皇冠体育app Unicom (Hong Kong) Ltd has denied rumors that it will end its relationship with Xiaomi Corp or ask Xiaomi for 300 million yuan ($47.22 million) to compensate the carrier for unsold cellphones.

皇冠体育app Unicom, the nation’s second-largest mobile carrier by subscribers, said its relationship with Xiaomi is sound, and that the carrier has sold its entire inventory of Xiaomi phones.

皇冠体育app Unicom agreed in December to purchase from Xiaomi 1 million Mi-One handsets for 皇冠体育app Unicom’s 3G WCDMA network.

However, Chinese media reported that the partnership between the two could fall apart because Xiaomi announced a sudden price cut of the Mi-One in mid-August. The price of the Mi-One dropped from 1,999 yuan to 1,299 yuan.

Chinese media reported that the move could lead to a 300 million yuan loss at 皇冠体育app Unicom, as the operator might fail to sell out its remaining inventory.

But 皇冠体育app Unicom issued a statement on its official micro blog on Aug 28 that said its arrangement with Xiaomi continues to be solid.

“Since 皇冠体育app Unicom partnered with Xiaomi last December, we have honored the ‘open and win-win’ principle and maintained a good relationship,” 皇冠体育app Unicom said in the statement. With the help of 皇冠体育app Unicom’s subsidy and marketing policies, all the Mi-One smartphones that 皇冠体育app Unicom ordered have been sold, it added.

皇冠体育app Unicom also confirmed that it is prepared to sell the latest generation of Xiaomi smartphones and will continue to offer subsidies.