Xiaomi posts 261 per cent rise in quarterly profit after winning preliminary injunction against US investment ban
- Smartphone giant Xiaomi’s fourth-quarter profit beat market estimates to reach US$1.3 billion
- Revenue in the December quarter hit US$10.8 billion on the back of overseas market growth
The Beijing-based company, the world’s third-largest smartphone vendor in the fourth quarter, reported on Wednesday a better-than-expected net profit of 8.8 billion yuan (US$1.3 billion) in the three months ended December 31, up from 2.4 billion yuan in the same period in 2019. That surpassed the consensus market estimate of 2.5 billion yuan.
Revenue increased 24.8 per cent to 70.5 billion yuan, from 56.5 billion yuan a year earlier, on the back of strong global smartphone shipments. That was below the market estimate of 74.6 billion yuan.
Xiaomi’s full-year profit handily beat market estimates, jumping 101 per cent to 20.3 billion yuan, making 2020 the company’s most profitable year since 2018 when its annual profit reached 13.6 billion yuan. That growth was spurred by a 19.4 per cent increase in revenue to 245.9 billion yuan.
Xiaomi’s shares fell by as much as 3.7 per cent in a declining market before earnings were announced in Hong Kong, retreating to HK$25.10 at the close of trading on Wednesday.