Chinese smartphone maker Xiaomi has provoked a huge commotion not only in Indian market but globally also. It was in news recently was posting a net loss of 7 billion Chinese yuan (USD 1.1 billion) on overall revenue of 34.4 billion yuan for Q1 2018 ahead of its much-awaited IPO. According to analyst firm IDC, the company is ranked fourth based on global smartphone shipments. Also, it is one of the few Original Equipment Manufacturer (OEMs) to be responsible for slowing sales in China.
Now the company is again in the limelight for finally going live at the Hong Kong stock exchange. Xiaomi is hoping to raise up to $6.1 billion and would offer 2.18 billion shares priced between HK$17 and HK$22 for its IPO.
Getting Ready for IPO:
Lei Jun, Executive Director, Founder, Chairman and Chief Executive Officer of Xiaomi shared a post,“ Today we present ourselves to you as we prepare to enter a new stage in our journey. We are an innovation-driven internet company committed to the principle of ‘amazing products at honest pricing’. Leveraging our unique “triathlon” business model, we maintain excellent design and outstanding quality in our products, while pricing our products as close as possible to cost by selling them to users through highly efficient online and offline new retail channels. We then provide our users with a range of comprehensive and engaging internet services.”
He further went onto say that Xiaomi’s achievements so far illustrate the strength and resilience of our model. Within seven years of the founding, the company’s annual revenue exceeded RMB100 billion, achieving a growth rate that many traditional companies are unable to match.
Making a Mark in Other Markets:
Xiaomi’s mission is to relentlessly build amazing products at honest prices to let everyone in the world enjoy a better life through innovative technology. With a presence in more than 70 markets worldwide, it is a global player that has successfully achieved a foothold in key international markets. The trading in Xiaomi shares on the Hong Kong stock exchange is expected to commence on 9 July 2018. For the company, the IPO means that there will be more investment in things like research, development, ecosystem and global expansion, so we will see a big impulse in our growth.
This month Xiaomi also released few details highlighting its smartphone sales for first quarter of 2018. As per the report, the company shipped about 28.431 million units, and the revenue from smartphones alone was 23.239 billion yuan ($3.6 million). The numbers made Xiaomi the fourth-largest smartphone company in the world, just ahead of Oppo. The company now wants more of its revenue to come from its other businesses such as its internet services for consumers using its robot vacuum cleaners, air purifiers, rice cookers and various Internet-connected devices.
Article originally posted by entrepreneur.