Xiaomi, known as the “Chinese version of Apple,” on May 3, 2018, with its brilliant market share and a formal listing application submitted to the Hong Kong Stock Exchange, announced to the world that the once millet was back and it will also Create the largest IPO in Hong Kong's history!
In addition, it is understood that, after listing in Hong Kong, Xiaomi will take out some of the shares in the A shares to issue CDR (China Depositary Receipts). As for the details of the listing, Xiaomi was not announced in the prospectus.
However, according to a report by the Hong Kong Economic Times on May 2, the millet will raise at least US$10 billion in funds. After the completion of the IPO, Xiaomi’s market value will reach US$900-110 billion, and three years ago, Xiaomi’s The valuation is still only 45 billion US dollars.
If this figure is accurate, Xiaomi will become the third largest domestic company after Baidu, Jingdong, and NetEase, second only to Ali and Tencent.
At the same time as the prospectus was made public, Lei Jun also announced an open letter. In the letter, Lei Jun mainly emphasized the following aspects:
Millet's business What are the main points
Unlike the mobile phone company in the traditional concept, in Lei Jun's view, Xiaomi is not a pure hardware company, but an innovation-driven Internet company.
'Millet is an Internet company with mobile phones, smart hardware and IoT platforms as its core.'
Specifically, in 2017, based on smart hardware, Xiaomi became the world's largest consumer IoT platform. This mainly relied on a series of hardware products independently provided by Xiaomi and jointly developed with millet ecosystem companies.
In terms of smartphones, the latest figures from Strategy Analytics show that in the first quarter of 2018, Xiaomi’s smartphone sales reached 28.3 million units, accounting for 8% of the global market share, ranking fourth in the world, and increasing by 125% year-on-year, exceeding all major competition. opponent.
The data released by IDC emphasized that Xiaomi ranked fourth in the top five smartphone manufacturers in the world with 8.4%. Among them, Xiaomi’s performance was the most impressive compared to last year, with shipments up 87.8% year-on-year.
The reason why Xiaomi can buck the trend is that, besides the domestic trend, a large part of the reason is due to the rapid development of overseas. In the recent report of the Indian mobile phone market released by Counterpoint Research, Xiaomi has exceeded 31%. Market share, ranking first in the Indian market.
Millet quotient industry How is the mode
Lei Jun emphasized in an open letter that it was precisely through millet's unique 'triathlons' business model that Xiaomi was able to achieve a successful reversal after sales of Xiaohua.
The so-called triathlon refers to: (1) hardware; (2) new retail; (3) Internet services.
Lei Jun pointed out that as of March 31, 2018, Xiaomi established an ecosystem of more than 210 companies through investment and management, of which more than 90 companies focused on the development of smart hardware and consumer products, connecting more than 100 million devices .
New retailing means that while focusing on direct online sales of products, Xiaomi has expanded Xiaomi’s coverage and provided a rich user experience through the direct-home Xiaomi House since 2015. The same product is guaranteed under the online and offline prices. At the same time, maintain efficient operational efficiency.
Xiaomi's Internet service is mainly based on its developed MIUI operating system, which opens up the connectivity of various devices and the seamless integration of hardware and Internet services, ultimately providing users with a better user experience.
Millet camp How is the situation
It is worth noting that Xiaomi disclosed the revenue of 2015, 2016 and 2017 in the prospectus.
The prospectus stated that Xiaomi’s revenue mainly comes from four major business units: smart phones, IoT and consumer products, Internet services and others.
Among them, the smartphone segment's revenue comes from the sales of smartphones. The sales in these three years accounted for 80.4%, 71.3% and 70.3% respectively. Smartphones have been declining year by year in Xiaomi’s overall revenue. It can be said that Get rid of excessive reliance on smart phones.
Revenue from IoT and consumer products segment includes sales of other self-developed products, including smart TVs, notebook computers, artificial intelligence speakers and smart routers, and other ecological chain products. These products include IoT and other smart hardware products and some consumer products. Revenue. The proportion of sales in these three years was 13%, 18.1%, and 20.5%, respectively. This is an upward trend year after year. It can be said that the effect of Xiaomi's ecological chain is becoming prominent and this part of the future may be further strengthened.
The internet service segment's revenue comes from advertising services and internet value-added services.
The income of other segments mainly comes from hardware product maintenance services.
In terms of geographical distribution, in 2015, 2016, and 2017, there were 93.9% of millet, 86.6% and 72% of its income came from mainland China. This reflects on the one hand that Xiaomi’s globalization strategy has achieved initial success. As mentioned before, Xiaomi’s first market in India is a good example.
Millet for What happens Now huge Loss
At the same time, we also found that from 2015 to 2017, Xiaomi’s revenue was 66.811 billion yuan, 68.434 billion yuan and 114.625 billion yuan, but the net profit was -76.27 billion yuan, 492 million yuan, -438.89 billion yuan.
Why does Xiaomi have a huge loss?
The prospectus stated that Xiaomi’s losses mainly come from the following aspects:
The cost of sales increased. Xiaomi's cost of sales increased from 61.2 billion yuan in 2016 to 99.5 billion yuan, a year-on-year increase of 62.6%.