Through the dark years, I also felt hesitant.
When you bow your head, you realize the road under your feet.
As the largest "unicorn" in China's Internet that has not yet been listed, Xiaomi is always stirring the nerves of China's capital market, and there are endless news about Xiaomi's listing.
Just two years ago, Lei Jun said about "Xiaomi's listing" that he would not consider it within five years. However, when it was asked again in March this year, it became a "follow the trend", so that when it was listed became a daily news.
Now, finally (May 3), Xiaomi submitted an IPO application to the Hong Kong Stock Exchange, and the listing rumors have finally "booted to the ground", and it is expected to be listed at the end of June and early July at the earliest.
It will be the largest IPO in Hong Kong's history and is also expected to be the world's largest tech IPO this year.
Xiaomi officially submits the prospectus,
"early adopters" with different rights in the same share
Starting from April 30, companies that implement "same shares with different rights" will be able to apply for listing on the Hong Kong Stock Exchange. This is the biggest change since 1989 when the Hong Kong Stock Exchange restarted this mechanism and is regarded as the biggest change in the past 25 years.
With the implementation of the new regulations of the Hong Kong Stock Exchange, the attractiveness of the Hong Kong market to overseas technology companies is becoming stronger.
Due to the advantages of IPO cost, similar culture, market familiarity, and convenient communication with investors, many mainland unicorn companies tend to IPO in Hong Kong.
Previously, due to the Hong Kong Stock Exchange's adherence to the principle of equal rights for one share, Alibaba gave up its listing in Hong Kong and went for an IPO in the United States.
Four years ago, it was a pity to miss Ali. For the IPO of the world's largest technology start-up company this year, how could the Hong Kong Stock Exchange miss Xiaomi?
As expected, Xiaomi has become the first technology company to apply after the Hong Kong Stock Exchange's push for "same shares with different rights", which will undoubtedly excite the A-share and Hong Kong stock markets at the same time.
Why can Xiaomi be valued at 100 billion?
According to comprehensive news, Xiaomi hopes that the IPO valuation will reach 90-110 billion US dollars, with a P/E (price-earnings ratio) of 60 times. You know, in recent years, almost every round of financing of Xiaomi is a "triple jump".
From the public information, the reporter found that the latest public financing information from 2010 to 2014, with a total financing amount of 1.1 billion US dollars and a valuation of 45 billion US dollars. During the period, Xiaomi completed a total of 5 rounds of financing, with many investors.
As we all know, after 2014, the problem highlighted that Xiaomi was suffering. Xiaomi in 2016 was particularly bumpy. The sales of mobile phones slumped and once fell outside the top five in the world. Until 2017, under huge pressure, Xiaomi gradually got out of the haze, reversed the trend and got out of the trough.
In addition, the data shows that Xiaomi's revenue from 2015 to 2017 was 66.811 billion yuan, 68.434 billion yuan and 114.625 billion yuan respectively, a year-on-year increase of 67.5% in 2017; operating profit was 1.373 billion yuan, 3.785 billion yuan and 12.215 billion yuan in 2017 A year-on-year increase of 222.7%.
In other words, from the beginning of Xiaomi’s establishment, Lei Jun has always emphasized that Xiaomi hardware is sold close to cost and hardly makes any money. So, how do such low profit margins drive corporate revenue? This has to say about Xiaomi's business model.
Relying on the cost-effectiveness, I have gained a vote of hardcore "rice noodles", and Xiaomi can be achieved, not only by mobile phones.
At the end of April this year, Lei Jun announced an important piece of information: the annual comprehensive after-tax net profit rate of the overall hardware business should not exceed 5%.
This news shocked the industry. Public information shows that in 2017, Apple's overall business net profit margin was 21.1%, and Huawei's overall business net profit margin was 7.9%. Even in the household appliance industry, which is recognized as having a low net profit margin, Haier's 6.6% and Midea's 7.7% are higher than 5%.
In fact, this is a bit of "the drunkard's intention is not the wine", Lei Jun side said to the outside world: we are not only a mobile phone manufacturer, not purely relying on hardware to obtain major profits, but an Internet company.
In this way, it is also helpful for the capital market to see Xiaomi's business model clearly, or it will enhance its confidence in Xiaomi's profitability and build momentum for the IPO in advance.
In fact, on the issue of raising valuations, Xiaomi has made various investments, turning from a mobile phone manufacturer into a "department store". Some people even compared Xiaomi with LeTV, believing that its "flickering" component is very large.
However, Lei Jun is not Jia Yueting after all, and a good show of "Jedi Survival" made Xiaomi mobile phone bottom out in 2017.
Regarding Xiaomi's business model, Lei Jun once explained that Xiaomi is essentially an Internet company with mobile phones, smart hardware and IOT (Internet of Things) platforms as the core, that is, the "Triathlon" business model: hardware + Internet services + New retail.
