Xiaomi Group & # 39; s financial reporting debut: performance surpassed expectations Business sector flourishes more – Hong Kong Sina



Interpretation of the China Daily | Xiaomi Group & # 39; s financial reporting debut: performance growth exceeded expectations, the two "flywheels" support the future rapid development

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Author Shang Limu

Author Shang Limu

Author Shang Limu

Process editor白鹤 芋

As the most prestigious unicorn company in China in recent years, Xiaomi Group has never missed the topic, especially because it landed in Hong Kong last month and it is the goal of all people who eat it.

As we all know, Feng Yunjun is a shy person who has always been disdainful to participate in various war wars. Our main activity is the financial report of listed companies. Today it coincides with the release of the 18-year semi-annual report from Xiaomi Group. This is also the financial report debut since the list of Xiaomi. It is a debut and Feng Yunjun thinks it is necessary to bring your old iron to the to get.

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The business sector has more blossoms and the growth rate is amazing.

We first put the most important financial data of Xiaomi in the first half of 2018:

According to financial report data, Xiaomi achieved sales of 79.648 billion euros in the first half of 2018, an increase of 75.4% year-on-year, with 45.236 billion in the second quarter, an increase of 68.3% year on year and 31.5% on a quarterly basis; gross profit was 9.953 billion, an increase of 57.7% year-on-year, of which two The quarter was 5,652 billion, an increase of 46.9% year-on-year and 31.4% quarter-on-quarter, the adjusted profit was 3,816 billion, an increase of 62.2 % on a yearly basis, with profit for the second quarter of 2.17 billion, an increase of 25.1% year-on-year and 24.6% quarter-on-quarter. From the point of view of data, Xiaomi's first financial report was astonishing.

In terms of business, Xiaomi has grown more and more and business segments such as smartphones, IoT and consumer products and internet services are now growing strongly, especially in the area of ​​IoT and consumer products. In the second quarter of 2018, the Division's revenue reached 10.379 billion yuan, an increase from year to year by 104.3%.

Regarding the income structure, the Xiaomi mobile phone company contributed 30.501 billion yuan in the second quarter of 2018, an increase of 58.7% over the same period last year and the percentage of total turnover decreased from 71.5% to 67.4%, IoT and consumer products and Internet services Total revenue increased from 27.9 to 31.7%. It shows that the income structure of each business segment is gradually being optimized.

In particular, the interim report of Xiaomi has mainly the following points:

1 Growth rate cell phone shipments is & # 39; s the world's first

At a time when the speed of growth of the entire mobile phone market is slow, the shipment of Xiaomi mobile phones is heading for the wind. In the second quarter of 2018, the sales of Xiaomi mobile phones amounted to 32 million units, an increase of 43.9% compared to a year ago. According to IDC data, in the second quarter of 2018, Xiaomi was the fourth largest mobile phone company in the world, and the growth rate was among the top five mobile phone companies in the world.

In the second quarter of this year, mobile phone revenue from Xiaomi rose 58.7% year-on-year, from 19.219 billion yuan in the second quarter of 2017 to 30.51 billion yuan. This is mainly due to the strong sales of medium and high-end flagship models such as Xiaomi MIX2S and Xiaomi 8-series on the Chinese market.

This shows that Xiaomi's mobile phone is gaining a foothold in the high-end model market, while maintaining the key cost efficiency.

2 Sea revenue has sung, and internationalization has achieved remarkable results.

With the saturation of the domestic market for mobile phones, domestic mobile phone suppliers have traveled to the overseas market. With its high cost performance, Xiaomi has achieved impressive results in overseas markets. The financial report shows that overseas market revenues of Xiaomi represented 36.3% of total sales, and 16.4 billion yuan in the second quarter of 2018, an increase of 151.7% over the previous year.

