Xiaomi Corp

Ladies and gentlemen, thank you for standing by, and welcome to the Xiaomi 2021 Fourth Quarter and Annual Results Announcement Conference call today. Today's conference is being recorded. If you have any objections, you may now disconnect at this time. If you have any questions you would like to raise during the Q&A section later, please press dial 1 on your telephone keypad to register your questions. Do you wish to cancel the questions? I'd now like to hand the conference over to your host today, Ms. Anita Chen, Head of Investor Relations. Please go ahead, Madam.

Good evening, ladies and gentlemen. Welcome to the investor conference call hosted by Xiaomi Corporation regarding the company's 2021 fourth quarter and annual results. Before we start the call, we would like to remind you that the call may include forward-looking statements. which are underlined by a number of risks and uncertainties and may not be realized in the future for various reasons. Information about the general market conditions is coming from a variety of sources outside of Xiaomi. This presentation also contains some unaudited, non-IFRS financial measures that should be considered in addition to, but not as a substitute for, the company's financials prepared in accordance with IFRS. Joining us on the call today are Mr. Wang Xiang, partner and president of Xiaomi Corporation, and Mr. Alan Lam, vice president and CFO of Xiaomi Corporation and CEO of Airstar Digital Technologies. To start, Mr. Wang will share recent strategic updates of the company. Thereafter, Mr. Lam will review the business and financial performance for the fourth quarter and full year 2021. Following that, we'll move on to the Q&A session. I will now turn the call over to Mr. Wang.

Yeah, thank you. Thank you, Anita. Hello, everyone. Good evening. Thank you for joining our 2021 first quarter and annual results earnings call. In 2021, against the backdrop of macro uncertainty and global supply disruption, we delivered outstanding business and financial results across all business segments. In 2021, our total revenue reached 328.3 billion RMB, up almost 34% year over year. And a just net profit reached 22 billion, up almost 70%. Our global smartphone shipments exceeded 190 million in 2021. I'm pleased to share that our smartphone shipments ranked number three, both globally and in mainland China in 2021, with record high market shares. As we continue to expand globally, we ranked number one in 14 markets and top five in 62 markets in the year. In particular, we ranked number two in Europe with a market share of 23% and retained our number one position in Spain for two consecutive years and the number one position in India for 17 consecutive quarters. We continue to strengthen our position in the premium smartphone market. In 2021, we shipped over 24 million premium smartphones globally compared to approximately 10 million the year before. Premium smartphones accounted for around 13% of our total smartphone shipments in 2021, compared with around 7% the year before. We remain committed to R&D investment and innovation. Last year, our R&D investments reached 13.2 billion RMB, up 42% year over year. To provide best user experience, we continue to deliver cutting-edge camera charging and display technologies. In 2021, we successfully launched our first ISP chip and our first charging chip, and our groundbreaking CyberDock robot and the smart glasses. Furthermore, we expect to invest over 100 billion RMB over the next five years. As we continue to build amazing products, we also strengthen our distribution channels. As the leader in online channel, our online market share of smartphones reached 34% in mainland China in 2021. Meanwhile, we continue to expand our offline channel And by end of last year, we had over 10,200 stores in mainland China, an addition of over seven stores in 2021. In 2022, our focus will be on further improving operational efficiency of these new offline retail stores and strengthen our sales and customer service capabilities. Our internet service performance also exceeded expectations in 2021. Our global MIUI MAU reached 509 million in December last year, a net increase of 113 million from the year before. Our mainland China MIUI MAU increased for five consecutive quarters, reaching 130 million. With our growing global user base, and increasing premium smartphone shipments, our internet service revenue achieved robust growth. Furthermore, our overseas internet service revenue contributed to nearly 22% of total internet service revenue in the first quarter of 2021. The spring season is upon us. Together, we will face our challenges with courage and commitment while seizing new opportunities. We will endure through this period of uncertainty and make our way to a brighter future. Now, I'd like to invite Alan to discuss our first quarter and annual result in greater details. Alan, please.