Xiaomi, World’s No. 3 Smartphone Brand, Says 2nd Qtr Profit Plunged By 83% Amid Economic Headwinds

Net profit at Beijing-headquartered Xiaomi, the world’s No. 3 smartphone brand, plunged by 83% in the three months to June from a year earlier to 1.36 billion yuan, or $200 million, amid “continued global macroeconomic headwinds,” the company said in a statement Friday evening.

Revenue declined by 20% to 70.1 billion yuan, on shrinking business both overseas and at home. The drop in earnings has led Hong Kong-traded shares in Xiaomi, led by Chinese billionaire entrepreneur Lei Jun, to lose 52% of their value in the past year.

Lei, who in 2021 topped Forbes China’s annual ranking of the mainland’s top 50 CEOs, fell off a new 2022 list published on Thursday. (See related post here.)

Overall global shipments of smartphones in the first half declined 9% from a year earlier due to weak demand, consultancy Canalys said last month. Samsung and Apple were No. 1 and No. 2 ahead of Xiaomi.

Xiaomi, which ranked No. 292 on the Forbes Global 2000 list of the world’s top listed companies published in May, on Friday reaffirmed earlier plans to enter the electric vehicle market (see Friday’s filing here). The electronics brand will face tough competition with Tesla, BYD and others.

Lei has a fortune worth an estimated $9.8 billion on the Forbes Real-Time Billionaires Index today. He’s also an investor in software firm Kingsoft and JOYY Inc., a Nasdaq-listed social media platform that was known until December 2019 as YY.com

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