XIAOMI(01810)2022-04-27 08:45Revenue and Profit - Revenue for 2021 reached RMB 328.3 billion, a significant increase from RMB 245.9 billion in 2020[30] - Gross profit for 2021 was RMB 58.3 billion, up from RMB 36.8 billion in 2020[30] - Operating profit for 2021 stood at RMB 26.0 billion, compared to RMB 24.0 billion in 2020[30] - Net profit attributable to the company's owners in 2021 was RMB 19.3 billion, slightly down from RMB 20.4 billion in 2020[30] - Adjusted net profit for 2021 was RMB 22.0 billion, up from RMB 13.0 billion in 2020[30] - Total revenue reached RMB 328.3 billion, a year-on-year increase of 33.5%[33] - Adjusted net profit was RMB 22 billion, up 69.5% year-on-year[33] - Gross profit rose by 58.5% from RMB 36.8 billion in 2020 to RMB 58.3 billion in 2021, with gross margin improving from 14.9% to 17.7%[73] - Adjusted net profit surged by 69.5% from RMB 13.0 billion in 2020 to RMB 22.0 billion in 2021[84] - Annual profit for 2021 was RMB 19,283,235 thousand with a net profit margin of 5.9%[143] - Non-IFRS annual profit for 2021 was RMB 22,039,474 thousand with a net profit margin of 6.7%[143] Assets and Liabilities - Total assets for 2021 amounted to RMB 292.9 billion, up from RMB 253.7 billion in 2020[31] - Non-current assets increased to RMB 107.0 billion in 2021 from RMB 77.4 billion in 2020[31] - Current assets for 2021 were RMB 185.9 billion, compared to RMB 176.3 billion in 2020[31] - Total equity attributable to the company's owners in 2021 was RMB 137.2 billion, up from RMB 123.7 billion in 2020[31] - Non-current liabilities for 2021 were RMB 39.7 billion, a significant increase from RMB 21.7 billion in 2020[31] - Cash and cash equivalents as of December 31, 2021, were RMB 23.5 billion[145] - Total cash resources as of December 31, 2021, were RMB 106 billion[145] - Asset-liability ratio as of December 31, 2021, was -31.1%, indicating a net cash position[146] - Total borrowings as of December 31, 2021, were RMB 26.2 billion, compared to RMB 25.9 billion as of September 30, 2021[153] Smartphone Business - Global smartphone shipments reached 190.3 million units, a year-on-year increase of 30.0%[36] - High-end smartphone shipments (priced above RMB 3,000 in China or €300 overseas) exceeded 24 million units, up from 10 million units in 2020[37] - Smartphone revenue reached RMB 208.9 billion, a year-on-year increase of 37.2%[39] - Smartphone segment revenue increased by 37.2% from RMB 152.2 billion in 2020 to RMB 208.9 billion in 2021, driven by higher shipment volume and ASP[63] - Smartphone shipments grew by 30.0% from 146.4 million units in 2020 to 190.3 million units in 2021, with ASP rising 5.6% from RMB 1,039.8 to RMB 1,097.5 per unit[63] - High-end smartphone shipments increased from 7% of total smartphone shipments in 2020 to 13% in 2021[63] - Smartphone shipments in Q4 2021 increased by 4.4% YoY to 44.1 million units, with ASP rising 13.3% to RMB 1,143.6 per unit[93] - Smartphone segment sales increased by 8.7% from RMB 41.7 billion in Q3 2021 to RMB 45.3 billion in Q4 2021, driven by higher shipment volumes[124] IoT and Lifestyle Products - IoT and lifestyle products revenue reached RMB 85 billion, a year-on-year increase of 26.1%[45] - IoT and lifestyle products revenue grew by 26.1% from RMB 67.4 billion in 2020 to RMB 85.0 billion in 2021, driven by smart TVs, Mi Pad 5 series, and smart air conditioners[64] - IoT and lifestyle product revenue in Q4 2021 grew 19.1% YoY to RMB 25.067 billion, driven by strong sales of smart TVs, tablets, and smartwatches[94] - IoT and lifestyle product revenue increased by 19.7% from RMB 20.9 billion in Q3 2021 to RMB 25.1 billion in Q4 2021, driven by higher sales of smart TVs, tablets, and robotic vacuum cleaners[119] - IoT and lifestyle products segment sales grew by 17.8% from RMB 18.5 billion in Q3 2021 to RMB 21.8 billion in Q4 2021, due to increased sales of IoT and lifestyle products[125] Internet Services - Internet service revenue reached RMB 28.2 billion in 2021, a year-over-year increase of 18.8%, with overseas internet service revenue growing 79.5% year-over-year in Q4 2021[47] - Internet services revenue increased by 18.8% from RMB 23.8 billion in 2020 to RMB 28.2 billion in 2021, with overseas internet services revenue surging 84.3% from RMB 2.7 billion to RMB 5.0 billion[66] - Internet service revenue in Q4 2021 increased by 17.7% YoY to RMB 7.27 billion, with overseas internet service revenue surging 79.5% to RMB 1.6 billion[96] - Internet services segment sales decreased by 10.3% from RMB 1.9 billion in Q3 2021 to RMB 1.7 billion in Q4 2021, primarily due to lower costs in other value-added services[126] R&D and Innovation - R&D expenditure reached RMB 13.2 billion, a year-on-year increase of 42.3%[36] - R&D expenditure reached RMB 13.2 billion in 