Xiaomi's net profit increased sharply

By consistently implementing the core operating strategy of “dual emphasis on scale and profitability” and the premiumization strategy, Xiaomi has significantly increased both its revenue and profit. The Group has achieved its first quarter-on-year revenue growth in the past six quarters, with quarterly profit reaching its highest level in two years.

Xiaomi records impressive revenue in Q3/2023

Accordingly, in the third quarter of 2023, the group's total revenue skyrocketed to more than 9.9 billion USD. Adjusted net profit reached nearly 842 million USD, up 182.9% over the same period last year. The group's adjusted net profit in the first three quarters of the year was 1.7 times higher than last year, surpassing market estimates.

Xiaomi Group Chairman and CEO Lei Jun set a new goal for 2020-2030 in October this year, committing to sustainable investment in fundamental core technologies and striving to become a leader in the emerging global advanced technology sector. This has affirmed Xiaomi's strong commitment to investing in research and development (R&D).

In the third quarter of 2023, Xiaomi's R&D expenditure reached more than US$700 million, up 22% year-on-year. The R&D team expanded, accounting for more than 53% of the total workforce. The Group upgraded its strategy from "Smartphone x AIoT" to "People x Cars x Homes" and announced the all-new Xiaomi HyperOS operating system, integrating all consumer needs into a smart ecosystem from personal devices, smart home products to smart mobile phones.

In addition, in the third quarter of 2023, global smartphone shipments declined slightly by 1.1% year-on-year. Overcoming this headwind, Xiaomi's smartphone shipments grew both year-on-year and quarter-on-quarter. Its global smartphone shipments reached 41.8 million units, the highest in the past six quarters.

In the third quarter, Xiaomi's smartphone business saw a 13.8% quarter-on-quarter revenue growth to over $5.8 billion. Gross profit margin hit a record high of 16.6%, up 7.7 percentage points year-on-year.

Xiaomi was the only brand among the top three to report a year-on-year increase in shipments this quarter, leading the resurgence in growth, according to market research firm Canalys. With a market share of 14.1%, Xiaomi maintained its third position in global smartphone shipments for the 13th consecutive quarter.

In the third quarter of 2023, the group's revenue from IoT and lifestyle products was over US$2.9 billion, up 8.5% year-on-year, and gross profit margin reached a record high of 17.8%, up 4.3 percentage points year-on-year.

Products in Xiaomi's ecosystem boast interconnected advantages. As of September 30, 2023, the number of connected IoT devices (excluding smartphones, tablets and laptops) on the Group's AIoT platform reached 699 million, an increase of 25.2% year-on-year; the number of users with five or more devices connected to the Group's AIoT platform (excluding smartphones, tablets and laptops) reached 13.7 million, an increase of 26.0% year-on-year.

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