Chinese smartphone maker Xiaomi Corp. said a stronger sales recovery in China is on horizon as it reported higher-than-expected profit in the last quarter of 2019 before the Covid-19 epidemic froze the economy.
"The (Chinese) market has entered a full recovery stage, and the market has already recovered to 80% to 90% of the normal level," Xiaomi CFO Shou Zi Chew said Tuesday on a conference call.
As the pandemic spreads globally, Xiaomi will take a hit in global sales during March and April, but a recovery can be expected in May, Chew said.
Xiaomi reported 2.3 billion yuan ($324 million) of adjusted net profit for the three months ended December, up 27% from the same period a year ago and beating analysts’ estimates. Revenue during the period jumped 27% to 56.5 billion yuan, thanks to growth in internet services and overseas business.
Sales from the smartphone segment rose 23% in the fourth quarter to 30.8 billion yuan, Xiaomi said.
For all of 2019, Xiaomi's profit attributable to shareholders fell 26% to 10.04 billion yuan.