Xiaomi Group has just announced its audited results for the fiscal year ending December 31, 2023, with total group revenue of $37.52 billion and adjusted net profit increasing by 126.3% to $2.67 billion.
Net profit growth exceeded market expectations and marked the second-highest profit since the group went public. Business expenses for Smart Electric Vehicles (EVs) and other new initiatives rose to $930 million (excluding $110 million in equity-based compensation related to Smart EVs and other new initiatives).
In 2023, Xiaomi actively pursued a strong development strategy focusing on dual-action, encompassing both scale and profitability. This also marked the first year Xiaomi implemented its corporate strategy of a smart ecosystem encompassing "People, Cars, and Homes."
In the smartphone segment, Xiaomi's global sales reached approximately 145.6 million units in 2023. Annual smartphone revenue reached $21.83 billion, and the gross profit margin was 14.6%.
Xiaomi's "storefront integration" retail strategy has yielded positive results, significantly improving the efficiency of its retail stores. According to third-party data, Xiaomi's market share of smartphone shipments through traditional channels in China increased to 8.4% in 2023.
In 2023, Xiaomi's revenue from IoT and lifestyle products reached $11.09 billion, and its gross profit margin reached a record high of 16.3%. By the end of 2023, the number of connected IoT devices (excluding smartphones, tablets, and laptops) on Xiaomi's AIoT platform reached 739.7 million devices, a 25.5% increase year-on-year.
In its global partnerships, Xiaomi adopts an open approach, offering the potential for increased profitability. In 2023, revenue from overseas internet services increased by 24.1% year-on-year to $1.16 billion, reaching a record high and accounting for 28% of the group's total internet service revenue.
In December 2023, Xiaomi unveiled its first electric vehicle (EV), the Xiaomi SU7 series, at the Xiaomi EV Technology Launch Event. The event showcased five core technologies of Xiaomi EV, marking a key to the success of Xiaomi's new joint venture.
As Xiaomi continues to optimize efficiency across its platform, the company's advertising revenue reached $2.84 billion, an 11.2% increase year-on-year. Coupled with upgrades in its smartphone premiumization strategy, the number of active and paying users in the company's gaming business continues to grow, driving Xiaomi's gaming revenue to $610 million in 2023, a 7% increase year-on-year.
Setting new goals for the 2020–2030 period, Xiaomi is committed to investing in core platform technologies to become a global leader in advanced technology. The group is also committed to sustainable investment in core platform technologies and striving to become a leading company in the global technology sector.
KIM THANH
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