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Chinese smartphone giant Xiaomi has reported a 14.3% QoQ decline in its revenues as a lack of supply of key components, re-emergence of Covid-19 and global macroeconomic issues adversely affected the company's performance in the first quarter of 2022.
The company's revenues for the relevant quarter came in at RMB73.4 billion, down 14.3% from RMB85.6 billion last year & down 4.6% QoQ. The company had an operating loss of RMB 911.4 million as its net profit for the quarter was RMB2.9 billion, down 53% YoY from RMB6.1 billion last year & down 36% from RMB 4.5billion last quarter.
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The smartphone giant's income from overseas operations improved to RMB 37.5 billion, accounting for 51.1% of the company's total revenues. Shipment of smartphones decreased significantly during the quarter as smartphones amounted to 62.4% of the company's revenues.
Revenues from IoT and lifestyle products improved 6.8% as its profitability improved during the quarter. Despite the volatility in global markets and regulatory updates in China, the company's internet services revenue improved by 8.2%.
The company has been actively developing Electronic Vehicles and other initiatives as expenses for the same came in at RMB 425 million. The company managed to maintain its ranking as third globally with a market share of 12.6% globally. The company's global smartphone user base continued to grow as MIUI's monthly active users achieved historical highs. The company also increased its spending on Research & Development as expenses associated with the same came in at RMB3.5 billion, up 16% YoY.
The stock of Xiaomi Corporation has been declining since June 2021. Recently, the stock touched a low of HKD 10.36 per share, a price level that the share hadn't fallen to since June 2020 and its 52-week low. After the announcement of its results, the stock opened marginally better as the stock surged by 3%. It closed at HKD 11.74 per share, marking a loss of 36.9% since the beginning of 2022.
Article by Aman Agarwal.
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