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Tuesday, March 19, 2019, 22:22
Xiaomi back in the black as net profit soars 59%
By Sun Feier
Tuesday, March 19, 2019, 22:22 By Sun Feier

Xiaomi Corp's headquarter in Beijing. Revenue from the company’s IoT and lifestyle products segment surged 86.9 percent year-on-year to 43.8 billion yuan. (BRENT LEWIN / BLOOMBERG)

Xiaomi Corp — the world’s fourth-largest smartphone manufacturer by shipments — has turned the tide, steering itself back into the black after suffering steep losses in 2017 amid growing competition in the Chinese mainland global smartphone sector.

The Beijing-based tech behemoth reported on Tuesday its adjusted net profit for 2018 soared 59.54 percent to 8.55 billion yuan ($1.27 billion), compared with the previous year, while revenue reached a better-than-expected 174.92 billion yuan — up 52 percent — against 2017’s revenue of 114.62 billion yuan.

Despite intensified competition in the global smartphone market that directly dragged down the company’s shipment figures globally, our smartphone sales volume for last year reached 118.7 million units, representing an increase of 29.8 percent over the previous year

Zhou Shouzi

chief financial officer of Xiaomi

“Despite intensified competition in the global smartphone market that directly dragged down the company’s shipment figures globally, our smartphone sales volume for last year reached 118.7 million units, representing an increase of 29.8 percent over the previous year,” Zhou Shouzi, chief financial officer of Xiaomi, said on Tuesday.

Revenue from the company’s IoT and lifestyle products segment surged 86.9 percent year-on-year to 43.8 billion yuan, buoyed by the strong performance of smart TV and the newly launched white goods market, including the Mi air-conditioner and the Mi washing machine.

Xiaomi’s smartphone business, which climbed 41.26 percent in terms of  revenue, on the other hand, experienced a decrease in its proportion of total revenue.

Instead, both internet of things and lifestyle products, as well as internet services, reported higher proportion of total revenue — growing from 20.5 percent to 25.1 percent and from 8.6 percent to 9.1 percent, respectively.

Xiaomi, which has maintained the largest market share in India for six consecutive quarters, saw a 118.1-percent yearly revenue growth to 70 billion yuan in its international business that currently accounts for 40 percent of the group’s income.

The company went public in Hong Kong in July last year after a once-highly anticipated but disappointing trading debut that saw its share price open lower than the offer price in its initial public offering.

Xiaomi’s share price climbed 2.52 percent to close at HK$12.2 in Hong Kong trading on Tuesday on a turnover of HK$1.275 billion. The benchmark Hang Seng Index edged up 0.19 percent, or 57.27 points, to 29,466.28.

joycesun@chinadailyhk.com

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