Xiaomi Released Its Financial Report For The First Quarter of 2019

Xiaomi Group released the unaudited financial report for the first quarter of 2019. The financial report shows that Xiaomi’s adjusted net profit in the first quarter was 2.08 billion yuan ($0.3 billion), up 22.4% year-on-year; operating profit in the first quarter was 3.61 billion yuan ($0.52 billion); first-quarter revenue was 43.76 billion yuan ($6.33 billion), and the market estimate was 41.76 billion yuan ($6.04 billion).

This is the first financial report disclosed by Xiaomi after launching the ‘Mobile + AIOT’ dual-engine strategy. During the reporting period, the number of IoT devices connected to the Xiaomi IoT platform reached 171 million (excluding smartphones and laptops), an increase of 70% year-on-year. The artificial intelligence assistant Xiao Ai had more than 45.5 million monthly users in March 2019, a year-on-year increase of 247.2%. The overseas market continued to expand, the Indian market took the lead, and the Western European market continued to maintain a high growth rate.

During the reporting period, Xiaomi’s smartphone revenue was 27 billion yuan ($3.91 billion), a year-on-year increase of 16.2%, and global sales reached 27.9 million units. According to Canalys, the shipment of Xiaomi smartphones ranked fourth in the world in the first quarter of 2019. Thanks to the continuous optimization of the product portfolio and the emergence of new products, the average selling price (ASP) of Xiaomi smartphones in mainland China and overseas markets increased by 30% and 12% respectively during the reporting period.

Also, during the reporting period, the Redmi Note 7 series sold more than 4 million units. The Xiaomi Mi 9 series was released on February 20, 2019. By March 31, 2019, the supply was over 1.5 million in 41 days.

Xiaomi IoT and consumer goods continued to maintain a relatively fast growth rate, with revenues of 12 billion yuan ($1.74 billion), a year-on-year increase of 56.5%. Among them, the smart TV business continued to maintain its leading position, with the second consecutive quarter of shipments ranking first in the Chinese market. As of March 31, 2019, the global cumulative shipments were 2.6 million units, an increase of 99.8%.

Xiaomi’s Internet segment revenue reached 4.3 billion yuan ($0.62 billion), a year-on-year increase of 31.8%. Among them, advertising business revenue reached 2.3 billion yuan ($0.33 billion), a year-on-year increase of 21.8%. Game revenue reached 820 million yuan ($119 million), a year-on-year increase of 6.8%. It is worth noting that Xiaomi MIUI’s monthly active users achieved rapid growth, from 190 million in March 2018 to 261 million in March 2019, an increase of 37.3%. The monthly users of smart TVs and Xiaomi boxes also achieved sustained and rapid growth, reaching 20.7 million in March 2019, a year-on-year increase of 55.1%.

The international revenue in the first quarter of 2019 was 16.8 billion yuan ($2.43 billion), a year-on-year increase of 34.7%. As of March 31, 2019, there were 480 overseas Xiaomi home authorized stores, an increase of 93.5% year-on-year, of which 79 were in India. Xiaomi Group will continue to build and expand its new retail network in overseas markets. In addition, Xiaomi smartphones have maintained the number one shipment in India for seven consecutive quarters. At the same time, the online smartphone market in India maintained its number one shipment for ten consecutive quarters.

Lei Jun, founder, chairman, and CEO of Xiaomi Group, said that Xiaomi immediately started the second phase of Xiaomi’s entrepreneurship after the IPO, and carried out a series of major upgrades in the company’s core strategy, organizational management structure, technology research and development system, product brand system and other areas. Adjustments will lay the foundation for the next five to ten years of development of Xiaomi. The positive results of these adjustments and upgrades have gradually begun to show. Xiaomi officially launched the new strategy of ‘Mobile +AIoT’ dual engine in the first quarter of this year. The two brands of Xiaomi and Redmi are separated and operate independently, and a series of popular products are already launched. The AIOT business is also rushing to maintain a significant lead in the industry. At the same time, following the China region, Xiaomi’s systematic adjustment began to spread across the globe in the first quarter.