Xiaomi net profit surges and eyes more global expansion in 2019

Xiaomi Corp said on Tuesday its fourth-quarter net profit more than tripled to 1.85 billion yuan (about 275.59 million U.S. dollars). The company puts global expansion as a priority in 2019.

For the full 2018 calendar year, Xiaomi brought in revenue of 174.9 billion yuan (about 26.07 billion U.S. dollars) and made a net profit of 8.6 billion yuan (about 1.28 billion U.S. dollars), according to its financial statement released Tuesday.

The company saw revenues from the international market increased by 118 percent year-on-year to 70 billion yuan (about 10.43 billion U.S. dollars), making up more than 40 percent of the total revenues in the fourth quarter of 2018.

"We will continue to explore the global markets and replicate the success in India in other key markets such as Indonesia and Western Europe," Xiaomi CFO Shou Zi Chew said. "We will also expand into more new international markets in 2019."

Xiaomi is the largest phone vendor in India for six quarters straight; second-largest in Indonesia; and fourth-largest in Europe after entering the market in early 2018.

The annual financial statement is the first the company released since its IPO in Hong Kong. Xiaomi shares have rallied nearly 30 percent since their 2019 lows in January, though they remain well below their July listing price.

Xiaomi has also revamped its smartphone lineup, paving the way to sell more expensive devices that can raise profit margins. Sales from smartphones made up 65.1 percent of Xiaomi's overall revenue in the fourth quarter.

In February, upon the launch of Xiaomi's new flagship Mi 9 phone, founder Lei Jun said the device would be the company's last such handset priced at under 3,000 yuan (about 446.99 U.S. dollars).

Xiaomi also stressed it would increase research and development, and plans to invest over 10 billion yuan (about 1.49 billion U.S. dollars) in artificial intelligence throughout the next five years.

(CGTN)