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Beijing (CNS) -- Chinese smart phone enterprise Xiaomi won a new round of financing valued at US$216 million, it announced on June 26. And the enterprise's overall valuation hit US$4 billion, half of that for Nokia.

Company CEO Lei Jun posted the product cost of a Xiaomi mobile phone via microblog on the same day, as a response to some questioning of its so-called low profits. Lei has confirmed that at present the mobile phone's profit margin is less than twenty percent.

Zhou Hongyi, chairman of the Chinese online security software developer Qihoo 360 Technology Co., assesses Xiao's product cost from a different perspective, combining the indicators of royalty, hardware procurement cost, model cost, tax, marketing costs and after-sales service costs. Zhou said each Xiaomi mobile phone earns a net profit as high as 600 yuan.

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