Recently, the Chinese firm Xiaomi recorded losses of 1,470 million yuan (200 million dollars) in the third fiscal quarter of the Chinese company.
The news is not good if it is compared with the same period in 2021, when it added net benefits of 790 million yuan (just over 105 million dollars).
The financial report of the company that focuses its operations on mobile phones, but has other business segments, is not promising, even more so if one takes into account that the world is entering a recessive period.
Xiaomi’s financial results for the July-September quarter include the negative impact of about $320 million from the impairment of its preferred stock investments.
IT MAY INTEREST YOU: With a $324 dress, Yalitza Aparicio hits the Latin Grammys
Why are luxury brands entering the TNF market?
Xiaomi’s revenue also fell: in the third quarter of 2022 it totaled 70.4 billion yuan (almost 9.6 billion dollars), 9.8 percent less than a year earlier.
Xiaomi financial results
Analyzing only the phone division, Xiaomi had a turnover of 42.5 billion yuan (5.79 billion U.S. dollars), 11.1 percent below 2021.
Its Internet of Things division, the second largest for the brand, brought in 19.06 billion yuan (2.6 billion dollars).
The Internet services division, meanwhile, generated 1,836 million yuan (249 million dollars), a drop of 6.5 percent compared to the same quarter of 2021.
The company said in the report that in the third quarter its sales in foreign markets (outside China) reached 35.55 billion yuan (4.85 billion U.S. dollars), accounting for more than 50.4 percent of the total.
That is, Xiaomi already sells half of its products outside of China.
Meanwhile, Xiaomi said its brand, by smartphone sales, is in the top three in 52 countries and regions and in the top 5 in 64 other countries. The data cited by the Chinese company are from Canalys.
“Our brand’s phone market share grew in Europe, Latin America and the Middle East relative to the third quarter of 2021,” the company said.
Looking at the “movie” of the first nine months of 2022, Xiaomi posted losses of almost 680 million yuan (about 95 million US dollars), compared with profits of 16.9 billion yuan (2.3 billion US dollars) in the same period of 2021.
The group’s total sales in the first nine months of 2022 were 214 billion yuan (nearly 30 billion U.S. dollars), down 11.9 percent from January-September 2021.
.png)