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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Two FIRs lodged against Mithun Chakraborty for 'provocative' speech
Kolkata, Nov 6: Two FIRs have been lodged against actor-turned-politician Mithun Chakraborty for allegedly making provocative statements during a BJP event in Salt Lake area near Kolkata last month, police said on Wednesday.
The complaints pertain to Chakraborty's speech on October 27 at the Eastern Zonal Cultural Centre (EZCC) in Salt Lake, during a BJP programme attended by Union Home Minister Amit Shah, who was in Kolkata to launch the party's West Bengal membership drive.
The first FIR was filed at the Bidhannagar South police station based on a complaint by an individual, while the second was lodged at Bowbazar police station.
"We have started an investigation into the case," a senior officer of Bidhannagar police said.
Shah was also present at the programme, which was organised to kick off the West Bengal leg of the BJP's membership drive. Shah had also felicitated Chakraborty for being honoured with the Dadasaheb Phalke Award this year.
Although Chakraborty was unavailable for comment, BJP state president and Union Minister Sukanta Majumdar described the FIRs a result of "vendetta politics.".
Majumdar alleged that the TMC government "has once again used the police to unfairly target well-known actor and senior BJP leader Mithun Chakraborty".
He accused the chief minister of employing such tactics "to serve political interests" and claimed that the state government's actions were part of an ongoing attempt to discredit political opponents.
"There is nothing provocative in his speech. These are nothing but attempts to intimidate him by using police as a political tool," he said.
TMC leader Kunal Ghosh dubbed the BJP's allegations as baseless.
"The allegations of political vendetta are baseless. He shouldn't have made such provocative remarks. The law will take its own course," he said.
Chakraborty, who received India's highest film honour, the Dadasaheb Phalke Award, earlier this year, had asserted on October 27 that the 'masnad' (throne) of West Bengal would belong to the BJP after the 2026 assembly elections, promising to do whatever it takes to achieve the goal.
While speaking at the programme, Chakraborty, a BJP leader, said, "In 2026, the 'masnad' will be ours, and we will do everything to achieve the goal."
In an apparent reference to TMC MLA Humayun Kabir's communal remarks aimed at BJP workers during the Lok Sabha elections, Chakraborty had allegedly made provocative remarks.
Chakraborty cautioned that no one should attempt to intimidate saffron party voters into abstaining from voting in the next assembly elections.
He called upon the booth-level workers of his party to resist any such attempts.
