Xiaomi posts 70 percent net profit growth for 2021

Tech firm Xiaomi Corp posted net profit growth of 70 percent in 2021, thanks to booming smartphone sales and expansion into the high-end market segment.

The HK-listed firm also said on Wednesday it would increase investment on research and development, covering chips, robotics and its electric car, which is expected to debut in 2024.

In 2021, Xiaomi's net profit was 22 billion yuan (US$3.43 billion), up 69.5 percent year on year. Revenue hit 328.3 billion yuan, up 33.5 percent.

Despite "challenges facing global economies" like chip shortages and the pandemic, Xiaomi's performance was robust with "record-high market share" in the global market, the company said.

In 2021, Xiaomi's global smartphone sales grew 30 percent to 190.3 million units – a record high. That included increasing sales for models over 3,000 yuan, representing the company's effort to sell more pricey phones, instead of major sales for entry-level models previously.

In 2021, Xiaomi's smartphone sales ranked No. 3 globally with a record-high market share of 14.1 percent, according to researcher Canalys.

The company also sells Internet of Things devices, covering air conditioners, TVs and laptops, to establish a complete ecosystem.

In 2021, Xiaomi's R&D spending reached 13.2 billion yuan, an increase of 42.3 percent. According to a plan announced by CEO Lei Jun, Xiaomi will invest more than 100 billion yuan in research and development over the next five years.

The investments include the company's expansion in the electric car business. It has established a team of 1,000 engineers on car research, and will release its new car in 2024.

On Wednesday, Xiaomi jumped 4.08 percent to JK$14.8 (US$1.90), compared with a 1.21 percent gain in the Heng Seng Index.