In the early hours of June 11, China Securities Regulatory Commission official website announced the Xiaomi Group CDR prospectus. The CDR prospectus disclosed that in 2015, 2016, 2017 and the first quarter of 2018, Xiaomi’s operating income was 66.811 billion yuan, respectively, 68.444 billion yuan. RMB 1,14.625 billion and RMB 34.412 billion; Xiaomi’s net profit attributable to ordinary shareholders of the parent company after deducting non-recurring gains and losses was RMB 2.248 billion, RMB 233 million, RMB 3.945 billion and RMB 1.038 billion, respectively.
The prospectus also disclosed that Xiaomi’s financial-related businesses have all been reorganized to Xiaomi Finance and Xiaomi Finance is a wholly-owned subsidiary of Xiaomi Group. However, based on future business development plans, the Group intends to use equity incentives as an independent operation of Xiaomi Finance. The main body is gradually stripped. The proposed equity incentive plan will grant Xiaojun Financial Options to Lei Jun, Xiaomi Finance Management and its core employees. The incentive plan has been approved by the board of directors and approved by all shareholders.
Due to the restructuring of millet finance, Xiaomi Group provided millet financial restructuring loans of approximately USD 830 million and RMB 299 million respectively to Xiaomi Finance Group. Through the operation of the millet financial options plan, the company expects that Xiaomi Finance will no longer be the controlling subsidiary of Xiaomi Group. .
In order to regulate the transactions between the future of millet finance and the Xiaomi Group and safeguard the interests of investors, Xiaomi Group and Xiaomi Finance have signed a framework agreement to stipulate the transaction limits for the next three years (2018-2020). According to the agreement, Millet Group provides financial services for Xiaomi Finance (including loans and other credit and guarantee services, settlement services, acceptance notes, entrusted loans, trust loans, letters of credit, asset-backed securities and financing, financial and financing consulting, etc.) for the next three years , but excluding Millet Group's maximum amount of one-time restructured loan for the reorganization of Xiaomi Finance) is RMB 12.77 billion, RMB 14.950 billion and RMB 14.50 billion respectively. In addition, Xiaomi Group and Xiaomi Finance also provide marketing services. Full support services, payment settlement services, etc. set a maximum transaction limit.
In the first quarter of 2018, Xiaomi Finance's income and pre-tax net profit accounted for 0.90% and 0.22% of the Xiaomi Group respectively. As of March 31, 2018, the total assets of Xiaomi Finance accounted for 13.55% of the Xiaomi Group.
Xiaomi started to engage in internet finance business in 2015. During the reporting period, the company engaged in internet finance business including supply chain financing business, internet micro loan business, payment business, wealth management product distribution business, internet insurance service, etc.