Xiaomi Corporation (“Xiaomi” or “Group”; Stock Code: 1810), a consumer electronics and smart manufacturing company with smartphones and smart hardware interconnected by the Internet of Things (IoT) platform, expires on December 31, 2021 announced the audited consolidated results for the last financial year.
Xiaomi’s strong business model achieved growth despite challenges in the global economy. Total revenue in 2021 reached RMB 328.3 billion, up 33.5 percent year on year, while adjusted net profit was RMB 22.0 billion, up 69.5 percent year on year, exceeding expectations.
With its record high market share from smartphone sales worldwide, it also achieved strong growth outside of China
The company’s worldwide smartphone sales increased by 30 percent compared to the previous year, with a record 190.3 million units. reached the level. According to Canalys, Xiaomi ranked 3rd globally with a record 14.1% market share in smartphone sales in 2021.
Continuing to develop its strategies in regions outside of China, the company recorded strong growth in non-China regions. In 2021, revenue from non-Chinese markets reached RMB 163.6 billion, up 33.7 percent from the previous year, accounting for 49.8 percent of total revenue. In regions outside of China, it saw significant growth in its smartphone business, as well as its internet and IoT (internet of things) business. Revenue from non-China regions increased 84.3 percent to RMB 5 billion in 2021, accounting for 17.8 percent of total revenue.
Continuing to strengthen its presence abroad, Xiaomi continued to strengthen its competitive advantage in local markets with increasing smartphone sales in Europe, Middle East, Latin America, Africa and Asia Pacific regions. According to Canalys, Xiaomi ranked #1 in smartphone sales in 14 countries and regions, ranking among the top five in 62 countries and regions worldwide. Having a 22.5 percent market share in smartphone sales in Europe, the company ranked second.
The company’s smartphone sales in Latin America and Africa regions increased by 94 percent and 65.8 percent in 2021 compared to the previous year, respectively. It ranked 3rd in smartphone sales in both regions.
According to Canalys, Xiaomi sold more than 25 million smartphones in 2021 in non-Chinese markets (excluding India, Sri Lanka, Nepal, and Bangladesh) via mobile operator channels, up over 120% year-on-year. Again, according to Canalys, Xiaomi ranked in the top 3 in 34 markets outside of China in terms of market share in sales made through mobile operators, while increasing its mobile operator market share from 7.9% in 2020 to 16.8% in 2021 in Europe.
While the company’s competitive power in the premium smartphone segment increased, its dual-brand strategy continued its growth momentum.
The dual brand strategy continued to make progress as a result of the company’s strong commitment to delivering its devices at a premium level. As a result of the company’s product and marketing activities, its user base continued to diversify.
Xiaomi’s worldwide sales of smartphones in 2021 with a retail price of RMB 3,000 or more in China and €300 or equivalent in non-Chinese markets will exceed 24 million units in 2020, exceeding the total of nearly 10 million units sold in 2020. got on it. While the ratio of premium smartphone sales to total sales was 7 percent in 2020, this rate increased to 13 percent in 2021.
In 2021, sales of Xiaomi’s smartphones with a retail price of 300 Euros or more outside China also increased by 160 percent compared to the previous year. According to Canalys, Xiaomi ranked 3rd in overseas premium smartphone sales in 2021 with a retail price of 350 USD or more. This shows that Xiaomi’s commitment to selling premium products in non-China regions is paying off.
Thanks to its advanced features and innovative technologies, the Xiaomi 12 series string has instantly become one of the most popular premium smartphones after being introduced to the law. Its omnichannel sales exceeded RMB 1.8 billion just 5 minutes after launch.
On the other hand, Redmi continued to bring the latest technologies to the mass market and deliver the ultimate user experience in highly accessible products. In the first minute of the launch in February 2022, sales of the Redmi K50G and Redmi K50G Mercedes-AMG Petronas Formula One Team Edition exceeded RMB 280 million. Xiaomi also continued to strengthen the offline channel in China as it played a more prominent role in the growth of premium smartphone sales.
