Xiaomi sees revenues rise 68pc in first results after float

CHINESE smartphone giant Xiaomi has posted surging revenue growth and profits as its handset sales beat a slowing market.

Xiaomi, which listed in July on the Hong Kong Stock Exchange for $4.7bn (£3.5bn), saw revenues rise 68pc yearon-year in its first set of results as a public company. The company’s smartphone segment, its largest business sector, reported year-on-year revenue growth of 59pc.

Xiaomi posted revenues of $6.6bn for the three months ending June 30. Profits increased to about $2bn, after the company posted a loss in the same quarter last year.

The company hopes its first set of results will buoy investors after a difficult float. The business pulled out of part of its listing, which was due to take place both in Hong Kong and mainland China. Xiaomi had initially priced the float to give it a market capitalisation of close to $100bn, but after pricing at the low end of its offering, it is now valued at about $55bn.

Ahead of its first set of results, shares fell by around a fifth compared to a month ago but rose after they were published. The company has sought to turn itself into an internet services firm, but revenue in that business grew slowly and is only about 9pc of total turnover.

Xiaomi produces cheap smartphones with slim margins, only earning around 8.8pc on each phone compared to close to 60pc on some iphone models. The company’s budget phones have proved a hit in fast-growing smartphone markets like India.