Xiaomi’s 2019 First Three Quarters Net Profit Has Exceeded Last Year’s Profit

  • The China-based company has announced its unaudited consolidated results for the third quarter of 2019 ended September 30
  • Xiaomi had strong Diwali sales and Singles Day Sales in India and China respectively

Xiaomi Corporation has announced its unaudited consolidated results for the third quarter of 2019 ended September 30, 2019 (3Q2019). During the Period, the group’s total revenue increased by 5.5 per cent year-on-year (YoY) to RMB 53.7 billion, making 3Q2019 the quarter with the highest total revenue since Xiaomi’s founding. Adjusted net profit was RMB3.5 billion, increased by 20.3 per cent YoY. The Group’s total adjusted net profit in the first three quarters totaled RMB9.2 billion which exceeds the net profit of last year.

“In anticipation of the upcoming era of 5G technology in 2020, the Group will continue to stay alert to market trends and operate prudently. With the Company’s healthy and stable cash flow and profitability, we are ready to capture and respond to the huge market opportunities that will arise from the widespread adoption of 5G technology, and plan to launch at least 10 models of 5G smartphone in 2020,” noted Xiaomi founder, chairman and CEO Lei Jun.

Company’s gross profit increased by 25.2 per cent YoY to RMB8.2 billion. Gross profit margin was 15.3 per cent and total cash resources amounted to RMB56.6 billion.

File Photo – Mi 2500 Store Opening

12.5 million devices sold in a month in India

Interestingly, the company was able to sale more than 12.5 million devices during a month (Diwali) in India. Xiaomi had earlier informed that it was able to sale 8.5 million smartphones, 3.5 million ecosystem devices, six lakh TVs, among other products during Diwali.

According to a recent research published by Gartner, Xiaomi was able to sale approximately 32,271,000 smartphones durig 3Q2019 period. It is also to be noted here that Xiaomi had recently launched refrigerators in its home country China as well.

Singles day sale in China

Xiaomi had recently become Southeast Asia’s best-selling brand in mobiles and tablets category on e-commerce platform Lazada. The company had led sales on Singles Day sales in China. Singles day, falling every year on November 11 in Xiaomi’s home country, is generally known for consumer electronics sales.

“As the leading smart TV brand in China, Xiaomi sold more than 910,000 TV sets on Monday in the market, ranking first in terms of both sales volume and sales revenue on three major e-commerce platforms – Tmall, JD and Suning,” read Xiaomi’s official statement.

IoT devices of Xiaomi’s platform

As of September 30, 2019, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached approximately 213 million units, increased by 62.0 per cent YoY. The number of users who have five or more devices connected to the company’s IoT platform (excluding smartphones and laptops) increased to 3.5 million, up 78.7 per cent YoY.

Xiaomi’s revenue from the overseas markets (Outside China) grew 17.2 per cent YoY to RMB26.1 billion in the third quarter. These figures represent 48.7 per cent of total revenue.