Xiaomi Corporation, a prominent player in consumer electronics and smart manufacturing, has reported a significant year-on-year (YoY) growth in its financial results for the first quarter of 2024. Known for its extensive range of smartphones and smart hardware integrated via an Internet of Things (IoT) platform, Xiaomi’s unaudited consolidated results showcase a robust growth trajectory, with substantial increases in both revenue and net profits.
Xiaomi’s total revenue for the quarter ending March 31, 2024, reached RMB 75.5 billion (US$10.4 billion), marking a 27% increase YoY. The adjusted net profit for the company surged by an impressive 100.8% to RMB 6.5 billion (US$897 million), despite incurring RMB 2.3 billion (US$317 million) in expenses related to its new smart Electric Vehicle (EV) business and other initiatives. This growth was attributed to Xiaomi’s strategic focus on both scale and profitability, which saw the gross profit margin climb to 22.3%, up by 2.8 percentage points from the previous year.
| Metric | Q1 2024 | YoY Growth (%) |
|---|---|---|
| Total Revenue | RMB 75.5 billion | 27% |
| Adjusted Net Profit | RMB 6.5 billion | 100.8% |
| Gross Profit Margin | 22.3% | +2.8 percentage points |
The company’s core business areas, including smartphones, IoT and lifestyle products, and internet services, experienced double-digit revenue growth. Strategic advancements in the smart EV sector were particularly noteworthy, contributing significantly to the company’s overall performance.
Xiaomi’s smartphone segment continued to excel, with global shipments increasing by 33.7% to 40.6 million units. This growth was supported by Xiaomi’s push into premium markets, with the average selling price of its smartphones rising. According to market analysis firm Canalys, the company has consistently held a top-three position globally in smartphone shipments for over three years.
- Global Shipments: Increased by 33.7% to 40.6 million units.
- Premium Market Push: Average selling price of smartphones rose.
- Market Position: Consistently in the top three globally for smartphone shipments over three years (Canalys).
In the IoT and lifestyle products sector, Xiaomi reported a historic revenue increase to RMB 20.4 billion (US$2.81 billion), up 21% YoY. This segment’s gross profit margin reached a record high of 19.9%, demonstrating strong momentum in Xiaomi’s smart large home appliances, which saw significant sales increases across air conditioners, refrigerators, and washing machines.
Internet services also saw a remarkable uptick, with revenues hitting a record RMB 8.0 billion (US$1.12 billion), a 14.5% increase YoY. The gross profit margin in this sector reached 74.2%, with user engagement at an all-time high — global monthly active users (MAU) surged to 658.1 million.
- Revenue: RMB 8.0 billion (US$1.12 billion), up 14.5% YoY.
- Gross Profit Margin: Reached 74.2%.
- User Engagement: MAUs surged to 658.1 million globally.
The launch of Xiaomi’s first smart EV, the Xiaomi SU7 Series, marked a milestone in the company’s expansion into the automobile industry. This vehicle introduction set a new industry record for rapid delivery, with over 10,000 vehicles delivered shortly after its release. Xiaomi has set an ambitious target of delivering over 100,000 new vehicles by the end of 2024.
- Smart EV Launch: Xiaomi SU7 Series.
- Industry Record: Rapid delivery with over 10,000 vehicles delivered shortly after release.
- 2024 Target: Over 100,000 new vehicles.
Xiaomi continues to invest heavily in research and development, particularly in smart EV technology and autonomous driving capabilities. The company’s commitment to innovation remains strong, and it plans to significantly extend its sales and service network by the end of the year.
Innovation and Expansion Plans
- R&D Focus: Heavy investment in smart EV technology and autonomous driving.
- Sales and Service Network: Significant expansion planned by end of 2024.
Xiaomi Corporation’s Q1 2024 financial results reflect a successful strategy of diversification and innovation, with impressive growth across its core business areas and new ventures. The company’s commitment to expanding its smart EV offerings, coupled with strong performance in smartphones, IoT, and internet services, positions it well for continued success throughout the year and beyond.
- Revenue Growth: 27% YoY increase to RMB 75.5 billion.
- Profit Surge: Adjusted net profit rose by 100.8%.
- Smartphone Success: 33.7% increase in global shipments.
- IoT Momentum: 21% YoY revenue growth.
- Internet Services: 14.5% increase in revenue, high user engagement.
- Smart EV Expansion: Ambitious delivery targets, rapid market entry.
- R&D Commitment: Focus on innovation in smart EV and autonomous technology.
This comprehensive overview of Xiaomi’s first-quarter performance highlights the company’s robust growth and strategic advancements, underscoring its leading position in the global market. With continued investment in innovation and expansion, Xiaomi is poised to achieve even greater heights in the coming quarters.
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