Remove the "military company" to determine that Xiaomi's net profit in the first quarter increased by 164% compared with the same period last year or return to FTSE.

According to Xiaomi Group's announcement on the Hong Kong Stock Exchange on May 26th, Xiaomi Group's total revenue reached 76.9 billion yuan in the first quarter of 2021, up 54.7% from a year earlier. The adjusted net profit reached 6.1 billion yuan, an increase of 163.8% over the same period last year. The net profit in the first quarter of 2021 is 7.79 billion yuan, which is expected to be 4.924 billion yuan, compared with 2.164 billion yuan in the same period last year. Total revenue and adjusted net profit reached record highs for a single quarter.

Smartphone revenue accounts for 58.3%, revenue has increased by nearly 70% and more than 50 billion, and overseas sales have performed well.

Smartphone revenue has always been the largest part of Xiaomi's revenue. Xiaomi sold 49.4 million smartphones in the first quarter of 2021, compared with 29.2 million smartphones in the first quarter of 2020, up 69.1% from a year earlier. Revenue also increased by 69.8% from 30.3 billion yuan in the first quarter of 2020 to 51.5 billion yuan in the first quarter of 2021.

In the first quarter of 2021, the ASP of smartphones was 1042.1 yuan per smartphone, compared with 1038.0 yuan per smartphone in the first quarter of 2020.

According to Canalys, Xiaomi ranks third in global smartphone shipments this quarter, with a market share of 14.1%.

Xiaomi's smartphone business is growing rapidly in mainland China. According to Canalys, Xiaomi's smartphone shipments in mainland China increased by 74.6% in the first quarter of 2021 compared with the same period last year, ranking fourth in market share. In addition, sales of high-end mobile phones have increased, with global shipments of more than 4 million smartphones priced at 3000 yuan or more in mainland China and 300 euros or more abroad.

At the same time, Xiaomi's overseas market business continues to expand. In the first quarter of 2021, overseas market revenue reached 37.4 billion yuan, an increase of 50.6 percent over the same period last year. According to Canalys statistics, Xiaomi ranked in the top five in terms of market share in 62 countries and regions in the world this quarter, and ranked first in 12 countries and regions in the world in terms of smartphone shipments.

Xiaomi ranked second in Europe for the first time, with a market share of 22.7% and shipments up 85.1% from a year earlier. Among them, in Eastern Europe, Xiaomi ranked first in market share for two consecutive quarters, with a market share of 32.5%, and shipments increased by 81.8% compared with the same period last year. Xiaomi ranked first in the market share of smartphone shipments in Russia for the first time, with a market share of 32.1%. In Western Europe, Xiaomi's market share further rose to 16.6%, ranking firmly in the top three, and shipments increased by 89.3% compared with the same period last year. Xiaomi in Spain has the first market share for five consecutive quarters, with a market share of 35.1%. Market share in Latin America rose to third place. In addition, Xiaomi ranked first in smartphone shipments in India for 14 consecutive quarters, with a market share of 28.3%.

IoT products such as smart TVs, floor-sweeping robots and electric scooters are growing rapidly and have announced their entry into the electric vehicle business.

IoT and income from consumer products constitute the second largest part of Xiaomi's income. According to the quarterly report, this revenue increased by 40.5% from 13 billion yuan in the first quarter of 2020 to 18.2 billion yuan in the first quarter of 2021, mainly due to the rapid growth in sales of several IoT products such as smart TVs, floor-sweeping robots and electric scooters.

Sales of smart TVs and laptops increased by 21.7% from 4.6 billion yuan in the first quarter of 2020 to 5.6 billion yuan in the first quarter of 2021. In addition, the number of monthly active users of Xiaomi smart TV and Xiaomi box increased by more than 34.0% year on year this quarter. As of March 31, 2021, the number of paying subscribers of Xiaomi TV has reached 4.7 million, an increase of 8.2% over the same period last year.

