Xiaomi Achieves Growth Amid Headwinds in 1H 2020, Revenue and Profit Beats Market Consensus

Xiaomi Corporation, an internet company with smartphone and smart hardware connected by an Internet of Things (“IoT”) platform at its core, today announced its unaudited consolidated results for the three and six months ended 30 June 2020 ("1H2020” or “the Period”).

1H 2020 Financial Highlights

• Total revenue amounted to RMB103.24 billion, representing an increase of 7.9% year-over-year (“YoY”), beating market consensus;
• Gross profit was approximately RMB15.26 billion, up 22.3 YoY;
• Profit for the period was approximately RMB6.65 billion, up 29.3% YoY, beating market consensus;
• Non-IFRS adjusted net profit was approximately RMB5.67 billion, down 0.7% YoY, beating market consensus;
• Earnings per share was RMB0.279.

Q2 2020 Financial Highlights

• Total revenue was approximately RMB53.54 billion, up 3.1% YoY and 7.7% quarter-on-quarter (“QoQ”);
• Gross profit was approximately RMB7.70 billion, up 6.1% YoY and 1.9% QoQ;
• Profit for the period was approximately RMB4.49 billion, up 129.8% YoY and 108% QoQ;
• Non-IFRS adjusted net profit was approximately RMB3.37 billion, down 7.2% YoY, but increased by 46.6% QoQ;
• Earnings per share was RMB0.189.

Xiaomi Corporation said, “In the first half of 2020, despite the impact of COVID-19 and great global uncertainties, Xiaomi’s diversified business ecosystem has demonstrated its resilience, as both revenue and adjusted profits beat market consensus, while our operations continued to expand. We made the Fortune Global 500 list for the second time, ranking 422nd, up 46 places from last year. With 2020 being Xiaomi’s 10th anniversary, we have upgraded our core strategy to ‘Smartphone X AIoT’, with AIoT revolving around our core smartphone business, enabling us to lead the future way of smart living. Looking forward to the next decade, we will firmly adhere to our ‘three guiding principles’ - never cease to explore and innovate, continue to offer products with strong price-to-performance ratio, and seek to make the coolest products, so as to let everyone in the world enjoy a better life.”

Firmly Adhere to the “Three Guiding Principles” and Maintain Xiaomi’s Position in Premium Smartphone Market

Amid the challenges brought by COVID-19 on the global smartphone market, Xiaomi adhered to three guiding principles – “never cease to explore and innovate, continue to offer products with the price-to-performance ratio”. Revenue from the smartphones segment was RMB61.952 billion and RMB31.628 billion in the first half and second quarter of 2020 respectively, and the smartphone shipments reached 28.3 million units.

According to Canalys, in the second quarter of 2020, Xiaomi ranked 4th globally in terms of smartphone shipments, and its market share stood at 10.1%. In overseas markets, shipments of its premium smartphones, with retail price of €300 or more, went up by 99.2% YoY in the second quarter of 2020. Driven by the higher proportion of sales from mid- to high-end smartphones, the average selling price (“ASP”) of the Group’s smartphones increased by 11.8% YoY and 7.5% QoQ.

The Group insisted on implementing the dual-brand strategy and yielded significant results. Xiaomi’s 5G flagship smartphones, Mi 10 and Mi 10 Pro, were launched in February 2020, the shipments have exceeded one million units within only two months. In August 2020, Xiaomi launched the Mi 10 Ultra, which achieved a DXOMARK score of 130 for overall camera performance, once again ranking 1st globally at the time of launch. The sales have exceeded RMB400 million after 10 minutes of its debut.
The Redmi brand continued to make 5G technology accessible to the mass market. In June 2020, the Group launched the Redmi 9A series which priced from only RMB499. It then launched the Redmi K30 Ultra in August, sporting all-around premium features with prices starting from only RMB1,999.

