September 18, 2021

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Xiaomi achieves strong revenue and profit growth for the second quarter of 2021 and exceeds expectations

Xiaomi achieves strong revenue and profit growth for the second quarter of 2021 and exceeds expectations

Business performance reaches historically high levels in all sectors and creates long-term value.

The company has become the No. 2 brand in the smartphone market – Xiaomi continues to focus on technological innovation and talent development

Xiaomi Corporation (֦ Xiaomi ֞ or ֦ Group ֞; stock code: 1810), a consumer electronics and intelligent manufacturing company whose main business is the production of smart phones and smart devices connected to the Internet of Things (IoT) platform, announced unaudited consolidated results for the three and six months Expired June 30, 2021.

In the second quarter of 2021, Xiaomi’s total revenue reached 87.8 billion yuan, a year-on-year increase of 64%. Adjusted net profit for the period was 6.3 billion yuan, a year-on-year increase of 87.4%. Total revenue and adjusted net income reached record levels this quarter, demonstrating the uniqueness of the company’s business model and the strength of its operations.

The most important financial events for the second quarter of 2021:

  • Total revenue of CNY 87,789 million, a year-on-year increase of 64%
  • The total profit is about 15.148.1 million CNY, a year-on-year increase of 96.7%;
  • The unadjusted net profit for IFRS is CNY 6,321.5 million, a year-on-year increase of 87.4%.

The most important financial events for the first half of 2021:

  • Total revenue 164,671.2 million 2021, a year-on-year increase of 59.5%;
  • The total profit is about CNY 29,309.4 million, a year-on-year increase of 92.1%;
  • The unadjusted net profit for International Financial Reporting Standards (IFRS) is CNY 12,390.8 million, a year-on-year increase of 118.4%.

a company Xiaomi company He said: ֦ Even in the second quarter of 2021, our main strategy “Smartphone x AIoT” boosted our excellent performance. We will continue to implement our two-brand strategy, increase investment in advanced technologies, acquire and develop talent and innovate channel capabilities, improve our premium smartphone offerings and improve the user experience. We will also remain committed to our core “Smartphone x AIoT” strategy and will work hard to support innovation in cutting-edge, cutting-edge technologies across all product categories. We will also continue to improve the connectivity between our smartphones and IoT products to ensure a seamless user experience across our range of products and a better life for everyone in the world. ֞

Quarterly performance appraisal

We have moved to the second place in the global smartphone delivery ranking, and thus the Xiaomi brand has firmly established itself in the premium smartphone market thanks to its innovative and high-quality products.

As Xiaomi remains committed to technology development, talent acquisition, and channel capabilities innovation, the smartphone business continued to grow significantly in the second quarter of 2021, as evidenced by record revenue from smartphone sales and deliveries. Smartphone revenue reached CNY 59.1 billion in the period under review, a year-on-year increase of 86.8%. The group’s global smartphone sales reached 52.9 million units, a year-on-year increase of 86.8%. According to analyst firm Canalys, global shipments of Xiaomi smartphones ranked second for the first time in the second quarter, with a market share of 16.7%.

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Meanwhile, the group’s smartphone shipments to the mainland China market have also grown rapidly. According to Canalys, our market share of the smartphone market in mainland China increased to 16.8% in the second quarter of 2021 from 10.3% in the second quarter of 2020, which is the third place with a year-over-year increase in smartphone shipments of 35.1%. This is the highest growth rate among the major players in the market.

The group continues to implement its two-brand strategy. Under the Xiaomi brand, we are constantly focused on expanding and improving our portfolio of premium smartphones. After the general popularity of models Xiaomi 11 ProAnd xiaomi 11 ultra a xiaomi mix fold In the first quarter of 2021, on August 10, 2021, we presented our first smartphone with an under-display camera – Xiaomi Mix 4.

According to third-party data, the market share of our smartphones in mainland China, with prices ranging from CNY 3,000 to 4,000, from CNY 4,000 to 5,000 and over CNY 5,000, increased year on year in the second quarter of 2021. In the first half of 2021, global deliveries of our smartphones at retail prices of at least CNY 3,000 in mainland China and €300 or equivalent in overseas markets exceed 12 million units, exceeding the total of 10 million units delivered in 2020.

The Redmi brand continues to offer competitive products. As of April 30, 2021, the cumulative global deliveries of the Redmi Note line have exceeded 200 million units, reflecting the growing resonance of the Redmi brand in the mass market and the high quality of Redmi smartphones. And on May 26, 2021 we presented the Redmi Note 10 series in China, where it was received with enthusiasm.

Exceptional performance powered by the groundbreaking “Smartphone x AIoT” strategy, which improves connectivity between smart devices

In the second quarter of 2021, the IoT and lifestyle products segment maintained strong growth, with sales up 35.9% year-on-year to CNY 20.7 billion.

In the second quarter of 2021, global shipments of smart TVs exceeded 2.5 million units, maintaining the market leadership. According to All View Cloud (“AVC”), our TV shipments maintained the number one position in China for the 10th consecutive quarter and remain among the top 5 shipments in the world.

