Unaudited 6-mo. Xiaomi profits jump 71.7%
Xiaomi ranked 4th globally in terms of smartphone shipments in the second quarter
Xiaomi Corp., an Internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core, on Wednesday announced second-quarter as well as six-month unaudited consolidated results.
In the first six months, Xiaomi reported a consensus-beating performance, underpinned by its “Smartphone + AIoT” dual-engine strategy that offers operational efficiency and enhanced risk resilience. During the period, the group’s total revenue increased by 20.2 percent to approximately 95.71 billion renminbi.
Revenue from overseas business was RMB38.6 billion, accounting for more than 40 percent of total revenue. Adjusted net profit (non-IFRS measure) was RMB5.72 billion, up 49.8 percent year-on-year. In the second quarter, total revenue grew by 14.8 percent to RMB51.95 billion. Adjusted net profit (non-IFRS measure) was RMB3.64 billion, increasing substantially by 71.7 percent.
Xiaomi Founder, chairman and CEO Lei Jun said, “Thanks to the Xiaomi relentless efforts, we have managed to achieve solid growth in our businesses, posting a consensus-beating profit and becoming the youngest Fortune Global 500 company in 2019, despite global economic challenges. Our performance is testament to the success of our ‘Smartphone + AIoT’ dual-engine strategy and the Xiaomi business model. Looking ahead, we will continue to strengthen our R&D capabilities and investments so as to capture the great opportunities brought by 5G and AIoT markets and strive towards ongoing achievements for the company.”
In the first half of 2019, revenue from Xiaomi’s smartphone segment was approximately RMB5.9 billion; whereas revenue in the second quarter totaled RMB32.0 billion, mainly attributable to smartphone sales volume and increase in average selling price (ASP).
According to Canalys, Xiaomi ranked 4th globally in terms of smartphone shipments in the second quarter.
The group’s constant improvement in its product portfolio and its dedicated efforts to making Redmi an independent brand, its multi-brand strategy is exhibiting increased advantages: gross margin increased remarkably from 3.3 percent in the first quarter to 8.1 percent in the second quarter whereas the ASP of the smartphones in mainland China and in overseas markets achieved a YoY growth of 13.3 percent and 6.7 percent respectively, with revenue from smartphones priced over RMB2,000 accounting for 32.3 percent of the total revenue of the smartphones segment.
Following the release of new flagship models of our Mi 9 series and Redmi Note 7 series in the first quarter of 2019, the Group released the new flagship model K20 series that highlights ultimate cost-effectiveness in the second quarter, successfully establishing a smartphone portfolio covering a diverse price range. In the second quarter, smartphone sales volume in the reached 32.1 million units.