499.

The complaint alleged that Xiaomi had used the patents without any license from Yulong.
This is the first time when the smartphone market is at par with the feature phone market, each contributing 50 per cent to the overall mobile phone market, wikimedia commons

According to Upasana Joshi, Associate Research Manager, Channel Research, IDC India, shipments in the third quarter were primarily driven by the eTailer channel in run up to the festival season.

“eTailers continued to drive affordability with multiple financing options such as zero or low-cost EMIs (equated monthly instalments), buyback guarantees and cashback on debit/credit cards,” Joshi said in a statement.

Xiaomi grew to a new high on the back of its successful Redmi 5A and Redmi Note 5 Pro series and refreshed Redmi 6/A/Pro portfolio, said the report.

“Samsung registered an annual growth of 4.8 per cent in 3Q18 at the back of its ‘Infinity’ series model ‘Galaxy J6’ followed by Galaxy J2 (2018), J8, J4 and the recently launched Android Go Model Galaxy J2 core with a middling demand,” the IDC report added.

Vivo continued at third position with a growth of 35.4 per cent.

Also Read- Madhuri Dixit To Pay Tribute to Sridevi

The offline segment registered a slower annual growth of 6.6 per cent in the third quarter.

Commenting on the premium end of the market (above Rs 30,000), Joshi said that OnePlus climbed to the leadership position at the back of OnePlus 6, surpassing Samsung and Apple in the third quarter.

With a 2.1 per cent (YoY) growth, the feature phone market registered shipments of 43.1 million units in the 3Q 2018. Shipments for Jio Phone continued to decline as the vendor focused on clearing existing channel inventory, said the report. (IANS)