Xiaomi’s draft prospectus for the sale of China Depositary Receipts on the Shanghai stock index published by Chinese regulators today revealed a net loss of RMB 7 billion in the first quarter of 2018 against smartphone sales soaring 87.8%. On the same day, six new Chinese unicorn funds were launched by asset managers to help retail investors buy into Chinese tech IPOs, “the biggest such move orchestrated by the Chinese government since rescue funds were set up during the 2015 stock market crash” according to Reuters.

The 621-page draft prospectus published by the China Securities Regulatory Commission just weeks ahead of the planned IPO reveals a first-quarter loss of a fraction over RMB 7 billion for Xiaomi on revenues of RMB 34.41 billion. This compares to an RMB 43.83 billion net loss for all of 2017 on revenues of RMB 114.62 billion and an RMB 553 million profit for 2016 on revenues of RMB 68.43 billion.

Xiaomi said it made a net profit of RMB 1.038 billion in Q1 2018 once one-off items are excluded. This measure also shows a net profit for the whole of 2017 of RMB 3.95 billion.

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Frank Hersey

Frank Hersey is a Beijing-based tech reporter who's been coming to China since 2001. He tries to go beyond the headlines to explain the context and impact of developments in China's tech sector. Get in...