Market headed for full recovery says Xiaomi
by Kevin Xu
Revenues surged 17 percent but net profit plunged 25 percent in 2019. REUTERS
Chinese smartphone maker Xiaomi (1810) said yesterday that it was already seeing signs of a strong recovery in sales in China, as the country begins to return to normal following the lockdown due to the coronavirus.
"The (Chinese) market has entered a full recovery stage, and the market has already recovered to 80 to 90 percent of the normal level," chief financial officer Shou Zi Chew said on an earnings call.
He said sales in China fell in the first quarter due to the economic impact of the virus, but did not say by how much.
Revenue in the final quarter last year jumped 27 percent to 56.47 billion yuan (HK$61.68 billion), beating analyst expectations of 55.6 billion yuan, according to Refinitiv data.
Net profit plunged 25 percent year-on-year to 10.04 billion in 2019.
Full-year revenue surged 17.7 percent to 205.83 billion yuan from a year before. Revenue from the smartphones segment reached 122.1 billion yuan last year, up by 7.3 percent year-on-year. Basic earnings per share were 0.423 yuan. No final dividend was declared.
Bigger rival Huawei reported an annual profit increase of 5.6 percent on Tuesday, its smallest rise in three years, hurt by weak overseas sales amid an intensifying US campaign to restrict its global expansion due to security concerns.
Overseas expansion has been a key strategy for Xiaomi in the past few years, along with its Chinese rivals, as the domestic smartphone market endured a period of contraction.
Source: The Standard
https://www.thestandard.com.hk/section- ... ays-Xiaomi