Xiaomi's IPO in Hong Kong has set a number of records, becoming the world's third largest technology company IPO. It is also Hong Kong's leading non-state-owned company IPO and Hong Kong's first IPO of the same company. Why choose Xiaomi, Hong Kong Li Xiaojia, chief executive of the Exchange Group, said: 'We are based on whether the company has a large enough trading volume, so we provide investors with more choices and balance risks. 'The Hong Kong Financial Secretary Chen Maobo said that Xiaomi The first stocks with different rights in the same stock are listed today, which is of great significance to Hong Kong.
In addition, according to the news on the afternoon of July 9, the Hang Seng Index announced that the Xiaomi Group will be included in the HSI after the market close on July 20, and will take effect on July 23. The Hang Seng Index is an important indicator of Hong Kong stock market prices. Being included in the Hang Seng Index illustrates the recognition of the capital market and the Hang Seng Index Company for Xiaomi. The Hang Seng Index is a Hong Kong-Hong Kong-compliant Hong Kong stock index. In the future, ordinary investors are also expected to participate in the investment of Xiaomi in China.
According to Xiaomi's current market value of 370 billion Hong Kong dollars (310 billion yuan), this market value is higher than Gree Electric, and is also higher than NetEase listed in the US stock market for many years. From the 13-person team in the founding period, 8 years, Xiaomi became now near The business scope of 20,000 employees started from mobile phones, and grew into the world's leading IOT IoT consumer platform, and continued to break through in the field of Internet services. Under the new starting point of the listing, Lei Jun began to talk about the second chapter of Xiaomi. .
Lei Jun: Xiaomi stock is worth holding for a long time
Looking back at Xiaomi's growth process, there are many nodes to shock the outside world. In 2013, Xiaomi achieved more than 1 billion US dollars in revenue through the excellent price-performance mobile phone products and network marketing model in the past two years. Few companies have this speed. In 2014, Xiaomi became the leading smartphone manufacturer in the mainland China market, with annual sales exceeding $10 billion.
From the current stage, the global mobile phone market is weak, mobile phone giants such as Samsung and Apple are all showing signs of decline. With the new product strategy, Xiaomi has recently grown against the Chinese market and overseas markets. 2017 Xiaomi battalion It received 114.625 billion yuan, a year-on-year increase of 67.5%, and operating profit of 12.215 billion yuan, an increase of 222.72%. From this perspective, Xiaomi created a number of miracles in the hardware field of heavy assets, and made the development speed of the Internet industry.
The business model of intelligent hardware, Internet service and new retail integration, makes it difficult for Xiaomi valuation to find listed companies that can be referenced. Chen Hang, chief analyst of Southwest Securities Electronics, pointed out in the analysis article that Xiaomi The commercial kernel is essentially different from Apple. The starry sea of Xiaomi is Amazon, and the moat is also Amazon. Amazon is one of the leading stocks in the US stock market in the last decade, but because Amazon's business model is too complicated and difficult to understand, traditional valuation and pricing The system is unable to measure this new species that focuses on the customer experience and long-term value. From this point of view, the potential of this new species of millet needs more opportunities to be seen by the market.
In the face of the ever-changing capital market, Lei Jun’s mentality has not been affected by valuation fluctuations. After the listing, Lei Jun said in an interview with the media, 'The stocks have risen and fallen after listing, this is normal. I communicate with many investors, everyone It is more important to hold Xiaomi for long-term optimistic about Xiaomi. At this point, I am still very confident. I think that holding Xiaomi for a long time will definitely make money.
This time, Xiaomi Group issued 217,958,5000 shares globally, 95% of which were issued according to the international offering, and 5% of the shares were offered for sale in Hong Kong. The issue price was HK$17 per share, and the total amount of funds raised was 4.721 billion US dollars. According to the distribution, 90% of Xiaomi IPO's IPOs are institutional investors. This part of investors tends to value the long-term value of Xiaomi, and will not care about short-term stock price fluctuations. The retail share of 5% of the public offering is relatively low. smaller.
The types of investors in Xiaomi are also diversified, including international and domestic long-term investors, hedge institutional investors, high net worth clients and corporate investors. The cornerstone investors of this issue include CIC Zhongcai, Qualcomm, China. Mobile, CDB, Poly Group, SF Holdings and China Merchants Group. Inside, including the upstream and downstream partners of Xiaomi's corresponding products, the future is bound to achieve synergy with Xiaomi's main business.
Xiaomi core competitiveness: rice flour, efficiency
Starting from the birth of the first rice noodles, enthusiastic millet product enthusiasts are loyal to the Xiaomi brand, actively participate in the company's platform, and actively provide advice for the company's product development, which is perhaps the most proud of Lei Jun's existence. Known as rice noodles Enthusiastic users, is a huge group that once envied competitors, but they want to create their own various powders.
These rice noodles actively made recommendations in the Xiaomi MIUI Forum. In March 2018, Xiaomi's MIUI Forum had more than 9 million monthly active users. According to statistics, since Xiaomi launched the MIUI Forum in August 2010 to March 31, 2018. On the day, the company's users have posted about 250 million posts on it. These huge, highly motivated rice noodles provide a steady stream of nutrients for Xiaomi's growth.
