(Yicai Global) May 21 -- Chinese hard and software maker Xiaomi posted a 13.6 percent gain in first quarter income, brushing off the effects of Covid-19 as its international sales made up almost half of its operating revenue.
The Shenzhen-based firm generated CNY49.7 billion (USD7 billion) in revenue during the period, it said in its financial report published yesterday. Net profit also rose 10.6 percent to CNY2.3 billion and Chief Financial Officer Wang Xiang is optimistic for similar results in the second quarter.
Overseas sales shot up 47.8 percent to CNY24.8 billion, making their largest ever contribution to the total thanks to the higher prices that devices with fifth-generation networking capabilities can command.
“The coronavirus outbreak in Europe and India started in early March, and many regions brought in lockdown measures,” Wang said in an earnings call. “Users were more dependent on their devices so smartphone sales recovered early. The smartphone activation rate in Europe is at about 90 percent, higher than normal, and the rate in India has jumped to 60 percent from 50 percent over the past 10 days or so.”
Xiaomi stock [HKG:1810] was up 1.1 percent at HKD12.94 (USD1.67) as of 10.20 a.m.
Smartphone sales rose 12.3 percent annually to CNY30.3 billion, making up 61 percent of revenue, and 4.7 percent to 29.2 million in unit terms, according to the report. The average handset price rose to CNY1,038 (USD146) as the company released a few high-end devices, including 5G phones.
Europe shipments jumped 58.3 percent and the firm was the top phone seller in India for the 11th straight quarter, securing a 31.2 percent market share. Worldwide, it had nearly 331 million monthly active users of its operating system MIUI, a 26.7 percent gain.
Editor: James Boynton