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Ask AI · Why Did Ant Investment in Xiaomi Yield Such Amazing Returns?

Introduction

THECAPITAL

Opened 292.2% higher, Ant Group, Meituan, and Xiaomi all made huge profits.

This article is 1380 words, about 1.9 minutes read

Author | Sun Yuan

Source | Direct to IPO

(ID: zhitongIPO)

Another industry leader rings the gong at the Hong Kong Stock Exchange.

On April 29, global IoT (BIoT) solutions provider Xiaomi Technology successfully listed on the Hong Kong Stock Exchange, with an offering price of HKD 24.86 per share, opening at HKD 97.5 per share, a 292.2% jump, with an opening market value of nearly HKD 39.3 billion (about RMB 34.3 billion).

Subsequently, the stock price rose to a high of HKD 98.9 per share, then declined slightly. As of 10:01 am, the stock was trading at HKD 93.5 per share, with a market value of HKD 37.65B.

Source: Baidu Stock Market

According to the prospectus, Xiaomi Technology’s solutions integrate smart hardware, software, and data insights, empowering numerous offline business scenarios to achieve digital transformation and improve core business operations (such as payments, membership management, order fulfillment, inventory control, and staff management) efficiency.

According to data from Zhuoshi Consulting, based on 2024 revenue, the company is currently the world’s largest Android-based BIoT solution provider, holding over 10% of the market share.

More notably, its IPO was also a capital feast.

According to the prospectus, after the IPO, the company’s founder Lin Zhe holds 34.73%, Ant Group holds 24.39%, Meituan holds 7.33%, and Xiaomi holds 6.96%, making them the top three institutional shareholders.

Based on an opening market value of RMB 34.3 billion, founder Lin Zhe’s net worth is RMB 11.9 billion, while the stakes held by Ant, Meituan, and Xiaomi are worth RMB 8.4 billion, RMB 2.5 billion, and RMB 2.4 billion, respectively.

Source: Xiaomi Technology IPO Prospectus

Excluding the pre-IPO investments of RMB 1.67B, RMB 105 million, and RMB 35 million, the investment returns for Ant, Meituan, and Xiaomi are RMB 6.73B, RMB 2.4B, and RMB 2.37B.

The story of Xiaomi Technology begins in 2013.

At that time, traditional hardware centered on business was often closed, fragmented, and outdated, with limited functions, poor design, and lacking interoperability. Meanwhile, there was a significant gap between available software solutions and evolving merchant needs. Purchasing and testing software was costly and complex, and the fragmented ecosystem of hardware and software lacked flexibility, making upgrades or iterations difficult.

To address these challenges, the concept of Business IoT (BIoT) emerged, enabling seamless connectivity between hardware and cloud architecture through new-generation smart devices, providing digital solutions for business scenarios.

In this context, Xiaomi Technology developed an innovative business model— a globally unique integrated BIoT solution business combining smart devices and self-developed PaaS platforms.

According to Zhuoshi Consulting, since Xiaomi Technology launched the world’s first BIoT integrated machine V1, the company has achieved global revenue exceeding USD 100 million within just three years.

By December 31, 2025, the company’s solutions have been implemented in over 200 countries and regions, covering more than 90% of the global market, including all G20 countries.

The company has served over 70% of the top 50 global food and beverage companies. In China, Xiaomi Technology has achieved over 70% coverage of the top 100 catering enterprises and over 60% of the top 100 chain stores.

During the historical period, most of the company’s revenue came from overseas markets, accounting for 67.7%, 78.0%, and 74.9% in 2023, 2024, and 2025, respectively.

In addition to serving enterprises and merchants, the company also empowers software developers, aiming to build the world’s largest ecosystem of business and merchant application developers.

From 2023 to 2025, the company’s revenue was RMB 3.07B, RMB 3.46B, and RMB 3.81B, mainly from sales of BIoT solutions (primarily smart devices), which accounted for 98%, 99.5%, and 99% of total revenue in each period.

Meanwhile, adjusted net profit was RMB 105 million, RMB 220 million, and RMB 269 million; gross profit margins were 26.7%, 28.9%, and 31.3%; net profit margins were 3.3%, 5.2%, and 5.8%; adjusted net profit margins were 3.4%, 6.4%, and 7.1%.

For this IPO, the company plans to raise approximately 40.0% of net proceeds to fund R&D of BIoT hardware and software solutions; about 30.0% to strengthen supply chain and manufacturing operations; around 20.0% to implement global market expansion; and 10.0% for operating capital and other general corporate purposes.

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