Xiaomi released its first financial report on the 22nd. The financial report shows that in the second quarter of this year, Xiaomi Group achieved revenue of 45.235 billion yuan, a year-on-year increase of 68.3%; realized adjusted net profit of 2.17 billion yuan, an increase of 25.1%.
From the key data point of view, revenue, net profit achieved double-year growth, smart phone unit price, overseas revenue share, R&D investment, etc. all increased year-on-year; however, Internet service revenue accounted for a year-on-year and quarter-on-quarter decline The signal. This is not good news for Lei Jun, who has always stressed that Xiaomi is an Internet company rather than a mobile phone company.
Try to get rid of low-end dependencies: Smartphone unit price increased to 952.3 yuan
According to the financial report, the revenue of Xiaomi's smartphone segment in the second quarter of 2018 was about 30.5 billion yuan, up 58.7% year-on-year. Xiaomi said that it is mainly driven by the growth of smartphone sales and average selling price.
In the quarter, sales of Xiaomi smartphones reached 32 million units, up 43.9% year-on-year. In terms of the average unit price of smartphones, the second quarter of 2018 increased from 863.8 yuan in the second quarter of 2017 to 952.3 yuan, an increase of over 25 years. %.
When the CDR prospectus was announced in June this year, Xiaomi disclosed the financial report for the first quarter of 2018. Among the sales of mobile phones in the price range of Xiaomi, the highest sales volume was the entry machine (below 799 yuan), achieving 11.069 million. The sales volume of the ministry. At that time, it was ridiculed by the media as 'no millet without red rice'.
In fact, Xiaomi, which started from Internet channels and cost-effective, does face the dilemma of high-end smartphone brands. Xiaomi has been trying to solve this problem.
In May of this year, Xiaomi released the Xiaomi 8 transparent exploration version, the flagship machine Xiaomi 8 and the small screen flagship millet 8 SE three millet 8 series new machine, the average price is more than 2000 yuan. Xiaomi disclosed in the financial report, Xiaomi 8 series is launched The sales volume in the first month exceeded 1.1 million.
Xiaomi said that the strategic focus of Xiaomi in China in 2018 is to enter the high-end smartphone market. In 2018, Xiaomi will continue to promote this strategy and optimize its product portfolio to further penetrate the high-end smartphone market, laying the foundation for further sales growth in mainland China in 2019.
Continue to promote internationalization: Overseas revenue share increased to 36.3%
In the second quarter of this year, Xiaomi International's revenue increased by 151.7% year-on-year to 16.4 billion yuan, accounting for 36.3% of total revenue.
In contrast, in 2015, 2016, 2017 and the first quarter of 2018, Xiaomi's overseas market sales were 4.056 billion yuan, 9.154 billion yuan, 32.081 billion yuan and 12.47 billion yuan, accounting for the company's total revenue. They were 6.07%, 13.38%, 27.99% and 36.24% respectively.
Xiaomi began to promote its internationalization strategy in 2014. It has successively established in emerging markets such as India, Southeast Asia and Eastern Europe, especially in the Indian market. In 2017, Xiaomi Mobile became the smart phone brand with the highest share of smartphone shipments in India.
Xiaomi quoted Canalys as saying that in the second quarter of 2018, Xiaomi smartphones continued to grow rapidly in the Indian market, ranking first in terms of shipments; in the second quarter of 2018, Xiaomi also achieved significant growth in Indonesia, according to intelligence. Mobile phone shipments ranked second; in May 2018, the millet Western Europe market expanded to France and Italy; in the second quarter of 2018, smartphone shipments in Western Europe increased by more than 2700% year-on-year; according to Canalys, as of 2018 In the second quarter of the year, Xiaomi ranked in the top five in the smartphone market in 25 countries and regions.
However, Xiaomi is not at ease in the Indian market. Glory, OPPO and other Chinese manufacturers are also playing a price-performance card in India. Samsung, which has been surpassed by Xiaomi, has also begun to fight back.
Unlike the Canalys data cited by Xiaomi, according to Counterpoint's research report, in the second quarter of this year, Samsung regained its position as the market leader in India, accounting for 29% of the market, while Xiaomi had a market share of 28%.
R&D investment increased by 92.8% year-on-year, but the proportion of total revenue still needs to be improved.
According to the financial report, Xiaomi's research and development expenses in the second quarter of 2018 increased by 92.8% from 7.073 billion yuan in the second quarter of 2017 to 1.636 billion yuan in the second quarter of 2018, mainly due to the expansion of research and development of Internet services and several new research projects; The increase in salary and benefits of R&D personnel is mainly due to the increase in the number of personnel due to the rapid growth of business.
Although Xiaomi's R&D investment in the quarter has increased significantly year-on-year, it accounts for 3.01% of total revenue, which is still at a low level.
The previously disclosed data show that from January to March 2018, Xiaomi Group's research and development expenses were 1.104 billion yuan, accounting for 3.21% of total revenue; 2017 research and development expenses were 3.151 billion yuan, accounting for 2.75% of total revenue; 2016 annual research and development expenses were 21.04. 100 million yuan, accounting for 3.07% of total revenue; R&D expenses in 2015 were 1.512 billion yuan, accounting for 2.26% of total revenue.
This ratio is not only lower than that of the United States, Gree and other hardware companies, compared with Xiaomi's positioning of the same category of Internet companies Baidu, Alibaba, etc., is more dwarfed. And R & D investment is not only the innovation ability of Xiaomi and its products, It is closely related to the internationalization that Xiaomi is currently promoting.
During the IPO, Xiaomi suffered a patent lawsuit from Coolpad and patentee Yuan Gongyi, which brought a lot of trouble to the IPO process.
Internet service revenue accounted for a year-on-year and quarter-on-quarter decline
According to the financial report, Xiaomi's Internet service segment revenue increased by 63.6% year-on-year to RMB 4 billion in the second quarter of 2018, mainly due to the increase in the liquidity of China.
Among them, advertising revenue increased by 69.6% year-on-year to 2.5 billion yuan, due to continuous optimization of recommendation algorithms and increasing advertising expenditures of customers. At the same time, revenue from Internet value-added services increased by 54.1% year-on-year to 1.5 billion yuan. 7.039 billion yuan, an increase of 25.5%.
Due to the increase in smartphone sales and user adoption, MIUI's monthly active users increased by 41.7% from 146 million in June 2017 to 206.9 million in June 2018. The average revenue per user in the quarter increased by 15.4% year-on-year. To 19.1 yuan.
However, as of the end of the second quarter of 2018, Xiaomi's Internet service revenue mainly came from mainland China. While the proportion of overseas revenues continued to increase, Xiaomi needed to further explore the Internet service potential of international users.
In addition, it is worth noting that in the second quarter of 2018, although Xiaomi's revenue from smartphones decreased from 71.5% in the second quarter of 2017 to 67.4%, the proportion of Internet service revenue also dropped from 9% to 8.8%. In the first quarter of 2018, the figure was 9.4%; the share of IoT and consumer goods increased from 18.9% to 22.9%.
Previously, the outside world had a dispute over the positioning of Xiaomi's Internet company. Sina Technology pointed out in the report of Xiaomi IPO that, after the listing, Xiaomi needs to continue to expand the scale of Internet service revenue to investors and users. Prove the positioning of its internet company.