{"id":36222,"date":"2019-08-26T10:28:21","date_gmt":"2019-08-26T02:28:21","guid":{"rendered":"http:\/\/www.upgrademag.com\/web\/?p=36222"},"modified":"2019-08-26T10:28:16","modified_gmt":"2019-08-26T02:28:16","slug":"xiaomi-posts-71-7-jump-in-2q2019-net-profit","status":"publish","type":"post","link":"http:\/\/www.upgrademag.com\/web\/2019\/08\/26\/xiaomi-posts-71-7-jump-in-2q2019-net-profit\/","title":{"rendered":"Xiaomi posts 71.7% jump in 2Q2019 net profit"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Xiaomi Corporation announced its unaudited consolidated results for the second quarter and the six months ended 30 June 2019.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In 1H2019, Xiaomi reported a consensus-beating performance, underpinned by its \u201cSmartphone + AIoT\u201d dual-engine strategy that offers operational efficiency and enhanced risk resilience. During the period, the Group\u2019s total revenue increased by 20.2% to approximately RMB95.71 billion. Revenue from overseas business was RMB38.6 billion, accounting for more than 40% of total revenue. Adjusted net profit (non-IFRS measure) was RMB5.72 billion, up 49.8% year-on-year. In the second quarter of 2019, Xiaomi\u2019s total revenue grew by 14.8% to RMB51.95 billion. Adjusted net profit (non-IFRS measure) was RMB3.64 billion, increasing substantially by 71.7% YoY.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>1H2019\nFinancial Highlights<\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Total revenue was approximately\nRMB95.71 billion, up 20.2% YoY;<\/li><li>Gross profit was approximately RMB12.47\nbillion, up 25.3% YoY;<\/li><li>Net profit was approximately RMB5.15\nbillion;<\/li><li>Non-IFRS adjusted net profit was\napproximately RMB5.72billion, up 49.8% YoY;<\/li><li>Earnings per share were RMB0.214.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>2Q2019\nFinancial Highlights&nbsp;<\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Total revenue was approximately\nRMB51.951 billion, up 14.8% YoY;<\/li><li>Gross profit was approximately\nRMB7.26billion, up 28.4% YoY;<\/li><li>Net profit was approximately RMB1.96\nbillion;<\/li><li>Non-IFRS adjusted net profit was\napproximately RMB3.64 billion, up 71.7% YoY;<\/li><li>Earnings per share were RMB0.082.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Xiaomi founder,\nchairman and CEO Lei Jun&nbsp;said,&nbsp;\u201cThanks to the Xiaomi relentless efforts, we have managed to\nachieve solid growth in our businesses, posting a consensus-beating profit and\nbecoming the youngest Fortune Global 500 company in 2019, despite global\neconomic challenges. Our performance is testament to the success of our\n\u2018Smartphone + AIoT\u2019 dual-engine strategy and the Xiaomi business model. Looking\nahead, we will continue to strengthen our R&amp;D capabilities and investments\nso as to capture the great opportunities brought by 5G and AIoT markets and\nstrive towards ongoing achievements for the company.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the first half of 2019, revenue from\nXiaomi\u2019s smartphone segment was approximately RMB5.9 billion; whereas revenue\nin the second quarter totaled RMB32.0 billion, mainly attributable to\nsmartphone sales volume and increase in average selling price (\u201cASP\u201d). According\nto Canalys, we ranked 4th globally in terms of smartphone shipments during the\nsecond quarter of 2019. Thanks to the Group\u2019s constant improvement in its\nproduct portfolio and its dedicated efforts to making Redmi an independent\nbrand, its multi-brand strategy is exhibiting increased advantages: gross\nmargin increased remarkably from 3.3% in the first quarter to 8.1% in the\nsecond quarter whereas the ASP of the smartphones in mainland China and in\noverseas markets achieved a YoY growth of 13.3% and 6.7% respectively, with\nrevenue from smartphones priced over RMB2,000 accounting for 32.3% of the total\nrevenue of the smartphones segment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Following the release of new flagship\nmodels of our Mi 9 series and Redmi Note 7 series in the first quarter of 2019,\nthe Group released the new flagship model K20 series that highlights ultimate\ncost-effectiveness in the second quarter, successfully establishing a\nsmartphone portfolio covering a diverse price range. In the second quarter,\nsmartphone sales volume in the reached 32.1 million units. The global sales\nvolume of the&nbsp;<em>Redmi Note 7<\/em>&nbsp;series reached 20 million units as\nof 30 June 2019. &nbsp;In addition, the global shipments of the K20 series has\nalready been recorded at more than 1 million units within the first month of\nits launch.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the meantime, the Xiaomi brand\ncontinues to innovate and expand new retail channels to sustain its position in\nthe medium-to-high-end and diversified market segments. On 2 July 2019, Xiaomi\nlaunched the brand-new CC series which was well received by female users,\nlaying a strong foundation for further development of the market. On 7 August\n2019, Xiaomi launched an ultra-high resolution 64MP camera technology, which\nthe Redmi product line was the first to adopt. The Group also announced its\ncollaboration with Samsung Electronics to bring the first-of-its-kind 100MP\ncamera sensor to cater to the increasingly sophisticated demand of users.