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Xiaomi buy 6 million shares valued at 60 million HKD

Xiaomi has done a lot of business throughout their life, and several of the most important has to do with the Hong Kong stock exchange. Some time they officially announced their exit from this system, but the performance obtained after this process was not as expected, which is why last week the Chinese company decided to buy back a total of 6 million shares that have been released for sale after the established lockup time.

Also Read: Viomi rotary heater – New product launched in Youpin

Official reports from Xiaomi

According to official information released to the media, the Chinese company acquired class B shares at an average price of HKD 9.76 (about $1.24), totaling almost HKD 60 million, which approximately are $7.6 million. After carrying out this action, Xiaomi released a statement in which they say that the company’s board believes that the group’s current financial resources allow them to buy back the shares, as long as they remain in solid economic positions.

Xiaomi Logo

Another thing they stated was that “the proposal of a brand with profitable products will be even more convincing in the current conditions of the market”. A person who made his opinion known about this move was Jin Di, a former industry analyst, and an IDC analyst who said that “Xiaomi’s shares have been adversely affected since the global consumer electronics market cooled in 2018, and the company aims to provide a boost to it”.

Xiaomi

Xiaomi’s exit from the Hong Kong stock exchange caused several repercussions in the company, for example, the shares of the Chinese company plummeted 20%, and shortly after the company managed to notice that their market value was almost reduced to half since July. Last week their value back down a total of 3% on a sale with undisclosed investors, this because, according to experts, the sales performance of Xiaomi, especially via the Internet, was not sufficiently successful and reliable. This is taking into account their different markets, not only the sale of smart devices but also their internet service that offers music and movies.

At an annual meeting earlier this month, Xiaomi CEO Lei Jun announced an investment plan of 10 billion RMB (approximately $1.5 billion) in artificial intelligence and smart devices over the next five years.

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