XIAOMI(HK:01810)2022-05-19 09:32Financial Performance - Xiaomi Corporation reported total revenue of RMB 73.35 billion for Q1 2022, a decrease of 4.6% year-on-year[1]. - Adjusted net profit for Q1 2022 was RMB 2.86 billion, down 52.9% compared to RMB 6.07 billion in Q1 2021[1]. - The company incurred a loss of RMB 911.4 million in operating profit for Q1 2022, compared to a profit of RMB 8.16 billion in Q1 2021[1]. - The company recorded a net loss of RMB 500 million in Q1 2022, compared to a profit of RMB 7.8 billion in Q1 2021[38]. - The gross margin fell from 18.4% in Q1 2021 to 17.3% in Q1 2022, primarily due to a higher proportion of lower-margin advertising revenue[30]. - The company reported a net loss of RMB 530,554,000 for the three months ended March 31, 2022, compared to a profit of RMB 7,788,907,000 for the same period in 2021, representing a significant decline in performance[72]. - Total comprehensive loss for the period amounted to RMB 793,577,000, a stark contrast to the total comprehensive income of RMB 8,193,277,000 in the previous year[72]. Revenue Breakdown - Revenue from overseas markets reached RMB 37.5 billion, accounting for 51.1% of total revenue in Q1 2022[4]. - Revenue from the smartphone segment was RMB 45,762,689,000, while the IoT and consumer products segment generated RMB 19,477,357,000, contributing to a total revenue of RMB 73,351,502,000 for the quarter[78]. - Revenue from Mainland China was RMB 35,889,645 thousand, accounting for 48.9% of total revenue, down from 51.3% in the same period last year[80]. - Revenue from other global regions was RMB 37,461,857 thousand, representing 51.1% of total revenue, an increase from 48.7% in the previous year[80]. Smartphone Performance - Global smartphone shipments reached 38.5 million units in Q1 2022, maintaining a market share of 12.6%[5]. - Smartphone revenue fell by 11.1% year-on-year to RMB 45,762.7 million, with shipments down 22.1% to 38.5 million units[23]. - The average selling price (ASP) of smartphones increased by 14.1% year-on-year to RMB 1,189 in Q1 2022[4]. - Xiaomi's smartphone market share in mainland China was 13.9%, ranking fifth in Q1 2022[6]. - In Europe, Xiaomi's smartphone market share was 19.7% in Q1 2022, maintaining the third position, with significant growth in operator channel market share[15]. IoT and Consumer Products - Xiaomi's IoT platform connected 478.1 million devices as of March 31, 2022, representing a 36.2% year-on-year growth[2]. - Xiaomi's IoT and lifestyle products revenue reached RMB 19.5 billion in Q1 2022, representing a year-on-year growth of 6.8% with a gross margin of 15.6%, the highest in a single quarter[9]. - Revenue from smart home appliances grew over 25% year-on-year in Q1 2022, indicating strong demand in this category[10]. - IoT and consumer products revenue increased by 6.8% from RMB 18.2 billion in Q1 2021 to RMB 19.5 billion in Q1 2022, driven by strong sales of the Xiaomi Pad 5 series and smart home appliances[24]. Internet Services - Internet services revenue for Q1 2022 was RMB 7.1 billion, a year-on-year increase of 8.2%, driven by growth in advertising and gaming sectors[11]. - Xiaomi's overseas internet services revenue reached RMB 1.6 billion in Q1 2022, a year-on-year growth of 71.1%, accounting for 21.9% of total internet services revenue[12]. - Xiaomi's advertising revenue reached RMB 4.5 billion in Q1 2022, a year-on-year increase of 16.2%, benefiting from growth in search and brand advertising[11]. - Internet services revenue declined by 2.2% to RMB 7.11 billion, attributed to lower pre-installed business income related to smartphone shipments[43]. Research and Development - Research and development expenditure for Q1 2022 was RMB 3.5 billion, reflecting a 16.0% increase year-on-year[3]. - R&D expenses increased by 16.0% from RMB 3 billion in Q1 2021 to RMB 3.5 billion in Q1 2022, attributed to higher personnel costs and innovation-related expenditures[30]. - R&D expenses in Q1 2022 were RMB 3.49 billion, compared to RMB 3.01 billion in Q4 2021, reflecting a year-over-year increase[71]. Cash Flow and Financing - Cash and cash equivalents amounted to RMB 34.7 billion as of March 31, 2022, up from RMB 23.5 billion as of December 31, 2021[60]. - The company issued USD 600 million 3.375% senior notes due in 2030, guaranteed unconditionally and irrevocably by the company[61]. - The company issued USD 800 million 2.875% senior notes due in 2031 and USD 400 million 4.100% green bonds due in 2051, both guaranteed by the company[62]. - The net cash generated from investing activities in Q1 2022 was RMB 17.57 billion, primarily due to a net change in short-term investments of RMB 11.5 billion[65]. - The net cash generated from financing activities in Q1 2022 was RMB 2.35 billion, an increase from a net cash used of RMB 0.55 billion in Q4 2021[63]. Market Expansion and Strategy - The company continues to evaluate opportunities for market expansion and new product development to drive future growth[89]. - The company plans to enhance store efficiency through improved collaboration with operators and optimizing product sales structure[17]. - The company has maintained compliance with corporate governance codes and has not faced any significant litigation or arbitration as of March 31, 2022[96].