Today, Xiaomi Group released its first quarter results report. In the first quarter, Xiaomi Group’s revenue was 49.7 billion yuan ($7 billion), and the market is expected to be 47.767 billion yuan ($6.73 billion), compared with 43.757 billion yuan ($6.17 billion) in the same period last year. The adjusted net profit was 2.3 billion yuan ($0.32 billion), compared with 2.08 billion yuan ($0.29 billion) in the same period last year, an increase of 10.6% year-on-year. Tonight, Xiaomi President and Acting CFO Wang Xiang, Vice President of Finance Wang Yonghua and other executives held a financial report conference call to interpret the financial report.
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Wang Xiang talked about Xiaomi’s overseas market. He said that for the overseas market, Xiaomi is still in a stage of rapid development. Although Xiaomi’s market share is low, it has also exceeded 10% for the first time, reaching 11.1%, and there is still a lot of room for growth.
In response to domestic market competition, Wang Xiang said that China’s domestic market has always been a very competitive market. So Xiaomi will follow the established strategy to promote the development of the Chinese market.
The first is the dual-brand strategy. Xiaomi will use the two brands Redmi and Mi to serve the needs of customers at different price points. Redmi focuses on the ultimate price-performance ratio and e-commerce platform. It maximizes the performance of the product and the price. It allocates some other more expensive designs, but focuses on the hard indicators and performance of the product. The Mi brand also focuses on e-commerce platforms to continuously improve efficiency. In addition, Mi’s strategy is that we should continue to invest in the mid-to-high-end product series, which is the strategy above the product.