Xiaomi Posts $1 Billion First-Quarter Loss Ahead of Blockbuster IPO
Chinese smartphone maker Xiaomi booked a first-quarter net loss of CNY 7 billion ($1.09 billion or roughly Rs. 6,800 crores) ahead of its blockbuster initial public offering.
That compares with a net loss of CNY 43.89 billion (roughly Rs. 46,000 crores) for the whole of 2017, according to its draft prospectus.
When one-off items are excluded, Xiaomi said it made a net profit of CNY 1.04 billion (roughly Rs. 1,100 crores) in the first quarter, compared with CNY 3.9 billion for the whole of 2017.
Its smartphone shipments jumped 88 percent thanks to strong growth overseas, helping Xiaomi’s revenue rise to CNY 34 billion ($5.3 billion or roughly Rs. 35,700 crores) for the period. That compares with CNY 114.6 billion for all of last year.
Xiaomi did not reveal a fundraising target or the number of shares on offer in the filing.
It is expected to raise about $10 billion in a Hong Kong IPO that could be the largest listing globally in almost four years, sources have said.
Up to 30 percent of the offering is expected to be sold as Chinese depository receipts on the mainland, sources have also said.