Xiaomi net profit collapsed by 72% in the IV quarter

Chinese electronics manufacturer Xiaomi Corp sharply cut its fourth-quarter net profit due to massive write-offs, while the company's revenue, on the contrary, increased.

According to the company's press release, last quarter's net profit fell to 2.44 billion yuan ($383.9 million), compared with 8.8 billion yuan in the same period a year earlier. The drop was driven by 3.14 billion yuan of investment write-offs.

Meanwhile, the company's revenue increased by 21% year-on-year to 85.58 billion yuan. The increase in revenue was due to an increase in sales in physical terms and an increase in selling prices.

It is also noted that according to the results of all 2021, Xiaomi increased its revenue by 33.5% to 328.31 billion yuan. At the same time, net profit decreased by 5.1% and amounted to 19.28 billion yuan. Revenue from overseas operations last year rose 33.7% to 163.6 billion yuan, accounting for 49.8% of Xiaomi's total revenue.

For the entire past year, the company sold 190.3 million phones, which is 30% higher than in 2020. Overall, Xiaomi ranked third in the list of leading smartphone manufacturers in the world in 2021 with a market share of 14.1%.