China's Xiaomi profit, revenue beat, launches HK$20 billion buyback

China’s Xiaomi (1810) posted a 43 percent drop in adjusted net profit to 6.07 billion yuan in the first quarter, as memory chip shortages and intensifying competition eroded the phonemaker's profitability. 

The figure, however, still beat the market expectation of 5.83 billion yuan.

Revenue slid 10.9 percent to 99.1 billion yuan in the three months, also higher than the 98.9 billion yuan projected by analysts.

The company, also an electric vehicle maker, announced a HK$20 billion share buyback program following the results.

Smartphone sales fell by 12.5 percent to 44.3 billion yuan. Gross profit margin for the segment also declined 2.3 percentage points to 10.1 percent. 

Sales of its smart EV, AI and other new initiatives segment grew by 6.9 percent to 19.9 billion yuan, but gross margin also dipped by 2.1 percentage points to 20.1 percent, primarily due to the lower contribution from deliveries of Xiaomi SU7 Ultra, subsidies for vehicle purchase tax, as well as the increased price of key components.

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