At the listing meeting of Xiaomi on July 9, Lei Jun said: 'I want to especially thank the global rice noodles. Eight years ago, we developed the first product MIUI. The first version has only 100 users. It is these 100 user support. We have grown step by step, and there are 190 million active users in the month. ' Xiaomi also specially invited 6 rice flours that have supported Xiaomi from 2010. The rice noodles represent Hong Jun standing at the knocking ceremony. Lei Jun on the left hand side, witnessed the glory moment.
'Touching the people, the price is kind.' The reason why Xiaomi products attract a large number of loyal users lies in high-priced, high-quality products. To do this, it is inseparable from another core magic weapon of Xiaomi, paying attention to efficiency. Xiaomi attaches great importance to the pursuit of extreme efficiency, which is mainly reflected in the innovative advantages of dare to start, and strictly control the low-cost and high-quality foundation laid by the expense rate.
In the report, CITIC Jiantou pointed out that Xiaomi is one of the most unique companies in the global business model. Efficiency is the life of Xiaomi Company. Whether it is the creation of Xiaomi hardware products or the new retail strategy of Xiaomi's omnichannel reach consumers, all links The high efficiency has kept Xiaomi's products consistently cost-effective, and has also brought countless fans since its birth.
Xiaomi has always advocated Costco's business model. Xiaomi's mobile phone has a large number of powders based on cost-effective advantages, and promises that the future hardware comprehensive net profit rate will not exceed 5%. In contrast, Xiaomi's operating expenses account for a low proportion of operating income in the supermarket. The leading manufacturers of leading and consumer electronics are leading, and the cost control ability is quite good. At the same time, the stock turnover days of millet in 2017 are about 45 days, far exceeding that of Apple and other mobile phone companies, close to Wal-Mart level, and gradually shrinking with Costco. The gap, inventory turnover rate is expected to further increase in the future.
Xiaomi this year, what story will be told in the next ten years?
According to Xiaomi's previous prospectus, Xiaomi plans to raise funds by 30% IPO for research and development and development of core products such as smart phones, smart TVs, notebook computers, artificial intelligence speakers and smart routers. 30% for expanding investment and strengthening the Internet of Things , consumer goods and mobile Internet industry chain. 30% for global expansion. The other 10% for general operational purposes.
Lei Jun said in an open letter that there is still unlimited room for growth in Xiaomi's future. Through the following three strategies, the future growth of Xiaomi can be guaranteed.
First of all, Xiaomi's smartphone business ranks fourth in the world, while smartphones only look at the stock market is a huge market, and strive to rush into the world's top three as soon as possible; Second, there will be plans, rhythmical expansion of categories, and many hundreds of billions The market of the level waits for a fight, and continues to move from victory to greater victory. Third, the broad sky of the international market is promising. The data shows that in the first quarter, Xiaomi’s international business accounted for 36% of total revenue. Lei Jun said that Xiaomi should further promote internationalization, and realize the international business income as much as half of the total income as soon as possible.
According to IDC and Counterpoint data, in the first quarter of 2018, Xiaomi mobile phone shipments rose by 87.8% year-on-year, and the market share in India for the third consecutive quarter reached 31.1%. At the recent Shenzhen conference, Xiaomi founder Lei Jun It indicates that mobile phone sales have entered the top five sales in 14 overseas countries. Xiaomi smartphones have entered 74 countries and regions around the world.
Since the beginning of this year, Xiaomi has reached strategic cooperation with Pan-East Asian e-commerce Shopee, Li Ka-shing's Yangtze River Hutchison Group, and Italy, Poland's Xiaomi offline authorized stores have also officially opened. In the domestic mobile phone stock market is fully explored, competitive incentives 3. Globalization is the strategic focus of Xiaomi this year.
As for the story of Xiaomi's longer-term, Lei Jun is pinned on the intelligent hardware business such as the Internet of Things. 'In the next ten years, Xiaomi's IOT (Internet of Things) business is expected to reach 40%~50%', before the Xiaomi Global Offering Shares News At the press conference, Lei Jun described the future development goals of Xiaomi.
According to the research report of Guojin Securities, the consumer-grade IOT business is the biggest attraction in the future. The concept of intelligent technology networking is reshaping various forms of household appliances and daily necessities, and building new life scenes. More than 90 companies under the Xiaomi Ecological Chain have Launched more than 1,000 SKUs, and with the leading design concept, the efficient supply chain and the flow advantage of the millet system seized the opportunity of consumer-grade IOT.
From the early PC Internet era to the mobile Internet era, a huge number of Internet giants have emerged. The Internet of Things is considered to be the next era. Among them, BAT has mastered the search engine, e-commerce and socialization since the PC era. The core of the traffic, especially the formation of the two major ecosystems between Ali and Tencent, has become the target of many Internet companies. The traffic-based Internet business entrepreneurial dividend has basically disappeared, and Xiaomi has chosen the unique path of intelligent hardware, which is expected to become a new traffic. Giant.