Xiaomi Files for CDRs and Reports $1 Billion First-quarter Loss
While the company did not provide year-ago quarterly income figures, it compared the 7 billion yuan ($1.1 billion) loss for January-March to a net loss of 43.89 billion yuan for the whole of 2017.
Chinese smartphone maker Xiaomi will soon become the first company to sell Chinese depositary receipts (CDRs) in mainland China under new regulations. The company filed its first prospectus for the CDR sale in Chinese with the China Securities Regulatory Commission on Friday, just one day after the regulatory body finalized its guidelines for yuan-denominated securities in the domestic capital market.
Along with the filing is Xiaomi's first quarter earnings report for 2018. While the company did not provide year-ago quarterly income figures, it compared the 7 billion yuan ($1.1 billion) loss for January-March to a net loss of 43.89 billion yuan for the whole of 2017.
Xiaomi, however, said that after adjusting for fair value changes of convertible redeemable preferred shares, it made a net profit of 1.04 billion yuan in the first quarter. That compared with a 3.9 billion yuan profit for the whole of 2017.
In the filing, the company reported that smartphone shipments jumped 88 percent from the same quarter a year earlier thanks to strong growth overseas and at home, helping Xiaomi log revenue of 34 billion yuan for the period. That compared with 114.6 billion yuan for all of last year.
Revenue generated overseas rose to a record high of 12.5 billion yuan in the quarter, with its phones topping the Indian market, it said in the filing.
Xiaomi is planning to sell up to 30 percent of its offering in China. The company expected to price its offerings for both markets simultaneously and begin trading in China a day before the remainder of its shares float in Hong Kong.