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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IndiGo cancels over 200 flights from Delhi, Mumbai on Saturday
Mumbai (PTI): Domestic carrier IndiGo has cancelled over 200 flights from Delhi and Mumbai on Saturday, a day after managing to temporarily secure major relaxations in the second phase of the court-mandated new flight duty and rest period norms for cockpit crew, sources said.
Of these cancelled flights, 109 IndiGo flights were cancelled at Mumbai airport, 51 arrivals and 58 departures, and 106 flights at Delhi airport, which included 54 departures and 52 arrivals, they said.
On Friday, when IndiGo cancelled over 1,000 flights from across airports, IndiGo CEO Pieter Elbers, after maintaining a stoic silence over the grave crisis for three days, apologised in a video message for the major inconvenience caused to passengers due to the disruptions.
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In the one-way video communication, Elbers also said that the airline was expecting fewer than 1,000 flights on Saturday.
It may be mentioned here that on Friday, DGCA provided temporary relief to IndiGo, which is partially owned by Rahul Bhatia, by way of rolling back the night duty definition to 12 am-5 am from 12 am-6 am earlier, and allowing its pilots to do six night-landings from two earlier, besides other relaxations.
Meanwhile, the pilots' body, Airlines' Pilots Association (ALPA) India, has taken a "strong" objection to the DGCA's "selective and unsafe" relief to IndiGo, saying that the relaxations have not just "destroyed regulatory parity but also placed millions of passengers at "heightened risk".
Following the meeting convened by the Ministry of Civil Aviation with ALPA India and other pilot associations on December 5, the Ministry announced that it has decided to place the implementation of the revised FDTL CAR in abeyance.
"ALPA India expresses its deep concern that this step directly contradicts the Court's directions, which mandate the enforcement of fatigue-mitigation standards rooted in aviation science," the Association said in a statement late Friday.
It stated that keeping the FDTL in abeyance not only undermines judicial authority but also heightens the risk to pilots and passengers by delaying essential fatigue protections.
"We urge the (Civil Aviation) Ministry and the regulator to uphold the Court's order in both letter and spirit and to prioritise the safety of the pilots and travelling public above all commercial considerations," ALPA India said.
ALSO READ: IndiGo cancels over 1,000 flights on Friday; expects situation to normalise by Dec 10-15: CEO
It is worth noting that IndiGo was the first carrier to oppose the new FDTL norms for pilots when they were introduced in January 2024, with a March implementation timeline.
It had been argued that the airlines require more time to put in place due to additional crew requirements. The latest FDTL norms, which entail increased weekly rest periods to 48 hours, extended night hours, and limiting the number of night landings to only two, as against six earlier, were initially also opposed by domestic airlines, including IndiGo and Tata Group-owned Air India.
But they were subsequently rolled out by the DGCA following the Delhi High Court's directives, albeit with a delay of over one year, in a phased manner, and with certain variations for airlines like IndiGo and Air India.
While the first phase of these FDTL norms came into force in July, the second phase, which reduced the number of night landings from six to two earlier, was implemented from November 1.
The norms were originally to be put in place in March 2024.
