On March 22, Xiaomi Group (01810. HK) announced the fourth quarter and annual results of 2021, the fourth quarter revenue of 85.575 billion yuan, an increase of 21.4% year-on-year, adjusted net profit of 4.473 billion yuan, an increase of 39.6%; the company's full-year revenue of 328.309 billion yuan, an increase of 33.5% year-on-year, adjusted net profit of 22.04 billion yuan, an increase of 69.5%.
Xiaomi revenue composition
First of all, from the perspective of Xiaomi's core smartphone business, the revenue of this business in 2021 was 208.869 billion yuan, an increase of 37.2% year-on-year, accounting for 63.6% of the total revenue. For the growth of business revenue, Xiaomi explained that it was mainly due to the increase in mobile phone sales and average selling price (ASP), and Xiaomi's mobile phone shipments for the whole year were 190 million units, an increase of 30% year-on-year.
Canalys data shows that the full year of 2021 shipments reached 1.35 billion smartphones, an increase of 7% year-on-year. Among them, Samsung ranked first in the world with nearly 275 million smartphone shipments, maintaining a market share of 20%. Driven by the new iPhone series, Apple ushered in a new high in performance, with annual shipments reaching 230 million units, an increase of 11% year-on-year, ranking second. Xiaomi ranked third with more than 191 million smartphone shipments, with a market share of 14%.
Global mobile phone market share ranking Source: canalys
In addition to shipments, "high-end" is also a word that Xiaomi has repeatedly mentioned. In 2021, Xiaomi's high-end models (3,000 yuan or more than 300 euros) shipped more than 24 million units worldwide, compared with only 10 million units in the same period last year, accounting for 13% of total shipments, so that the ASP of Xiaomi smartphones increased from 1039.8 yuan to 1097.5 yuan per unit, and the gross profit margin also increased from 8.7% to 11.9% in the reporting period.
Xiaomi's IoT and consumer product revenue of 84.98 billion yuan increased by 26.1% year-on-year, mainly due to higher sales of smart TVs, Xiaomi Tablet 5 Series (launched in August 2021) and smart air conditioners.
According to the financial report, as of December 31, 2021, the number of AIoT-connected devices (excluding smartphones, tablets and laptops) of Xiaomi reached 434 million, an increase of 33.6% year-on-year, of which Xiaomi's global shipments of smart TVs were 12.3 million units.
The company's Internet service revenue was 28.212 billion yuan, an increase of 18.8% year-on-year, of which advertising revenue was 18.1 billion yuan, an increase of 42.3% year-on-year. Xiaomi said that this is mainly due to the continuous expansion of user scale, the increase in the proportion of high-end mobile phones and the enhancement of commercialization capabilities. In December 2021, the number of monthly active users of MIUI worldwide reached 509 million, an increase of 28.4% year-on-year.
Xiaomi also disclosed the situation of car manufacturing in the earnings report. Up to now, Xiaomi's automotive business R & D team has exceeded 1,000 people, and will continue to expand research and development in core areas such as automatic driving and intelligent cockpit in the future, and it is expected to be officially mass-produced in the first half of 2024.
Yin persimmon financial reporter noted that in 2021, Xiaomi's research and development expenditure was 13.2 billion yuan, an increase of 42.3% year-on-year, mainly due to the increase in the salary of research and development personnel. Xiaomi said it expects the group's R&D investment to exceed 100 billion yuan in the next five years.
It is worth noting that on the same day, Xiaomi also issued an announcement that the company's board of directors formally resolved to exercise the previous share repurchase authorization to buy back shares in the open market at a maximum total of HK$10 billion from time to time. As of the close of trading on March 22, Xiaomi's stock price rose 6.13%, and the latest market value was about HK$350 billion.