On May 20, 2020, Xiaomi group announced the financial report for the first quarter of 2020. In the face of the epidemic, Xiaomi group took serious measures to prevent the epidemic and actively promoted the resumption of production. All businesses continued to grow against the trend, with the total revenue reaching RMB 49 billion 700 million, an increase of 13.6% year-on-year; the adjusted net profit was RMB 2 billion 300 million, an increase of 10.6% year-on-year. The degree of globalization is deepening. Overseas market revenue reached 24.8 billion yuan, accounting for 50% of total revenue for the first time, up 47.8% year on year.
Xiaomi Group in the first quarter of 2020
At the same time, aiot still maintains a strong leading position. The number of connected IOT devices on the IOT platform has reached 252 million, a year-on-year increase of 42.6%; the number of active users of AI assistant xiaoaiclassmate reached 70.5 million in March 2020, a year-on-year increase of 54.9%.
Due to the diversified business layout of Xiaomi group, the Internet business performed well in this quarter, with a revenue of 5.9 billion yuan in the reporting period, a year-on-year increase of 38.6%, accounting for 11.9% of the total revenue.
In the first quarter of 2020, Xiaomi Group actively provided material assistance and serious epidemic prevention after the outbreak of new crown. While maintaining the established product release rhythm, we will help upstream and downstream enterprises to fight against the epidemic and stabilize production and resume work smoothly. As the epidemic eased and supply recovered, the demand side has shown a clear rebound trend, and the market power has been continuously strengthened.
Advance against the wind under the epidemic
Smartphone stands firmly in 5g high-end market
In the first quarter of 2020, Xiaomi's smartphone revenue was 30.3 billion yuan, up 12.3% year on year. Despite the impact of the epidemic, the sales pressure of mobile phone manufacturers around the world increased sharply, but the sales volume of Xiaomi smart phones in the first quarter still maintained a year-on-year growth, reaching 29.2 million, a year-on-year growth of 4.7%.
According to canalys statistics, in the first quarter of 2020, Xiaomi's market share of global smartphone shipments rose to 11.1%, breaking through 10% against the trend, ranking in the top four in the world. It is also one of the only two manufacturers with year-on-year growth in the world's five largest handset manufacturers.
In addition, according to Canalys statistics, millet has achieved a 25.9% 5G penetration rate in China's mainland market, which is higher than the industry average.
During the reporting period, Xiaomi group's mobile dual brand strategy continued to achieve results. Xiaomi brand continues to stand firm in the high-end market, and redmi brand has launched competitive products at various price segments.
During the epidemic, Xiaomi released its annual 5g flagship wind vane products online. Xiaomi 10 series not only greatly boosted the confidence of the industry, but also became popular. Within two months after the launch, the shipment exceeded 1 million units, representing Xiaomi brand's success in 5g high-end flagship market. Driven by 5g high-end models, the average smartphone price of Xiaomi Group continued to increase by 7.2% in the first quarter of 2020. In China, the average selling price of mobile phone in mainland China increased by 18.7% compared with the same period last year, and the offshore market increased by 13.7% over the same period.
Redmi brand insist
At present, Xiaomi group's mobile phone business has healthy inventory, stable profitability, and the gross margin of smart phones has increased from 3.3% of Q1 in 2019 to 8.1% of Q1 in 2020. With the continuous promotion of the dual brand strategy, it is expected that the average price of Xiaomi mobile phones will continue to rise in 2020.
Strong expansion of aiot
Build the largest consumption level IOT platform in the world
The epidemic did not hinder Xiaomi Group to advance the pace of the five G AIoT strategy, Xiaomi in the five G of the market still maintain a leading position. On the AIoT hand, according to iResearch statistics, according to the end of 2019 connected devices statistics (excluding smartphones and notebooks), Xiaomi has become the world's largest consumer-level IoT platform.
During the reporting period, the leading advantages of Xiaomi's aiot platform continued to expand and the trend of high-speed growth continued. As of March 31, 2020, excluding smart phones and laptops, the number of IOT devices connected to Xiaomi IOT platform has reached 252 million, a year-on-year increase of 42.6%; the number of users with five or more devices connected to Xiaomi IOT platform has increased to 4.6 million, a year-on-year increase of 67.9%.
Xiaomi IoT products and artificial intelligence together constitute an organic ecosystem, through different scenarios for users to bring a full range of interconnected intelligent life experience. Intelligent Assistant, March 2020
At the same time, Xiaomi continuously promotes the scene interaction and the full opening of the platform. At present, the number of monthly active users of the app reaches 40 million, an increase of 53.4% year on year. Xiaomi aiot platform has been mature and independent, with strong external drainage capacity.
