Written by | District
Source | Bedo Finance
On March 22, Xiaomi Group-W (HK:01810, hereinafter referred to as "Xiaomi Group" or "Xiaomi") announced its annual results for the year ended December 31, 2021. The financial report shows that the revenue of Xiaomi Group continues to grow, and the profit level of the period has declined.
Specifically, Xiaomi Group achieved a total revenue of 328.309 billion yuan in 2021, an increase of 33.5% year-on-year; the annual profit was 19.283 billion yuan, down 5.1% year-on-year, mainly affected by the fluctuation of the fair value of investment income; the adjusted net profit was 22.039 billion yuan, an increase of 69.5% year-on-year.
In the fourth quarter of 2021, Xiaomi Group recorded revenue of 85.575 billion yuan, an increase of 21.4% from 70.463 billion yuan in the same period of 2020; profit for the period was 2.443 billion yuan, down 72.2% from 8.795 billion yuan in the same period of 2020; and adjusted profit was 4.473 billion yuan, an increase of 39.6% year-on-year.
Bedo Finance found that the revenue of Xiaomi Group as a whole maintained a growth trend, but the growth rate has declined significantly. However, the annual adjusted net profit growth rate of Xiaomi Group has returned to its previous highs. For Xiaomi Group, 2021 is a turning point, and where will 2022 go? It is not yet known.
Performance growth rate declined, stock price, market value once again "waist cut"
According to public information, Xiaomi Group's revenue in 2015, 2016, 2017, 2018, 2019 and 2020 was 66.811 billion yuan, 68.434 billion yuan, 114.625 billion yuan, 174.915 billion yuan, 205.839 billion yuan and 245.866 billion yuan, while in 2021 it was 328.309 billion yuan, with a compound growth rate of 30.39% in the past six years.
At the same time, the net profit growth rate of Xiaomi Group is also falling sharply. In 2021 alone, Xiaomi Group's adjusted net profit in the first quarter, second quarter, third quarter and fourth quarter of 2021 increased by 163.8%, 87.4%, 25.4% and 39.6% year-on-year, respectively.
Since its listing in July 2018, the adjusted net profit growth rate of Xiaomi Group has also declined. The data shows that in 2018, 2019 and 2020, the adjusted net profit growth rate of Xiaomi Group was 59.5%, 39.6% and 12.8% respectively, and in 2021, it increased to 69.5%.
In particular, Xiaomi Group also received other revenue of 827 million yuan in 2021, an increase of 28.6% compared with 643 million yuan in 2020. The so-called other income, which includes dividend income, government subsidies, etc. If the subsidies are removed, the profit scale of Xiaomi Group will shrink again.
On the other hand, Xiaomi Group also disclosed the latest developments in the smart electric vehicle business (Xiaomi Auto) in the financial report. Following the announcement of the car manufacturing plan in March 2021, as of now, the R&D team of Xiaomi's automotive business has exceeded 1,000 people, and it will continue to expand research and development in core areas such as automatic driving and intelligent cockpit, and is expected to be officially mass-produced in the first half of 2024.
Previously, there were media reports that Xiaomi Group may announce engineering prototypes in the third quarter of 2021. In this regard, Wang Xiang, president of Xiaomi Group, responded on the earnings conference call that "find a suitable time to tell you more details, many things are not convenient to disclose now." ”
According to Bedo Finance, Xiaomi Auto has settled in beijing economic and technological development zone in November 2021. According to the voting results previously initiated by Lei Jun, founder and CEO of Xiaomi Group, "fans want us to do mid-to-high-end cars, so the price range of the first Xiaomi car is 100,000-300,000 yuan." ”
This means that the direct competitor of Xiaomi Group may be Xiaopeng Motors. Prior to this, Lei Jun had already participated in multiple rounds of investment in Xiaopeng Automobile through Shunwei Capital. On August 27, 2020, Xiaopeng Automobile was listed on the New York Stock Exchange in the United States, and Lei Jun also gave a kilogram of "gold bricks" as a gift to He Xiaopeng, the founder of Xiaopeng Motors.
