2019年第三季度小米财报PPT版-2019.11-45页_8mb

Xiaomi Corporation Q3 2019 Summary

Core Content

Xiaomi Corporation released its Q3 2019 results, highlighting its growth across various segments, including smartphones, AIoT, and Internet Services. The company also announced new product launches and strategic developments, emphasizing its commitment to innovation and expansion.

Main Points

• Presentation Disclaimer: The presentation materials are not a recommendation for securities and are not liable for any use or reliance on them. The information may change and is subject to future updates.
• Ranking in Industry Reports:
  • Ranked 7th on Fortune's Future 50 List.
  • Ranked 57th in Forbes Top 100 Digital Companies in 2019.
• 5G Development:
  • Launched the Mi 9 Pro 5G smartphone on September 24, 2019.
  • The company is well-prepared to deliver 5G technology to the mass market.
• Smartphone Sales:
  • Sold approximately 32.1 million units in Q3 2019.
  • Smartphone revenue reached RMB32.3 billion, with a 5.5% YoY growth.
  • Smartphone gross margin improved, reflecting healthy operations and margin expansion.
• R&D Investment:
  • R&D expenses increased by 32.5% YoY in Q3 2019.
  • Total R&D expenses from 2016 to Q3 2019 reached RMB16.3 billion.
• AIoT Expansion:
  • Connected devices reached ~213 million, with a 62.0% YoY growth.
  • Users with 5 or more devices connected to Xiaomi's IoT platform reached ~3.5 million, with a 78.7% YoY growth.
  • Launched Mi Refrigerator, Mi TV 5 series, and Mi Watch in 2019.
• Internet Services:
  • Internet service revenue reached RMB5.3 billion, with a 12.3% YoY growth.
  • Advertising revenue excluding preinstallation showed 6.9% YoY growth.
  • MIUI 11 improved user experience with features like minimalistic design, efficiency, and connectivity.
• Global Market Presence:
  • Ranked 4th in Western Europe with 7.0% market share and a 90.9% YoY growth.
  • In Spain, Xiaomi held 22.9% market share with a 63.7% YoY growth.
  • Maintained No.1 position in India for 9 consecutive quarters, with 27.1% market share in Q3 2019.
• Financial Performance:
  • Total revenue reached RMB53.7 billion, with a 5.5% YoY growth.
  • Adjusted net profit was RMB3.5 billion, with a 20.3% YoY growth.
  • Cash resources amounted to RMB56.6 billion, with RMB80.7 billion in total assets.
  • Book value of investment portfolio was RMB28.7 billion, and book value of office and other real estate was RMB10.9 billion.
  • Financial debts stood at RMB15.5 billion.
• Product Portfolio:
  • Launched a range of smartphones across different price segments, including flagship models like Mi 9 Pro 5G (RMB3,699), Mi CC9 Pro / Mi Note 10 (108MP penta-camera), and entry-level models like Redmi 8A.
  • The company continued to offer products with ultimate price-performance ratios across all major price points.

Key Information

• Innovation: Xiaomi continues to pursue advanced technologies, including the world's first surround display smartphone Mi MIX Alpha with an 180.6% screen-to-body ratio.
• AIoT: Xiaomi is leading as a global consumer IoT platform, with significant growth in connected devices and users.
• Market Share: Xiaomi expanded its presence in international markets, notably in Western Europe and India.
• Financial Strength: The company maintains a strong financial position with substantial cash reserves and assets, enabling future growth and investment.
• Strategic Focus: Xiaomi's focus on healthy operations, margin expansion, and diversification of its product portfolio and market segments supports its long-term growth strategy.

Conclusion

Xiaomi Corporation demonstrated robust growth and innovation in Q3 2019, with notable achievements in 5G technology, AIoT expansion, and global market penetration. The company's financial health and strategic initiatives position it well for continued success in the evolving technology landscape.