Business

Xiaomi posts $1.5 billion Q1 loss ahead of IPO

Chinese smartphone maker Xiaomi booked a quarterly net loss of US$1.1 billion (S$1.5 billion) but also record overseas revenue and surging smartphone shipments ahead of its initial public offering (IPO) next month.

Expectations of a highly sought after IPO have grown after Xiaomi, founded eight years ago, blew past its 100 billion yuan (S$21 billion) sales target for last year with a couple of months to spare.

Xiaomi yesterday compared the 7 billion yuan loss for January-March to a net loss of 43.89 billion yuan for last year.But it said that after adjusting for fair value changes of convertible redeemable preferred shares, it made a net profit of 1.04 billion yuan in the first quarter.

That compares with 3.9 billion yuan profit for the whole of last year.

Its smartphone shipments jumped 88 per cent from the same quarter a year earlier, helping Xiaomi log revenue of 34 billion yuan for the period. That compares with 114.6 billion yuan for all of last year.

Revenue from overseas rose to a record high of 12.5 billion yuan in the quarter. - REUTERS

BUSINESS & FINANCE