Chinese smartphone maker Xiaomi registered a net profit of $56 million last year, revealed a filing made by electrical appliance manufacturer Midea Group to the Shenzhen Stock Exchange (SZSE), reports Reuters.
Xiaomi had recently acquired 1.3% stake in Midea Group for $203.7 million, in bid to enhance its presence in the internet-connected home electronics space. The company is also expected to start selling its Mi Air Purifier, which can be controlled with a mobile phone, in China from today.
Xiaomi had recorded revenues of about $4.3 billion and had an operating margin of 1.8% last year. A Xiaomi spokesperson confirmed these numbers to Reuters, but mentioned that these figures didn’t represent the whole of Xiaomi’s business. Apparently, the figures in the Midea filing only refer to Xiaomi Inc, which is a part of Xiaomi Group.
A separate disclosure by Midea Group on SZSE revealed that Xiaomi’s founder & CEO Lei Jun has a 77.8% stake in Xiaomi and other stockholders own the remaining stake. Xiaomi is a privately owned company and doesn’t disclose its financials.
Xiaomi, which launched in India in July this year, has adopted a flash sales based distribution model through an exclusive tie-up with online marketplace Flipkart. It has attracted a lot of attention in the country (both positive & negative), but has struggled to keep pace with high demand.
Legal troubles: Recently, an ex-parte interim injunction by the Delhi High Court had directed custom officials to stop the imports and restrain Xiaomi from selling, advertising, manufacturing or importing devices that infringe on Ericsson’s standard essential patents (SEP). Local commissioners had also been appointed to visit Xiaomi offices to ensure the implementation of these orders. The company has now been allowed to import or sell Qualcomm chipset-based handsets in India until January 8, which means it will be able to sell Redmi Note 4G and Redmi 1S in India while Redmi Note that runs on Mediatek-based chipset will continue to remain banned.