(Yicai Global) Nov. 24 -- Xiaomi’s shares fell after the Chinese smartphone giant reported a loss for the third quarter, as revenue slumped almost 10 percent on weaker consumer demand.
Xiaomi [HKG: 1810] closed 3.6 percent lower at HKD9.45 (USD1.21) today, after tumbling by as much as 5.6 percent in morning trading. The stock has halved in value since the start of the year.
The net loss was CNY1.5 billion (USD210.1 million) in the three months ended Sept. 30, versus a net profit of CNY788 million (USD110.4 million) a year earlier, the Beijing-based company said in its latest earnings report released yesterday. Adjusted net profit sank 59 percent to CNY2.1 billion. Revenue came in at CNY70.5 billion (USD9.9 billion).
Xiaomi’s revenue from handset sales tumbled 11 percent to CNY42.5 billion, as its global phone shipments fell 8.4 percent to 40.2 million as consumer demand softened amid surging inflation overseas and coronavirus outbreaks in China.
Global inflation, foreign exchange fluctuations, a complex geopolitical environment, and the resurgence of Covid-19 in the Chinese mainland hit demand, President Wang Xiang said on the firm’s earnings conference call yesterday.
Smartphone shipments fell 11 percent in China and 9 percent globally in the third quarter, according to market research firm Canalys.
Investment losses at Xiaomi were CNY265 million (USD37.1 million) in the quarter, versus CNY45 million (USD6.3 million) a year earlier.
Revenue, adjusted net profit, phone shipments, and the smartphone margin all achieved growth quarter-on-quarter, Wang noted. Smartphone business income grew 0.6 percent in the third quarter from the second, with global smartphone shipments up 2.8 percent in the period.
Xiaomi invested CNY829 million in its auto and other innovative businesses in the quarter. The investment and scale of Xiaomi’s carmaking business will not impact the company’s operation, Wang pointed out, adding that the firm’s auto research and development team exceeded 1,800 people.
Editors: Xu Wei, Futura Costaglione