Xiaomi Corporation Announces Proposed Listing on the Main Board of The Stock Exchange of Hong Kong

Xiaomi Corporation has announced details of its global offering and its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited.

Lei Jun, executive director, Founder, Chairman and Chief Executive Officer of Xiaomi said, “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.

A total of 2,179,585,000 shares (subject to the Over-allotment Option) (the “Offer Shares”) are being offered under the Global Offering, comprising an international offering of 2,070,605,000 Offer Shares (the “International Offering”) and a Hong Kong Public Offering of 108,980,000 Offer Shares (subject to reallocation), representing approximately 95% and 5% of the total number of the offer shares, respectively. The offer price is currently expected to be between HK$17 and HK$22.

“Xiaomi’s achievements so far illustrate the strength and resilience of our model. Within seven years of our founding, our annual revenue exceeded RMB100 billion, achieving a growth rate that many traditional companies are unable to match. Fundamentally, the Internet is all about transparency, efficiency, and equality. We want to allow everyone to enjoy the benefits of technology. That is the goal that all Xiaomi employees and I are working tirelessly for.”

The company intends to use 30% of the proceeds for research and development as well as other efforts to develop the core in-house products, including smartphones, smart TVs, laptops, AI speakers and smart routers; another 30% for investments to expand and strengthen the Company’s ecosystem primarily in the fields of IoT and lifestyle products and mobile internet services, including AI; 30% for global expansion, including but not limited to hiring local teams across business functions and investing in its retail partners; and 10% for working capital and general corporate purposes.

An internet company with smartphones and smart hardware connected by an IoT platform at its core, Xiaomi has quickly become the fastest growing internet company and second fastest growing company globally, as measured by organic revenue growth compared to publicly-listed profitable companies with revenue of over RMB100 billion in 2017, according to iResearch. Xiaomi has continually broken growth records:

• Annual sales exceeded US$10 billion in 2014, four years after inception, which is the fastest in history, according to iResearch
• Achieved RMB100 billion in revenue just seven years after inception
• World’s largest consumer IoT platform in terms of the number of connected devices (excluding smartphones and laptops), according to iResearch
• Present in 74 countries and regions as of March 31, 2018
• Ranked number one in India in terms of smartphones unit shipments in the fourth quarter of 2017 and also the top five in 15 markets, according to IDC

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