Xiaomi Corporation, which sells a wide variety of electronics from smartphones to smart equipment for the Internet of Things, has announced its results for the second quarter and first half of 2020 as a whole. There were many achievements: first of all, profit and revenue exceeded the average forecasts of analysts, despite the pandemic.
Xiaomi stated, “In the first half of 2020, despite the impact of COVID-19 and great uncertainty, the Xiaomi ecosystem showed resilience as both revenue and adjusted earnings exceeded market averages while operations continued to expand. The company entered the Fortune Global 500 list for the second time, ranking 422, up 46 positions from last year. With 2020 being the 10th anniversary of Xiaomi, the core strategy has been upgraded to Smartphone × AIoT, with AIoT (all kinds of smart electronics) being built around the core smartphone business. Looking forward to the next decade, the company will firmly adhere to the three guiding principles: never stop researching and innovating, continue to offer value-for-money products, and strive to create the most attractive products to make people's lives better all over the world."
Smartphones
Smartphone core business revenue was 61,952 billion yuan ($8,96 billion) and 31,628 billion yuan ($4,58 billion) in H2020 and Q28,3 2020, respectively, with smartphone shipments for the quarter totaling 10,1 million units. According to Canalys, in the second quarter of 300, Xiaomi ranked fourth in the world in terms of smartphone shipments, with a market share of 99,2%. In foreign markets, deliveries of high-end devices with a retail price of €2019 or more increased by 11,8% compared to QXNUMX XNUMX. Thanks to a higher share of mid-range and high-end smartphone sales, the average selling price of Xiaomi smartphones rose by XNUMX% over the same period, the company steadily drifting into the high-end brand.
The dual brand strategy (Redmi and Mi) has yielded significant results. Xiaomi's flagship smartphones Mi 10 and Mi 10 Pro were launched in February 2020, and shipments exceeded 1 million units in just two months. In August 2020, Xiaomi released , which received a DXOMARK 130 overall camera score, at the time of launch. Just 10 minutes after the debut, sales exceeded 400 million yuan ($57,9 million).
The Redmi brand continues to make 5G technology available to the mass market. In June 2020, the Redmi 9A series was launched, starting at 499 yuan ($72). The company then launched the Redmi K30 Ultra in August with versatile flagship features starting at 1999 yuan ($289).
It is worth noting that Xiaomi also recently launched its smart factory with a total investment of 600 million yuan ($87 million), ushering in the era of smart manufacturing in its own factories. Mi 10 Ultra is the first mass-produced high-quality model released at Xiaomi Smart Factory.
Updated Smartphone × AIoT strategy for smart living
IoT and smart electronics revenue was 28,237 billion yuan ($4,1 billion) and 15,253 billion yuan ($2,2 billion) in the first half and second quarter of 2020, respectively. Global shipments of Xiaomi TVs amounted to 2,8 million units for the quarter, if slightly more than a year earlier - despite the overall market downturn. In China, the company has been the leader for the sixth consecutive quarter in the TV sector.
In Q2020, Xiaomi introduced two flagship products of the new Mi TV Master series, expanding its presence in the premium category. In July 65, the first Mi TV Lux 2020 OLED TV was introduced. In August XNUMX, the company launched the second ultra-high-end TV in the Mi TV Master series - , which is the world's first transparent TV for the mass market.
In the second quarter, the company brought its TVs to the Polish, French and Italian markets. In July 2020, Xiaomi held its first global launch of Xiaomi ecosystem products, launching Mi Smart Band 5 and Mi True Wireless Earphones 2 Basic in all markets simultaneously.
As of June 30, 2020, the number of connected IoT devices (excluding smartphones and laptops) on the Xiaomi platform reached approximately 271 million units, up 38,3% from a year earlier. The number of users who have five or more devices connected to the Xiaomi Internet of Things platform (smartphone and laptop databases) increased to 5,1 million people - 63,9% more than a year earlier. The number of active Mi Home users reached 40,8 million, up 34,1% from a year earlier. And the services of the personal assistant Xiaomi AI Assistant today are used by 78,4 million people - 57,1% more than a year earlier.
Services and Digital Services
The contribution of Internet services to the company's revenue is also growing. Internet services revenue was 11,808 billion yuan ($1,71 billion) and 5,908 billion yuan ($0,85 billion) in the first half and second quarter of 2020, respectively. The number of users of the MIUI platform increased by 23,3% compared to the same period last year to 343,5 million people - of which only 109,7 million are in China.
In the second quarter of 2020, advertising revenue rose 23,2% year-on-year to 3,1 billion yuan ($0,45 billion), driven by rapid growth in overseas advertising revenue as well as a gradual recovery in China's advertising budgets. Revenue from online services other than advertising and games generated by the Youpin online store, fintech business, TV services, and overseas services increased by 39,5% year-over-year.
In June 2020, the number of active users of Xiaomi TVs and Mi Boxes reached 32 million, up 41,8% from a year ago. As of June 30, 2020, the number of paid subscribers increased by 33,1% compared to last year to 4 million.
Business growth overseas markets
Xiaomi remains in 1st place in Western Europe among the major players in terms of growth in smartphone shipments. According to Canalys, in the second quarter of 2020, Xiaomi ranked in the top five in smartphone shipments in 50 countries and regions and ranked in the top three in 25 of those markets.
In general, in the Western European market, the company's smartphone shipments grew by 115,9% year-on-year and now Xiaomi has a 12,4% market share. In Spain, the growth was 150,6% - the company has been holding 1st place for two quarters. Xiaomi also ranked 2nd in France and 4th in Germany and Italy in terms of shipments of smartphones.
In Eastern Europe, Xiaomi has become the No. 1 smartphone manufacturer in Ukraine and Poland in terms of smartphone shipments, with market shares of 37,1% and 27,5%, respectively. In addition, in Q2020 30,7, the company accounted for 1% of shipments in the Indian smartphone market and, according to IDC, has maintained the No. 12 position in India for XNUMX consecutive quarters.
Key financial results for II Quarter 2020 looks like this:
- total revenue was approximately 53,54 billion yuan ($7,75 billion - 3,1% more than the same period in 2019 and 7,7% more than the previous quarter);
- gross profit of approximately 7,7 billion yuan ($1,11 billion, up 6,1% year-on-year and 1,9% quarter-on-quarter);
- operating profit was approximately 5,4 billion yuan ($0,78 billion - up 131,7% year-on-year and 133% compared to 1Q 2020 results);
- adjusted net income was approximately 3,37 billion yuan ($0,49 billion, down 7,2% on the same period in 2019 but up 46,6% on the first quarter of 2020);
- EPS was 0,189 yuan (¢2,7).
Main financial results for I full semester of 2020:
- total revenue was approximately 103,24 billion yuan ($14,94 billion, up 7,9% from the same period in 2019);
- gross profit was approximately 15,3 billion yuan ($2,21 billion - up 22,3% compared to the first half of the previous year);
- operating profit of approximately $7,7 billion yuan ($1,11 billion, up 30% year-over-year);
- adjusted net income was approximately 5,67 billion yuan ($0,82 billion - 0,7% less than the same period in 2019, but more than the average forecast);
- EPS was 0,279 yuan (¢4).
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Source: 3dnews.ru