Xiaomi reported a net loss of 7 billion yuan, which is equivalent to $1.09 billion, in Q1 2018. Despite the reported figures looking bad, they’re actually pretty good because it shows Xiaomi picking up from last year’s reports. In 2017, the firm reported losses of 43.89 billion yuan ($6.85 billon) for the year - which equates to around 10.97 billion yuan ($1.71 billion) being lost every quarter. It should be noted, however, that losses in 2017 have been attributed to the firm issuing preferred shares to investors.
In the first quarter, Xiaomi saw smartphone shipments jump 88% due to an increase in sales overseas primarily. This growth helped Xiaomi increase its revenue to 34 billion yuan ($5.3 billion) in the quarter. It’s total revenue last year was 114.6 billion yuan ($17.89 billion) or 28.65 billion yuan ($4.47 billion) every quarter on average, so we can see that it is performing better this year so far. The firm said that if you exclude one-off items, it made a net profit of 1.04 billion yuan ($162.39 million) in the first quarter compared to 3.9 billion yuan ($608.98 million) in all four quarters in 2017.
The fact that the company is showing better numbers than last year should be promising for investors that will be looking to buy shares in the firm when it does its expected IPO. The firm could raise $10 billion (64 billion yuan). According to Bloomberg, the company might seek $5 billion (32 billion yuan) from the sale of Chinese depository receipts (CDR) and the other half from shares being sold in Hong Kong. The firm is targeting a valuation of $75 billion (480 billion yuan) but could reach anywhere between $60 billion (384 billion yuan) and $100 billion (640 billion yuan).
Source: Reuters
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