Profit growth of 163.8%: Xiaomi posted record results for the last quarter

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Following the announcement that Xiaomi has achieved the lifting of US sanctions, the Chinese company has yet another reason to be proud. And this is its financial report for the first quarter of 2021, in which the company recorded record growth across the board.

In the first three months of 2021, Xiaomi’s total revenue reached 76.9 billion yuan. This is 54.7% more when compared with the same period last year. Of these, net profit amounted to 6.1 billion yuan, showing an increase of 163.8% over the year. The main source of income for the Chinese company remains smartphones, whose shipments reached 49.4 million units in the last quarter, bringing the company revenue of 51.5%, up 69.8% year-on-year. 4 million of these smartphones were in models over € 300. Xiaomi’s smartphone margin is 12.9%.

In addition, Xiaomi announced in its financial statement that its MIUI firmware now has 425 million monthly active users. For comparison, a year ago this figure was 331 million, that is, it grew by almost one third over the year. According to Canalys analysts, Xiaomi played into the hands of the sanctions against Huawei and the company was able to become the third largest smartphone manufacturer in the world after Apple and Samsung.

Xiaomi’s revenue from operations outside of China increased 50.6% to 37.4 billion yuan. Xiaomi is now the number one brand in 12 countries around the world, including Russia, Spain, Italy, Germany and France. Xiaomi also holds the leading position in the mobile market in Eastern Europe and third in Western Europe.

In addition to smartphones, Xiaomi is developing other areas. Thus, the company has been in the top five among smartphone manufacturers for the ninth quarter in a row. Wearable electronics under the Xiaomi brand are also popular, and 351.1 million smart devices are connected to the brand’s AIoT platform, not counting smartphones and laptops. The company’s advertising revenue rose 46.3% to 3.9 billion yuan.

But Xiaomi is not going to stop at what has already been achieved and for this it continues to increase its investments in research and development. In the first quarter, the company spent about RMB 3 billion on Research and Development or R&D, up from 1.9 billion a year ago. And this amount will only grow.