It is worth mentioning that Xiaomi also launched its smart factory recently with a total investment amount of RMB600 million, opening up an era of smart and manufacturing at Xiaomi’s factories. The Mi 10 Ultra is the first mass-produced ultra-high-end model of the Xiaomi Smart Factory.

Upgraded Core Strategy of “Smartphone X AIoT” to Build a Smart Life

Revenue from the IoT and lifestyle products segment was RMB28.237 billion and RMB15.253 billion in the first half and second quarter of 2020, respectively. Xiaomi’s global TV shipments still amounted to 2.8 million units, achieving YoY growth despite a decline in the overall TV market. According to All View Cloud (“AVC”), in the second quarter of 2020, the Group’s TV shipments in mainland China ranked 1st for the 6th consecutive quarter and ranked among the top five globally.

In the second quarter, Xiaomi introduced two flagship products under the new Mi TV Master Series, further expanding its footprint in the premium market. In July 2020, the Group introduced its first OLED TV, Mi TV Lux 65” OLED. In August 2020, it launched the second ultra high-end TV within the Mi TV Master Series-Mi TV LUX Transparent Edition, which is the world’s first mass-produced transparent TV.

To fulfill the various demands of the consumer worldwide, Xiaomi’s smart TVs entered more markets, including Poland, France and Italy during the second quarter. In July 2020, Xiaomi held its first global Xiaomi Ecosystem Product Launch and released a series of new products, including the Mi Smart Band 5 and Mi True Wireless Earphones 2 Basic.

Recently, Xiaomi Founder, Chairman and CEO Mr. Lei Jun distributed a letter to employee, announcing that Xiaomi’s core strategy will be upgraded to “Smartphone x AIoT” in the next decade to drive synergistic benefits, with smartphone remains as the cornerstone to the Group’s business, while AIoT will build a smart life around smartphones to let Xiaomi truly lead the future way of smart living

As of June 30, 2020, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached approximately 271.0 million units, representing a YoY increase of 38.3%. The number of users who have five or more devices connected to Xiaomi’s IoT platform (excluding smartphones and laptops) increased to over 5.1 million, representing a YoY growth of 63.9%. Meanwhile, the Mi Home App had 40.8 million MAU, representing a YoY increase of 34.1%, in which non-Xiaomi smartphone users accounted for 67.9%. In June 2020, our AI Assistant (“小愛同學”) had 78.4 million MAU, an increase of 57.1% YoY.
Xiaomi continued to strengthen the interconnectivity across products with the “Xiaomi Share” initiative. “Xiaomi Share” supports always-on access to music, video and voice calls when switching across multiple devices. In addition, the Group developed the multi-screen collaboration function, which support cross-device photographing and document editing. Going forward, the Group will continue to enhance the connectivity between smart devices, and offer more intelligent user experiences and application scenarios, thereby bringing global Xiaomi users to the forefront of future smart living.

Increasing Contribution of Diversified Internet Services to the Group’s Revenue

evenue of the internet services segment amounted to RMB11.808 billion and RMB5.908 billion in the first half and second quarter of 2020 respectively. In the second quarter of 2020, the MAU of MIUI increased by 23.3% year-over-year to 343.5 million, while the mainland China MAU of MIUI was 109.7 million.
In the second quarter of 2020, advertising revenue increased by 23.2% YoY to RMB3.1 billion, driven by the rapid growth in overseas advertising revenue, as well as the gradual recovery in advertising budgets in mainland China. Internet services revenue outside of advertising and gaming from mainland China smartphones, including those generated from the Youpin e-commerce platform, fintech business, TV internet services and overseas internet services, increased by 39.5% YoY, accounting for 39% of its total internet services revenue.

In June 2020, MAU of Xiaomi smart TVs and Mi Box reached 32.0 million, an increase of 41.8% YoY. As of June 30, 2020, the number of paid subscribers increased by 33.1% YoY to 4.0 million.

