Xiaomi reports 70 percent year on year growth

KUALA LUMPUR: Xiaomi Corporation has announced its audited consolidated results for the year ended Dec 31, 2021 where the company registered a healthy annual growth. In 2021, Xiaomi’s total revenue for the year reached RMB328.3 billion (RM217.89 billion), an increase of 33.5 per cent year-over-year while adjusted net profit for the year came in at RMB22.0 billion, representing an increase of 69.5 per cent year-over-year with both annual metrics beating consensus.

In 2021, Xiaomi’s global smartphone shipments grew 30 per cent year-over-year to reach 190.3 million units. According to Canalys, in 2021, Xiaomi’s smartphone shipments ranked No. 3 globally with a record-high market share of 14.1 per cent.

Xiaomi’s overseas business recorded robust growth as the company continued to advance its overseas strategy last year. In 2021, its revenue from overseas markets reached RMB163.6 billion in 2021 increasing 33.7 per cent year-over-year and accounting for 49.8 per cent of total revenue. Apart from smartphone business, overseas internet and IoT business show robust growth. Overseas internet revenue reached RMB5.0 billion in 2021 increasing 84.3 per cent year-on-year and accounting for 17.8 per cent.

According to Canalys, Xiaomi’s market share of smartphone shipments ranked No. 1 in 14 countries and regions and among the top five in 62 countries and regions globally. In Europe, Xiaomi’s smartphone shipments in Europe ranked No. 2 in 2021 with 22.5 per cent market share.

Emerging markets maintained strong growth momentum for Xiaomi. In Latin America and Africa, its smartphone shipments in 2021 grew 94.0 per cent and 65.8 per cent year-on-year, respectively, and were the No. 3 smartphone vendor in both regions.

Strengthening carrier channel 

Canalys said Xiaomi shipped more than 25 million smartphones through carrier channels in overseas markets (excluding India, Sri Lanka, Nepal and Bangladesh) in 2021, an increase of over 120 per cent year-over-year. Its smartphone market share through carrier channels ranked top 3 in 34 overseas markets, with carrier channel market share in Europe increasing from 7.9 per cent in 2020 to 16.8 per cent in 2021.

Competitiveness in premium smartphone segment 

Through the company’s unwavering commitment to premiumisation, Xiaomi’s dual-brand strategy continued to make progress. Building on the company’s precise product and marketing strategies, Xiaomi’s user base continued to diversify.

In 2021, Xiaomi’s global shipments of smartphones with retail prices at or above RMB3,000 in mainland China and EUR300, or equivalent, in overseas markets exceeded 24 million units, far above the approximately 10 million units we shipped in 2020. The company said premium smartphone shipments as a percentage of its total shipments increased from approximately 7 per cent in 2020 to approximately 13 per cent.

In 2021, Xiaomi’s overseas shipments of smartphones with retail prices at or above EUR300 increased over 160 per cent year-over-year. According to Canalys, Xiaomi ranked No. 3 in terms of overseas shipments of premium smartphones with retail prices at or above USD350 in 2021, indicating that Xiaomi’s commitment to premiumisation overseas is bearing fruit.

According to the comopany, the Xiaomi 12 series has instantly become one of the most popular premium smartphones after launch leveraging on its hardware and innovative technologies. Its omni-channel sales exceeded RMB1.8 billion in just 5 minutes after launch.

In the meantime, it said Redmi continued to bring cutting-edge technologies to the mass market and offer the ultimate user experience across highly accessible products. In February 2022, within the first minute of launch, sales of the Redmi K50G and the Redmi K50G Mercedes-AMG Petronas Formula One Team Edition exceeded RMB280 million. At the same time, Xiaomi continued to solidify offline channel in mainland China as it has played a more prominent role in premium smartphone shipment growth.

