Caixin
May 04, 2018 04:20 AM
BUSINESS & TECH

Xiaomi Joins with CK Hutchison in Overseas Push After IPO Filing

Xiaomi is preparing for an initial public offering in Hong Kong, which would be one of the biggest ever tech listings in the city. Photo: VCG
Xiaomi is preparing for an initial public offering in Hong Kong, which would be one of the biggest ever tech listings in the city. Photo: VCG

Chinese smartphone maker Xiaomi Inc. set up a strategic partnership with Hong Kong-based conglomerate CK Hutchison Holdings Ltd., in a bid to expand Xiaomi’s sales network globally.

The companies announced the partnership Thursday after Xiaomi filed an initial public offering prospectus in Hong Kong. The planned IPO is expected to be one of the biggest ever for a technology company in Hong Kong, likely to raise billions of dollars.

The partnership with CK Hutchison, a retail-to-telecom conglomerate backed by Hong Kong tycoon Li Ka-shing, will bring Xiaomi products to CK Hutchison’s worldwide telecom and retail divisions, helping the smartphone maker to expand its sales network globally, especially in Europe.

CK Hutchison operates 17,700 retail outlets across the globe, serving nearly 300 million retail and telecom customers. In 2017, 47% of CK Hutchison’s revenue came from Europe, according to the company’s financial report.

Under the agreement, CK Hutchison will first launch Xiaomi products at its stores in European countries including Austria, Denmark, Ireland and Italy.

Xiaomi’s global expansion has taken it into 74 countries and regions so far, according to its IPO prospectus. India is currently Xiaomi’s largest overseas market, accounting for more than 26% of the country’s smartphone market.

In 2017, Xiaomi’s revenue from overseas markets reached 32 billion yuan, or 28% of its total revenue.

Contact reporter Han Wei (weihan@caixin.com)

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