Business in Overseas Markets Grows Steadily Despite Headwinds

Remains the 1st in Western Europe among major players by Smartphone Shipments Growth Rate

Revenue from overseas markets was RMB48.861 billion and RMB24.029 billion in the first half and second quarter of 2020 respectively. According to Canalys, in the second quarter of 2020, Xiaomi’s market shares in terms of smartphone shipments ranked among the top five in 50 countries and regions and reached the top three in 25 of these markets.
In the second quarter of 2020, according to Canalys, Xiaomi’s smartphone shipments grew by 64.9% YoY in Europe, achieving a total market share of 16.8%, ranking it in the top three for the first time. In Western Europe, the Group’s smartphone shipments grew 115.9% YoY, accounting for a 12.4% market share. The Group’s smartphone shipments in Spain grew by 150.6% YoY, ranking 1st for two consecutive quarters with a 36.8% market share. During the quarter, Xiaomi ranked 2nd in France and 4th in Germany and Italy, in terms of smartphone shipments.
In Eastern Europe, Xiaomi became the No.1 smartphone company in Ukraine and Poland in terms of smartphone shipments, with respective market shares of 37.1% and 27.5%. In addition, in the second quarter of 2020, the Group captured a market share of 30.7% by shipments in the Indian smartphone market. According to IDC, it retained the No.1 position in the Indian smartphone market for the 12th consecutive quarter.

Impact of the COVID-19 outbreak

In the second quarter of 2020, the COVID-19 pandemic affected Xiaomi’s global operations to varying degrees. In April and May 2020, several of the Group’s key markets implemented strict lockdown measures and the sales were greatly impacted. As business restrictions were gradually lifted, sales have recovered tangibly.
In India, strict lockdown measures were imposed starting in late March and our sales were significantly impacted during the lockdown period. As India gradually lifted the restrictions during the second quarter of 2020, consumer demand started to rebound. In July 2020, the average daily number of smartphone activations in India returned to 72% of the pre-pandemic level recorded in January. In July 2020, excluding India, the average daily number of overseas smartphone activations had reached 120% of the pre-pandemic level recorded in January.


About Xiaomi Corporation

Xiaomi Corporation was founded in April 2010 and listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2018 (1810.HK). Xiaomi is an internet company with smartphones and smart hardware connected by an Internet of Things (IoT) platform at its core.

With an equal emphasis on innovation and quality, Xiaomi continuously pursues high-quality user experience and operational efficiency. The company relentlessly builds amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology.

Xiaomi is currently the world’s fourth-largest smartphone brand, and has established the world’s leading consumer IoT platform, with 271 million smart devices connected to its platform, excluding smartphones and laptops. Xiaomi products are present in more than 90 markets around the world.

In August 2020, the company made the Fortune Global 500 list for the second time, ranking 422nd, up 46 places compared to last year. It also ranked 7th among internet companies on the list. In May 2020, the company made the Forbes Global 2000 List again, and its ranking jumped to 384th.

Xiaomi is a constituent of the Hang Seng Index, Hang Seng China Enterprises Index and Hang Seng TECH Index.

For more information about the company, please visit https://blog.mi.com/en/.

Top Celebrities Catriona Gray, Ai-Ai delas Alas, and Rhian Ramos Joins Shopee’s Brand Ambassador Jose Mari Chan at the 9.9 Super Shopping Day TV Special on GMA News TV

MANILA, SEPTEMBER 1, 2020 - Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, invites everyone to watch the anticipated 9.9 Super Shopping Day TV Special happening on September 9 at 8:30 PM. The 2-hour-long show will be simulcast on both GMA News TV (GNTV) and Shopee Live to reach more Filipino audiences. Viewers can catch an outstanding performance and appearance by Shopee’s Brand Ambassador Jose Mari Chan with top Filipino celebrities such as Catriona Gray, Ai-Ai delas Alas, Rhian Ramos, Gabbi Garcia, and many more.

