Wow, Xiaomi Reaches Profit during the COVID-19 Pandemic. It looks like the COVID-19 Pandemic has not affected the performance of the Xiaomi company. Xiaomi has just released financial reports in the second quarter and first half of 2020. This Chinese company made a profit despite the pandemic.
The second quarter of 2020, Xiaomi acknowledged that the COVID-19 pandemic had an impact on operations at the global level. In April and May 2020, a number of key markets implemented lockdown policies and had a major impact on sales.
When the government’s social restrictions on businesses were relaxed, sales started to recover. During April to June, revenues from the international market reached 24.029 billion renminbi or equivalent to IDR 51.3 trillion.
Xiaomi Reaches Profit during the COVID-19 Pandemic
If calculated as a whole, Xiaomi managed to pocket revenue of 53.54 billion renminbi or around Rp. 114.4 trillion. This figure grew by 3.1% YoY and increased by 7.7% compared to the previous quarter (QoQ).
Mobile phone sales contributed significantly to their revenue from April to June 2020. Their revenue was recorded at 31.628 billion renminbi.
Xiaomi’s gross profit was 7.70 billion renminbi or equivalent to IDR 16.4 trillion, up 6.1% YoY and 1.9% QoQ. After adjusting for non-IFRS measurements, a net profit of 3.37 billion renminbi or equivalent to Rp7.1 trillion was obtained, down 7.2% YoY but up 46.6% QoQ.
Meanwhile, during the first half of 2020, his income reached 103.24 billion renminbi or equivalent to Rp. 219.7 trillion. The figure was up 7.9% year-on-year (YoY) and exceeded market consensus.
The contribution of the international market is quite significant, although not as big as China, namely 48.861 billion renminbi or equivalent to IDR 104.3 trillion.
As reported in the second quarter, cellphone sales generated 61.952 billion renminbi or equivalent to Rp131.7 trillion. Xiaomi has shipped 23.8 million mobile units. Until July 2020, the average number of smartphone activations in the international market (excluding India) has reached 120% compared to pre-pandemic conditions in January.
Shipments of premium smartphones with a selling price of 300 euros (equivalent to IDR 5.2 million) or more in the international market were up 99.2% YoY in Q2. Driven by the proportion of sales in the mid to high end class, the average selling price of Xiaomi cellphones rose 11.8% YoY and 7.5% QoQ.
Xiaomi’s gross profit in the first half of 2020 reached 7.70 billion renminbi or equivalent to IDR 16.4 trillion, up 6.1% YoY and 1.9% QoQ. Meanwhile, adjusted net profit for non-IFRS measurement reached 3.37 billion renminbi or equivalent to IDR7.1 trillion, down 7.2% YoY but up 46.6% QoQ.
In the second quarter of 2020, monthly active users from MIUI grew 23.3% YoY to 343.5 million users while monthly active users in China reached 109.7 million.