The board of directors of Xiaomi Corporation (1810) announced on November 24, the unaudited consolidated results of the Company and its subsidiaries for the three and nine months ended September 30, 2020.
We are pasting the most important parts below.
In the third quarter of 2020, Xiaomi revenue from overseas markets increased 52.1% year-over-year to RMB39.8 billion. This marks record high quarterly overseas revenue and overseas revenue contribution to their total revenue.
According to Canalys, in the third quarter, Xiaomi smartphone shipments in Western Europe increased 107.3% year-over-year, achieving a market share of 13.3%, and ranked top 3 in the region for the first time. In particular, Xiaomi retained the top spot in Spain in smartphone shipments for the 3rd consecutive quarter with a 33.9% market share. They also increased their smartphone shipments by over 100% year-over-year in France, Italy and Germany. Additionally, Xiaomi accounted for 26.9% of the smartphone shipments in Central and Eastern Europe in the third quarter of 2020, attaining the 2nd position in the region. In particular, Xiaomi is ranked 1st in Poland and Ukraine and 2nd in Russia in terms of smartphone shipments.
Moreover, Xiaomi realized rapid growth in various other markets around the world. According to Canalys, in Latin America, Xiaomi smartphone shipments jumped 471.4% year-over-year, attaining the 4th position with a 9.0% market share; in the Middle East, their smartphone shipments advanced by 156.7% year-over-year, ranking them 3rd with a 17.4% market share; in Africa, Xiaomi smartphone shipments surged 197.5% year-over-year, and achieved the 3rd position with a market share of 10.7%. Furthermore, in the third quarter of 2020, Xiaomi maintained their No.1 position in India, capturing market share of 26.1% by smartphone shipments, according to Canalys.
Revenue increased on a year-over-year basis by 34.5% from RMB53.7 billion in the third quarter of 2019 to RMB72.2 billion in the third quarter of 2020. The following table sets forth their revenue by line of business in the third quarter of 2020 and the third quarter of 2019.
According to Xiaomi the gross profit margin of their smartphones segment decreased from 9.0% in the third quarter of 2019 to 8.4% in the third quarter of 2020 “mainly due to enhanced promotional efforts”.
On the other side selling and marketing expenses increased by 41.9% from RMB2.5 billion in the third quarter of 2019 to RMB3.6 billion in the third quarter of 2020, primarily due to the increase in promotion and advertising expenses, as well as packaging and transportation expenses.
The following table sets forth the comparative figures for the third quarter of 2020 and the second quarter of 2020:
Gross profit increased by 32.0% from RMB7.7 billion in the second quarter of 2020 to RMB10.2 billion in the third quarter of 2020, while Xiaomi had a profit of RMB4.5 billion and a profit of RMB4.9 billion in the second and third quarter of 2020, respectively, a quarter-over-quarter increase of 8.3%.