Xiaomi financial report teleconference record: until 2022, chip supply will not go wrong

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Tencent Technology May 26 Xiaomi group (HKEx Code: 1810) released its first quarter financial statements as of March 31, 2021 on Wednesday. According to the financial report, Xiaomi’s total revenue in the first quarter was 76.882 billion yuan, a year-on-year increase of 54.7%; The net profit attributable to Xiaomi was RMB 6.069 billion, a year-on-year increase of 163.8%.
Xiaomi releases latest performance
After the financial report was released, Xiaomi group president Wang Xiang, vice president and Chief Financial Officer Lin Shiwei, vice president of Finance Wang Yonghua and other senior executives attended the financial report conference call and answered analysts’ questions on the spot.
Analyst: my first question is about the shortage of chips. Does it have any impact on Xiaomi? For the technology industry, chip shortage can be said to be a very serious problem. In China and India, there are some fluctuations in demand for smart phones. What do these fluctuations mean? I would also like to ask what impact inventory related fluctuations may have on Xiaomi’s business. In such a period of time, do the factors I mentioned have any obvious impact on Xiaomi and its future growth? How to deal with it?
Wang Xiang: in fact, in the semiconductor industry, the shortage of chips is cyclical and occurs every three or four years. But this time the chip shortage may be more serious, and there are many factors. First of all, COVID-19 is a big factor. We have been working hard with suppliers, hoping to deal with this problem very well. In other words, we want to optimize the overall supply situation and prepare for the future.
Our inventory is very good, the current inventory level is in a very healthy state. Of course, we will also make corresponding raw material inventory preparation for the second half of the year. However, according to our forecast, there will be no problems in chip supply and raw materials this year. Even if there are still chip shortage and raw material problems in the short term, we can still have good countermeasures. We won’t have any problems until 2022.
In 2021, none of the problems you just mentioned will disappear completely, but we have very good measures and we have some reserves to deal with these problems. Through such measures, we can ensure that the production capacity will not be affected. In terms of SOC, memory and screen, we are communicating with upstream suppliers in the whole industry chain.
As for where the whole market will go, we have been paying attention to it. We can see that some research institutions have made some predictions and mentioned that the demand for smart phones in China will fluctuate obviously, or even weaken to a certain extent. At present, we have not made any adjustments to our plan. We will pay more attention to the market situation and continue to pay attention to the changing trend of demand.
(constantly updated)