The group’s segment focusing on Internet of Things and lifestyle products continued to maintain a rapid growth trajectory in overseas markets. Revenue from the IoT and Lifestyle Products segment in overseas markets increased 93.8% year-over-year during the quarter. Electric scooters, smart TVs, smart bracelets, and watches have continued to be popular in overseas markets.

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As of June 30, 2021, the number of connected IoT devices (excluding smartphones and laptops) on the AIoT platform in the cluster reached 374.5 million units, representing a year-on-year increase of 34.0%. The number of users with five or more devices connected to our AIoT platform (excluding smartphones and laptops) reached 7.4 million, a year-on-year increase of 44.5%. In June 2021, the AI ​​assistant program (“小 愛 同學”) exceeded 100 million monthly active users (MAU), specifically 102 million users, and Mi Home MAU reached 56.5 million, a year-on-year increase of 38.6%.

Internet service revenue has reached record levels and the user base in major overseas markets continues to expand

Xiaomi’s ISP has maintained its growth momentum. In the second quarter of 2021, revenue from Internet services reached 7 billion yuan, hitting a record high, year-on-year increase of 19.1%.

The group’s Internet user base around the world continued to expand rapidly in the second quarter of 2021, reaching an all-time high. In June 2021, MIUI’s MAU increased 32.1% year-on-year to 453.8 million, while the MAU in mainland China reached 124 million, representing a 13% year-on-year increase and net profit of 5.3 million users since March 2021 In June 2021, the number of monthly active users of Global Smart TV and Xiaomi Box continued to grow. As of June 30, 2021, the number of TV subscribers has increased to 4.7 million, which is a 17.1% year-on-year increase. Advertising revenue reached another quarterly record high of 4.5 billion yuan, a year-on-year increase of 46.2%.

In the second quarter of 2021, revenue from external Internet services reached 1.1 billion yuan, a year-on-year increase of 96.8%. In the quarter, revenue from foreign Internet services accounted for 15.6% of total revenue from Internet services. Offshore Internet services revenue and its contribution to the total revenue from Internet services has reached new highs. Particularly rapid growth can be attributed to continued efforts to expand the user base in key overseas markets, which also highlights the annual increase in the number of MIUI monthly active users in Western Europe at over 60% and in Latin America at 125%.

Products and services are recognized in many markets, and according to the smartphone market share in Europe, the Xiaomi brand has taken the top spot for the first time.

In the second quarter of 2021, Xiaomi maintained high growth dynamics in overseas markets and set a record in large markets around the world. In the second quarter, overseas market revenue increased 81.6% year on year to 43.6 billion yuan, reaching record levels and accounting for 49.7% of the company’s total revenue. According to Canalys, Xiaomi’s market share in the second quarter was among the top 5 in 65 markets around the world and the company ranked first in 22 markets, of which 10 were in the first place for the first time.

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Xiaomi has improved its competitive advantage in key markets. According to Canalys, the group ranked first in Europe for the first time with a market share of 28.5% in the second quarter of 2021. In Western Europe, the market share of Xiaomi smartphones was 22.2% and ranked first in the top three, with the third quarter taking the first place in Central and Eastern Europe with a market share of 36.4%. For the sixth consecutive quarter, Xiaomi ranked first in Spain, with a market share of 41.2%. In Italy and France, the group ranked first for the first time with a market share of 35.0% and 29.7%. The group remained in the top three in Germany with a market share of 15.2%.

Our high-quality products are also gaining in popularity in emerging markets, with smartphone deliveries in these regions growing rapidly. According to Canalys, in the second quarter of 2021, the number of Xiaomi smartphone shipments in Latin America increased by 324.4% year-on-year, placing us among the third best. Meanwhile, Xiaomi’s share in the Middle East and Africa increased by 20.9% and 8.5%, respectively. In addition, the group performed well in Southeast Asia. Xiaomi ranks first in this market with a market share of 28.2%.

The group also continued to use its online channels abroad. In the first half of 2021, it sold more than 10 million smartphones via internet channels in overseas markets outside India, with a year-on-year increase of more than 60%.

Strong growth backed by a continued focus on technology innovation and talent development

Xiaomi remains steadfast in its commitment to technological advancement that strengthens the core of its business. In the second quarter of 2021, Xiaomi spent 3.1 billion CNY on research and development, up 56.5% year-on-year.

In July 2021, the group officially started the construction of Changping Smart Factory, located in Changping District of Beijing. The facility will expand the research, development and production capabilities of the Yizhuang intelligent factory. The group’s goal is for Changping Smart Factory to contribute to the annual production capacity of 10 million premium smartphones. The group believes that smart factories will use their advanced technologies and show a transformational increase in efficiency, which will further accelerate the efficiency improvement revolution in the Chinese manufacturing industry.

Since its establishment, Xiaomi has always attached great importance to talent development, retention and motivation. In July 2021, the group announced two separate appraisal grants. Entering the company’s next decade, Xiaomi intends to recruit and support young management talents and reward them with entrepreneurial incentives that motivate them to advance in Xiaomi with the spirit of entrepreneurship.

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