Millet First Quarter Revenue 49 Billion 700 Million Net Profit Of 2 Billion 300 Million Yuan

Yesterday afternoon, millet group released the first quarter results announcement 2020. During the reporting period, Xiaomi group achieved a revenue of 49 billion 700 million yuan, an increase of 13.6% over the same period, and a net profit of 2 billion 300 million yuan after adjustment, an increase of 10.6% over the same period last year.

In the first quarter of 2020, the group continued to promote the dual engine strategy of "mobile +AIoT", which has continued to achieve success worldwide. According to Canalys statistics, the first quarter of the global mobile phone market affected by the overall decline in the epidemic, but millet counter trend growth, and shipments in the world's five largest manufacturers in the fastest growth year on year.

Benefiting from the growth of the global mobile phone market share, the number of active MIUI users in the world has reached 330 million 700 thousand, an increase of 26.7% over the same period. In the first quarter of 2020, the number of devices connecting to our IoT platform is increasing. As of March 31, 2020, the number of IoT devices connected to our IoT platform (excluding smart phones and notebook computers) reached 252 million, an increase of 42.6% over the same period last year. The number of monthly active users of AI assistant "Xiao AI classmate" reached 70 million 500 thousand in March 2020, an increase of 54.9% over the same period last year.

In the first quarter of 2020, Xiaomi continued to expand and continuously plough overseas markets. Overseas market revenue reached RMB 24 billion 800 million yuan, an increase of 47.8% over the same period last year, accounting for half of the total revenue for the first time. According to Canalys data, mobile phone shipments in Western Europe grew by 79.3% over the same period last year, and the first market share in Spain.

　　 Intelligent mobile phone

In the first quarter of 2020, the revenue of millet smartphone reached RMB 30 billion 300 million, an increase of 12.3% over the same period last year. In the first quarter of 2020, smartphone sales reached 29 million 200 thousand, an increase of 4.7% over the same period last year. According to Canalys statistics, in the first quarter of 2020, our global smartphone market share rose to 11.1%, ranking fourth in the world. It is one of only two of the five largest mobile phone manufacturers that maintained year-on-year growth in shipments. Driven by high-end models such as 5G, the average selling price of our smartphones ("ASP") continued to increase in the first quarter of 2020, up 7.2% over the same period last year. In the first quarter of 2020, the average price of smart phones in mainland China increased by 18.7% over the same period last year, and the offshore market increased by 13.7% over the same period last year.

　　 IoT and consumer products

IoT and consumer products revenue reached 13 billion yuan, up 7.8% over the same period last year, mainly due to the rapid growth of IoT products such as smart bracelet and router. The sales revenue of smart TV and notebook computers was 4 billion 600 million yuan, a decrease of 8.2% compared to the same period last year, mainly due to the reduction of sales activity and production interruption due to the epidemic situation. Xiaomi's smart TV business continues to take the lead in mainland China and overseas markets.

In the first quarter of 2020, although the global TV market was affected by the epidemic and the overall sales volume declined, the global shipments of our smart TV still increased by 3% over the same period last year, reaching 2 million 700 thousand units. According to Orville network (Orville cloud network) statistics, in the first quarter of 2020, millet TV ranked the first in fifth consecutive quarters of TV shipments in mainland China, with the world's top five TV shipments.

　　 Internet Services

The income of Internet service segment was 5 billion 900 million yuan, up 38.6% over the same period last year. The main Internet services business of millet is growing steadily. MIUI's monthly active users increased by 26.7% from 260 million 900 thousand in March 2019 to 330 million 700 thousand in March 2020.

In the first quarter of 2020, advertising revenue reached RMB 2 billion 700 million, an increase of 16.6% over the same period last year. Although affected by the epidemic, the advertising budget in some vertical areas has been reduced, but we have continued to expand the number of customers in the vertical industry through the diversified realizable ways of search, preloading and information flow, and constantly optimize the recommendation algorithm to partially offset the impact of the epidemic. Meanwhile, overseas Internet advertising revenue grew strongly in the first quarter of 2020, enabling us to achieve a year-on-year increase in overall advertising revenue.

In the first quarter of 2020, game revenue reached RMB 1 billion 500 million yuan, an increase of 80.5% over the same period last year, mainly due to the good performance of the mainland's game market and the higher average game revenue per user generated by our high-end mobile phones.

In the first quarter of 2020, income from Internet services other than smart phone advertising and games in mainland China, including income from electronic commerce platforms, financial technology services, television Internet services and offshore Internet services, grew by 71.5% over the same period last year, accounting for 38.1% of the total contribution to Internet services.

　　 Other

Other income was 492 million yuan, an increase of 10% compared to the same period last year, mainly due to the increase in the installation service revenue of some IoT products.