On the morning of June 11, the Securities Regulatory Commission disclosed the documents of "publicly issuing depositary receipts and listing" of XIAOMI Group. CITIC Co., Ltd. is the sponsor and lead underwriter of this issue. At this point, XIAOMI became the first application for the CDR pilot project.
In the first quarter of 2018, XIAOMI Group achieved an operating income of 34.4 billion yuan and a loss of 7 billion yuan. In addition, XIAOMI said that the net profit of the company's financial statements in the year of listing may have a large negative risk, but it does not reflect the company's actual operating performance.
Source: China Securities Regulatory Commission
The Securities and Futures Commission (SFC) early this morning(11 June)Disclosure of XIAOMI Group's "public issuance of depositary receipts and listing" documents. According to the prospectus, CITIC Co., Ltd. is the sponsor and lead underwriter of this issue. At this point, XIAOMI became the first application for the CDR pilot project.
According to XIAOMI's CDR prospectus, XIAOMI had an income of 34.412 billion yuan and an adjusted net operating profit of 1.699 billion yuan in the first quarter of 2018. With the global smartphone market down 2.9 per cent from a year earlier, XIAOMI shipped 28 million phones, an increase of 87.8 per cent year-on-year.
As of March 2018, MIUI had more than 190 million monthly active users, and users spent an average of about 4.5 hours a day using XIAOMI's mobile phone. In the first quarter of 2018, XIAOMI's Internet service income was 3.231 billion yuan, gross profit was 2.119 billion yuan, gross profit reached 65.58%, gross profit accounted for 40%, has surpassed smartphones, and Internet services have become an important source of profit.
It is worth mentioning that XIAOMI also built the world's largest IoT platform, connecting more than 100 million smart devices. According to statistics on the number of connected devices in the first quarter of 2018, XIAOMI accounted for 1.9% of the global consumer Internet of things market, ahead of the second place Amazon.Com Inc's 1.2%.
The full name of CDR is China Depository Receipts, which means Chinese depositary receipts, securities issued in China on the basis of overseas securities and representing the rights and interests of overseas basic securities issued by the depositor. The conditions for application include: the market value of high-tech industries and strategic emerging industries is not less than 200 billion yuan, or the most recent year's operating income is not less than 3 billion yuan and the estimated value is not less than 20 billion; the establishment of continuous operation for more than 3 years, the actual controller has not changed in the last 3 years, and so on. According to the requirements of the published format, the enterprise shall submit the application documents to the CSRC and submit them to the CSRC for approval. For a public offering of CDR, it is necessary to submit an application for listing to the Shanghai and Shenzhen stock exchanges, and after examination and approval by the exchange, the two sides sign a listing agreement.
The CSRC issued nine documents in the late night of June 6, including the measures for the issuance and transaction Management of Depositary receipts (for trial implementation), which clearly made specific arrangements for the issuance, listing, trading, information disclosure, and rights and interests of investors of depositary receipts (CDR). Enterprises that meet the requirements can submit relevant materials for issuing CDR applications. At that time, there was news that XIAOMI, who was going to log on to H shares, had also submitted an application for CDR, which was expected to grab the first taste of soup. Now the news has finally landed.
According to intermediaries close to XIAOMI's IPO project, there is fierce competition among investors, especially cornerstone investors, with valuations generally between $75 billion and $85 billion, and a number of institutions have given valuations of more than $80 billion, but no cornerstone investors have been finalized yet.
On May 3, XIAOMI submitted an application for listing to the Hong Kong Stock Exchange. According to the prospectus, XIAOMI Group incurred a loss of 7.6 billion yuan, a profit of 491.6 million yuan and a loss of 43.9 billion yuan in 2015, 2016 and 2017, respectively.