Xiaomi Corp., a Chinese tech giant producing smartphones and smart hardware, will set up its international headquarters in Shenzhen, according to an agreement it signed with the Shenzhen Municipal Government yesterday.
The company will invest 7.76 billion yuan (US$1.11 billion) to construct its headquarters office at Houhai Finance and Business Headquarters Base in Nanshan District, which will engage in smartphones, AI, Internet service and business expansions.
The accumulative business revenue of the headquarters is expected to reach 51 billion yuan between 2020 and 2024, and contribute 600 million yuan to Shenzhen’s local tax revenue, according to Wang Xiang, president of Xiaomi.
The project is one of the 128 key projects that the city has inked at the Shenzhen Global Investment Promotion Conference that was held in December last year.
According to the agreement, the international headquarters, Shenzhen Xiaomi Information Technologies Co., will expand the corporation’s presence in the international market and realize its strategic layout of innovation ecology.
Jia Xingdong, director with the Shenzhen Municipal Industry and Information Bureau, hoped Shenzhen Xiaomi will play an exemplary and leading role in innovation and global market expansion, and drive collaborative innovation and industrial agglomeration development of the upstream and downstream of the industrial chain.
The latest statistics show the output value of Shenzhen’s software industry reached 1.45 trillion yuan by the end of 2019, taking up one-10th of the country’s total.
A total of 12 Shenzhen enterprises have made it into the country’s top 100 companies in the software and information service sector. Shenzhen’s software exports took the leading spot among Chinese cities and have recorded a 5-percent growth so far this year despite the pandemic.
Founded in 2010, Xiaomi has created a wide range of products including hardware, software and Internet services.
A scene of Xiaomi Science and Technology Park in Beijing. File photo
The company became the world’s largest Internet of Things platform in terms of the number of connecting devices in 2017.
In 2019, Xiaomi’s revenue from overseas markets was 91.2 billion yuan, up 30.4 percent year over year. Its products are sold in more than 90 countries and regions, according to the company.