So market speculation on Xiaomi's valuation ranges from 70 billion dollars to 100 billion. Let's find out more about Xiaomi's financials. Lily Lyu has the details.

Xiaomi's earnings report shows almost 70 percent of its revenue in 2017 came from hardware sales. Xiaomi, the world's 4th largest cellphone maker, shipped 55 million units of smartphones last year. The company started to develop its "ecosystem" in 2013, a system that connects home devices such as air purifiers and rice cookers to your phone. The ecosystem has given birth to more than 100 smart device makers, 4 of them have already gone public.

Xiaomi's internet services business raked in about 10 billion in revenue in 2017, up 50 percent from the year before. The net profit margin of its internet services soared to over 40 percent, way higher than that of hardware sales. Analysts credited the growth to Xiaomi's 190 million monthly active users of its operating system. Xiaomi internet business currently covers services ranging from finance, advertising to games.  Services revenue is expected to surpass that of hardware in 2019.

WU CHAOZE, ANALYST CHINA SECURITIES "Apart from creating profits, Xiaomi ecosystem extended the company's brand and expanded the value chain. It is a system centered around the "internet of things". I believe the whole system will empower Xiaomi's entire business."

Bankers said Xiaomi can raise 10 billion dollars in a sale that values the company at 100 billion dollars, Xiaomi will become the third largest Chinese tech firm by market value, after Tencent and Alibaba.