Xiaomi’s Records A 64% Increase In Revenue In H1 2021

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Xiaomi Corp (HKG:1810) mainly benefited from the company’s continuous expansion of the user scale in key overseas markets and the establishment of extensive and in-depth cooperation with the world’s leading Internet companies.

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Xiaomi published its Q2 2021 financial results on August 25 2021. It is worth mentioning that the total revenue and adjusted net profit of the firm reached a record high in a single quarter.

Xiaomi's Q2 Results

  • Total revenue in the quarter was CNY 87.8 billion, a year-on-year increase of 64.0%.
  • Operating profit was CNY 8.3 billion, up 83.9% year-on-year.
  • The adjusted net profit was CNY 6.3 billion, a year-on-year increase of 87.4%.
  • Revenue from smartphone business reached CNY 59.1 billion, a year-on-year increase of 86.8%.
  • Internet service revenue reached CNY 7 billion, a year-on-year increase of 19.1%.
  • Revenue generated by advertisement reached CNY 4.5 billion, up 46.2% year-on-year.
  • Revenue from the firm's game segment was CNY 900 million, a year-on-year decrease of 10.7%.
  • The revenue from other value-added services was CNY 1.6 billion, a year-on-year decrease of 10.3%.
  • Overseas Internet service revenue was recorded CNY 1.1 billion, a year-on-year increase of 96.8%, accounting for 15.6% of the overall Internet service revenue.
  • From a subregional perspective, in the second quarter of 2021, the overseas market revenue of Xiaomi group reached CNY 43.6 billion, an increase of 81.6% year-on-year. Xiaomi group ranked second in global smartphone shipments for the first time, with a market share of 16.7%.
  • Xiaomi group ranked first in the smartphone market share in Europe for the first time, reaching 28.5%. The market share of smartphones in India ranked first for 15 consecutive quarters. Smartphone shipments in Latin America increased by 324.4% year-on-year, ranking among the top three. The market share of smartphones in the Middle East and Africa was 20.9% and 8.5% respectively.
  • The R&D expenditure of the Xiaomi group reached CNY 3.1 billion, a year-on-year increase of 56.5%.
  • The sales and promotion expenditure was CNY 5.7 billion, a year-on-year increase of 36.4%.

Adding the previous quarter, in the first half of 2021, Xiaomi's revenue was CNY 164.67 billion, up 59.5% year-on-year. The gross profit was CNY 29.3 billion, a year-on-year increase of 92.1%. The adjusted net profit was CNY 12.39 billion, a year-on-year increase of 118.4%. As of June 30, 2021, the number of outlets in the China mainland has reached more than 7600.

Article by Qasim khan, EqualOcean

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