In 2017, Xiaomi's revenue reached 114.6 billion yuan (US$18.2 billion) including one-third from overseas regions, representing growth of 67 percent year-on-year. It made a net loss of 43.89 billion yuan versus a profit of 491.6 million yuan in 2016, though this was impacted by the fair value changes of convertible redeemable preference shares.
Xiaomi, an eight-year-old Beijing-based company, didn't provide financial figures for market value in their IPO application. The company remains in fourth place in its home market, where Xiaomi generated 58 percent of phone sales in 2017, according to Canalys.
It's also a vital shot in the arm for a city that's been floundering in its claim to be mainland China's gateway to the financial world, ever since Alibaba chose NY over Hong Kong for its US$25 billion IPO in 2014, which still holds the record as the world's biggest stock sale.More news: Several Dead After Attack On Libya's Electoral Commission Headquarters
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"What Xiaomi wants to build is definitely not a closed business empire", Lei said in the letter posted on his official WeChat social media account.
Operating profit for 2017 was CNY 12.22 billion, up from CNY 3.79 billion a year ago. Lei has pledged to reclaim the top spot in China in the next 10 quarters, but it won't be easy in a declining smartphone market.
In terms of markets, China is the company's biggest market and India is its most successful worldwide operations. The WVR give greater power to founding shareholders even with minority shareholding.
"If you think of China's tech companies, only a few have a real strategy to expand into the overseas market, and even less have the capability to scale up" globally, said Richard Liu, chief executive of early Xiaomi-backer Morningside Venture Capital. The new weighted voting rights structure, still banned by Chinese regulators, aims to incentivize more Chinese technology companies to list in Hong Kong.
CLSA, Morgan Stanley and Goldman Sachs Group Inc are sponsoring Xiaomi's IPO.