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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Sharad Pawar praised RSS after seeing how it burst fake narrative balloon of LS polls: Fadnavis
Nagpur, Jan 10: Maharashtra Chief Minister Devendra Fadnavis on Friday said NCP (SP) chief Sharad Pawar praised the RSS after realising how the outfit managed to overcome the fake narrative spread by the opposition in the 2024 Lok Sabha polls.
The opposition had claimed BJP wanted to win 400 seats to change the Constitution and end reservations, a narrative which BJP leaders later claimed hit the party hard.
On Pawar praising the RSS recently, the CM said the MVA was successful in creating a fake narrative during the 2024 Lok Sabha polls.
"When assembly polls were approaching, many people from diverse fields who are inspired by the RSS played their role and burst the balloon of this fake narrative. Sharad Pawar saheb is very intelligent. He would have certainly studied this aspect. He realised that this (RSS) is not a regular political power but a nationalist power. In any competition it is good to praise others," he added.
That is why Pawar may have praised the RSS, Fadnavis said.
Speaking at an interaction with senior editor Vivek Ghalsasi at Late Vilasji Fadnis Jivhala programme here, Fadnavis also said he had asked for organisational work when Eknath Shinde was made chief minister in June 2022, but senior leaders asked him to join the government.
He also said Prime Minister Narendra Modi asked him not to behave like an extra-constitutional authority in the government.
He said the decision to become deputy chief minister on the command of the party leadership earned him a lot of praise from the cadre.
After the massive mandate the ruling alliance received in the 2024 assembly polls, Fadnavis said people and party workers would not have been happy if the CM was not from the BJP.
Shinde himself agreed within minutes that the CM must be from the BJP, which itself got 132 seats and was close to a majority of its own in the 288-member assembly, he added.
On Shiv Sena (UBT) chief Uddhav Thackeray meeting him during the winter sessions of the legislature in Nagpur, Fadnavis said he had announced he would not indulge in politics of revenge after becoming CM and all leaders responded positively to it.
On chances of the NCP (SP) and NCP coming closer or reuniting, Fadnavis said, "If you see the developments that took place from 2019 to 2024, I realised never say never and anything can happen. Uddhav Thackeray goes to some other party and Ajit Pawar comes to us. In politics anything can happen though I am not saying this should happen."
He praised BJP leader Arun Gujarati from whom he learnt patience, which he claimed was an important quality in politics along with the ability to take criticism.
In a lighter vein, he said, "I only get angry when I am hungry. If you see me angry then give me something to eat and my anger will go away."