According to Bedo Finance, Xiaomi has invested in more than 20 projects related to new energy vehicles and travel. In addition to Weilai Automobile and Xiaopeng Automobile, it also includes Renren Car, Kailide, Immediate Travel, Neng chain Group, Zhixing, 51 Car, Car Product Hui and Cargo Lala.
Despite the frequent car-making actions, Xiaomi Group's performance in the secondary market is not satisfactory, and the "roller coaster" posture is obvious. On January 5, 2021, Xiaomi Group's stock price rose to HK$35.90 per share, a record high. However, since then, it has plummeted, falling to HK$20.65 per share on March 9, 2021, with a cumulative decline of 42.48%.
On June 4, 2021, Xiaomi Group's stock price rose again to HK$30.45/share, and then slumped, and fell to HK$11.38/share on March 15, 2022, creating a new low of 52 weeks (nearly one year), with a cumulative decline of 62.63% in the stock price, and the market value has been "cut".
At present, the share price of Xiaomi Group is still lower than the IPO issue price. It is understood that Xiaomi Group was listed on the Hong Kong Stock Exchange on July 9, 2018, with an issue price of HK$17 per share.
There are many "accidents" in car building, and Jia Yueting and Xu Jiayin have not yet been realized
Bedo Finance learned that Xiaomi Group announced on March 30, 2021 that it had officially approved a project for the smart electric vehicle business, with an initial investment of 10 billion yuan and an estimated investment of 10 billion US dollars in the next 10 years. At the same time, Lei Jun will also serve as the CEO of the smart electric vehicle business.
In particular, Lei Jun also regards Xiaomi Automobile as the last entrepreneurial project to "bet on the full reputation of life".
In addition to Lei Jun, Jia Yueting, the founder of the original LeTV network, also has the same pursuit, and the layout time is earlier. As early as 2013, Jia Yueting created Faraday Future (Faraday Future, also known as "FF") in California, preparing to build a car. Shortly thereafter, Jia Yueting "stayed" in the United States.
For Jia Yueting and LeTV car manufacturing, Liu Chuanzhi, chairman of Legend Holdings, once commented, "Your approach is indeed very bold, and you can have a real breakthrough." According to the 21st Century Business Herald, LeTV's investment in a round of financing Legend Holdings reached 40 million US dollars.
For mass production, Jia Yueting once said in response to a question from the media, "Now as long as there are a few billion to ten billion we are enough for mass production." Mass production should be in the next year's time. "As of now, FF has not been able to achieve this goal. Despite this, FF achieved another goal in July 2021 - to list on the NASDAQ in the United States.
FF U.S. factory (image licensed)
At this point, FF became the second car company that did not have the energy to produce and successfully listed, while the other was Evergrande Automobile (HK:00708). Previously, on July 27, 2020, Evergrande Health had issued an announcement that the board of directors proposed to change the company name from "Evergrande Health" to "Evergrande Automobile".
In August 2020, Evergrande Automobile released the first six models of Hengchi. In 2021, a number of Hengchi automobiles under Evergrande Automobile have also completed winter tests and summer tests, and said that they are expected to trial production in the fourth quarter of this year (2021) and achieve large deliveries next year.
According to media reports, on March 22, 2022, Evergrande New Energy Automobile Group held a mobilization meeting of "Dagan Three Months to Achieve Hengchi 5 Mass Production", and Xu Jiayin, chairman of the board of directors of Evergrande Group, said, "June 22, Hengchi 5 mass production must be realized, laying a solid foundation for the healthy and sustainable development of Evergrande Automobile." ”
In contrast, Jia Yueting said when FF was launched in July 2021, "FF's goal now is to focus on high-quality delivery within 12 months." From this point of view, the delivery schedule of Jia Yueting and Xu Jiayin is basically the same. Previously, Evergrande Health, the predecessor of Evergrande Automobile, also planned to spend HK$6.75 billion to acquire a 45% stake in Faraday Future (FF).
However, the cooperation between the two parties was not fully implemented and the agreement was terminated in December 2018. However, on the date of FF's listing, Evergrande Automobile still held 20% of the equity of FF. Evergrande Automobile said, "The company is a financial investor in FF and will not comment on other situations."
And Xiaomi car, will it be the next FF?