Strengthened synergies of AIoT business and advantages of smart ecosystem

Xiaomi said it remains focused on executing the “Smartphone × AIoT” strategy globally. As of Dec 31, 2021, the number of connected devices (excluding smartphones, tablets and laptops) on its AIoT platform reached 434 million, an increase of 33.6 per cent year-over-year; the number of users with five or more devices connected to our AIoT platform (excluding smartphones, tablets and laptops) reached 8.8 million, representing a year-over-year increase of 40.4 per cent. In December 2021, the MAU of its AI Assistant reached 107.0 million, up 23.3 per cent year-over-year, and the MAU of its Mi Home App grew to 63.9 million, representing a year-over-year increase of 42.0 per cent.

Benefiting from the leading position in AIoT and extensive user base, Xiaomi’s global shipments of its smart TV reached 12.3 million units against an overall decline in the global TV market in 2021. According to All View Cloud (AVC), smart TV shipments ranked No. 1 in mainland China for the third consecutive year, ranking among the top five globally.

Xiaomi’s global shipments of air conditioners exceed 2 million units, increasing over 70 per cent year-over-year in 2021. 

Besides that, Xiaomi’s smart large home appliance category, which comprises air conditioners, refrigerators and washing machines, also delivered strong growth with revenue increasing over 60 per cent year-over-year in 2021. Within this category, shipments of its smart air conditioner exceeded 2 million units in 2021.

Xiaomi also launched Xiaomi Pad 5 series in August, 2021 and has received widespread popularity; its shipments ranking in mainland China rose to No. 4 in the fourth quarter of 2021, according to Canalys.

In 2021, the company’s IoT and lifestyle products segment revenue increased 26.1 per cent year-over-year to RMB85.0 billion.

Internet service business 

In 2021, Xiaomi said its internet services business maintained solid growth despite increased industry challenges. In 2021, its internet services revenue reached RMB28.2 billion, an increase of 18.8 per cent year-over-year.

In December 2021, Xiaomi’s global MAU of MIUI increased 28.4 per cent year-over-year to 508.9 million. It added 112.5 million MAUs of MIUI globally in 2021, including 18.9 million new users in mainland China.

Meanwhile, TV internet user base also maintained solid growth. In December 2021, MAU of its smart TV grew more than 29 per cent year-over-year, and the number of TV paid subscribers increased 14.5 per cent year-over-year to 4.9 million.

In 2021, its advertising revenue reached RMB18.1 billion, representing an increase of 42.3 per cent year-over-year, primarily attributable to its expanding user base, the higher proportion of premium smartphones, and stronger monetisation capabilities. In the fourth quarter of 2021, Xiaomi’s advertising revenue amounted to RMB4.9 billion, a year-over-year increase of 34.0 per cent, mainly due to growth in global pre-installation revenue and overseas search revenue, recording the 8th consecutive quarter-over-quarter growth.

The internet services revenue overseas increased by 79.5% to RMB1.6 billion in the fourth quarter of 2021, driving Xiaomi’s growth momentum.

Increased in investment in R&D and talent development 

In 2021, Xiaomi’s R&D expenditures reached RMB13.2 billion, an increase of 42.3 per cent year-over-year. Aiming to pursue technology advancement as a core value, Xiaomi plans to invest more than RMB100 billion in research and development over the next five years.

Xiaomi said to attaches great importance to the development and retention of our technology talent. The company held the Xiaomi Million Dollar Technology Award for the third consecutive year, and the 2021 award was won by the CyberDog bio-inspired robot project team. This is a testament to our support for the pioneering spirit and technological innovation of our engineers. Additionally, Xiaomi announced new share incentive awards for young engineers, technology specialists, middle and senior management, and recipients of our New 10-year Entrepreneurship Program.

Xiaomi has demonstrated relentless pursuit of cutting-edge technology by equipping our first proprietary ISP Surge C1 and charging chip Surge P1 in two premium flagship models, Xiaomi MIX FOLD and Xiaomi 12 Pro, respectively. We spotlighted our camera and imaging technology with the debut of the liquid lens in Xiaomi MIX FOLD and the ProFocus algorithm on our latest Xiaomi 12 and Xiaomi 12 Pro, which further optimised photography experience.

In 2021, Xiaomi established its robotics laboratory and launched the bio-inspired quadruped robot CyberDog Engineering Explorer Edition; furthermore, the company introduced Xiaomi Smart Glasses representing Xiaomi’s extensive exploration of future technology.

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