A month after it filed for a much-anticipated Hong Kong IPO, Xiaomi has revealed a little more financial information after a monster 621-page document disclosed a $1.1 billion (seven billion RMB) loss for the first quarter of the year.
The IPO, which could value Xiaomi at up to $100 billion, could to be the largest IPO raise since Alibaba went public in the U.S. in 2014, and it will be boosted with a dose of positive financial growth despite a loss incurred by one-off payments.
The document, which was filed was an application to issue a CDRs as part of a dual-listing, showed that Xiaomi’s revenue for the quarter jumped to 34 billion RMB, or $5.3 billion. That’s compared to 114.6 billion RMB ($17.9 billion) in total sales for all of last year, according to digging from TechCrunch partner site Technode.
While Xiaomi posted a loss for the quarter, the firm actually posted a 1.038 billion RMB ($162 million) profit for the period when one-time items are excluded. Xiaomi previously registered a 43.9 billion RMB ($6.9 billion) loss in 2017 on account of issuing preferred shares to investors (54 billion RMB) but it did post a slim profit in 2016.
The company is ranked fourth based on global smartphone shipments, according to analyst firm IDC, and it is one of the few OEMs to buck slowing sales in China.
China is, as you’d expect, the primary revenue market but Xiaomi is increasingly less dependent on its homeland. For 2017 sales, China represented 72 percent, but it had been 94 percent and 87 percent, respectively, in 2015 and 2016. India is Xiaomi’s most successful overseas venture, having built the business to the number one smartphone firm based on market share, and Xiaomi is pledging to double down on other global areas.
Interestingly there’s no mention of expanding phone sales to the U.S., but Xiaomi has pledged to put 30 percent of its IPO towards growing its presence in Southeast Asia, Europe, Russia “other regions.” Currently, it said it sells products in 74 countries, that does include the U.S. where Xiaomi sells accessories and non-phone items.
Despite its design progress, relative age as an eight-year-old company and the fact it is shooting for a $100 billion, Xiaomi left some spectators disappointed when it wheeled out a very iPhone X-looking new device earlier this month. While the company claims the Mi 8 is packed with new technology, it’s hard to look past the fact that a number of its visual designs are identical to Apple’s flagship smartphone. Xiaomi could have made a stronger statement of intent with the launch, but it will hope its financials can do the talking as it moves into the last moments of preparation before its public listing.
Posts
0 comments
Post a Comment