On August 22, Xiaomi announced the first financial report after the listing.
This year, as of the second quarter of June 30, Xiaomi realized revenue of 45.236 billion yuan, a year-on-year increase of 68.3%, an increase of 31.5% from the previous month; operating loss of 7.592 billion yuan, compared with operating profit of 3.659 billion yuan in the same period last year.
In the second quarter, the operating profit 'severe loss' also aroused the attention of the industry. In the subsequent earnings meeting, Xiaomi Chairman Lei Jun did not attend. Xiaomi Group CFO Zhou was funded to explain that this was mainly because Xiaomi paid up to Lei Jun before listing. Approximately 9.9 billion yuan of equity incentive expenses led to.
'This is very clear in the prospectus. The adjusted net profit of 2.1 billion yuan reflects our real business situation. 'We are said by the capital, 'In essence, we feel that the adjusted profit in the second quarter is still healthy. Level, we are optimistic about future profit situation. '
IoT growth rate is over 100%
According to the financial report, the income of Xiaomi mobile phone decreased from 71.5% to 67.4%, the proportion of IoT and consumer products increased from 18.9% to 22.9%, and the proportion of Internet revenue decreased from 9% to 8.8%.
The mobile phone business is the chassis that builds the millet model.
In the second quarter of 2018, Xiaomi's mobile phone sales reached 32 million units, up 43.9% year-on-year. Xiaomi's mobile phone business revenue was 30.501 billion yuan, up 58.7% year-on-year.
Earlier, Xiaomi’s financial report showed that a large proportion of Xiaomi’s mobile phone sales came from the middle and low-end users’ red rice series.
In the second quarter, Xiaomi said that MIX2S, Xiaomi 8 series and other high-end flagship models increased sales, of which millet 8 shipped more than 3.5 million in two months. Affected by this, the average price of Xiaomi mobile phone from the second quarter of 2017 863.8 yuan / department, upgraded to 952.3 yuan / department in the second quarter of 2018.
This number change is not big, but it reveals that Xiaomi is optimizing its product portfolio and striving to improve the proportion of high-end models.
From the business point of view, Xiaomi IoT and consumer products business grew fastest. In the second quarter of 2018, revenue reached 10.378 billion yuan, a year-on-year increase of 104.3%. Among them, Xiaomi TV, Xiaomi notebook computer and other major IoT products contributed the most, sales revenue It was 4.178 billion yuan, a year-on-year increase of 147.2%.
It is worth noting that IoT products such as bracelets, mobile power supplies, and air purifiers, although the sales volume is good, but the average selling price is not high, but did not stand out in the previous financial results. But in the second quarter of this year, Xiaomi Sales of key IoT products such as smart TVs and notebooks increased.
Xiaomi previously set a profit red line, promised that the comprehensive net profit margin of the hardware does not exceed 5%. On this basis, there are two main ways to increase the profit. One is to expand product sales, small profits but quick turnover, and the second is optimization. The high-end proportion of the product portfolio. The bracelet, mobile power and other commodities belong to the former, while Xiaomi smart TV and notebook computer belong to the latter.
Huang Leping, an analyst at CICC, said in the research report that, thanks to sales channels and product expansion, it is expected that the annual growth rate of Xiaomi IoT business will reach 53% from 2018 to 2020.
Xiaomi Internet service revenue increased by 63.6% year-on-year to 3.958 billion yuan. MIUI monthly active users increased by 41.7% year-on-year to 207 million people. As of the second quarter of 2018, Xiaomi AI voice assistant Xiao Ai students had 26 million active users per month.
Whether Xiaomi is an Internet company or a hardware company has caused widespread discussion.
In the second quarter, Xiaomi’s Internet revenue accounted for a slight decline. In this regard, Zhou’s investment indicated that Xiaomi’s business is growing faster than comparable Internet companies, which is in line with expectations. Another reason is that Business such as IoT is growing too fast, he said that the proportion of revenue does not fully represent the real situation of the business.
On March 31, 2018 and June 30, 2018, Xiaomi's cash and cash equivalents were RMB 14 billion and RMB 14.9 billion, respectively.
Demonstrate virtual banking opportunities
Due to Lei Jun’s huge equity incentive expenses, Xiaomi’s administrative expenses increased from 229 million in the second quarter of last year to 10.457 billion in the second quarter of this year, a year-on-year increase of 40 times.
In research and development, Xiaomi's research and development expenses increased from 707 million yuan in the second quarter of 2017 to 1.364 billion yuan in the second quarter of this year, an increase of 92.8%. Xiaomi said that this is mainly due to Internet services and several new research projects. The research and development expanded, but did not disclose the specific research and development direction.
It is worth noting that Zhou said that the exchange rate fluctuations also have a certain impact on Xiaomi, and will continue to pay attention to this, if necessary, will take corresponding measures.
The financial report shows that the sales cost of Xiaomi smartphone increased by 62.2% from RMB 17.5 billion in the second quarter of 2017 to RMB 28.5 billion in the second quarter of 2018, and the cost of sales of IoT and consumer products from the second quarter of 2017 was 45. 100 million yuan increased by 109.6% to 9.4 billion yuan in the second quarter of 2018, mainly due to the increase in sales of various types of intelligent hardware and the appreciation of the US dollar against the renminbi and the Indian rupee in the second quarter of 2018.
In addition to the existing mobile phones, IoT, Internet services, etc., Xiaomi is expanding the boundaries of financial services.
On February 6, 2018, the Hong Kong Monetary Authority issued a revised version of the "Guidelines for the Recognition of Virtual Banks" to promote the introduction of virtual banks in Hong Kong. It was previously reported that Xiaomi's insight into financial technology is intended to apply for a Hong Kong virtual banking license. Submit the documents before the end of the first batch of applications at the end of the month.
Zhou was funded in response to the interview with the first financial interview. Xiaomi is seriously investigating the opportunity of Hong Kong virtual banking and is very optimistic about the opportunities for innovation in Hong Kong's financial market. But he did not specifically disclose the progress, but said that it is worthwhile to cooperate with local financial institutions. Considering the choice. Regarding Xiaomi's financial business, in the long run, it will seriously explore the possibility of financial business spin-off.
In the expansion of international business, Zhou was informed that Xiaomi is not only selling mobile phones in India, but also opening a TV business. Internet services will be launched. The construction of the Indian Xiaomi network continues to expand. In addition, Xiaomi has been with the Yangtze River. The group is working around European operators.
According to the financial report, Xiaomi's overseas market revenue has accounted for 36.3% of total revenue. In the second quarter of 2018, revenue reached 16.4 billion yuan, up 151.7% year-on-year. Among them, millet's shipments in Western Europe increased by more than 2700%.
In addition, the weekly investment also revealed the investment progress of Xiaomi: At present, Xiaomi has invested in 220 companies, of which 100 are IoT companies, and others are mainly Internet companies. These include 51 credit cards, Huami, iQiyi, bilibili. The four companies within the company have already been listed, and have already submitted a listing application with a US group and interesting headlines.