Today, Chinese manufacturing giant, Xiaomi, released the financial report for the second quarter (Q2) and first half (H1) of 2019. According to the company, its Q2 revenue hit 52 billion yuan ($7.3 billion), up 15% year-on-year. The adjusted net profit was 3.64 billion yuan ($516 million), and the net profit attributable to shareholders was 2.51 billion yuan ($356 million).
For H1 2019, Xiaomi’s total revenue was 95.71 billion yuan ($13.5 billion), up 20.2% year-on-year. The adjusted net profit was 5.72 billion yuan ($810 million), a year-on-year increase of 49.8% which far exceeds expectations. In addition, its smartphone shipments for H1 2019 hit 60 million units. However, its TV brand performance was magnificent. For the first half of the year, Xiaomi TV ranks first in China and its among the top 5 TV brands globally. On research and development, the company spent 3.3 billion yuan, up 30% year-on-year. Also, it a leader in the IoT market.
Gizchina News of the week
Lei Jun, founder, chairman, and CEO of Xiaomi Group said that for H1 2019, Xiaomi’s result is good despite the challenging business environment. With the overall profitability and the total cash reserves is sufficient. Xiaomi will be able to grab market opportunities for 5G and AIoT. It also has the capacity to increase investment in R&D and expand investment to grasp other market opportunities.
Xiaomi Group’s “Mobile + AIoT ” dual-engine strategy hit the road in the first half of 2019. As of 2019, the global MIUI active subscribers hit 2.79 million people. The Xiaomi IoT platform also connects 196 million devices excluding smartphones and notebooks.