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Xiaomi reports $1.09 billion first quarter loss just before blockbuster IPO

Xiaomi Mi 8

Chinese Smartphone giant Xiaomi has posted its first-quarter loss of 7 billion yuan ($1.09 billion) before its blockbuster initial public offering.

Since 2014 it’s the first time Chinese smartphone maker persuade the investors to buy the large initial public offering—Bloomberg reported. That compares the net loss of 43.89 billion yuan according to the draft prospectus.

Xiaomi also said it made the net profit of 1.04 billion yuan during the first quarter when one-off items are excluded as compared to 3.9 billion yuan for the whole year of 2017. Xiaomi’s growth can be seen with naked eye, the smartphone shipments during the first quarter increased by 88 percent due to strong demand overseas. This helped Xiaomi to increase its revenue to 34 billion yuan ($5.3 billion) for the period as compared to 114.6 billion yuan for the whole last year.

Xiaomi aims at shipping more than 100 million units in 2018, the company has become that top seller in India beating Samsung for the last quarter of 2017.

However, Xiaomi has not unveiled fundraising targets or the number of shares it will offer in the filing. According to the financial analysts, the company is expected to raise $10 billion in Hong Kong IPO which will be the largest listing worldwide in four years.

The sources said that 30% of the offering might be sold as Chinese depository receipts on the mainland. This is the step forward to Xiaomi’s plans for future expansions, during 2018 the Chinese manufacturer plans to enter consolidate positions in European markets and Southeast Asian markets.

Last month the company has opened its first store in Paris, senior vice president Wang has repeatedly said the company is trying to enter in the US market and take on Apple as a competitor.