Sci-tech

Tech giant Xiaomi reports 13.6% revenue growth in Q1

Tech giant Xiaomi reports 13.6% revenue growth in Q1”

"Lockdown measures are being relaxed in many European and Asia-Pacific countries. At this point, we have become a truly worldwide company", Wang Xiang, President and Acting Chief Financial Officer of Xiaomi said in the earnings call.

Xiaomi's stock initially rose as much as 3.6% in Hong Kong in Thursday morning trade as investors applauded the relatively strong first-quarter performance despite the pandemic.

In times of uncertainty of this magnitude, Xiaomi reports that it managed to beat analysts' forecasts, and has registered a 13.6% growth in revenue over Q1 2020. The company's latest average selling price of 1,038 yuan reflects Xiaomi's roots in the lower end of the market. Xiaomi said its overseas revenues in the first quarter reached RMB 24.8 billion, jumping 47.8% year on year and accounting for more than half of the company's total revenues for the period. The gains come as global smartphone shipments saw an 11.7% drop in the first quarter due to supply chain and logistics disruptions caused by the Covid-19 pandemic. The company's adjusted net profit for the first quarter also grew 10.6% compared to RMB 2.3 billion in the same period a year ago, exceeding the Bloomberg consensus estimate of RMB 2.13 billion. Its AI assistant also saw its MAU surge 54.9% year on year to 70.5 million in March.

"Although the industry is facing severe challenges, the group still experienced growth in all segments despite the market downturn", said Lei Jun, Xiaomi founder, chairman and CEO. However, Xiaomi seems to have bent the rules, as sales for Q1 rose to 49.7 billion yuan ($7 billion), from 43.76 billion yuan in Q1 2019.

More news: G-7 leaders cautious as Trump suggests face-to-face summit

Like Chinese rivals, that has Xiaomi looking to overseas markets for growth. "We will see Huawei become more aggressive in Chinese domestic market". The biggest, Huawei, had enjoyed success before the impact of USA sanctions began to be felt, while Xiaomi has tapped into demand in developing markets like India and Latin America.

The company also reported double-digit growth in monthly active users of MIUI, Xiaomi's home-grown Android-based operating system, and its Mi Home App. The recorded numbers are even better than internal and analyst estimates.

Its total revenue in the January-March period totaled 49.7 billion yuan (about 7 billion US dollars), the Beijing-headquartered company announced Wednesday in its quarterly financial report.



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