Xiaomi Reports 70% YoY Growth in Adjusted Net Profit in 2021

Gadget Time / Press Releases / XIAOMI | Mar 22, 2022

Xiaomi Corporation (“Xiaomi” or the “Group”; stock code:1810), a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core, announced its audited consolidated results for the year ended December 31, 2021.

Despite challenges around global economies, Xiaomi’s resilient business model achieved healthy annual growth. In 2021, total revenue for the year reached RMB328.3 billion, an increase of 33.5% year-over-year while adjusted net profit for the year came in at RMB22.0 billion, representing an increase of 69.5% year-over-year with both annual metrics beating consensus.

Robust growth in overseas business with record-high market share of global smartphone shipments

In 2021, Xiaomi’s products continue to attract global attention. Xiaomi’s global smartphone shipments grew 30.0% year-over-year to reach 190.3 million units, a record high. According to Canalys, in 2021, our smartphone shipments ranked No. 3 globally with a record-high market share of 14.1%

Overseas business recorded robust growth as Xiaomi continued to advance its overseas strategy last year. In 2021, revenue from overseas markets reached RMB163.6 billion in 2021 increasing 33.7% year-over-year and accounting for 49.8% of total revenue. Apart from smartphone business, overseas internet and IoT business show robust growth. Overseas internet revenue reached RMB5.0 billion in 2021 increasing 84.3% year-on-year and accounting for 17.8%

Building on the strengthened presence in overseas markets, Xiaomi continued to enhance its competitive advantages in local markets with smartphone shipments growing in Europe, the Middle East, Latin America, Africa, and Asia Pacific. According to Canalys, Xiaomi’s market share of smartphone shipments ranked No. 1 in 14 countries and regions and among the top five in 62 countries and regions globally. In Europe, Xiaomi’s smartphone shipments in Europe ranked No. 2 in 2021 with 22.5% market share.

Emerging markets maintained strong growth momentum. In Latin America and Africa, Xiaomi’s smartphone shipments in 2021 grew 94.0% and 65.8% year-on-year, respectively, and were the No. 3 smartphone vendor in both regions.

Xiaomi continued to strengthen the carrier channel overseas. According to Canalys, Xiaomi shipped more than 25 million smartphones through carrier channels in overseas markets (excluding India, Sri Lanka, Nepal and Bangladesh) in 2021, an increase of over 120% year-over-year. Xiaomi’s smartphone market share through carrier channels ranked top 3 in 34 overseas markets, with carrier channel market share in Europe increased from 7.9% in 2020 to 16.8% in 2021, according to Canalys.

Competitiveness in premium smartphone segment improved while dual-brand strategy continued to drive growth momentum

Through the company’s unwavering commitment to premiumization, Xiaomi’s dual-brand strategy continued to make progress. Building on the company’s precise product and marketing strategies, Xiaomi’s user base continued to diversify.

In 2021, Xiaomi’s global shipments of smartphones with retail prices at or above RMB3,000 in mainland China and EUR300, or equivalent, in overseas markets exceeded 24 million units, far above the approximately 10 million units we shipped in 2020. Premium smartphone shipments as a percentage of our total shipments increased from approximately 7% in 2020 to approximately 13%.

In 2021, Xiaomi’s overseas shipments of smartphones with retail prices at or above EUR300 increased over 160% year-over-year. According to Canalys, Xiaomi ranked No. 3 in terms of overseas shipments of premium smartphones with retail prices at or above USD350 in 2021, indicating that Xiaomi’s commitment to premiumization overseas is bearing fruit.

Xiaomi 12 series has instantly become one of the most popular premium smartphones after launch leveraging on its hardware and innovative technologies. Its omni-channel sales exceeded RMB1.8 billion in just 5 minutes after launch.

At the meantime, Redmi continued to bring cutting-edge technologies to the mass market and offer the ultimate user experience across highly accessible products. In February 2022, within the first minute of launch, sales of the Redmi K50G and the Redmi K50G Mercedes-AMG Petronas Formula One Team Edition exceeded RMB280 million. At the same time, Xiaomi continued to solidify offline channel in mainland China as it has played a more prominent role in premium smartphone shipment growth.

