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The first quarter of 2022's financial report for Xiaomi Group has been made public. The revenue is significantly lower than it was in 2021. Xiaomi officials predict that phone sales will increase in the second half of 2022 compared to the first.
Xiaomi Group reports that the company's second-quarter sales was down 20.1% year over year at 70.17 billion yuan and its adjusted net profit was down 67.1% year over year at 2.08 billion yuan. Wang Xiang, partner and chairman of the Xiaomi Group, held two conferences on the financial report after the release of the income statement to explain it and respond to questions from several experts.
The deterioration of the global consumer market, according to Wang Xiang, is the cause of the drop in revenue and profit. He emphasised that the ongoing epidemic is making it tough for demand in the Chinese market and noted that sales have fallen as a result of inflation and fluctuations in exchange rates in many different nations across the world.
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Positive response was given in response to the question of how long the drop in Xiaomi Group's sales and earnings will endure. According to reports, cell phone shipments increased in the second quarter of 2022 and will continue to do so. This quarter will be better than the first. Additionally, it was stated that the containment and stabilisation of the pandemic in China is the primary factor contributing to the growth in revenue in the last quarter of 2022.
Xiaomi Group reported that, excluding mobile devices, investment in the first quarter was 611 yuan in sectors such electric vehicles. Since forming a sizable research and development team, Xiaomi has been working on autonomous driving technology and smart electric vehicles.
