Xiaomi, a leading Chinese technology group, has announced a significant milestone in its global expansion strategy by raising $5.27 billion through a share offering on the Hong Kong Stock Exchange. This strategic move not only fortifies Xiaomi's position in the technology sector but also sets a robust foundation for the development of key business areas, including smartphones, consumer electronics, and electric vehicles.
According to a Reuters report, Xiaomi plans to issue approximately 750 million Class B shares at an offering price ranging from 52.80 to 54.60 Hong Kong dollars per share, which translates to about $6.74 to $6.97 per share. This pricing is notably lower than the closing price of HKD 57 ($7.26) for Xiaomi shares on the same trading day, decreasing by about 4.2% to 7.4%. The funds raised from this issuance will be utilized for expanding business operations, enhancing investment in research and development, and aligning with the company's long-term strategic goals.
The capital raise comes as the Hong Kong stock market shows signs of recovery, with many large Chinese corporations also undertaking significant fundraising efforts. In the first quarter of 2024 alone, Chinese companies raised nearly $17 billion through share issuances, a remarkable doubling compared to the same period last year.
Xiaomi's consolidated financial report for 2024 reveals robust performance, recording revenue of $50.62 billion, marking a 35% increase from the previous year. Notably, revenue for the fourth quarter of 2024 surpassed the $15 billion threshold for the first time, achieving $15.08 billion, which is an impressive increase of 48.8% year-on-year. The company's adjusted net profit also surged to $3.76 billion, reflecting a 41.3% growth over the last year.
In the smartphone segment, which is central to Xiaomi’s core operations, the revenue reached $26.54 billion in 2024, up by 21.8%. The total global shipments of smartphones hit 168.5 million units, securing Xiaomi’s position among the top three smartphone brands worldwide, with a market share of 13.8%. The company not only maintained its stronghold in the budget and mid-range segments but also made significant strides in premium product segments. Specifically, Xiaomi's market share in smartphones priced at $415 and above reached 23.3%, while it led the $553 to $692 segment with a commanding 24.3% market share. For devices priced between $692 and $830, its market share increased to 9.7%, outpacing the previous year by 1.3 percentage points.
Growth was not limited to smartphones alone; Xiaomi’s consumer electronics division also experienced robust expansion, generating revenue of $14.4 billion, which marks a 30% increase. Sales from household products like air conditioners, refrigerators, and washing machines reached record levels. Moreover, Xiaomi's ventures into smart electric vehicle technology and new tech products contributed significantly, totaling $4.54 billion in 2024, surpassing initial targets.
As Xiaomi looks ahead to 2025, it is set to further its ambition in the high-end market with three key products: the Xiaomi 15 Ultra, which is aimed at competing with the iPhone and Samsung Galaxy S series; the Xiaomi SU7 Ultra, a smart electric vehicle that garnered over 10,000 orders on its launch day; and the Mijia Central Air Conditioner Pro, a strategic addition to its smart home ecosystem. Sales of the Xiaomi 15 Ultra reportedly increased by over 50% compared to its predecessor on its opening day, while pre-orders for the SU7 Ultra exceeded expectations for the entire year.
Xiaomi is also intensifying its focus on artificial intelligence (AI), recognizing it as a pivotal technology for its long-term strategy. In October 2024, the company launched the Xiaomi HyperOS 2, integrating three platforms—HyperCore, HyperConnect, and HyperAI. This operating system aims to facilitate seamless connectivity between devices, offering advanced AI experiences and optimum performance.
To maintain its competitive edge, Xiaomi continues to heavily invest in research and development (R&D). In 2024, its R&D expenditures increased by 25.9% to $3.33 billion, with the research team expanding to more than 21,190 personnel. By the end of 2024, Xiaomi had amassed over 42,000 global patents, including more than 1,000 related to electric vehicle technology.
The company has plans to enhance its business presence in Vietnam, with intentions to launch major household products such as air conditioners and refrigerators in 2025. Besides smartphones, tablets, wearables, and air purifiers, Xiaomi has also sold TVs in Vietnam since 2022 and recently expanded its product range with household items such as water purifiers and automatic pet feeders.
Overall, Xiaomi’s strategic steps signal a strengthened commitment to innovation and market leadership, aiming not just to compete but also to thrive in an increasingly dynamic tech landscape.