The star-studded show will also feature various performances from celebrity house-hold names like Lani Misalucha, Marcelito Pomoy, and Christian Bautista. Viewers can look forward to exceptional dance performances from super dance idols Rayver Cruz, DJ Loonyo, Mark Herras, and Rodjun Cruz. Also, top comedians such as Kakai Bautista, Rita Daniela, Betong, Jak Roberto, and Boobay, will make special appearances.

Martin Yu, Associate Director, Shopee Philippines, said, “We are very excited to celebrate the 9.9 Super Shopping Day peak with the highly anticipated 9.9 Super Shopping Day TV Special. This year has been a challenge to the Filipino community because of the pandemic, and we hope through this TV special we can deepen our engagement with our users by providing them an entertaining production where they can see their favorite stars and win amazing prizes. This initiative is part of our 9.9 regional commitment to deliver a “Super” experience to our users, and we invite everyone to join us at the peak of our signature annual shopping event.”

Key highlights of 9.9 Super Shopping Day on GNTV and Shopee Live:

On September 9, in addition to star-studded performances from leading celebrities, viewers can enjoy an upsized pool of rewards from various in-app games, including Shopee Catch, Shopee Shake, and Shopee Quiz. Key highlights include:

• Win exciting cash prizes and giveaways with Shopee Shake: One lucky winner can stand a chance to take home ₱250,000 worth of cash prize, while another winner can win ₱1M cash prize and a house and lot from Lumina Homes. To participate, shoppers simply need to tune in at 8:45 PM and 10:00 PM for the Shopee Shake sessions.
• Walk away with exclusive prizes with Shopee Catch and Shopee Quiz: Viewers can stand a chance to win over ₱1.5 million worth of prizes for Shopee Catch and Shopee Quiz. To participate in Shopee Catch, users simply have to move their heads to catch an item with a bag, the player with the most items wins. For Shopee Quiz, viewers have to answer five questions and can only advance to the next round if they get all questions right.
• Exclusive promos from leading brands: Users can also enjoy exclusive offers and discounts of up to 50% off on leading brands such as Globe Telecom, Havaianas, Huggies, Nestle, P&G Beauty + Olay, Maybelline, Unilever Home and Food, Xiaomi Poco Phone Exclusive, and Lactum Enfagrow.

Shopee 9.9 Super Shopping Day

The Shopee 9.9 Super Shopping Day will run until September 9, 2020. It will feature exciting promos like free shipping with ₱0 minimum spend, daily flash deals for as low as ₱9, and huge discounts when shoppers use ShopeePay. Consumers will also get exclusive discounts up to 90% off on leading brands, win exciting prizes via in-app games and many more.

For more information on the Shopee 9.9 Super Shopping Day, please visit https://shopee.ph/m/99.

Download the Shopee app for free via the App Store or Google Play.


About Shopee

Shopee is the leading e-commerce platform in Southeast Asia and Taiwan. It is a platform tailored for the region, providing customers with an easy, secure and fast online shopping experience through strong payment and logistical support. Shopee aims to continually enhance its platform and become the region’s e-commerce destination of choice.

Shopee has a wide selection of product categories ranging from consumer electronics to home & living, health & beauty, baby & toys, fashion and fitness equipment.

Shopee, a Sea company, was first launched in Singapore in 2015, and has since expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam and the Philippines. Sea is a leader in digital entertainment, e-commerce and digital financial services across Greater Southeast Asia. Sea's mission is to better the lives of consumers and small businesses with technology, and is listed on the NYSE under the symbol SE

The Modern-Day Heroes on Two Wheels

Tanauan, Batangas—August ,30 2020— Who says that only heroes with capes are superheroes? And who could imagine that every day, we can see heroes around us? And who would think that this pandemic will turn the negative into something good and positive?

The COVID-19 pandemic forced the country’s economy into a complete halt, affecting the lives of Filipinos. However, it is during these trying times that hero within us tend to show.

