Xiaomi Group has released its financial report for the first quarter of 2022. Compared to 2021, there is a significant decrease in revenue. According to Xiaomi executives, phone sales in the second half of 2022 will be better than in the first half.
According to Xiaomi Group, the brand’s second-quarter revenue was 70.17 billion yuan, down 20.1% year on year, and adjusted net profit was 2.08 billion yuan, down 67.1% year on year. After the release of the income statement, Wang Xiang, partner and chairman of Xiaomi Group, attended two conferences on the financial report to explain it and answer the questions of numerous analysts.
Wang Xiang explained that the reason for the decline in revenue and profit is the weakening of the global consumer market. He pointed out that demand in the Chinese market is difficult due to the ongoing pandemic, and explained that sales have declined due to inflation and exchange rate changes in many countries around the world.
When asked how long the decline in Xiaomi Group’s sales and profits will last, a positive answer was given. It was stated that the second quarter of 2022 will be better than the first quarter, shipments of cell phones increased in the second quarter and this increase will continue. In addition, it was said that the main reason for the increase in revenue in the later months of 2022 is the containment and stabilization of the epidemic in China.
Xiaomi Group said spending on areas such as electric vehicles was 611 yuan in the first quarter, excluding mobile products. Xiaomi has recently been working on autonomous driving technology and smart electric cars with the formation of a large research and development team.
