Xiaomi Posts Record Overseas Revenue Ahead of IPO

June 12, 2018, By Sanjeev Ramachandran

Chinese manufacturer Xiaomi is heading towards a multi-billion IPO in Hong Kong. Ahead of that, we have been presented with an insight of the company revenues, thanks to the company’s Chinese Depository Receipts (CDR) application.

Accordingly, the company posted a net loss of 7.03 billion Yuan for the first quarter of 2018, which is equivalent to $1billion. The quarterly profit for the previous year wasn’t made available, and Xiaomi had drawn the comparison only with the yearly profit for 2017. The net loss for the company during 2017 stood at of 43.9 billion Yuan, close to $6.85 billion.

Adjusting the fair value changes of convertible redeemable preferred shares, the company made a net profit of 1.04 billion Yuan in the first quarter, while that for the whole of 2017 stood at 3.9 billion Yuan.

The net loss in 2017 was despite a growth in the revenue. The company revenues during the year stood at 114.6 billion Yuan ($17.9 billion), while that for year 2016 was 68.4 billion Yuan ($10.68 billion). The growth was quite high compared to the previous year, i.e. of 2015 during when the company’s revenues were standing at 66.8 billion Yuan ($10.43 billion). For the first quarter, the company revenues stood at 34 billion Yuan ($5.31 billion).

Xiaomi has had a shift in its strategy that helped grab better figures post 2016. A primary contribution for its growth in revenue came from its overseas performance. Surging past its 100 billion Yuan sales target for 2017, the company made a jump of 88% in smartphone shipments compared to the same quarter the previous year. According to the filing, revenue from overseas rose to a record high of 12.5 billion Yuan ($1.95 billion), thanks to its market dominance in countries including India.

Xiaomi is barrelling towards the multi-dollar IPO in Hong Kong, which will also make it the first Chinese enterprise to raise CDRs. The CDRs are expected to be issued on July 16. The company is expected to be valued between $75 billion and $80 billion.

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