Xiaomi (1810) swung to a net loss of 587.6 million yuan (HK$683.2 million) in the first quarter of 2022 from a 7.8 billion yuan profit a year earlier, after accounting for fair value losses in investments.
China's largest smartphone maker also posted its first quarterly revenue decline on record after Beijing's strict Covid containment policies and global component shortages crippled smartphone sales.
Revenue in the quarter dropped to 73.35 billion yuan from 76.88 billion a year earlier and fell short of the 74.3 billion expected by analysts, Refinitiv data showed.
Xiaomi, which generates the vast majority of its revenue from selling mobile handsets, said in a filing that its smartphone revenue fell 11 percent year-on-year to 45.8 billion yuan in the quarter, and the shipments also dropped 22.1 percent to 38.5 million units.
"In the first quarter the whole industry faced challenges, first with a shortage of components, then the resurgence of Covid-19, and also an impact in the macroeconomic environment," the company's president, Wang Xiang, said yesterday.
"These challenges have dealt a heavy blow to our business," he added.
The company and rival phonemakers Vivo and Oppo have told suppliers to cut back orders for the next few quarters by more than 20 percent due to the lockdowns and disrupted supply chains, Nikkei reported.
