Chongqing Xiaomi Consumer Finance Posts H1 Net Loss of $13.47M

Chongqing Rural Commercial Bank, which is listed on the Hong Kong Stock Exchange (HKEx), disclosed on August 25 its latest semi-annual report, also mentioning the performance of its joint venture Chongqing Xiaomi Consumer Finance Co., Ltd., which owns its shares. As of the end of the reporting period, the firm had total assets of 9.661 billion yuan ($1.4 billion) and net assets of 1.412 billion yuan ($200 million). Its net loss in the first half of the year was 93.19 million yuan ($13.47 million), while its net profit last year was 3.68 million yuan ($531,961).

The company was established in May 2020 with registered capital of 1.5 billion yuan ($220 million). It is a national non-bank financial institution jointly initiated by Xiaomi Communication Technology Co., Ltd. and Chongqing Rural Commercial Bank Co., Ltd., mainly engaged in individual consumption credit business.

At present, Hong Feng, the co-founder of the company, serves as the firm’s chairman, legal person and chairman of Airstar.com. In March, the company amended its official registration with China’s Industrial and Commercial Administration, showing that Xiaomi‘s co-founder Wang Chuan withdrew from the directorship and was replaced by Michael Ji. He used to be the CRO of CreditEase and Airstar.com. In August, Ji’s qualification as President of the firm was approved.

Alain Lam, the vice president and CFO of Xiaomi, said in a financial report conference call for Q4 of 2021 that Xiaomi Finance had…