Chinese smartphone and gadget maker Xiaomi Corp. lost money in the first three months of the year, the company revealed in new filings ahead of its coming stock listing that is expected to value the company at about $70 billion.
Xiaomi said it lost 7 billion yuan ($1.1 billion) in the first quarter, on revenue of 34.4 billion yuan, due to one-off accounting charges. Excluding those charges, the company reported a profit of 1.7 billion yuan, boosted by an 88% rise in smartphone sales during the quarter.
Beijing-headquartered Xiaomi detailed its first-quarter results in paperwork filed with Chinese regulators, paving the way for the company to list its shares in mainland China alongside a listing in Hong Kong.
One of China’s biggest and best-known smartphone companies, Xiaomi’s forthcoming IPO is widely expected to be the largest of the year. The company has mounted an aggressive push overseas in the lead-up to the highly anticipated offering, which is expected to raise about $10 billion and give the company a market value of about $70 billion.
Late last month, the company opened the first of what it says will be up to 10 Xiaomi-branded stores in Paris and one in Milan, deepening the foray into Western Europe to build on store openings in Spain. Xiaomi has ambitions to sell phones in the U.S., though it could face difficulty there as lawmakers throw up hurdles to Chinese technology brands.
Xiaomi said revenue from overseas contributed to 36% of total sales in the first quarter, up from 28% in the same period last year.
Though the company is best known for its low-price smartphones such as the Redmi series and gadgets like air purifiers and rice cookers, Xiaomi is pitching itself to investors as a broader software- and internet-services company, noting its broadening base of users and connected ecosystem of devices.
Smartphone sales accounted for 68% of total sales in the first quarter, compared with 70% during all of 2017.