Xiaomi Submitted A Listing Application The Top 100 Employees Are Likely To Become Billionaires?

Yesterday, Xiaomi formally submitted a listing application to the Hong Kong Stock Exchange to open the listing journey. As the first crab-eater to “have different rights” in the Hong Kong Stock Exchange, there is no doubt that this year’s largest capital feast in the world will create a group of billionaires and multimillionaires, and Lei Jun’s personal wealth will also Reach a new height.

Hong Kong stocks "shares of different rights" The first stock Lei Jun speaks for more than 50%

The Xiaomi IPO will become the first high-tech company listed on the Hong Kong Stock Exchange since its reform of “shares with different shares”.

Different shares of the same stock, also known as dual ownership structure, or AB shares structure. This means that management hopes to control the entire company with a small amount of capital. Therefore, the company's stock is divided into two types: high-vote stocks and low-vote stocks.

Xiaomi’s founder, chairman and CEO Lei Jun, and Xiaomi’s co-founder and president Lin Bin are the beneficiaries of “shares with different shares”. According to Xiaomi's prospectus, millet Class A shareholders can vote 10 votes per share, while Class B shareholders can vote 1 vote per share.

At present, Lei Gong holds 31.4% of the shareholding structure. If it counts into the option pool of the total equity ESOP employee stock ownership plan, Lei Jun’s shareholding ratio is 28%. However, through the dual-equity structure, Lei Jun’s voting rights ratio exceeds 50%, which is the controlling shareholder of Xiaomi Group.

Currently, the market estimates that Xiaomi will be officially listed at the end of June or early July, and will consider the listing of CDRs (China Depositary Security) in the Mainland.

Nine people worth over one billion US dollars Lei Jun or into China's richest list of top five

As the most globally-focused IPO in 2018, several brokerage firms expect Xiaomi’s valuation to be as high as US$100 billion and the minimum valuation to reach US$70 billion. Deutsche Bank even gave the highest valuation of US$162.9 billion.

If calculated according to a valuation of 100 billion US dollars, Lei Jun’s net worth is expected to reach at least 31.412 billion US dollars. What is the concept of this number? Lei Jun will be among the top five in the Forbes China Rich List and close to Li Ka-shing's current net worth. According to the Forbes real-time data list, Lei Jun currently has personal wealth of US$12.5 billion and is located in 116 locations in the world and 12 in China.

In addition to Lei Jun, millet will be listed on how many money? Xiaobin Co-Founder and President Lin Bin holds 13.33%, co-founder and brand strategy officer Li Wanqiang holds 3.24%, co-founder and senior vice president Hong Feng holds 3.22%, and co-founder and senior vice president Liu De. At 1.55%, Wang Chuan, co-founder and senior vice president, held 1.11% of shares, and Shunda Capital CEO Xu Da held 2.93% of the shares. In addition, Huang Jiangji, the former co-founder and former vice president of strategy, who left before Xiaomi’s listing, holds 3.24%, and the co-founder and former chief scientist holds 1.43%.

According to the valuation of 100 billion U.S. dollars, with the exception of Lei Jun, the net worth of these eight individuals will exceed one billion U.S. dollars.

In addition to the senior management team, many of Xiaomi’s core employees will also increase their prices. It is understood that employees who entered Xiaomi Company in the early days almost have options. At present, it is interesting to note that the top 100 employees are likely to become billionaires, and the top 1000 employees may be worth more than 10 million yuan.

Millet does not make money in the end? 2017 profit of 12.2 billion yuan

Millet's operating results in the past three years also surfaced for the first time. However, one set of loss data triggered hot debate.

The prospectus shows that in 2017, Xiaomi’s income was RMB 114.6 billion and operating profit was RMB 12.216 billion. However, another caliber stated that Xiaomi’s loss in the year 2017 was RMB 43.89 billion. How is this going?

Originally, the so-called loss was actually a "fair share preference value." This is an accounting treatment. Companies listed in Hong Kong will encounter this calculation rule, regardless of actual business conditions.

That is to say, Xiaomi had previously given away some of the preferred stocks through financing, and as Xiaomi’s company continued to add value, preferred stocks also continued to add value, and these value-added parts were counted as losses in the finances, which was the company’s liabilities to shareholders. However, after the IPO, the preferred stock will be converted into common stock. This part of the loss will disappear immediately and will no longer be included in the statement.

Eight years of inspirational wealth story How big is the millet eco-chain?

Millet, who was born in 2010, has directed an inspirational wealth story for the past eight years.

Millet mode has stood the test of time. In Lei Jun’s new layout, Xiaomi is an Internet company with mobile phones, smart hardware and IoT platforms as the core. In an open letter yesterday, Lei Jun said that Xiaomi is the world’s fourth-largest smartphone manufacturer, and also built the world’s largest consumer IoT platform, connecting more than 100 million smart devices, and has 190 million MIUI monthly active users. He stressed that the "hardware + new retail + Internet services" model has a strong vitality, reiterating that Xiaomi always insists that the comprehensive net rate of hardware does not exceed 5%.

The prospectus shows that currently, Xiaomi’s revenue mainly consists of four business segments: smart phones, IoT and consumer products, Internet services and others. Among them, the mobile phone is the most core segment. In 2017, the company’s mobile phone business revenue was 80.563 billion yuan, accounting for 70.3% of the total revenue.

"Millet is not to build a closed business empire." Lei Jun said Xiaomi has invested more than 90 ecological chain companies, built around the mobile phone business, mobile phone accessories, smart hardware, consumer product three-tier product matrix.

It is reported that Xiaomi plans to raise 30% of IPO funds for R&D and development of core products such as smart phones, TVs, notebook computers, and artificial intelligence audio; 30% will be used to increase investment and strengthen the consumer goods and mobile Internet industry chain; 30% Global expansion; 10% for general operational purposes.