Xiaomi Inc., the largest smartphone maker in mainland China, is unlikely to go public before 2020, the Hong Kong Economic Journal reported, citing co-founder and vice president Huang Jiangji (黃江吉).
Founded in 2010, the company is now valued at US$46 billion, making it the second most valuable unlisted company in the world after Uber, the report said.
However, its weak financial performance has been hindering its plan to list, according to Bloomberg, which cited Alberto Moel, senior research analyst at Sanford C. Bernstein, as saying Xiaomi’s growth is slowing down.
The company might not even achieve its target to sell 80 million handsets this year, Moel said.
But Huang said slower growth is inevitable for a company in the biggest segment of the consumer electronics market.
Still, Xiaomi is on track to become the market leader because of its cost efficiency, putting tremendous pressure on traditional players like Huawei Technologies Co. Ltd., Huang said.
Meanwhile, the company plans to invest in 100 startups until 2016 to diversify its product mix alongside its core mobile phone business.
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