Strengthened synergies of AIoT business and advantages of smart ecosystem

Xiaomi remains focused on executing the “Smartphone × AIoT” strategy globally. As of December 31, 2021, the number of connected devices (excluding smartphones, tablets and laptops) on our AIoT platform reached 434 million, an increase of 33.6% year-over-year; the number of users with five or more devices connected to our AIoT platform (excluding smartphones, tablets and laptops) reached 8.8 million, representing a year-over-year increase of 40.4%. In December 2021, the MAU of our AI Assistant (“小愛同學”) reached 107.0 million, up 23.3% year-over-year, and the MAU of our Mi Home App grew to 63.9 million, representing a year-over-year increase of 42.0%.

Benefiting from the leading position in AIoT and extensive user base, Xiaomi’s global shipments of our smart TV reached 12.3 million units against an overall decline in the global TV market in 2021. According to All View Cloud (“AVC”), smart TV shipments ranked No. 1 in mainland China for the third consecutive year, ranking among the top five globally.

Global shipments of air conditioners exceed 2 million units, increasing over 70% year-over-year in 2021. Xiaomi’s smart large home appliance category, which comprises air conditioners, refrigerators and washing machines, also delivered strong growth with revenue increasing over 60% year-over-year in 2021. Within this category, shipments of our smart air conditioner exceeded 2 million units in 2021.

Xiaomi launched Xiaomi Pad 5 series in August, 2021 and has received widespread popularity; its shipments ranking in mainland China rose to No. 4 in the fourth quarter of 2021, according to Canalys.

In 2021, Xiaomi’s IoT and lifestyle products segment revenue increased 26.1% year-over-year to RMB85.0 billion.

Internet service business maintained solid growth while overseas contribution continued to expand

In 2021, our internet services business maintained solid growth despite increased industry challenges. In 2021, our internet services revenue reached RMB28.2 billion, an increase of 18.8% year-over-year.

In December 2021, the global MAU of MIUI increased 28.4% year-over-year to 508.9 million. Xiaomi added 112.5 million MAUs of MIUI globally in 2021, including 18.9 million new users in mainland China.

Meanwhile, TV internet user base also maintained solid growth. In December 2021, MAU of our smart TV grew more than 29% year-over-year, and the number of TV paid subscribers increased 14.5% year-over-year to 4.9 million.

In 2021, our advertising revenue reached RMB18.1 billion, representing an increase of 42.3% year-over-year, primarily attributable to our expanding user base, the higher proportion of premium smartphones, and stronger monetization capabilities. In the fourth quarter of 2021, Xiaomi’s advertising revenue amounted to RMB4.9 billion, a year-over-year increase of 34.0%, mainly due to growth in global pre-installation revenue and overseas search revenue, recording the 8th consecutive quarter-over-quarter growth.

The internet services revenue overseas increased by 79.5% to RMB1.6 billion in the fourth quarter of 2021, driving Xiaomi’s growth momentum.

Increased in investment in R&D and talent development to drive innovation and technology advancement

In 2021, Xiaomi’s R&D expenditures reached RMB13.2 billion, an increase of 42.3% year-over-year. Aiming to pursue technology advancement as a core value, Xiaomi plans to invest more than RMB100 billion in research and development over the next five years.

Xiaomi attaches great importance to the development and retention of our technology talent. The company held the Xiaomi Million Dollar Technology Award for the third consecutive year, and the 2021 award was won by the CyberDog bio-inspired robot project team. This is a testament to our support for the pioneering spirit and technological innovation of our engineers. Additionally, Xiaomi announced new share incentive awards for young engineers, technology specialists, middle and senior management, and recipients of our New 10-year Entrepreneurship Program.

Xiaomi demonstrated relentless pursuit of cutting-edge technology by equipping our first proprietary ISP Surge C1 and charging chip Surge P1 in two premium flagship models, Xiaomi MIX FOLD and Xiaomi 12 Pro, respectively. We spotlighted our camera and imaging technology with the debut of the liquid lens in Xiaomi MIX FOLD and the ProFocus algorithm on our latest Xiaomi 12 and Xiaomi 12 Pro, which further optimized photography experience.

In 2021, Xiaomi established its robotics laboratory and launched the bio-inspired quadruped robot CyberDog Engineering Explorer Edition; furthermore, the company introduced Xiaomi Smart Glasses representing Xiaomi’s extensive exploration of future technology.

Building on Xiaomi’s resilient business model, complete smart ecosystem and extensive user base, Xiaomi is set to overcome the macroeconomic headwinds, maintain solid growth momentum and achieve sustainable development.

Xiaomi is an internet company with smartphones and smart hardware connected by an IoT platform at its core. With the vision of being friends with its users and being the “coolest company” in the hearts of its users, Xiaomi is committed to continuous innovation, with an unwavering focus on quality and efficiency.
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