On June 31, 2018, Xiaomi was ranked in the top five in the world in 25 countries and regions & # 39; s. According to Canalys data, the Xiaomi smartphones maintained rapid growth on the Indian market and gained the fourth consecutive quarter of market share in the second quarter of 2018. After entering the Spanish market in November 2017, Xiaomi expanded to France and Italy in May 2018. From the second quarter of 2018, Xiaomi mobile phone transactions in Western Europe increased by more than 2700%. Moreover, the mobile phone of Xiaomi was the number one in the field of shipments in Indonesia.

3 IoT activities doubled in terms of turnover and Xiaomi TV was the first in China

Thanks to the expansion of sales channels and products, Xiaomi IoT has experienced explosive growth. In the second quarter of 2018 revenues of the segment reached 10.379 billion yuan, an increase of 104.3% compared to a year ago. Among them, sales of large IoT products, such as smart TVs and notebooks, increased by 147.2% from 1.69 billion yuan in the second quarter of 2017 to 4.178 billion yuan in the second quarter of 2018.

The financial report shows that Xiaomi TV became the first in China in the second quarter of 2018. In February 2018, Xiaomi also launched smart TV in India and quickly gained significant market share. From the second quarter of 2018, global sales of Xiaomi Smart TV increased by more than 350%.

From the second quarter of 2018, approximately 115 million users were connected to IoT devices (excluding mobile phones and laptops), an increase of 15% over the previous quarter, nearly 1.7 million users with more than 5 IoT devices (excluding mobile phones and laptops) Name, the chain has increased by 19%.

4 MIUI monthly users broke 200 million, the Internet sales growth is strong

In the second quarter of 2018, Xiaomi Internet Service Revenue amounted to 3.908 billion yuan, up 63.6% year-on-year. MIUI monthly active users reached 207 million in the second quarter of 2018, an increase of 41.7%. With the strong growth of IOT business and internet activities, the revenue structure of Xiaomi will be further optimized.

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Data puzzle: gross margin and administrative costs

1 Interpretation of the mystery of falling gross profit margin

The Xiaomi financial report shows that the gross profit margin for the second quarter of 2018 was 12.5% ​​compared to 14.3% in the second quarter of 2017.

Among them, the gross profit margin of smartphones fell from 8.7% in the second quarter of 2017 to 6.7% in the second quarter of 2018: the gross profit margin of IoT and consumer products decreased from 11.7% in the second quarter of 2017 to the end of second quarter of 2018. 9.4%; the gross margin of Internet services has not changed much, from 62.4% in the second quarter of 2017 to 62.8% in the second quarter of 2018.

The reason for this is that the sales of Xiaomi smartphones rose sharply in the second quarter of 2018, with sales reaching 30.5 billion yuan, an increase of 58.7% from a year ago, but sales costs also increased the second quarter of 2018 with 28.5 billion yuan, an increase of 62.86 years on an annual basis. %. Moreover, the gross profit margin of Xiaomi TV and notebook computers is relatively low. As the main growth of IoT sales in the second quarter of 2018, the total gross profit margin decreased.

In this way, the reduction of the gross profit margin is not difficult to understand. To optimize the product structure and gain market share, the Xiaomi mobile phone has to pay the sales costs. IoT products must quickly open up the market and have a cost-effective benefit. The total turnover has increased and ultimately the total profit has increased.

2 Interpretation of the mystery of the increase in administrative expenditure

Xiaomi's second quarterly report shows that the administrative costs of Xiaomi for the second quarter of 2018 were 10.457 billion yuan, an increase of 447.000.32% compared to 229 million in the second quarter of 2017.

The reason for this dramatic change is that the company paid 2% of the assets to Chairman Lei Jun as a reward for the listing of Xiaomi. This is all the old news and the performance of Xiaomi are so good. In fact, it is not unusual for internet companies to give equity incentives to company founders before they become public. On the eve of the listing of Jingdong in 2014, the board of directors rewarded 45% of Liu Qiangdong's equity, worth 3.6 billion yuan.

