Xiaomi Corporation, a consumer electronics and smart manufacturing company with smartphones and smart hardware connected to the Internet of Things (IoT) platform at its headquarters, announced its unchecked consolidated results for the first six months of 2021, which ended on June 30, 2021.
Xiaomirevenues increased by 64% to RMB 87.8 billion in the second quarter of 2021 compared to the same quarter of the previous year. Adjusted net profit increased by 87.4% from the previous year to RMB6.3 billion. Total revenue and adjusted net profit reached record highs in the quarter, when the strength and excellence of the business model and operations was clearly demonstrated.
Highlights in the Second Quarter of 2021:
Total revenue increased by 64% year-on-year to RMB 87.8 billion.
Gross profit increased by 96.7% year-on-year to RMB15.1 billion.
Adjusted net profit non-IFRS increased by 87.4% year-on-year to RMB6.32 billion.
Highlights in the First Half of 2021:
Total revenue increased by 59.5% year-on-year to RMB 164.67 billion.
Gross profit increased by 92.1% year-on-year to RMB29.3 billion.
Adjusted net profit non-IFRS increased by 118.4% year-on-year to RMB 12.39 billion.
“In the second quarter of 2021, the biggest supporter of our performance remained our ‘Smartphone x AIoT’ strategy. Going forward, we will continue to implement our dual-brand strategy, increase our investments in advanced technologies, recruit and encourage talent, expand our channel structure, develop our premium-level smartphone solutions, and improve the user experience. We will also continue to adhere to our ‘Smartphone × AIoT’ strategy, using the latest technological innovations in our products and solutions and making them more sophisticated. In addition, we will continue to improve the connectivity between our smartphones and IoT products to provide a seamless user experience across all our products and solutions and to give everyone around the world a better life.”
Quarterly Performance Assessment
Xiaomi has further cemented its place in the premium smartphone market with its innovative and high quality products as it rises to 2nd place in the worldwide smartphone sales rankings.
Technology Xiaomi continued its growth in the second quarter of 2021 with record-breaking revenues and sales figures in the smartphone market, continuing its commitment to developing, hiring new talent and upgrading its channel structure. Revenue from smartphones increased by 86.8% to RMB 59.1 billion during the reporting period. The group’s worldwide smartphone sales increased by 86.8% year-on-year to 52.9 million units. Xiaomi ranked 2nd in terms of smartphone sales worldwide, reaching 16.7% for the first time in the second quarter, according to Canalys.
The group’s smartphone sales in the Chinese market also increased. According to Canalys, Xiaomi’s share of the Chinese smartphone market increased to 16.8% in the second quarter of 2021 from 10.3% in 2020. It ranked 3rd with an annual increase of 35.1% in smartphone sales, making it the company with the highest growth rate among the major players in the market.
The group continued to implement its dual brand strategy. The company is focused on enriching its premium smartphone portfolio under the Xiaomi brand. The company unveiled its first smartphone, the Xiaomi MIX 4, which is located under the camera display panel on August 10th, following the success of the Xiaomi 11 Pro, Xiaomi 11 Ultra and Xiaomi MIX FOLD products in the first quarter.
According to third-party data, the share of smartphones sold in price ranges of RMB 3,000 – RMB 4,000, RMB 4,000 – 5,000 RBM and over 5,000 RMB in the first quarter of 2021 increased compared to the previous year’s quarter. In the first half of 2021, worldwide sales of smartphones with retail prices of RMB 3,000 or more in China and 300 euros or equivalent in overseas markets exceeded the total of about 10 million sold in 2020, reaching over 12 million units.
The Redmi brand continues to offer competitive products. As of April 30, 2021, worldwide sales of the Redmi Note Series exceeded 200 million thanks to the ever-increasing popularity of the Redmi brand and the high quality of Redmi smartphones. The company introduced the Redmi Note 10 series, which received great attention in China on May 26, 2021.
Revenue from the IoT and lifestyle products segment increased by 35.9% to RMB 20.7 billion in the second quarter of 2021.
In the second quarter, the company maintained its position as a market leader, with worldwide smart TV sales exceeding 2.5 million units. In the first quarter, the company continued to rank 1st in TV sales in China for 10 consecutive quarters and in the top 5 globally, according to All View Cloud (“AVC”).