According to data, as of March 2018, Xiaomi users used Xiaomi mobile phones for an average of 4.5 hours a day, and the monthly active users of MIUI exceeded 190 million. The indicators such as user scale, activity, and usage time have all reached the level of world-class Internet companies.
Among Xiaomi's revenue composition in 2016, 79% came from hardware, and 21% came from Internet service business. The net profit margin of the hardware business is only 2.8%, while the net profit margin of the Internet service business exceeds 40%. Internet services have become an important source of Xiaomi's profitability.
In addition, there is also the "Home of Xiaomi" that is gradually spreading across the country. It plans to open 1,000 stores in the next two years, and to exceed $10 billion in revenue within five years. In the layout of the new retail outlet, Rebs can be said to have a say.
As for how much Xiaomi is worth, there are rumors with high credibility ranging from $60 billion to $100 billion.
According to sources close to Xiaomi’s IPO intermediary, sponsors, investment banks, and potential investors generally accept the current valuation of at least US$70 billion, and Xiaomi’s market value will exceed US$100 billion in the short term after the IPO.
Lei Jun is expected to become the new richest man, and
thousands of employees will achieve financial freedom
As of the signing date of the prospectus, in terms of shareholding structure, Lei Jun, executive director, chairman of the board and CEO, holds 31.4% of the shares. If included in the option pool of the total share capital ESOP employee stock ownership plan, Lei Jun's shareholding ratio is 28%. %.
Obviously, Rebs was the one who had the happiest laugh when Xiaomi went public. According to estimates, Lei Jun actually controls 78% of Xiaomi's equity, which means that after the company goes public, Lei Jun's personal net worth will reach 77.8 billion US dollars.
You know, Xu Jiayin of Evergrande Group became the new richest man in China last year with a net worth of 39.1 billion US dollars. If Xiaomi goes public, such wealth will be far behind the real estate tycoon Boss Xu, and it is very likely that Lei Jun will become China's new leader. richest man.
After years of struggle, desperate Saburo Lei Jun is finally going to the pinnacle of his life.
fast? Xiaomi is growing really fast. In his own words: "Standing on the tuyere, even pigs can fly".
In fact, "model worker" Lei Jun has also been working hard to be a "pig". Perhaps God saw his efforts and gave him a gust of wind to satisfy his desire to fly.
In addition, with reference to the "rich-making" capabilities of Baidu and Alibaba's previous listings, Xiaomi's listing will also set off a new wave of "rich-making" frenzy.
It is widely circulated within Xiaomi that the net worth of Xiaomi employees can be judged according to their job numbers. The top 100 employees become billionaires after Xiaomi goes public, the top 1000 employees become multi-millionaires, and there are many millionaires.
Isn't this the realization of financial freedom in minutes? How can I use my efforts to squeeze the subway like Xiaobian can only achieve freedom of breathing, I can't help but sigh about the gap between people...
In fact, Xiaomi's salary level is not high in the industry, with a lot of overtime and high pressure, and its "hardship" level, which must only be experienced by Xiaomi employees.
The dream of "born for a fever" cannot be just a feeling, otherwise Jia Yueting's feeling of "suffocating for the dream" has become a laughing stock. The pie painted behind the feelings will be digested by the employees.
The company went public, and the dawn of the employees’ struggle for many years finally appeared. Many Xiaomi employees who held options finally waited for the so-called “get rich overnight” day.
Xiaomi goes public, is China still BAT?
At present, among technology stocks, Tencent’s market value is HK$3,668.536 billion (approximately equal to US$467.383 billion), Alibaba’s market value is US$465.571 billion, and Baidu is US$87.113 billion.
If Xiaomi's valuation of hundreds of billions of dollars comes true, once it goes public, it will surpass Baidu and become the third largest technology stock in China after Tencent and Ali. The BAT pattern in China's Internet sector will be broken, or it will become a new ATM pattern.
On the day Xiaomi submitted its IPO application, Lei Jun also issued an open letter, saying that Xiaomi is not a pure hardware company, but an innovation-driven Internet company.
Xiaomi's business model has been tested and verified. Today, Xiaomi has reached a historically important node. Facing the future, the global business ecosystem established by Xiaomi has an extremely imaginative prospect.
From 2010 to 2018, Xiaomi has gone through eight years of wind and rain, and Xiaomi has finally ushered in an IPO. Now Xiaomi, not only has mobile phone sales returned to the top five in the world, but also the enterprise ecological chain is doing well.
Previously, Lei Jun defined 2017 as the "year of reversal" for Xiaomi, and defined 2018 as the "year of the beginning of a new journey".
Finally, end with the words of Lei Jun's open letter: "Those who are kind will not have bad luck. Please join us and always believe that good things are about to happen."
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