Chinese technology company Xiaomi Corp. reported a total revenue surge of RMB75.5 billion, marking a 27% year-over-year increase in its quarterly earnings release.
Adjusted net profit reached an all-time high, soaring by 100.8% year-over-year to RMB6.5 billion. This surge included RMB2.3 billion in expenses linked to its smart electric vehicle (EV) business and other innovative initiatives, signaling an accelerated pace of growth.
Xiaomi’s emphasis on scale and profitability in its core operating strategy proved fruitful, as shown by its gross profit margin hitting 22.3% at the Group level, a significant increase of 2.8 percentage points year-over-year. The company attributed this to its execution of operating strategies that drove double-digit revenue growth across its three core businesses: smartphones, Internet of Things (IoT) and lifestyle products, and internet services.
The company’s strong performance was further accentuated by Xiaomi’s global smartphone shipments, which surged by 33.7% year-over-year to 40.6 million units, maintaining year-over-year growth for three consecutive quarters. Smartphone revenue witnessed its fourth consecutive quarter of growth, reaching RMB46.5 billion.
IoT and lifestyle products
IoT and lifestyle products’ revenue soared by 21% year-over-year to RMB20.4 billion, reaching historic highs. Xiaomi credited this to the company’s focus on innovation and user experience within its smart ecosystem. It saw growth in categories like smart large home appliances, with significant increases in air conditioner, refrigerator, and washing machine shipments.
Internet services maintained solid growth momentum, with revenue hitting a record high of RMB8.0 billion, up 14.5% year-over-year. Xiaomi’s user base for internet services globally and in mainland China reached new peaks, underscoring the company’s expanding reach and engagement.
Smart EV
The debut of Xiaomi’s smart EV, the Xiaomi SU7 Series, marked a significant milestone, swiftly emerging as a new growth engine for the company. Positioned as a “full-size high-performance eco-technology sedan,” the SU7 Series received overwhelming market attention, with cumulative locked-in orders exceeding 88,000 vehicles within a short span. The company has set an ambitious target of over 100,000 new vehicle deliveries for 2024, reflecting its confidence in the series’ competitiveness and production capacity.
Xiaomi’s commitment to technological innovation was highlighted by its substantial investments in research and development, particularly in smart EV technologies. The company’s autonomous driving initiatives, including the Xiaomi Pilot Autonomous Driving, underscore its ambition to lead in cutting-edge technologies.
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