In addition to the downturn in Hong Kong stocks and the general lack of technology stocks this year, Xiaomi has also recently encountered factors that stimulate the stock price down.

September 2, Xiaomi’s closing price was only 8.35 Hong Kong dollars, a record low, and the market value barely held 200 billion Hong Kong dollars (2005.57 billion Hong Kong dollars, about 25.57 billion US dollars), the market value shrank more than 100 billion Hong Kong dollars during the year.

To boost the stock price, Xiaomi Group announced today that it will buy back up to HK$12 billion in stock in the open market. Affected by this news, as of 10:40 am today, Xiaomi’s share price rose 5.5%, and the market value returned to more than 210 billion Hong Kong dollars.

From August 21 to September 2, Xiaomi’s share price fell 11.45% in 9 trading days, while the Hang Seng Index fell 2.31%. Xiaomi’s share price underperformed the broader market. In addition to the downturn in Hong Kong stocks and the general lack of technology stocks this year, Xiaomi has also recently encountered factors that stimulate the stock price down.

Xiaomi announced the latest quarter’s results after the August 20th. Xiaomi’s second quarter revenue was 51.951 billion yuan, up 14.8% year-on-year. The market expectation was 52.173 billion yuan. The adjusted net profit was 3.635 billion yuan, up 71.7% year-on-year. The market expectation was 2.81 billion yuan.

Although the overall performance exceeded expectations, the growth rate of Xiaomi’s revenue in the quarter was significantly slower than that in the first quarter (up 22.7% year-on-year). The growth rate of mobile phone, Internet service and IoT business all declined. The next day, Xiaomi’s share price opened higher and lower, and the final closing price fell 5%.

Then, Xiaomi President Lin Bin reduced some of his shares. According to Xiaomi’s announcement, August 21, 22, and 23, Lin Bin sold Xiaomi shares for three consecutive days Holding 340 million yuan. Lin Bin is the co-founder of Xiaomi and the second largest individual shareholder. When Xiaomi’s share price falls, his reduction will also affect investor confidence. However, on August 27, Xiaomi issued an announcement, Lin Bin promised to lock the stock for one year.

On August 30th (last Friday), the CSRC updated the list of companies that applied for the initial public offering of shares, and Xiaomi Group was listed among them. Xiaomi withdrew the application for issuance of the domestic CDR (China Depositary Receipt). . Affected by this news, Xiaomi’s share price fell another 2% on Monday, and the intraday market value once fell below 200 billion Hong Kong dollars.

Before this, Xiaomi has already made two rounds of repurchase. In January of this year, Xiaomi made three repurchase agreements totaling 200 million Hong Kong dollars. At the beginning of June this year, Xiaomi’s share price fell to around 9 Hong Kong dollars, in order to boost investor confidence, smallIn June and July, Mian made 19 consecutive repurchases, totaling 105.5 million Class B common shares, costing nearly HK$1 billion.

Xiaomi’s share price has generally declined since its listing. The closing price of HK$8.35 yesterday was less than half of the issue price of HK$17, which was more than 60% lower than the peak price of HK$22. Xiaomi’s Internet positioning has never been recognized, and it is a common reason. However, after PE has slipped to the normal level of hardware companies (currently its static PE is 13.47), Xiaomi’s share price is still showing a downward trend. Even if the overall performance exceeded expectations, the stock price fell.

In the latest quarterly results conference call, when asked why Xiaomi’s share price continued to fall, Xiaomi CFO Zhou said that the stock price will be affected by many external influences. Xiaomi firmly believes that as long as it continues to provide value to users in business, performance Continued growth will soon be reflected in the stock price.

(The header is from Xiaomi)