Original title: Xiaomi officially applied for listing in Hong Kong!
Sihai technology news learned from the official website of the Hong Kong stock exchange that Xiaomi has formally submitted the IPO application documents. Xiaomi is expected to become the first share of the Hong Kong stock exchange with different rights. It will be the world's largest IPO since 2014.
In the morning of May 3, Xiaomi submitted its listing application to the Hong Kong stock exchange. According to the prospectus, during the business record period, in 2015, 2016 and 2017, Xiaomi group generated a loss of RMB 7.6 billion, a profit of RMB 491.6 million and a loss of RMB 43.9 billion respectively.
According to the offering documents, Xiaomi plans to use 30% of the IPO funds for R & D and development of core products such as smart phones, TVs, laptops and AI audio; 30% for expanding investment and strengthening the industrial chain of consumer goods and mobile Internet; 30% for global expansion; and 10% for general operation.
According to the prospectus, after deducting changes in the fair value of convertible redeemable preferred shares, share based compensation, gains in the fair value of investments, and amortization of intangible assets resulting from acquisitions, our adjusted non international financial reporting standard loss in 2015 was RMB 303.9 million, and our adjusted non international financial reporting standard profit in 2016 and 2017 was RMB 1, 895.7 million yuan and 5361.9 million yuan respectively.
As of December 31, 2017, Xiaomi group had net liabilities of RMB 127.2 billion and accumulated losses of RMB 129.0 billion, mainly due to the large amount of fair value losses on convertible redeemable preferred shares. Convertible redeemable preferred shares are designated as liabilities in the consolidated balance sheet, while the increase in fair value is recognized as a fair value loss in the consolidated income statement.