In the second quarter of 2021, the total revenue of XIAOMI-W amounted to RMB87.8 billion, representing an increase of 64.0% year-over-year; profit for the period was RMB8.3 billion, an increase of 83.9% year-over-year; adjusted net profit for the period was RMB6.3 billion, an increase of 87.4% year-over-year. The total revenue and adjusted net profit both reached record highs in the quarter.
Xiaomi's core “Smartphone × AIoT” strategy continued to underpin the outstanding performance. According to Canalys, in the second quarter of 2021, its global smartphone shipments ranking rose to No. 2 for the first time, with a market share of 16.7%. Smartphone shipments in mainland China ranked among the top three, with a market share of 16.8%. Due to the strong growth in smartphone shipments, it achieved new record high monthly active users (“MAU”) of MIUI both globally and in mainland China in June 2021, reaching 453.8 million and 124.0 million, respectively. At the same time, its AIoT platform continued to expand, with the number of connected IoT devices (excluding smartphones and laptops) on its AIoT platform reaching 374.5 million as of June 30, 2021. In June 2021, the MAU of AI assistant (“小愛同學”) exceeded the 100 million mark for the first time, reaching 102.0 million.
It further strengthened online and offline channels in mainland China. During the 618 e-Commerce Shopping Festival in 2021, Xiaomi’s full spectrum of products gained widespread popularity, with total gross merchandise value from all sales channels exceeding RMB19.0 billion, representing an increase of 90% year-over-year. The sales volume of smartphones ranked No. 1 among Android smartphones sold through major e-commerce platforms, and IoT products achieved 158 No. 1 rankings in their respective categories across major e-commerce platforms. Meanwhile, Xiaomi continued to expand its offline presence, with the total number of retail stores in mainland China grew to more than 7,600 as of June 30, 2021.
According to third party data, the offline market share of smartphone shipments in mainland China grew to 7.8% in the second quarter of 2021 from 7.0% in the first quarter of 2021.
Xiaomi's overseas business also maintained strong growth momentum. In the second quarter of 2021, revenue from overseas markets amounted to RMB43.6 billion, reaching an all-time high and representing a year-over-year increase of 81.6%. According to Canalys, in terms of smartphone shipments, the company ranked No. 1 in 22 markets worldwide and ranked No. 1 for the first time in Europe, with a market share of 28.5%.
Xiaomi has never stopped exploring advanced and pioneering technologies since its inception. At the launch event on August 10, 2021, xiaomi debuted several new products, including the smartphone with the full screen display Xiaomi MIX 4, Xiaomi Pad 5 Series, Xiaomi TV Master 77” OLED, the high-fidelity smart speaker Xiaomi Sound, and CyberDog, bio-inspired quadruped robot. In July 2021, the company officially broke ground on the Xiaomi Smart Factory Phase II located in the Changping district of Beijing (“Changping Smart Factory”). This facility will build upon the R&D and production capabilities at Xiaomi Smart Factory Phase I, located in the Yizhuang area of Beijing (“Yizhuang Smart Factory”), and marks an important step in Xiaomi’s development in the smart manufacturing industry.
August 2021 marked Xiaomi's third consecutive entry into Fortune Global 500 list, ranking 338th, advancing 84 spots from its ranking in 2020. In addition, in June 2021, Xiaomi was included on the BrandZTM Top 100 Most Valuable Global Brands list for the third consecutive year, with its ranking rising to 70th.
