After the Hong Kong stock market on March 22, Xiaomi Group (1810. HK, Xiaomi Group-W) announces its full-year results for 2021.
According to the financial report data, xiaomi's total annual revenue reached 328.3 billion yuan in 2021, an increase of 33.5% year-on-year; the adjusted net profit reached 22 billion yuan, a year-on-year growth rate of 69.5% to a new four-year high, and the net profit of revenue exceeded market expectations. In Q4 of 2021, Xiaomi's total revenue reached 85.6 billion yuan, an increase of 21.4% year-on-year; adjusted net profit reached 4.47 billion yuan, an increase of 39.6% year-on-year, also exceeding market expectations.
In the adversity of the epidemic and lack of core, Xiaomi has achieved a brilliant performance of double increase in revenue and net profit with a very resilient business model.
On the day of the earnings report, Xiaomi Group also released a 10 billion Hong Kong dollar repurchase plan, planning to buy back shares in the open market at an irregular rate of up to HK$10 billion, demonstrating the company's long-term confidence in the stock price.
01
"Dual brand" drives a record high market share,
The competitiveness of the high-end market continues to increase
In 2021, Xiaomi's "dual brand" strategy has made breakthrough progress, the product structure has been continuously improved, and the user group has continued to diversify, further opening up the incremental market. Among them, the Redmi series will be the "ultimate cost performance" brand label deeply rooted in the hearts of the people, Xiaomi brand through different series to accurately position different customer groups, to achieve the overall high-end and differentiation. For example, the digital series that targets the high-end, the Mix series that targets the flagship, the Civi that targets young women, etc.
At the same time, Xiaomi's competitiveness in the high-end market continues to increase. Last year, Xiaomi shipped more than 24 million high-end smartphones priced at RMB3,000 or more in Chinese mainland and 300 euros or more overseas, doubling from the full year of 2020. Among them, the shipment of high-end smartphones priced at 300 euros or more abroad increased by more than 160% year-on-year.
Driven by this, xiaomi will rise in volume and price in the core smartphone business in 2021. According to the data, the revenue of the smartphone business reached RMB208.9 billion in 2021, an increase of 37.2% year-on-year; the annual shipment of smartphones was 190 million units, an increase of 30.0% year-on-year. According to Canalys data, Xiaomi's smartphone shipments ranked third in the world in 2021, with a market share of 14.1% at a record high.
It is not difficult to find that the revenue growth rate is faster than the shipment, which is due to the steady upward movement of the Xiaomi mobile PHONE ASP under the full implementation of the high-end strategy. In terms of data, in 2021, the ASP of Xiaomi smartphone rose from 1039.8 yuan in 2020 to 1097.5 yuan, an increase of 5.6%; at the same time, the proportion of high-end smartphone shipments increased from 7% in 2020 to 13%. This trend has been further consolidated after Q4 21. The data shows that the average price of Xiaomi smartphone shipments in the fourth quarter of 2021 was 1144 yuan, an increase of 14% year-on-year, and hit a record high.
It is worth mentioning that with the super hardware and a number of core breakthrough high-tech, the Xiaomi 12 series has become one of the explosive models in the high-end market after its release. According to the first sales report, the sales volume of omni-channel sales exceeded 1.8 billion yuan in 5 minutes. At the same time, according to third-party data, the combined shipments of Xiaomi 12 and Xiaomi 12Pro in the first month of launch far exceeded the shipments of all other smartphone brands equipped with the new generation of Snapdragon 8 mobile platform processors combined. In 2022, Xiaomi's high-end transformation road is becoming more and more smooth.
02
Overseas markets have become a new engine of growth
It is worth noting that Xiaomi's financial report shows that the company's overseas revenue has approached 50% of the total revenue, and the overseas market has become another key factor for Xiaomi to buck the trend.
The data shows that in 2021, Xiaomi's overseas market revenue reached 163.6 billion yuan, an increase of 33.7% year-on-year, accounting for 49.8% of the total revenue; in the fourth quarter, Xiaomi's overseas market revenue reached 41.6 billion yuan, an increase of 23.4% year-on-year, accounting for 48.7% of the total revenue. In particular, Q4 overseas Internet business revenue increased by 84.3% year-on-year to 5 billion yuan.
It is worth mentioning that the outbreak of overseas markets has further stimulated the growth vitality of MIUI users. In December 2021, global MIUI monthly active users increased by 28.4% year-on-year to 510 million. In 2021, the global net new MIUI monthly active users reached 113 million, and the number of net new users in Chinese mainland reached 18.9 million. Structurally, overseas users have contributed nearly 3/4 of their monthly activities to MIUI.
In the conference call, Xiaomi CFO Lin Shiwei said that Xiaomi's smartphone channel capabilities in overseas markets have been further enhanced. In 2021, Xiaomi's overseas market operator channels (excluding India, Sri Lanka, Nepal and Bangladesh markets) shipped more than 25 million smartphones, an increase of more than 120% year-on-year. Among them, Xiaomi's carrier channel market share in Europe increased from 7.9% in 2020 to 16.8% in 2021.