IOT and stable growth of consumer goods
Multiple explosive products promote the interconnection of everything
In the first quarter of 2020, the consumer goods industry was severely affected by the epidemic, and the production, transportation and sales of white electricity and television were all affected by the epidemic. However, due to the diversity of millet IOT categories and a solid business foundation, the IOT and consumer goods business continued to grow. During the reporting period, the revenue reached 13 billion yuan, up 7.8% year on year.
Millet smart TV business continues to maintain its leading position in the industry. According to Orville network, the output of smart TV is the first in China, the world's top five. In the first quarter of 2020, the total output of millet smart TV was 2 million 700 thousand, and it kept up 3% growth in the case of the overall decline of China's mainland market.
As the leader of intelligent TV, Xiaomi is constantly innovating and continuously exploring the future development direction of intelligent TV. During the reporting period, Xiaomi released Redmi smart TV
In addition to smart TV, Xiaomi's IOT category continues to be rich, strengthening the interconnection of the aiot platform. In February 2020, Xiaomi launched the Xiaomi aiot router ax3600 equipped with wifi6, which greatly improved the network up and down speed, becoming the first brand in China that fully covers wifi6 technology from terminal to router. During the reporting period, Xiaomi router revenue increased by 124% year on year, ranking second in China in terms of sales volume.
Meanwhile, intelligent wearable devices have maintained excellent growth rate in the reporting period. The sales volume of xiaomizhen wireless Bluetooth headset increased by 619.6% year on year, ranking third in the world; the sales volume of xiaomizhen Bracelet increased by 56% year on year, ranking first in the world.
By 2019, Xiaomi's IOT platform has more than 2000 product matrices, covering all aspects of living, living and intelligent life. Based on multiple categories and strong product force, Xiaomi's leading trend in the field of intelligent life has remained unchanged for a long time.
Internet business vitality
Significant expansion of diversified advantages
During the reporting period, Xiaomi's Internet business performed well as a whole, with internet service revenue of 5.9 billion yuan, a year-on-year increase of 38.6%, accounting for a continuous increase in the overall revenue ratio, breaking through 10%, reaching 11.9%.
During the reporting period, the user activity and use time of Internet services increased significantly. In March 2020, the number of active users of MIUI reached 330 million, an increase of 26.7% year on year. Among them, the monthly active users of MIUI in the mainland are 110 million.
During the reporting period, although affected by the epidemic situation and the budget for advertising in some vertical fields was reduced, Xiaomi continued to optimize the algorithm through multiple ways of realization, and the Internet advertising business grew by 16.6% year-on-year against the trend.
At the same time, the diversity of Internet business continues to strengthen, and the vitality of emerging business continues to break out. The emerging business is Internet services, including TV and Internet, electricity suppliers, financial technology and overseas Internet, in addition to advertising and games in mainland China. During the reporting period, the revenue of this part increased by 71.5% year on year, accounting for 38.1% of the total Internet revenue.
Among them, the growth of TV Internet business is the most significant. During the reporting period, the film and television in the TV Internet and other subscription services became an important entertainment way for many consumers during the epidemic.
In March 2020, monthly live users of Xiaomi smart TV and Xiaomi box reached 30.4 million, an increase of 46.8% year on year. The revenue of paid subscription increased rapidly, with the number of paid users increasing by 53.7% year on year to 4.3 million.
Overseas market contribution income reaches half for the first time
Historic breakthrough in Western European market
In recent years, Xiaomi has made great efforts to expand the scale of overseas market, meanwhile, it has continued to deepen cultivation in local market, laying a solid foundation for maintaining high-speed growth.
In the first quarter of 2020, overseas market revenue reached 24.8 billion yuan, a year-on-year increase of 47.8%, accounting for 50.0% of the total revenue. This is the first time in Xiaomi's history that its overseas revenue contribution has reached half.
Xiaomi's mobile phone sales in major regions of the world are on the rise, among which it has made many historical breakthroughs in the European market. According to canalys data, in the first quarter of 2020, Xiaomi's smartphone shipments in Europe increased by 58.3% year-on-year, and the market share exceeded 10% to 14.3%, which is of great significance to expand the channels of operators. At the same time, Western Europe's smartphone shipments increased by 79.3% year-on-year, of which Spain ranked first for the first time in terms of market share, accounting for 28% in terms of shipments. In Italy, Germany, France are in the top four.
Xiaomi still dominates the Indian market. According to IDC statistics, in the first quarter of 2020, Xiaomi smartphone has maintained the first shipment volume in India for 11 consecutive quarters, with a market share of 31.2%.
At the same time, Millet's degree of globalization is further deepened, and it also grows rapidly outside Western Europe and India. In Latin America, with the growth rate of other major mobile phone brands declining, Xiaomi increased by 236.1%, ranking the top five in terms of market share. In addition, smartphone shipments in the Middle East and Africa increased by 55.2% and 284.9% respectively.