XIAOMI reported results in the second quarter, with operating income of 70.17 billion yuan, down 20.1% from the same period last year, and adjusted net profit of 2.081 billion yuan, down 67.1% from the same period last year. The decline in income and net profit was expected, and Goldman Sachs Group also downgraded XIAOMI in early August:
Goldman Sachs Group: the target price is slightly reduced from HK $17.50 to HK $16.8. Revenue in the second quarter is expected to fall 20% to 70.1 billion yuan, of which smartphone business revenue is expected to fall by 29%, shipments by 26%, and adjusted net profit is expected to reach 1.98 billion yuan.
The actual situation is better than Goldman Sachs Group expected.Revenue and adjusted net profit slightly exceeded expectations, with smartphone revenue falling 28.43% and shipments down 26.09%.
Source: XIAOMI Financial report
The market itself is pessimistic about second-quarter earnings. The market capitalization of XIAOMI Group has fallen by 68% from HK $896.1 billion at its peak to HK $291 billion, and such pessimism has been reported in advance on the stock price.
Specific to the breakdown of business, this financial report is mixed, worried about the decline in mobile phone sales, happy is that Internet revenue has remained flat.
1) smartphone shipments of 39.1 million units, down 26.09% from the same period last year, increased by 1.5% month-on-month. The global market share still ranks third, and the market share in Europe ranks second. There is a demand problem in the mobile phone field this year, with the exception of Apple Inc and Samsung, all of the top five manufacturers are still growing slightly, and all the others are falling sharply.
2) part of the income of IoT is 19.8 billion yuan.