The rapid growth of the group’s IoT and lifestyle product segment in foreign markets continued. Revenue from IoT and lifestyle products in foreign markets increased by 93.8% year-on-year in the first quarter. Electric scooters, smart TVs, smart wristbands and smartwatches continued to be popular in foreign markets.
As of June 30, 2021, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform increased by 34% compared to the same period of the previous year, reaching approximately 374.5 million units. In addition, the number of users with five or more devices connected to the company’s IoT platform (excluding smartphones and laptops) increased by 44.5% year-on-year to 7.4 million. In June 2021, AI Assistant’s number of active users exceeded 100 million for the first time, reaching 102 million. The number of active users of the Mi Home app increased by 38.6% year-on-year to 56.5 million.
Xiaomi’s internet services segment continued its growth momentum. In the second quarter of 2021, revenue from internet services increased by 19.1% compared to the same period of the previous year, reaching RMB 7 billion.
The number of users worldwide continued to grow rapidly reached an all-time high in the second quarter of 2021. In June 2021, miui monthly active users increased by 32.1% year-on-year to 453.8 million. The number of monthly active users in China increased by 13% year-on-year to 124 million. Since March 2021, the number of users has increased by 5.3 million. As of June 2021, the number of active users of smart TVs and Xiaomi Box continued to increase worldwide. As of June 30, 2021, the number of paid TV subscribers increased by 17.1% from the previous year to 4.7 million. Revenue from advertising increased by 46.2% year-on-year to RMB 4.5 billion in the first quarter of the year.
In the second quarter of 2021, foreign internet service revenues reached RMB 1.1 billion, an increase of 96.8% from the previous year. In the quarter, revenues from foreign internet services accounted for 15.6% of total revenue from internet services. Revenues from foreign internet services and their contribution to total internet service revenues reached record levels. The biggest reason for this increase was the increase in the number of MIUI active users by 60% annually in Western Europe and 125% year-on-year in Latin America, and the company’s efforts to increase the number of users in foreign markets.
Thanks to the products and services recognized in many markets, the company ranked first in the European smartphone market with its market share.
Xiaomi continued its strong growth momentum in foreign markets in the second quarter of 2021, performing record-breaking in major markets around the world. In the second quarter of the year, revenue from foreign markets increased by 81.6% to RMB 43.6 billion compared to the same period of the previous year, accounting for 49.7% of total revenue. According to Canalys, Xiaomi ranked in the top 5 in 65 markets worldwide in terms of market share in the second quarter, while ranked 1st in 22 markets. It ranked first in 10 of these markets for the first time.
Xiaomi continued to improve its competitive advantages in key markets. According to Canalys, Xiaomi ranked 1st in Europe for the first time with a market share of 28.5% in the second quarter of 2021. Xiaomi’s smartphone market share in Western Europe reached 22.2%, and was among the top three. In Eastern and Central Europe, it ranked 1st in the third quarter in a row with a market share of 36.4%. Xiaomi has been in 1st place in Spain for 6 quarters with a market share of 41.2%. The company ranked 1st for the first time in Italy and France with a market share of 35% and 29.7%, respectively. The company ranked among the top three in Germany with a market share of 15.2%.
The company’s high-quality products gained great popularity in emerging markets, and smartphone sales in these regions increased rapidly. In the second quarter of the year, Xiaomi’s smartphone sales in Latin America increased by 324.4% year-on-year and were among the top 3, according to Canalys. At the same time, Xiaomi’s market share in the Middle East and Africa increased by 20.9% and 8.5%, respectively. The band also performed exceptionally well in Southeast Asia. The market share of the company, which ranked first in Southeast Asia, reached 28.2%.
The group also continued to strengthen its online channels abroad. In the first half of the year, the company increased its sales through online channels in overseas markets other than India by 60% compared to the previous year and sold over 10 million smartphones through online channels.
Xiaomi continues to make advances in technology that forms and strengthens the backbone of its business. In the second quarter of the year, expenditures on research and development activities increased by 56.5% compared to the previous year to RMB 3.1 billion.
Last July, the group laid the groundwork for its smart factory in Beijing’s Changping district. Together with the Yizhuang Smart Manufacturing Factory, the plant will further its R&D and production capabilities. The company aims to produce about 10 million smartphones annually at the Changping Smart Manufacturing Plant. Xiaomi believes that smart factories using the latest technologies will lead to increased productivity and further accelerate the productivity revolution in China’s manufacturing sector.