Sunday September 23, 2018
Home Business Xiaomi Files ...

Xiaomi Files Prospectus for $10bn Listing in Hong Kong

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

0
//
43
Xiaomi
The Beijing-headquartered company's internal restructuring would make way for 10 new business units. (Wikimedia Commons)
Republish
Reprint

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)

Click here for reuse options!
Copyright 2018 NewsGram

Next Story

Xiaomi to Undergo Internal Restructuring to Strengthen its Core: Report

"The company's organisational shake-up comes at a time when the governance of Chinese companies is under the spotlight," the report added

0
Xiaomi
The Beijing-headquartered company's internal restructuring would make way for 10 new business units. (Wikimedia Commons)

Aiming to recruit new talent and strengthen its core, Xiaomi would undergo internal restructuring, its Founder and Chief Executive Lei Jun has announced.

The Beijing-headquartered company’s internal restructuring would make way for 10 new business units — four hardware units, four Internet services units, one technology platform and an e-commerce platform.

“It will also increase the efficiency of each department and build strong career progression, allowing us to develop younger talent and provide them with opportunities to shine,” Lei wrote in a letter to Xiaomi staff, South China Morning Post (SCMP) reported on Friday.

“The company’s organisational shake-up comes at a time when the governance of Chinese companies is under the spotlight,” the report added.

Xiaomi
Xiaomi.

One of the new departments would oversee recruitments, promotion and training while the other would be tasked with managing the firm’s development strategy as well as monitoring the progress of individual business units.

“Without experienced soldiers, there is no succession. Without new troops, there is no future. We need to groom and develop a large group of young managerial talent.. to manage the troops. Let every capable and ambitious young person learn to battle and grow quickly on the battlefield,” Lei added in the letter to the employees.

You May Also Like to Read About- Private Space Firm SpaceX Will Soon Send First Private Passenger To Moon

Recently, Chinese e-tailer Alibaba’s Executive Chairman Jack Ma announced his plans to resign after a 12-month transition period, handing over the reins to Daniel Zhang, current Chief Executive of Alibaba Group Holding.

Alibaba Group said that on its 20th anniversary on September 10, 2019, its Chief Executive Daniel Zhang, 46, will take charge as the new Chairman. (IANS)

Comments are closed.