Chinese tech giant Xiaomi disclosed on Tuesday that its shareholders have approved the company’s directors to repurchase up to 10% of its issued shares, according to a company filing to the Stock Exchange of Hong Kong.
This is the company’s fourth buyback since Jan 17, a move to placate shareholders since its share price has experienced a steep drop after the company went public on July 9, 2018, priced at HKD 17. Xiaomi opened at HKD 10.38 (USD 1.5) on Wednesday, 2.57% higher than the closing price on Tuesday.
The company also announced that it will disclose its first quarter financial statement on May 20.
Its adjusted net income in the fourth quarter of 2018 increased by 236.7% year-on-year to reach RMB 1.85 billion (USD 276 million), higher than the RMB 1.42 billion estimate from analysts surveyed by Bloomberg. However, Xiaomi’s revenue in that quarter hit RMB 44.4 billion, failing to meet the estimate of RMB 46.2 billion.
Earlier this month, the company refuted media reports about its first quarter shipments that cited “certain market research institutions.” Xiaomi said it shipped more than 27.5 million smartphones in the first three months of this year—a slight dip from the 27.8 million units shipped in the same period in 2018, while IDC claimed that the brand experienced a 10.2% year-on-year decline to 25 million.
Contact the writer at jingli@kr-asia.com