These types of rewards will, to a certain extent, affect Xiaomi's financial statements, but have nothing to do with the actual profitability of Xiaomi. Share awards are non-recurring, no longer occurable, how much value Xiaomi can create for shareholders in the future, still have to use the performance to speak.

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Xiaomi & # 39; s two "new flywheels": IoT platform and artificial intelligence

According to the iResearch report, IoT consumer hardware sales worldwide rose from $ 306.3 billion in 2015 to $ 485.9 billion in 2017, a compound annual growth of 26.0%. It is expected to reach $ 1,5502 billion by 2022, with a compound annual growth of 26.1%.

China's consumer-grade IoT hardware sales increased from $ 71.5 billion in 2015 to $ 118.8 billion in 2017, a compound annual growth of 28.9%. It is expected that by 2022 it will reach 311.8 billion US dollars, with a compound annual growth of 21.3%.

From the point of view of the data, there is no doubt that the internet of things is an emerging industry in a fast development stage with enormous market space. And the biggest imagination of Xiaomi, Feng Yunjun, believes that it is her Internet of Things company.

Compared to other internet companies, the "infrastructure" of Xiaomi is intelligent hardware with a natural "Internet of Things" gene. By the end of the first quarter of 2018, based on the number of connected devices, Xiaomi has become the world's largest IoT platform.

(Source: iResearch)

(Source: iResearch)

The competitive advantage of Xiaomi is that its IoT products are rich in price and are popular in price, compared to other international giants, it has an advantageous competitive advantage. With its price advantage and good user experience, Xiaomi has launched a range of popular products in the IoT consumer goods market. At the moment, Xiaomi has a market share of 1.9% in the field, which is the first in the world to score and much higher than the second-ranked Amazon and Apple.

The products of the Xiaomi company look very diverse. If you study it carefully, you will notice that they all have a common characteristic: high frequency of use and strong viscosity.

In addition to mobile phones, Xiaomi's main products include TVs, laptops, smart speakers, smart routers, air purifiers, sweeping robots, etc. These things are very high-frequency products in our lives, most of us every day. Time is basically consumed in mobile phones, computers and televisions. These products are excellent traffic portals.

We took the first artificial intelligence (AI) speaker of Xiaomi, Xiao Ai, as an example. In the week before the revenue report, Xiaomi officially announced that from the end of 2018 Xiao Ai & # 39; s monthly active users had more than 30 million. The cumulative number of wake-ups exceeded 5 billion and the number of wake-ups in July alone exceeded 1 billion. It is clear that Xiaomi AI has shown explosive growth and has become another important traffic source for Xiaomi Internet Service after MIUI.

In the hot area of ​​artificial intelligence, Xiaomi is also a fiery fire. On June 28 of this year, at the open source China Open Source World Summit Forum in 2018 (13th), Dr. Cui Baoqiu, vice president of Xiaomi Artificial Intelligence and Cloud Platform, the open source independent research and development. Mobile AI Compute Engine (MACE).

This also happens after the launch of a series of open source projects such as Linden (Distributed Real-Time Search System), Open-Falcon (Internet Enterprise Monitoring System), Pegasus (Distributed KV Storage System), etc. MACE, with which the Chinese artificial intelligence industry is strengthened.

With Xiaomi's strong competitive advantage in intelligent hardware devices, it has taken a huge market, managed a large number of IoT traffic portals and can provide the rich application scenario, users, traffic and data for artificial intelligence, while artificial intelligence It can fully reinforce Xiaomi's products and IoT services. Thanks to artificial intelligence, Xiaomi can capture the enthusiasm of the next decade, which is of strategic importance for Xiaomi to become a great company in the future.

With the arrival of the internet of things and artificial intelligence, the competitive advantage of Xiaomi will gradually arise. The hardware benefits of IoT devices are just the beginning, and the IOT platform, which consists of a large number of highly active devices, has a larger space, users, traffic and data in the field of Internet imagery.

Feng Yunjun believes that the curtain of Xiaomi has just opened and that the good game is still lagging behind.


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