Xiaomi Buys Back its own Shares Totaling $1.53 billion.
On Tuesday, September 3, representatives of the Chinese manufacturer of smartphones and other consumer electronics, Xiaomi, announced the launch of a stock repurchase program worth $12 billion Hong Kong dollars (about $1.53 billion). The company is changing its cash management strategy to provoke quotes growth. By the end of June 2019, Xiaomi had cash accumulated at the expense of $4.92 billion. In the second quarter, the company recorded a positive cash flow of $1.6 billion. But the situation with the company's securities leaves much to be desired, the fact is that since Xiaomi entered the stock exchange in July 2018, stocks have lost half the value, and since the beginning of 2019, they have fallen by a third. The main problems of Xiaomi are related to the fact that Huawei is taking away the market share from the company, and consumers are postponing the purchase of new phones, waiting for the launch of the fifth-generation networks (5G) and devices supporting them. In the second quarter of 2019, Xiaomi sold about 32 million smartphones, which roughly matches the level a year ago. According to Canalys analysts, in the second quarter of 2019, Xiaomi's share in the Chinese smartphone market declined by one fifth, while Huawei grew by 31%. The global market volume shortened by 2.3% - IDC experts calculated. Xiaomi CFO Chew Shou Zi says this investment activity is connected with the company's hopes of building a “Chinese supply chain” while improving its own research and development capabilities.