Abstract: New story of car building (welcome to pay attention to girlfriend finance)
Written by | Mi Jie & Editor | Kai
On March 22, Xiaomi Group released its 2021 performance announcement, and the revenue of a number of businesses reached a new high, and the overall performance was good.
How far is the "first stock for young people" from being unwinded?
01
Let's first look at Xiaomi Group's 2021 report card.
The financial report disclosed that Xiaomi Group achieved revenue of 328.3 billion yuan in 2021, an increase of 33.5% year-on-year; however, its annual profit did not increase but fell by 5%; adjusted net profit was 22 billion yuan, an increase of 69.5% year-on-year.
Although in 2021, Xiaomi Group suffered from a shortage of global supply of core components and the impact of the epidemic, its revenue from many businesses still reached a new high.
Last year, Xiaomi continued to promote its 2020 strategy of "mobile phone × AIoT (Artificial Intelligence Internet of Things)". Simply put, to create its own ecological chain, AIoT business has become a catalyst for mobile phone business, penetrating into all aspects of customers' work and life, obtaining massive traffic and data, thus forming a moat for its business model.
Specifically, the smartphone business is still an important basic disk for Xiaomi. In 2021, the revenue of this business segment accounted for 63.6% of the total revenue of Xiaomi Group, achieving a simultaneous increase in volume and price.
Previously, the market was worried about the shipment of Xiaomi smartphones, and its performance was mixed.
Good data. Xiaomi's smartphone shipments in 2021 were 190.3 million units, up 30% year-on-year. According to Canalys data, Xiaomi's smartphone shipments ranked third in the world last year, with a market share of about 14.1%.
In addition, shipments of high-end smartphones exceeded 24 million units in the same period, more than doubling from 2020, and the proportion also increased to 13%.
Lin Meibing, chief analyst of WitDisplay, believes that Xiaomi's high-end smartphone shipments are not as good as expected, and some products rely on price reduction promotions to drive shipments.
It should be noted that the high-end smartphones positioned in Xiaomi's financial report are smartphones priced at 3,000 yuan and above in the mainland and 300 euros and above overseas.
Combined with the above two factors, it is still difficult to improve the business of Xiaomi's high-end smartphones. Xiaomi has long created a "thick price" image, and it is not easy for the public to reverse its stereotype of the price of the people.
02
Let's look at another line in Xiaomi Group's strategy: AIoT (Artificial Intelligence Internet of Things).
First, LoT (Internet of Things) and consumer products mainly include TVs, tablets, laptops, smart major appliances, wearable products, etc.
Although affected by the epidemic, in 2021, Xiaomi Group's overseas LoT (Internet of Things) business did not decrease but increased, and its revenue reached a new high. The revenue of this part of the business in 2021 was 85 billion yuan, an increase of 26.1% year-on-year.
Second, the Internet service business, revenue in 2021 was 28.2 billion yuan, an increase of 18.8% year-on-year. Among them, the revenue of overseas Internet business and advertising business has increased significantly.
In 2021, Xiaomi Group's overseas Internet business achieved revenue of 5 billion yuan, accounting for about 17.8% of its overall Internet service revenue.
The advertising business is growing faster, with revenue of 18.1 billion yuan in 2021, an increase of 42.3% year-on-year. The financial report disclosed that it was mainly due to the continuous expansion of Xiaomi's user scale and the increase in the proportion of high-end mobile phones and the enhancement of commercialization capabilities.
Another major change in Xiaomi Group's 2021 report card is that its internationalization strategy has paid off.
In 2021, Xiaomi Group's overseas market revenue was about 163.6 billion yuan, an increase of 33.7% year-on-year, accounting for 49.8% of the total revenue.
In terms of cost, the total cost of Xiaomi Group in 2021 was 270 billion yuan, an increase of 29.1% year-on-year.
Xiaomi Group's gross profit margin is still not high, but it has improved, from 14.9% in 2020 to 17.7% last year; the net profit margin is only 5.9%, which is 2.4 percentage points lower than in 2020.
Xiaomi Group's gross and net profit margins have been underperforming, which is closely related to its industry and its own positioning. However, this is very detrimental to storytelling in the capital markets.
Image source| Oriental Fortune Network (thanks!) ）
03
Although Xiaomi Group's 2021 report card is good, it is still difficult to unwind the "first stock of young people", especially investors who entered the market at a high point last year, who are still suffering.
As of the close of trading on March 23, Xiaomi Group's stock price rose by 4.08% that day to close at HK$14.78 per share, compared with HK$30 per share last year, which has been cut off, and the market value has evaporated by about HK$300 billion.
Affected by the market situation and its own development, coupled with the repeated epidemics, Xiaomi Group's stock price today is not as good as the issue price of HK$17 per share when it was listed in 2018.
Looking at Xiaomi's ecological chain, in addition to the above businesses, its investment territory cannot be ignored.
According to New Fortune, the investment platforms of the millet system mainly include Xiaomi Group, Shunwei Capital, Xiaomi Yangtze River Industry Fund, etc., with a total number of about 900 investment companies, which is one of the most influential CVC (see today's vocabulary) after Tencent and Ali.
However, behind the positive investment, it also reflects Xiaomi's concerns: the attributes of technology need to be strengthened. Xiaomi Group is currently dominated by manufacturing, whether it is gross profit margin or net interest rate is not good, make hard money.
Because of this, the performance of Xiaomi Group in the capital market is not very good.
Of course, Xiaomi is also building a new wealth story.
In March 2021, Xiaomi founder Lei Jun made a high-profile announcement to join the car-making army, saying that this was his "last venture".
According to the annual report, xiaomi group car research and development staff has exceeded 1,000 people, is expected to be officially mass production in the first half of 2024.
The prospects and imagination of smart cars are huge.
However, the story of car manufacturing is not easy to tell, from traditional car companies, new car-making forces to cross-border Evergrande, Gree Electric Appliances, Baoneng, Baidu, Didi and other competitors, who can laugh to the end, is still unknown.
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