Yes – Xiaomi listed on the Hong Kong stock market under the ticker (1810.HK)
Yes – Xiaomi is a profitable company at the time of writing this article. Xiaomi generated $1.1 billion in Operating profits for the year end 2019.
Xiaomi is a very interesting company with a very interesting business model.
The vast majority of phone manufacturers around the world create a smartphone with a cost of around $100 and then they spend a huge amount of money on marketing and branding. The company then believes that the smartphone has a much higher percieved value – so they sell it for $400 or above.
Xiaomi doesn’t do this!
Xiaomi is aiming to sell all of its products as close as possible to their costs – as they want to have as many products available in the world as possible.
Once out in the world and being use – Xiaomi then looks to drive revenues from providing software and services around these products, which has a much higher margin that the hardware itself. Thus, driving higher demand, more product adoption and thus more revenues from services.
The world class Xiaomi Lamp is finally available to purchase on Amazon.
Xiaomi has won many design awards with this lamp and I read that is by far and away their most popular product. It provides a sleek and simple design that can fit into pretty much any office design.
If you searched for Xiaomi ADRs, you’ve inevitably come across both
XIACY. What’s the difference? You cannot trade
XIACF as a retail investor because it’s a “privately placed” ADR under SEC Rule 144A. This means that they’re for qualified institutional buyers (QIBs) only. QIBs want and contribute to the 25x higher average trading volume than
XIACY. Volume ensures there are enough buyers and sellers to trade with you. Information and services are also limited to QIBs.