On March 30, 2021, Xiaomi announced that it would set up a wholly-owned subsidiary to take charge of Xiaomi's smart electric vehicle business, with an initial investment of RMB 10 billion and an estimated investment of US $10 billion in the next 10 years. Lei Jun, CEO of Xiaomi Group, will also serve as CEO of smart electric vehicle business. Xiaomi hopes to use high-quality intelligent electric vehicles to start Xiaomi's broad journey in the next decade. Its vast user base and rich business experience in software and hardware will be a strong support for Xiaomi electric vehicle business.

The gross profit margin of Internet business reached 72.4%, and Xiaomi's global Internet users continued to maintain high growth.

In the first quarter of 2021, Xiaomi's Internet service revenue reached 6.6 billion yuan, an increase of 11.4 percent over the same period last year. Xiaomi's Internet business posted a gross profit margin of 72.4% this quarter.

The strong growth of mobile phone shipments has led to the continuous expansion of Xiaomi's global user base, and Xiaomi's global Internet users continue to maintain high growth. In March 2021, the number of global MIUI monthly active users reached 425.3 million, an increase of 28.6% over the same period last year. Among them, the number of monthly active users of MIUI in mainland China increased by 6.4% year-on-year to 118.6 million, a net increase of 7.7 million users over December 2020. Meanwhile, as of March 31, 2021, the number of IoT devices (excluding smartphones and laptops) connected to Xiaomi's AIoT platform reached 351.1 million. The number of monthly active users of artificial intelligence assistant "Xiao Ai" reached 93 million in March 2021.

In the first quarter of 2021, Xiaomi's advertising revenue reached another record high of 3.9 billion yuan in a single quarter, an increase of 46.3% over the same period last year, mainly due to the expansion of Xiaomi's global users and the rapid growth in the number of high-end mobile phone users. as a result, advertising revenue such as preinstallation and search continues to rise.

In addition, Xiaomi's game revenue in the quarter was 1.1 billion yuan, up 24.8% from the previous quarter. In the game business, Xiaomi attaches importance to deep cooperation with high-quality content, while the growth of high-end mobile phone users has led to a continuous increase in average game revenue per user.

Xiaomi scientific research personnel account for about 44.5%, remove the recognition of "Chinese military company", or return to FTSE.

In the first quarter of 2021, Xiaomi's R & D expenditure reached 3 billion yuan, an increase of 61.0% over the same period last year.

As of March 31, 2021, Xiaomi had 23410 full-time employees, of whom 21607 were located in mainland China, mainly based in Beijing. In the future, Xiaomi is expected to continue to hire additional staff in mainland China and major global target markets. As of March 31, 2021, Xiaomi had a total of 10407 R & D personnel, accounting for about 44.5% of the total. From March 31 to March 2021, a total of 14921 employees held share-based awards. Xiaomi's total compensation expenses (including share-based compensation expenses) was 3.4 billion yuan in the first quarter of 2021, an increase of 10.5 per cent from the fourth quarter of 2020.

In response to the US Department of Defense's recognition of Xiaomi Group as a "Chinese military company" on January 14, 2021, Xiaomi issued a notice on May 26th, saying that at 04:09 on May 25, 2021, the District Court of the United States District of Columbia issued a final judgment, relieving the US Department of Defense of the recognition of Xiaomi Group as a "Chinese military company". And formally lifted all restrictions on the purchase and holding of Xiaomi Group securities by American investors.

FTSE Russell Index recently announced that Xiaomi Group will be reintegrated into the FTSE global index series, which will be included in 50% from June 7, and the remaining 50% will be included from June 21. On May 26, FTSE Russell announced that Xiaomi would be evaluated for inclusion in the FTSE China 50 Index. Earlier, FTSE Russell officially removed Xiaomi from the global index series on March 12 after Xiaomi was included in the list of Chinese military-related enterprises.

Citic Securities said in a report that Xiaomi's return to the FTSE global index is expected to drive relevant passive funds and some wait-and-see capital inflows, and the company's share price is expected to return to fundamental expectations.

In addition, Citic Securities also pointed out that Xiaomi continued to repurchase for 15 consecutive trading days from March 31, 2021 to April 23, 2021, until the repurchase stopped during the quiet period, with a total repurchase of nearly 5 billion yuan, demonstrating the company's confidence.