Xiaomi Group released their financial report for the first half of 2019 and the results beat estimates. Total revenue increased by 20.2% reaching 95.71 billion yuan. Overseas business revenue amounted to 38.6 billion yuan, accounting for more than 40% of total revenue. The adjusted net profit landed at 5.72 billion yuan, a year-on-year increase of 49.8%, far exceeding expectations.
As for phone shipments, Xiaomi shipped 60 million units in the first half of the year despite an overall stagnant market. Xiaomi’s TVs also proved to be successful and ranked first in China with 5.4 million units shipped during the period. The company is currently a top five TV-manufacturer globally.
Lei Jun, founder, chairman, and CEO of Xiaomi Group said that for the first half of 2019, Xiaomi’s results were good despite the challenging business environment. With the overall profitability, Xiaomi will be able to grab market opportunities for 5G and AIoT as well as increase investment in R&D. This year, Xiaomi’s R&D expenses totaled 3.3 billion yuan ($467.44 million) which is 30% more than the previous year.
According to Canalys, Xiaomi ranked among the top five in over 40 countries and regions in terms of smartphone shipments. In India, Xiaomi’s smartphones ranked first in shipments for the eighth consecutive quarter. In Western Europe, Xiaomi ranked fourth, a year-over-year increase of 53.2%, making it the fastest growing company in the market.