2021, a year-on-year increase of 42.3%[54] - The company plans to invest over RMB 100 billion in R&D over the next five years[54] - R&D expenses increased by 42.3% from RMB 9.3 billion in 2020 to RMB 13.2 billion in 2021, mainly due to higher R&D personnel compensation[74] - R&D expenses increased by 24.1% from RMB 3.1 billion in Q4 2020 to RMB 3.9 billion in Q4 2021, primarily due to higher R&D personnel compensation and development-related expenses[104] - R&D expenses rose by 19.0% from RMB 3.2 billion in Q3 2021 to RMB 3.9 billion in Q4 2021, mainly due to increased development-related expenses[129] Overseas Market Performance - Overseas revenue accounted for 49.8% of total revenue, reaching RMB 163.6 billion, up 33.7% year-on-year[38] - Overseas market revenue reached RMB 163.6 billion in 2021, a year-over-year increase of 33.7%, accounting for 49.8% of total revenue[49] - Shipments of premium smartphones priced at €300 or above in overseas markets grew by over 160% year-over-year in 2021[50] User Base and Ecosystem - MIUI monthly active users reached 508.9 million, a year-on-year increase of 28.4%[36] - Connected IoT devices (excluding smartphones, tablets, and laptops) reached 434 million, up 33.6% year-on-year[36] - Global MIUI monthly active users reached 508.9 million in December 2021, a year-over-year increase of 28.4%[47] - AIoT connected devices (excluding smartphones, tablets, and laptops) reached 434 million by the end of 2021, a year-over-year increase of 33.6%[51] Advertising and Marketing - Advertising revenue reached RMB 18.1 billion in 2021, a year-over-year increase of 42.3%, driven by increased smartphone shipments and user base expansion[48] - Sales and marketing expenses increased by 22.9% from RMB 5.1 billion in Q4 2020 to RMB 6.3 billion in Q4 2021, driven by higher logistics and advertising costs[105] - Sales and marketing expenses increased by 28.1% from RMB 4.9 billion in Q3 2021 to RMB 6.3 billion in Q4 2021, driven by higher advertising and promotional expenses[130] Investments and Acquisitions - The company invested in over 390 companies with a total book value of RMB 60.3 billion, a 25.7% increase year-on-year[60] - The total book value of investments as of December 31, 2021, was RMB 60.3 billion, a 25.7% year-over-year increase[157] - Xiaomi completed the acquisition of Zimi on July 5, 2021, and Deepmotion Tech Limited on September 22, 2021, making both wholly-owned subsidiaries[158] - Fair value changes of investments recorded a gain of RMB 3.9 billion in Q4 2021, compared to a loss of RMB 2.0 billion in Q3 2021, due to improved market sentiment in China's tech sector[132] - Share of net profit from equity investments increased from RMB 45.1 million in Q3 2021 to RMB 247.1 million in Q4 2021, mainly due to dilution gains from Kingsoft Cloud[133] - Other net losses increased from RMB 0.5 billion in Q3 2021 to RMB 3.1 billion in Q4 2021, primarily due to impairment of equity investments, partially offset by gains from the disposal of investee companies[135] Cash Flow and Financing - Operating cash flow for 2021 was RMB 9.785 billion, a significant decrease from RMB 21.879 billion in 2020[85] - Investment cash outflow for 2021 was RMB 45.008 billion, primarily due to short-term bank deposits (RMB 13.9 billion), long-term investments (RMB 12.9 billion), and long-term bank deposits (RMB 8.4 billion)[87] - Financing cash inflow for 2021 was RMB 4.5 billion, driven by increased borrowings (RMB 9.2 billion) and funds from investors (RMB 3.5 billion), partially offset by share repurchases (RMB 7 billion)[88] - Capital expenditures for 2021 totaled RMB 20.268 billion, including RMB 7.169 billion in capital spending and RMB 13.099 billion in long-term investments[89] - Net cash generated from operating activities in Q4 2021 was RMB 11.7317 billion, compared to a net cash used in operating activities of RMB 10.2307 billion in Q3 2021[149] - Net cash used in investing activities in Q4 2021 was RMB 20.0715 billion, primarily due to changes in short-term investments at fair value (RMB 9.3 billion) and short-term bank deposits (RMB 7.2 billion)[151] - Net cash used in financing activities in Q4 2021 was RMB 550.1 million, mainly due to share repurchases (RMB 500 million) and lease liability payments (RMB 400 million), partially offset by an increase in borrowings (RMB 600 million)[152] - Capital expenditures for Q4 2021 totaled RMB 4.6025 billion, including RMB 2.0103 billion in capital expenditures and RMB 2.5922 billion in long-term investments[154] Smart Electric Vehicle Business - Smart electric vehicle business has a team of over 1,000 people, with mass production expected in the first half of 2024[56] Employee and Shareholder Information - As of December 31, 2021, Xiaomi had 33,427 full-time employees, including 