India probes may adversely affect operating results or cash flows: Xiaomi

Chinese smartphone maker Xiaomi on Friday said the ongoing investigations and allegations in India could take a long period of time to settle, and the company could receive judgments or enter into “settlements that may adversely affect its operating results or cash flows”.

The company, which registered around 20 per cent drop in its global sales at $10.31 billion in the June quarter (Q2), said that “it is not practical to quantify” related financial effects (of India probes) “at this stage”.

“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,” the group said in its quarterly financial statement.