Xiaomi Corporation has unveiled its audited consolidated results for the fiscal year concluding on December 31, 2023. Demonstrating robust performance, the company recorded a total revenue of RMB 271.0 billion for the year, accompanied by a remarkable surge in adjusted net profit, which soared by an impressive 126.3% to RMB 19.3 billion.
The substantial increase in adjusted net profit surpassed market expectations and marked the second-highest level of profitability since the company’s listing. Notably, a significant portion of the expenses was allocated to the smart Electric Vehicle (EV) business and other new initiatives, totaling RMB 6.7 billion (excluding share-based compensation expenses related to smart EV and other new initiatives of RMB 0.8 billion for the year).
In the fourth quarter of 2023, Xiaomi’s total revenue continued its upward trajectory, growing for two consecutive quarters to reach RMB 73.2 billion, marking a significant increase of 10.9% year-over-year. Simultaneously, its adjusted net profit witnessed an impressive surge of 236.1% year-over-year to RMB 4.9 billion.
Throughout 2023, Xiaomi diligently executed its key operating strategy of “dual emphasis on scale and profitability.” The company’s exceptional growth resilience and efficiency in business operations were evident, particularly in the acceleration of profit growth during the first half of the year and a subsequent quarterly revenue rebound in the latter half.
Moreover, 2023 marked the inaugural year of the company’s upgraded corporate strategy of the “Human × Car × Home” smart ecosystem. As part of its ecosystem development, Xiaomi introduced its new operating system, “Xiaomi HyperOS,” and held the Xiaomi EV Technology Launch event, signaling its foray into the EV market. Additionally, the Xiaomi SU7 Series product launch event, scheduled for March 28, 2024, is anticipated to further enrich the company’s ecosystem portfolio.
In the smartphone segment, Xiaomi’s global smartphone shipments reached approximately 145.6 million units in 2023, with annual smartphone revenue hitting RMB 157.5 billion and a gross profit margin of 14.6%. The company maintained its position as the No. 3 global smartphone shipments for three consecutive years, with global smartphone shipments in the fourth quarter of 2023 amounting to 40.5 million units, representing a robust increase of 23.9% year-over-year.
Amidst intense market competition, Xiaomi continued to prioritize technology innovation and made significant strides in the premium smartphone market. The average selling price (ASP) of the company’s smartphones in mainland China witnessed a substantial increase of over 19% year-over-year in 2023. Xiaomi’s market share of smartphone sales in the RMB 4,000-RMB 6,000 price segment in mainland China also experienced significant growth, reaching 16.9% in 2023, up by 9.2 percentage points year-over-year.
Furthermore, Xiaomi’s ecosystem of IoT and lifestyle products reported robust growth, with revenue reaching RMB 80.1 billion and a record-high gross profit margin of 16.3%. The number of connected IoT devices on Xiaomi’s AIoT platform surged to 739.7 million, reflecting a year-over-year increase of 25.5%.
In its internet services segment, Xiaomi achieved record-high revenue and gross profit margin, with internet services revenue reaching RMB 30.1 billion and a gross profit margin of 74.2%. The company’s global partnerships and open approach to collaboration contributed to a significant increase in revenue from overseas internet services, which reached RMB 8.4 billion, accounting for 28.0% of the total internet services revenue.
Looking ahead, Xiaomi introduced its new goals for 2020–2030, reaffirming its commitment to sustainable investments in foundational core technologies. With a dedicated focus on becoming a leader in global cutting-edge technologies, Xiaomi unveiled its first EV product, the Xiaomi SU7 Series, at the Xiaomi EV Technology Launch event, underscoring its ambitions for the future.