14,592 R&D personnel, with total compensation expenses (including share-based compensation) of RMB 13.8 billion, a 39.4% increase year-over-year[159] - The company has conditionally granted a total of 400,906,827 unexercised B-class shares under the Pre-IPO Employee Share Option Scheme, representing approximately 1.6% of the company's issued shares as of the last practicable date[185] - During the reporting period, 71,118,410 B-class shares were exercised under the Pre-IPO Employee Share Option Scheme[185] - The total number of B-class shares that may be issued upon the exercise of all options granted under the Post-IPO Share Option Scheme and any other share option plans is 1,568,094,311, not exceeding 10% of the issued B-class shares as of the listing date, representing approximately 6.28% of the issued shares as of the last practicable date[190] - As of December 31, 2021, 233,500,000 options have been granted under the Post-IPO Share Option Scheme, with a total of 1,446,194,311 B-class shares available for issuance, representing approximately 5.79% of the company's issued share capital as of the last practicable date[195] - Total employee stock options granted under the post-IPO employee stock option plan amounted to 121,900,000 shares[196] - The maximum number of shares issuable under Xiaomi Financial Stock Option Plan II is 150,000,000 shares[199] - Xiaomi Financial Stock Option Plan I has a maximum issuable share limit of 42,070,000 shares, subject to adjustment for stock splits or dilution[199] - Lei Jun cannot be granted stock options if it would increase his beneficial interest in Xiaomi Financial above 28.0467%[199] - Stock options under Xiaomi Financial Stock Option Plan I can be exercised within 20 years from the grant date[200] - Xiaomi Financial Stock Option Plan II allows exercise of options without a minimum holding period[200] - Zhou Shouzi was appointed as an executive director effective March 24, 2021[197] - Xiaomi Financial Stock Option Plan II includes a wide range of eligible participants, including employees, directors, consultants, and business partners[198] - The exercise price for Xiaomi Financial stock options is determined at the time of grant[198] - Xiaomi Financial Stock Option Plan I aims to incentivize participants to enhance the value of Xiaomi Financial for shareholders[198] Corporate Governance and Financial Instruments - Xiaomi Best Time International Limited issued 855 million zero-coupon convertible bonds due 2027[147] - Xiaomi issued 400 million in 4.100% senior green bonds due in 2051, both unconditionally and irrevocably guaranteed by the company[148] - The company's subsidiary, Xiaomi Best Time International Limited, issued 855 million of zero-coupon guaranteed convertible bonds due 2027, with an initial conversion price of HK800 million of 2.875% senior notes due 2031 and 9,525,404,847[174] - The company's distributable reserves as of December 31, 2021, amounted to RMB 56,918.5 million[173] - The company made charitable donations of approximately RMB 22.5 million during the reporting period[169] - The company's total bank loans and borrowings as of December 31, 2021, are detailed in the annual report's "Management Discussion and Analysis" section and Note 34 of the consolidated financial statements[168] - The company's property and equipment changes during the reporting period are detailed in Note 15 of the consolidated financial statements[167] - The company's subsidiary details are provided in Note 12 of the consolidated financial statements[166] - The company's business review, including financial performance analysis, future development indicators, and major risks, is detailed in the "Chairman's Report" and "Management Discussion and Analysis" sections of the annual report[165] Other Financial Metrics - The hardware business's comprehensive net profit margin was less than 2.0% in 2021, fulfilling the company's commitment[60] - The company conducted privacy and data security checks on over 85,000 apps in the third quarter of 2021[57] - Q4 2021 revenue increased by 21.4% YoY to RMB 85.575 billion, with smartphone revenue contributing 59% (RMB 50.464 billion), IoT and lifestyle products 29.3% (RMB 25.067 billion), and internet services 8.5% (RMB 7.27 billion)[92] - Other revenue in Q4 2021 surged 363.3% YoY to RMB 2.775 billion, mainly due to the sale of apartment buildings and materials[97] - Cost of sales in Q4 2021 increased by 19.9% YoY to RMB 70.916 billion, with smartphone cost of sales rising 18.8% to RMB 45.346 billion[98][99] - IoT and lifestyle product division sales cost increased by 17.8% from RMB 18.5 billion in Q4 2020 to RMB 21.8 billion in Q4 2021, driven by higher sales of IoT and lifestyle products[100] - Internet services division sales cost decreased by 10