Investigations in India may have a negative impact on cash flows and operating results

Chinese smartphone maker Xiaomi stated that the ongoing investigations in India could take a long time to resolve, which could result in judgments or settlement options that’may adversely affect its operating results or cash flows.’

“The management assessed the aforesaid matters related to Xiaomi India, taking into consideration opinions from professional advisors, and concluded Xiaomi India has valid grounds to respond to the relevant Indian authorities,” Xiaomi said in its quarterly report. The company reported a 20% drop in global sales in the quarter ended June 30, 2022, reaching $10.31 Bn. Concerning the ongoing investigations in India, the Chinese smartphone manufacturer stated that it was not possible to quantify the financial consequences of the same at this time.