Xiaomi Files For IPO In Hong Kong Stock Exchange

Putting a year-old speculation to rest Chinese smartphone maker Xiaomi has filed for IPO in the Hong Kong Stock Exchange. However, the filing document does not clearly mention how much the company wishes to raise in this public listing process.

Xiaomi, in its filing, said its revenue comes from four segments – smartphones, IoT and lifestyle products, internet services and others. Of these smartphones contribute majority of its revenues – to the tune of 70% and IoT and lifestyle products contribute close to 21%. The company said by March 2018, it has 190 million users based on Android platform.

In terms of sales Xiaomi said it made revenues of 114.6 billion RMB in 2017 ass against 68.4 billion RMB a year back. The company however posted loss in the document filed in the Hong Kong Stock Exchange. According to the document, Xiaomi posted a loss of 44 billion RMB in 2017.

The company says it does not expect more than 5% profit in future, starting from 2018. And if there is more profit, it will be passed on to the company’s users, Xiaomi said in the filing.

“Amazing products, honest pricing” comes with real action. At this point, I would like to pledge to our existing and potential users, starting in 2018, Xioami’s hardware business overall net profit margin will not exceed 5% per year. If the net margin exceeds 5%, we will return the excess to our customers,” Xiaomi Chairma Le Jun said.

In terms of markets, China is the company’s biggest market and India is its most successful international operations.

Xiaomi mentioned in the filing that from the IPO proceedings, it will invest 30% of the fund in expanding its business in international markets including Russia, Europe and South East Asia. Another 30% will be invested in R&D and 30% in IoT products and solutions. It had kept 10% of the funds for working capital.

At the end of March 2018 Xiaomi has a total of 14,513 employees out of which 13,935 are based out of Mainland China. The rest are distributed in India, Taiwan, Indonesia and other countries.

Also Read

Leave a Reply

%d bloggers like this: