Despite a raging pandemic, Chinese smartphone giant, Xiaomi posted solid revenue and profit growth in 2020. Last year, Xiaomi’s total revenue for the year amounted to RMB245.9 billion, representing an increase of 19.4% year-over-year; adjusted net profit for the year was RMB13.0 billion, representing an increase of 12.8% year-over-year, exceeding market expectations.
In the fourth quarter of 2020, the Group’s revenue amounted to RMB70.5 billion representing an increase of 24.8% year-over-year; adjusted net profit was RMB3.2 billion representing an increase of 36.7% year-over-year. Xiaomi doubled down on the premium smartphone segment not just in their home market but overseas as well.
Their Redmi Note 9 series proved to be a hit in all critical markets including Europe and India. Due to increased sales of premium smartphones, Xiaomi’s smartphone ASP increased by 6.1% to RMB1,040 in 2020 and by 6.8% to RMB1,009 in the fourth quarter of 2020, both on a year-over-year basis. During the Singles’ Day and the Double 12 Shopping Festivals in 2020, Xiaomi and Redmi brand smartphones together ranked 1st in sales volume among Android smartphones on Tmall.com, JD.com, and Suning.com.
Last year, the Xiaomi group propelled the “Smartphone × AIoT” strategy as revenue from IoT and lifestyle products segment reached RMB67.4 billion representing an increase of 8.6% year-over-year. In the fourth quarter of 2020, revenue from IoT and lifestyle products segment was RMB21.1 billion. The brand did great in the TV segment as well in overseas markets, following the successful launch of our smart TVs in India, Indonesia, and Russia, Xiaomi also introduced smart TVs to France, Poland, and other key markets in 2020 as it further captured the large overseas market opportunity.
The brand didn’t stop here, they quite heavily invested in R&D as well, and came up with technologies like Under-display-camera, 120W fast charging technology and MIUI privacy protection features, and more. In January 2021, the Group was awarded the “2020 Xiaomi Million Dollar Technology Award” to the engineering teams that contributed to the development of 120W fast charging technology.
2020 Financial Highlights:
- Total revenue was approximately RMB245.9 billion, up 19.4% YoY;
- Gross profit was approximately RMB36.8 billion, up 28.7% YoY;
- Non-IFRS adjusted net profit was RMB13.0 billion, up 12.8% YoY, beating market consensus;
- Earnings per share were RMB0.849.
4Q 2020 Financial Highlights:
- Total revenue at a historical quarterly high of approximately RMB70.5 billion, up 24.8% YoY;
- Gross profit at approximately RMB11.3 billion, up 44.4% YoY;
- Non-IFRS adjusted net profit was RMB3.2 billion, up 36.7% YoY.