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Xiaomi earnings fall 34pc to 5b yuan
by Avery Chen
Mainland smartphone producer Xiaomi (1810) yesterday said its first-half net profit fell 33.59 percent year-on-year to 5.08 billion yuan (HK$5.64 billion), as fewer people bought smartphones at home and rival Huawei grabbed market share.
First-half revenue rose 20.2 percent year-on-year to 95.71 billion yuan. Basic earnings per share were 21.4 fen. But the adjusted net profit, on non-International Financial Reporting Standards basis, surged 71.1 percent to 3.64 billion yuan. It did not declare an interim dividend
Chief financial officer Chew Shouzi said the difference between net profit and adjusted net profit is mainly due to changes in the fair value of convertible redeemable preferred shares, unrelated to the company's business operation.
For the second quarter, Xiaomi's revenue grew 14.85 percent year-on-year to 51.95 billion yuan, below analysts' expectation of the 53.52 billion yuan.
Second-quarter net profit slumped 86.68 percent to 1.95 billion yuan. Still, the adjusted net profit of 3.64 billion yuan handily beat the 2.74 billion expected by analysts.
The smartphone segment saw a 4.9 percent increase to 32.02 billion yuan last quarter, with total smartphone shipments rising to 32.1 million. Chew added Xiaomi will launch the second 5G smartphone by year-end.
Revenue of the IoT and lifestyle products rose by 44 percent to 14.9 billion yuan.
Meanwhile, revenue from internet services increased by 15.7 percent to 4.6 billion yuan in the second quarter, but advertising slid 0.6 percent to 2.5 billion yuan due to a soft mainland market.
Shares of Xiaomi rose 3.17 percent to HK$9.43 yesterday, falling by 44.53 percent since its listing in July 2018.
Meanwhile, Kingsoft (3888), chaired by Lei Jun, who also serves as Xiaomi's chairman and chief executive, reported a net loss of 1.48 billion yuan for the first half, compared with a net profit of 296.5 million yuan a year before, dragged by provision for impairment on the carrying value of investments in Cheetah.
No interim dividend was declared. Shares of Kingsoft fell 3.67 percent to HK$15.22 yesterday.
Source: The Standard
http://www.thestandard.com.hk/section-n ... 0821&sid=2