Categories Technology

Xiaomi reports $1.1 billion loss before going public

Xiaomi that is gearing up for a flamboyant market debut, posted a staggering loss in the initial three months of the year. The company is yet to make a profit and revealed its latest set of financial results in a filing with China’s securities regulator.

The Chinese smartphone maker that won the Hong Kong stock exchange approval for its IPO, said it lost a whopping $1.1 billion during the first quarter. Revenue grew to 34.4 billion yuan, aided by the rise in smartphone sales. Excluding charges, Xiaomi’s profit was 1.7 billion yuan.

Smartphone Shipment and Market Share 1Q18.
Smartphone Shipment and Market Share 1Q18.

The company led by Lei Jun stands as the fourth largest phone maker worldwide, according to a report by International Data Corp. (IDC) based on shipment volume during the first three months of this year. Not just smartphones, Xiaomi has recently diversified its business and has ventured into retail and Internet business. However, the company gets a lion share of revenue from smartphones.

Selling high-end smartphones at a modest price resulted in its rival Apple (AAPL) losing market share in China. Xiaomi has also been expanding its footprint out of China. The company’s smartphones have a huge demand in India. But the other countries constitute less than 30% of the total revenue.

The Beijing-based tech behemoth that was founded in 2010 initially set a $100 billion valuation goal. The company has now reduced the target to $70-80 billion. Xiaomi’s upcoming IPO is said to be the biggest, after Alibaba (BABA), and expects to raise $10 billion.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top