Xiaomi has taken the next big step with its successful listing on the Main Board of The Stock Exchange of Hong Kong Limited. Founded in 2010, Xiaomi is an internet company with smartphones and smart hardware connected by an IoT platform at its core. Its mission is to relentlessly build amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology.
With this mission, Xiaomi developed a unique “triathlon” business model, which encompasses hardware, new retail and internet services, with a focus on increasing efficiency, which comes from lowering operating costs, especially sales and marketing costs. This results in products that are high quality and priced honestly. Starting 2018, Xiaomi pledged that its hardware businesses’ overall net profit margin will not exceed 5% per year. If the net margin exceeds 5%, the company will return the excess to its users.
Xiaomi has become the fastest growing Internet company and second fastest growing company globally, as measured by organic revenue growth compared to publicly-listed profitable companies with revenue of over RMB 100 billion ($15 billion) in 2017, according to iResearch.
In 2017, Xiaomi had 67.5% revenue growth, exceeding RMB 100 billion ($15 billion), achieving a growth rate that many traditional companies are unable to match. It took the company only 7 years to achieve revenue of RMB 100B, compared to companies like Google (9 years), Facebook (12 years), Apple (20 years). With its unique ecosystem model, Xiaomi has invested in more than 90 IoT and lifestyle companies and created a comprehensive suite of products that revolve around our smartphones, including mobile peripherals, smart hardware and lifestyle products. In 2017, it became the world’s largest consumer IoT platform in terms of the number of connected devices (excluding smartphones and laptops), according to iResearch.