Despite the global chip supply shortage and the continued impact of the COVID-19 pandemic, Chinese smartphone giant Xiaomi reported a 39.6% YoY growth in net revenue in its Q4 2021 financial report
China’s top smartphone and hardware maker Xiaomi (1810. HK)ended 2021 on a strong note, with total revenue up 33.5% year on year to CNY 328.3 billion (USD 51.56 billion).
The company also netted CNY 22.0 billion in net profit, an increase of 69.5% YoY. Its smartphone revenues increased 18.4% YoY. Incomes from IoT and lifestyle products and Internet services also advanced 19.1% and 17.7% YoY respectively.
Given the optimistic outlook, Xiaomi’s board of directors formally resolved to utilize the Share Repurchase Mandate to repurchase shares in the open market from time to time at a maximum aggregate HKD 10 billion.
The announcement of the buyback initially lifted market confidence in Xiaomi’s stocks, which went up 14% from HKD 13.38 to HKD 15.3 at the close of Wednesday’s trading.
The company's share buyback program will be effective for two years through March 2024.
In 2021, Xiaomi's R&D expenditure reached CNY 13.2 billion, an increase of 42.3% YoY.
With a determination to further propel its core strategy of "Mobile x AIoT," the company is slated to invest USD 10 billion over the next 10 years in R&D, particularly for the purpose of manufacturing chips and electric cars.