Xiaomi’s Second Quarter Financial Report Shows Interesting Numbers

Xiaomi's financial report

A couple of days ago, Xiaomi Group released its second quarter 2020 financial report. It had a revenue of 53.54 billion yuan ($7.8 billion) in the second quarter and market expectations of 51.951 billion yuan ($7.57 billion) in the same period last year. Net profit in the second quarter of 2020 was 3.37 billion yuan ($0.49 billion), compared with 3.635 billion yuan ($0.53 billion)in the same period last year, a year-on-year decrease of 7.2%.

Xiaomi’s financial report shows that in the second quarter of 2020, the global epidemic had a greater impact on the overall smartphone market. Xiaomi’s smartphone revenue in the quarter was 31.6 billion yuan ($4.6 billion), down 1.2% year-on-year. Xiaomi’s smartphone sales in the quarter were 28.3 million units.

Xiaomi said that at the same time, benefiting from the increase in the proportion of mid-to-high-end smartphone sales, Xiaomi’s global average selling price (ASP) continued to increase, up 11.8% year-on-year and 7.5% month-on-month. According to Canalys statistics, in the second quarter of 2020, Xiaomi’s global smartphone shipments ranked fourth in the world, with a market share of 10.1%.

Xiaomi’s Financial Report In Details

Among them, in the second quarter of 2020, Xiaomi Group’s Internet service revenue was 5.9 billion yuan ($0.86 billion), a year-on-year increase of 29.0%, accounting for 11.0% of total revenue. Advertising, games and other value-added services all achieved growth.

In June 2020, MIUI monthly active users increased to 343.5 million, a year-on-year increase of 23.3%. Among them, the monthly active users of MIUI in China are 109.7 million.

In the second quarter of 2020, Xiaomi’s advertising business revenue was 3.1 billion yuan ($0.45 billion), a year-on-year increase of 23.2%. Game revenue reached 1 billion ($0.15 billion), an increase of 54.5% year-on-year, mainly due to the continued good performance of the Chinese mainland game market in the second quarter.

Revenue From Other Sections

Revenue from other Internet value-added services reached 1.8 billion ($0.26 billion), a year-on-year increase of 27.0%, mainly due to the growth of financial technology business, Youpin e-commerce platform and TV membership revenue.

In the second quarter of 2020, Internet service revenues other than smartphone advertising and games in China, including revenue generated from Youpin e-commerce platforms, financial technology businesses, TV Internet services, and overseas Internet services, increased by 39.5% year-on-year, accounting for Internet services 39.0% of total revenue.

The financial report shows that in the second quarter of 2020, the revenue of IoT and consumer products was 15.3 billion yuan ($2.23 billion), an increase of 2.1% from the same period last year.

The sales revenue of smart TVs and laptops decreased by 12.2% from 5.5 billion yuan ($0.80 billion) in the second quarter of 2019 to 4.8 billion yuan ($0.70 billion) in the second quarter of 2020, mainly due to the reduction in sales activities caused by the epidemic and the lack of new products for laptops. The epidemic has affected the production, transportation, sales and release pace of some products of the Xiaomi Group, resulting in a slowdown in overall growth.

Which Products Perform Best?

In the second quarter, global TV market shipments slowed down overall, and global shipments of Xiaomi smart TVs still reached 2.8 million units, maintaining a year-on-year growth. According to statistics from Aoweiyun.com, Xiaomi’s TV shipments in the second quarter of 2020 have ranked first in China’s TV shipments for six consecutive quarters.

Xiaomi Mi Master OLED transparent TV

Xiaomi’s overseas market revenue was 24 billion yuan ($3.5 billion), a year-on-year increase of 10.0%, accounting for 44.9% of total revenue.    

According to Canalys data, Xiaomi’s smartphone shipments in Europe increased by 64.9% year-on-year, with a market share of 16.8%, and the ranking rose to the top three for the first time. In Western Europe, Xiaomi’s smartphone shipments grew by 115.9% year-on-year, with a market share of 12.4%. In addition, in the second quarter of 2020, Xiaomi smartphone shipments accounted for 30.7% of the Indian smartphone market. And in Latin America, the Middle East and Africa, Xiaomi’s smartphone shipments grew by 99.4%, 66.3%, and 113.0% year-on-year, respectively.

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