XIAOMI(HK:01810) Mei Ri Jing Ji Xin Wen·2025-03-25 11:25Core Viewpoint - Xiaomi Group has announced a significant fundraising plan involving the placement of 800 million existing shares at a price of HKD 53.25 per share, aiming to raise approximately HKD 425 billion for business expansion, R&D investment, and other general purposes. Following the announcement, the stock price dropped over 6% on the same day [1][2][3]. Group 1: Fundraising Details - The share placement represents about 3.2% of Xiaomi's existing issued share capital and 1.2% of voting rights [3]. - The placement price reflects a discount of approximately 6.6% compared to the last trading day's closing price of HKD 57.00 [2]. - The funds raised will be allocated to accelerate business expansion, R&D investment, and other general corporate purposes [4]. Group 2: Business Expansion and R&D - Xiaomi aims to expand its business into high-end and ultra-high-end markets, with plans to develop products priced between HKD 6,000 to over HKD 10,000 [4]. - The company is also focusing on diversifying its product range beyond smartphones and automobiles to a full ecosystem [4]. - Xiaomi's R&D investment for 2024 is projected to reach HKD 24.1 billion, a year-on-year increase of 25.9%, with a total expected investment exceeding HKD 100 billion from 2021 to 2025 [4]. Group 3: Financial Performance and Cash Reserves - For the fiscal year 2024, Xiaomi reported a total revenue of HKD 365.9 billion, a 35% year-on-year increase, and an adjusted net profit of HKD 27.2 billion, up 41.3% [5]. - As of December 31, 2024, Xiaomi's total cash reserves amounted to HKD 175.1 billion, including cash and cash equivalents of HKD 33.7 billion and total investment value of HKD 71.4 billion [5].