Briefing: Xiaomi’s third quarter revenues up 49.1% year-on-year to RMB50.8 billion

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小米Q3财报出炉,营收508亿净利29亿大幅超预期 – China Securities Journal

What happened: Smart device manufacturer Xiaomi released unaudited fiscal results for third quarter 2018. The company’s revenues were RMB 50.8 billion ($7.3 billion), up 49.1% year-on-year. According to Xiaomi, including smart home appliances and other services, the company’s international markets revenue grew 112.7% year-on-year to RMB22.3 billion in the period, accounting for 43.9% of Xiaomi’s total revenue for the third quarter 2018. The company’s adjusted profit was RMB2.9 billion, up 17.3% year-on-year.

Why it’s important: The report shows Xiaomi’s capability to globalize and reduce the reliance in domestic markets. As the company expands business operation in internet of things which takes smartphones as a mini data and demand processor controlling devices, the move is crucial to navigate fierce domestic competition. However, local regulation deserves Xiaomi’s serious consideration. During Xiaomi’s recent online special sales event in UK, the company was in criticism of manipulating online order-taking settings to prevent consumers from be able to purchase discounted products.