The strong synergy with AIoT and the benefits of the ecosystem
Xiaomi continued to focus on implementing the “Smartphone × AIoT” strategy globally. As of December 31, 2021, the number of connected devices (excluding smartphones, tablets and laptops) on the AIoT platform reached 434 million, up 33.6 percent from the previous year. The number of users with five or more devices connected to the AIoT platform (excluding smartphones, tablets and laptops) reached 8.8 million, up 40.4 percent from a year ago. In December 2021, the number of active users of Xiaomi AI Assistant (“????”) reached 107 million with an increase of 23.3 percent compared to the previous year, while the number of active users of the Mi Home application reached 63.9 million with an increase of 42 percent.
Thanks to its leading position in AIoT and its large user base, Xiaomi’s worldwide smart TV sales reached 12.3 million units in 2021 despite the overall decline in the TV market. 1 in China for the third consecutive year in smart TV sales, and ranked among the top five globally, according to All View Cloud (“AVC”).
Air conditioner sales worldwide increased by more than 70 percent in 2021 compared to the previous year and reached 2 million units. Xiaomi’s smart home appliances category, consisting of air conditioners, refrigerators and washing machines, also achieved a strong growth in 2021, increasing by more than 60 percent compared to the previous year. Smart air conditioner sales in this category exceeded 2 million units in 2021.
The company launched the Xiaomi Pad 5 series in August 2021 and attracted great attention. According to Canalys, it rose to 4th place in sales in China in the last quarter of 2021.
In 2021, Xiaomi’s revenues in the IoT and lifestyle products segment increased by 26.1 percent compared to the previous year and reached RMB 85 billion.
Internet service business grew, while the contribution of non-Chinese markets continued to increase
Internet services grew in 2021 despite increasing industry challenges. In 2021, the company’s revenue from internet services increased by 18.8 percent compared to the previous year and amounted to 28.2 billion RMB.
In December 2021, the number of monthly active users of MIUI increased by 28.4 percent to 508.9 million. Xiaomi’s MIUI active users reached 112.5 million worldwide, including 18.9 million new users in China.
TV internet user base also saw strong growth. In 2021, the number of smart TV active users increased by more than 29 percent, and the number of paid subscribers increased by 14.5 percent annually to 4.9 million.
Ad revenues were RMB 18.1 billion in 2021, up 42.3 percent year-on-year, driven by an expanded user base, higher proportion of premium smartphones, and stronger revenue-generating capabilities. In the fourth quarter of 2021, Xiaomi’s advertising revenue reached RMB 4.9 billion, up 34 percent year-on-year, mainly due to growth in global pre-installation and overseas call revenue, posting growth for the eighth consecutive quarter.
Overseas internet services revenue increased 79.5 percent to RMB 1.6 billion in the fourth quarter of 2021, driving Xiaomi’s growth.
Increased investment in R&D and employee development to support innovations and advancement in technology
Xiaomi’s R&D spending reached RMB 13.2 billion in 2021, up 42.3 percent year on year . Aiming to maintain advancement in technology as a core value, the company plans to invest more than RMB 100 billion in research and development over the next five years.
Xiaomi attaches great importance to the development and retention of its technology employees. The company won the Million Dollar Technology Award for the third year in a row, and the CyberDog project team was awarded the 2021 award. This stood out as a testament to Xiaomi’s support for the pioneering spirit of engineers and technological innovations. Xiaomi also announced new stock incentive awards for junior engineers, technologists, middle and senior managers, and new 10-Year Entrepreneurship Program participants.
Xiaomi has proven that it follows technology closely by adding the dedicated ISP Surge C1 and charging chip Surge P1 to two premium models, Xiaomi MIX FOLD and Xiaomi 12 Pro, respectively. Further optimizing the photographic experience, Xiaomi showcased its advanced technologies in camera and imaging technologies with the liquid lens in the MIX FOLD model and the ProFocus algorithms in the new Xiaomi 12 and Xiaomi 12 Pro models.
In 2021, the company established its robotics lab and released the four-legged robot CyberDog Engineering Explorer Edition. Xiaomi also introduced the Xiaomi Smart Glasses product, which represents a comprehensive exploration of future technologies.
Xiaomi is ready to overcome macroeconomic headwinds, maintain its strong growth momentum and sustain its sustainable development thanks to its flexible business model, complete smart ecosystem and extensive user base.
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