A Study On Financial Analysis Of Xiaomi Corporation Based On The Measure Of Harvard Analytical Framework

With the deep development of Internet technology,a number of mobile Internet companies,such as Baidu,Tencent Holdings,Alibaba and Jingdong,have grown up.The business model of these giant companies is very different from the traditional industry.The traditional industry pays attention to profits,but the mobile Internet company The core resources are users and traffic.For the subsequent market potential and share,strategic losses are often used to obtain greater platform value.The importance of operating income is much higher than the importance of profit.Mobile Internet companies are on the financial analysis system.The focus is also different from traditional companies.This paper attempts to analyze the financial statements of Xiaomi Group and provide investors with financial analysis ideas for mobile internet companies.Based on the Harvard analysis framework and based on the analysis of the 2015-2017 financial statements of Xiaomi Group,this paper evaluates the company's strategy and finance,and evaluates the company's revenue-generating capacity,growth,operational capability,financial security,and profitability.And analysis,by peeking into similar companies,to find out the financial performance behind the rapid growth of Xiaomi Group.After comprehensive analysis of strategic analysis,accounting analysis,and financial analysis,the prospect analysis will be conducted to summarize the future opportunities and challenges of Xiaomi Group.Through the above research process,Xiaomi Group's financial performance is:light asset model,diversified investment-led mobile Internet company,income-generating capacity,growth,strong asset operation performance,moderate financial leverage,high financial security,development prospects good.However,there are also shortcomings such as insufficient profitability,low R&D investment,and insufficient liquidity.As a mobile internet company,Xiaomi Group will be more diversified in the future and the industry will be more closely integrated.This paper suggests that Xiaomi Group will enhance the brand value of the company by increasing R&D investment,while at the same time paying attention to controlling the scale and pace of investment in the diversification strategy.The business integration with strong core resources is selected to promote the sustainable development of the Xiaomi ecological chain.