The company makes a lot of money. The comprehensive net profit of hardware is less than 5%
Xiaomi company executive tiantuan
This morning, Xiaomi officially submitted the prospectus, which opened the way to Hong Kong listing, and is believed to be the largest IPO in the world this year. According to the prospectus, CITIC Lyon securities, Goldman Sachs and Morgan Stanley are the joint global coordinators, joint bookrunners and joint lead managers.
As early as the morning of May 2, Phoenix technology got reliable news that Xiaomi will apply for IPO in Hong Kong this week, and will be listed in June July, becoming the first company to taste the "same share with different rights". Although we didn't wait for Xiaomi's prospectus at that time, the article has drawn eight points:
1. Lei Jun said that Xiaomi hardware's net profit margin will never exceed 5%. Will he face it?
2. Does millet make money?
3. How many shares does Lei Jun hold in Xiaomi?
4. Is Xiaomi really an Internet company as he said?
5. How big is millet ecological chain?
6. Will Xiaomi go on A-share after going on Hong Kong stock market?
7. Will Xiaomi's valuation exceed 100 billion yuan?
8. What is Xiaomi's overseas market like?
Now the Prospectus has been published. Although there is no specific financing plan and target stock price at present, according to first financial report, people close to Xiaomi IPO intermediary revealed that at present, sponsors, investment banks and potential investors generally accept that the current valuation is at least $70 billion, and Xiaomi's market value exceeds $100 billion in a short period after IPO.
In addition to valuation, we might as well focus on the prospectus to analyze the other seven points.
Point 1: the comprehensive profit of Xiaomi hardware is less than 5%
Last week, Xiaomi held a new product conference at Wuhan University, the alma mater of Lei Jun, the founder, chairman and CEO. Lei Jun said publicly at the conference: 'the comprehensive net profit margin of Xiaomi's mobile phone hardware will never exceed 5%. If there is any excess, it will be returned to users. '
Comprehensive after tax net profit is a general concept, which is the net profit rate obtained by dividing the operating revenue by the cost expense, including R & D, sales, advertising, etc.
Gross profit margin is 8.8% and 8.3% respectively
From the prospectus, Xiaomi announced the gross profit margin, of which the latest gross profit margin of mobile phone and ecological chain is 8.8% and 8.3%, respectively.
Comprehensive profit margin in 2017 4.7%
Although Xiaomi didn't publish the comprehensive profit margin of mobile phones and ecological chain, it mentioned the comprehensive profit margin of 4.7% in 2017, which means that the overall comprehensive profit margin of Xiaomi is only 4.7% when the Internet business with high profit margin is included. Therefore, the comprehensive profit margin of Xiaomi hardware is less than 5%, and Lei Jun is not attacked.