Xiaomi President Wang Xiang said that in the future, Xiaomi still has a lot of room for growth in overseas markets, including Europe, Latin America and the Asia-Pacific market, which have great potential. "I still see a lot of growth opportunities in the global market, of course, we have to pay attention to the risks and challenges that may be brought about by the shortage of stocks."
03
"Mobile phone ×AIoT" to create an ecological moat,
The advantages of intelligent ecology are expanding
Since 2019, "mobile phone + AIOT" has risen to become the company's core strategy.
When many rice noodles talk about the process of buying millet products, they will mention that starting from one or two products, slowly out of control, and developing to four or five or even more, the stickiness of which lies in the interconnection between mobile phones and these products.
In 2021, Xiaomi's IoT business continued to maintain rapid development, building a stronger barrier for the core mobile phone business.
According to the financial report, in 2021, Xiaomi's IoT and consumer products business revenue was 85 billion yuan, an increase of 26.1% year-on-year; Q4 revenue was 25.1 billion yuan, an increase of 19.1% year-on-year, mainly driven by the growth of smart TVs, Xiaomi tablets 5, air conditioners and other revenues. Among them, smart TV revenue increased by more than 25% year-on-year, and air ice washing revenue increased by more than 60% year-on-year.
By the end of 21, the number of IoT devices connected to Xiaomi's AIOT platform reached 434 million (excluding smartphones, tablets and laptops), an increase of 33.6% year-on-year; the number of users with five or more (excluding smartphones, tablets, laptops) connected to Xiaomi's AIoT platform devices reached 88,000, an increase of 40.4% year-on-year; and the monthly active life of Xiao Ai reached 107 million, an increase of 23.3% year-on-year.
In addition, in terms of offline stores, the number of Xiaomi Home mainland stores at the end of October last year has exceeded 10,000. In 2022, Xiaomi plans to continue to strengthen channel sinking and expand the township market.
In a subsequent conference call, Wang Xiang said:
"By the end of last year, there were more than 10,200 offline retail stores in Chinese mainland. More than 7,000 new stores will be added in 2021. In 2022, this year, Xiaomi will focus more on the improvement of new stores, while paying more attention to our sales and service capabilities. ”
04
Continue to explore cutting-edge technology, and build cars gradually and gradually
How to benchmark Apple? Another 100 billion yuan invested in research and development within 5 years is one of Xiaomi's confidences.
According to the financial report, Xiaomi's R&D expenditure reached 13.2 billion yuan in 2021, an increase of 42.3% year-on-year, and the compound growth rate of 43% in 2017 to the present five years. In the next five years, Xiaomi will continue to increase its R&D investment, which is expected to exceed RMB 100 billion. On the day of the release of the earnings report, Xiaomi CEO Lei Jun tweeted that he would continue to work the road of exploring hardcore technology.
In 2021, Xiaomi has achieved gratifying technological achievements in many cutting-edge fields. In terms of chip technology, on the two high-end flagship models of Xiaomi MIX FOLD and Xiaomi 12 Pro, respectively, equipped with Xiaomi's self-developed professional imaging chip Surging C1 and charging chip Surging P1, the performance of mobile phones has been greatly improved; in terms of imaging technology, in addition to the self-developed ISP chip, Xiaomi is also equipped with GN2 one-inch outsole on 11ultra, and has developed the Night Owl algorithm to enable mobile phones to reach or even exceed the camera's photography technology; fast charging technology, Many Xiaomi mobile phones are equipped with 120w fast charging technology, which is leading in the whole industry.
In addition, in 2021, Xiaomi also took the lead in opening the unmanned factory mode in the mobile phone industry, realizing a million high-end smart phone trial production line in the first phase and completing the second phase in 2023, which can achieve the production capacity of tens of millions of high-end smart phones.
In the closely watched smart electric vehicle business, Xiaomi has also made more progress than expected and maintained official mass production expected in the first half of 2024. In the annual report, Xiaomi said:
"Following our announcement of our car-making plans in March 2021, Xiaomi's smart electric vehicle business has advanced faster than expected. Up to now, the size of our automotive business R&D team has exceeded 1,000 people, and we will continue to expand R&D in core areas such as autonomous driving and intelligent cockpit in the future. ”
In general, based on the business model with strong resistance to pressure, the perfect product ecology and the huge user base, as well as the gradual promotion of the global layout and the firm implementation of the high-end strategy, Xiaomi has maintained a good growth momentum under the influence of adverse factors such as repeated epidemics, obstruction of shipping, and chip shortages. In the future, Xiaomi is expected to grow further steadily, carrying the banner of impacting the world's first for Chinese mobile phone brands.
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