Lockdowns and quarantines in the country may have limited mobility and the community’s ability to help one another, but it did not stop some riders to lend a helping hand to those who are most affected by the pandemic.

Honda Philippines Inc. (HPI), the No. 1 motorcycle manufacturer in the country, pays respect to the initiatives of these unsung heroes on two wheels, who continue to go above and beyond to help their fellow Filipinos during a time of struggle.

The Man of Togetherness

In the Municipality of Kabacan, North Cotabato, a small community in Barangay Kilagasan, has one man who supported them during this crisis. Mark Rollon, an accounts developer, a member of I RIDE SOLO PH, and an owner of The New XRM125, organized a poster-making contest for the community to help people still have a sense of togetherness.

Last July 24, Rollon organized and donated materials for the poster-making contest, so parents in the community can express their hardships. The contest also gave away facemasks to the families in the community to stay safe and abide by the quarantine guidelines.

The Humanitarian Rider

Hush Aguelo, a proud owner of The New CLICK150i and founder of a humanitarian group of motorcycle riders named “Cebu Tabang Express.” He created this group to call upon volunteer riders to give free delivery services for the less-fortunate people in Cebu.

“We aim to deliver groceries, parcels, and even buy medicine for seniors, minors, pregnant, disabled, people without access to the internet and delivery services, and people without quarantine passes. We’re a free delivery courier delivering essentials,” Aguelo said.

Thanks to The New CLICK150i, he can perform his humanitarian duties, despite the challenges of the pandemic. And, with the help of the volunteers and the group’s beneficiaries, they continue to face the pandemic with their heads held high.

The Mommy Volunteer

Delivery couriers are not the only heroes on two wheels. Jessa Cayago, a teacher, volunteer, and single mother, who uses The All-New Genio to bravely face the dangers of the global health pandemic to help not only her baby but also the youth of tomorrow.

Last July 26, she was on her way to Laguna Bay with the Laguna Genio Riders for a charity ride, when they came across a group of starving street children before arriving at their destination. They decided to prepare food and come back for them.

“Thank God, they were still out there. We came back to the place where we saw the street children, and there we gave them all the food we prepared. It really touched our hearts to see the smile on their face. We usually count the blessings we receive but should also make our blessings count,” Cayago said.

Leaders of Tomorrow

COVID-19 changed many people's lives, including children who were heavily impacted by this pandemic. Jerson Zuniga, President of the XRM Biker's Club (XBC) Iligan Chapter, and other club members took it upon themselves to help the future of this country survive and move forward from this crisis.

Members of XBC Iligan Chapter donated boxes of bond papers to help teachers ease expenses in making and printing learning modules for their students, last August 23.

They also did another outreach activity to help a family of orphans, which included a pregnant sister. The bikers brought supplies such as food, clothes, and other essentials to provide their basic needs during these trying times.

"Our aim is to share as much as we can, even if it is small shares, to help the teachers make the modules the students will use for remote learning. We also shared with the orphans so that they have food and clothing. No matter how small the sacrifice, if many will share, all will have enough," Zuniga said.

These people show that there is still good in this pandemic. Seeing fulfillment of one’s dream and desires to be good is as important to be a human. Same with the “ONE DREAM” Campaign of HPI, which helps fulfill the dreams of Filipinos through the joy of mobility with Honda motorcycles.

The All-New Genio, The New CLICK150i, and TheNew XRM125 are only three of HPI’s top of the line Models that can let Filipinos experience the joy of mobility and the ability to help each other during these difficult times.

There is a lot more to explore from Honda and its wide array of motorcycles. For more details about Honda products and promos, visit our website www.hondaph.com and follow our Facebook page, Honda Philippines, Inc and Instagram, @hondaph_mc. You can also contact us through our landline number, (02)-8581-6700 to 6799 and mobile number, 0917-884-6632.

Want to learn the basics and master riding a motorcycle? Stay tuned for our next article on the best way to learn riding a motorcycle.