(Photo: VCG)

The first Chinese Depository Receipts (CDR) issuance application was disclosed by China Securities Regulatory Commission (CSRC) on Monday, making Chinese smartphone maker Xiaomi a step closer to a dual listing.

CDR application

Xiaomi submitted the CDR application last Thursday, almost immediately after CSRC introduced the CDR rules to allow overseas-listed high-tech and strategically important companies to seek a secondary listing at home.

The CDR application revealed Xiaomi’s revenues of 34.4 billion yuan (5.4 billion US dollars) in the first quarter of this year. From 2015 to 2017, the company’s revenues were 66.8 billion yuan, 68.4 billion yuan and 114.6 billion yuan respectively.

Xiaomi also recorded net profits of 1 billion yuan in the first three months. Its net profits were 3.9 billion yuan in 2017 and 233 million yuan in 2016. However, the company suffered losses of 2.2 billion yuan in 2015.

The CDR application showed the company shipped 28 million smartphones from January to March, with a year-on-year increase of 87.8 percent, while global smartphone sales dropped 2.9 percent year on year during the same period.

Xiaomi’s dual listing

The CDR application also indicated that Xiaomi’s shares will be traded on the Shanghai Stock Exchange and the Stock Exchange of Hong Kong Limited once the CDR issuance and an initial public offering (IPO) in Hong Kong are completed, adding that CDRs and Hong Kong shares are not convertible.

The Beijing-based company applied for listing in Hong Kong in early May, and its planned listing passed a hearing on the same day when it submitted the CDR application. The IPO in Hong Kong is set to be the largest listing globally in four years, according to Reuters.

Investors are still bidding for cornerstone investment in Xiaomi’s dual listing at a valuation between 75 billion US dollars and 80 billion US dollars, according to people with knowledge of the matter.