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Xiaomi Lost $1 Billion in the First Quarter of 2018, but its profit rose

Xiaomi
Written by Hassan Abbas

A month after filing an application for the IPO (first public sale of shares) in the Hong Kong Stock Exchange, Xiaomi published a 621-page document that disclosed the financial condition of the company. According to him, the loss of the Chinese corporation in the first quarter of 2018 amounted to $1.1 billion – but not so bad. Excluding non-recurring expenses (one-time capital investments), Xiaomi’s profit in the first quarter of this year was $162 million.

It is expected that the IPO will attract up to $10 billion – this will be a record amount since 2014 when the first public sale of shares was organized by Alibaba. Thus, the value of Xiaomi Corporation can reach $100 billion.

Xiaomi

Xiaomi

According to the financial report, the main income market for the Chinese company is native. On it, she received 72% of the proceeds. But the dependence of Xiaomi on China is gradually decreasing since for 2015 and 2016 this indicator is 94% and 87% respectively. The most successful for the corporation is the foreign market in India. It is reported that Xiaomi will spend 30% of the amount raised by IPO to strengthen its positions in Russia, Europe, Southeast Asia “and other markets.”

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About the author

Hassan Abbas

Tech enthusiast with too many items on his wish-list and not nearly enough money! Specializing in all things tech, with a slight Apple bent he has been writing for various blogs for the best part of (too many) years

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