Xiaomi files for IPO in Hong Kong, aims for $100bn value
Beijing, May 3: 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.
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.
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.
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Situation in Jharkhand village peaceful day after religious procession 'pelted with stones'
Hazaribag (PTI): The situation in Jharkhand’s Hazaribag district remained peaceful on Monday, a day after tension gripped a village following an alleged stone-pelting incident during a religious procession, a senior police officer said.
Barhi subdivisional police officer (SDPO) Ajit Kumar Bimal told PTI that the situation in Jhurjhuri village was brought under control within a few hours of the incident on Sunday evening.
"All shops, markets and business establishments remained open and traffic was normal," he said.
Asked about arrests, Bimal said the process of identifying those involved was underway, and an FIR had been lodged in connection with the incident.
The incident occurred around 8 pm on Sunday, when stones were allegedly thrown at a religious procession. Security was tightened in the area following the incident.
The group that organised the procession claimed several women were injured in the attack.
In response, the participants blocked a stretch of the GT Road. "The situation is now completely under control," the SDPO added.