\nMeanwhile, following the commercialization of 5G technology, Xiaomi\u2019s first 5G\nsmartphone model the Mi MIX 3 5G was already launched in various European\ncountries, and the second 5G smartphone model will also be launched in China in\nthe second half of the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During the first half of 2019, revenue\nof the IoT and lifestyle products segment rose by 49.3% to RMB27.0 billion over\nthe corresponding period of 2018. In the second quarter of 2019, revenue of the\nIoT and lifestyle products segment increased by 44% YoY to RMB14.9 billion. It\nis worth noting that IoT and lifestyle products accounted for 28.8% of total\nrevenue in the second quarter of the year, compared with 22.9% in the same\nperiod last year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Xiaomi\u2019s smart TVs continued to\nmaintain its leading position. The global shipments of smart TV reached 5.4\nmillion units in the first half of the year, representing a YoY growth of\n64.9%, ranking 1<sup>st<\/sup>&nbsp;and top 5 in terms of shipments in mainland\nChina and globally, according to AVC. In the second quarter, global shipments\nof smart TV totaled 2.7 million units, increasing by 41.1% YoY. On the other\nhand, shipments of the Mi air conditioners exceeded 1 million units in the\nfirst half of the year, whereas shipments of Mi Band also exceeded 1 million\nunits within 8 days of its launch on 14 June 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As of 30 June 2019, the number of\nconnected IoT devices (excluding smartphones and laptops) on Xiaomi\u2019s IoT\nplatform reached approximately 196 million units, a YoY increase of 69.5%;\nusers with more than 5 IoT products approximately 3 million, a YoY increase of\n78.7%. Furthermore, in the second quarter, monthly active users (\u201cMAU\u201d) of\nXiaomi Home application reached 30.4 million globally, and MAU of AI Assistant had\n49.9 million, making it one of the most used AI voice interactive platforms in\nmainland China.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Revenue from Xiaomi\u2019s internet services\nsegment grew 22.9% YoY to RMB8.8 billion in the first half of 2019; revenue\nfrom the internet services segment grew 15.7% YoY to RMB4.58 billion in the\nsecond quarter. In June 2019, MAU of MIUI reached 278.7 million, an increase of\n34.7% over the corresponding period last year; MAU of smart TVs and Mi Box\nachieved 53.8% YoY growth, reaching 22.6 million in June 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the second quarter, Internet\nservices revenue outside of advertising and gaming from smartphones in China\nbut including those generated from TV internet services, overseas internet\nservices, Youpin e-commerce, and internet finance business, increased\nsubstantially by 108.8% YoY and accounted for over 36% of total revenue. In the\nfirst half of 2019, gross merchandise value (GMV) of Youpin e-commerce grew\n113.9% YoY to RMB3.8 billion. It is worth noting that in June 2019, more than\n65% of Youpin\u2019s GMV came from non-Xiaomi smartphone users.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the first half of the year, Xiaomi\u2019s\nrevenue from international markets grew 33.8% YoY to RMB38.6 billion,\naccounting for more than 40% of the Group\u2019s total revenue. In the second\nquarter, revenue from international markets grew 33.1% to RMB 21.9 billion.\nAccording to Canalys, Xiaomi ranked among the top five in over 40 countries and\nregions in terms of smartphone shipments. According to IDC, Xiaomi\u2019s\nsmartphones ranked 1<sup>st<\/sup>&nbsp;in India in terms of shipments for eight\nconsecutive quarters. According to Canalys, Xiaomi ranked 4th in terms of\nsmartphone shipments for Western Europe, representing a YoY increase of 53.2%,\nwhich is growing the fastest in the market. In terms of smart TV shipments,\nXiaomi ranked 1<sup>st<\/sup>&nbsp;in India for five consecutive quarters as of\nthe second quarter of 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, Xiaomi is dedicated to building and\nexpanding its new retail channels in overseas markets. As of 30 June 2019,\nthere were 520 authorized&nbsp;<em>Mi Home<\/em>&nbsp;stores overseas,\nrepresenting a 92.6% YoY growth, of which 79 stores were located in India.\nCurrently, Xiaomi has more than 1,790 Mi Stores in India.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the second quarter of 2019, Xiaomi\u2019s total revenue grew by 14.8% to RMB51.95 billion. Adjusted net profit (non-IFRS measure) was RMB3.64 billion, increasing substantially by 71.7% YoY.<\/p>\n","protected":false},"author":6,"featured_media":36223,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[96,1839],"class_list":["post-36222","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-headlines","tag-technology","tag-xiaomi"],"_links":{"self":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/36222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/comments?post=36222"}],"version-history":[{"count":0,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/36222\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media\/36223"}],"wp:attachment":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media?parent=36222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/categories?post=36222"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/tags?post=36222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}