621x74.gif

China Daily

News> Hong Kong> Content
Wednesday, March 20, 2019, 22:19
Xiaomi vows to stick to 'strategic transformation'
By Sun Feier
Wednesday, March 20, 2019, 22:19 By Sun Feier

Xiaomi's adjusted net profit for 2018 soared 59.54 percent to 8.55 billion yuan while revenue reached a better-than-expected 174.92 billion yuan. (ANDY WONG / AP)

Beijing-based smartphone giant Xiaomi Corp will keep pursuing new strategies aimed at satisfying market demand as competition in global handset market heats up.

Founder and Chairman Lei Jun said on Wednesday the company will stick to strategic transformation to ensure cost-effectiveness and a good experience for consumers — by adopting a multi-brand strategy, and developing both smartphone and Internet of Things products.

The company will stick to strategic transformation to ensure cost-effectiveness and a good experience for consumers — by adopting a multi-brand strategy, and developing both smartphone and Internet of Things products

Lei Jun

Founder and Chairman of Xiaomi

Earlier this year, Xiaomi — the world’s fourth-largest smartphone maker by shipments — said it will make Redmi, once introduced as the company’s product line, its subsidiary.

“What Redmi needs to do this year is to set its footprint in the mid-high-end smartphone market, explore different products within Xiaomi’s ecosystem, and step up efforts to tap into the world  market,” said Lu Weibing, who made his first Redmi presentation at a meeting two days ago to introduce a new product.

Since Lei made smartphone and IoT products as the company’s two indispensable engines for future development, revenue from IoT and lifestyle products have seen impressive growth — surging nearly 87 percent year-on-year to 43.8 billion yuan ($6.54 billion) in 2018.

The increase was buoyed by the strong performance of the smart TV and the newly launched white goods market, including the Mi air-conditioner and the Mi washing machine.

As for dividends, Lei said as Xiaomi has been a listed company in Hong Kong for less than a year, the management will give the matter due consideration in future.

Chief Financial Officer Zhou Shouzi said Xiaomi has “strategically” invested in more than 260 companies with a book value of up to 27.3 billion yuan by the end of last year, and nine of them had accomplished their initial public offering in 2018.

Xiaomi said Wednesday its adjusted net profit for 2018 soared 59.54 percent to 8.55 billion yuan, compared with the previous year, while revenue reached a better-than-expected 174.92 billion yuan — up 52.6 percent — against 2017’s revenue of 114.62 billion yuan.

The company’s share price dropped 4.59 percent to close at HK$11.64 in Hong Kong trading on Wednesday on a turnover of HK$2.38 billion. The benchmark Hang Seng Index fell 0.49 percent, or 145.31 points, to 29,320.97.

joycesun@chinadailyhk.com

Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !