The 2018 for Xiaomi has been a year full of successes but also of small beatings, often linked to successes that until instead revealed the opposite. E 'example of all the entry on the stock exchange through the IPO of Hong Kong, which immediately left foreshadowing rather disappointing results, below the expectations that the company of Lei Jun had budgeted. The problem is not only of Xiaomi, but in reality it is extended to the whole Chinese technology sector, but coming back to us, the company has tried to run for cover buying back most of the shares sold, and specifically we talk about a package of 6 millions of shares, which Xiaomi has reacquired under its wing avoiding the collapse due to sales by intimidated investors after a lock-up period.
According to Chinese local sources, the company bought Class B shares at an average price of 9,76 HKD (About $ 1,24 ), for a total of about 60 million HKD, translated roughly into 7,6 million dollars. The board of directors Xiaomi believes that the current financial resources of the group allow the repurchase of the shares while maintaining a solid financial position, thus avoiding the definitive collapse of its stock on the stock exchange.
Xiaomi reacquires its shares from the Hong Kong IPO
Xiaomi's share price plummeted by around 20% in the days leading up to the company's six-month lockup period. The company has seen its market value almost halve since it went public in Hong Kong last July, also due to the crisis in the smartphone market sector. Last week, the company's stock price fell 3% following the sale of 231 million class B shares by an undisclosed investor. Analysts believe the company's business performance, particularly in internet services, hasn't been exciting enough and hasn't improved investor confidence.
Could it be interesting for you: The smartphone market is in crisis ... and also Xiaomi
Strange to judge that only in the 2018, Xiaomi has sent almost 1 billion devices. Fortunately for the Chinese company there is not only the business linked to the hardware, but part of its business is related to internet services such as the use of music and movies online for about 220 millions of users. Services that represented 9,3% of 2018's total third-quarter revenue for the company. In any case, the fate of society seems to bind even more to abstract services, such as the development of artificial intelligence, on which Lei Jun points a lot and on which he has already invested about 1,5 billion dollars in the next 5 years.
