Xiaomi Corporation announced its unaudited consolidated results for the three months ended March 31, 2024. The Group reported substantial growth, with quarterly revenue reaching RMB 75.5 billion (approx. RM 49.8 billion), a 27% year-over-year (YoY) increase. Adjusted net profit surged by 100.8% YoY to RMB 6.5 billion (approx. RM 4.3 billion), despite RMB 2.3 billion (approx. RM 1.5 billion) in expenses related to its smart Electric Vehicle (“EV”) business and other new initiatives. Xiaomi’s gross profit margin improved to 22.3%, a 2.8 percentage point increase YoY.
Core Business Performance and Strategic Initiatives
1. Smartphones:
- Global Shipments: Increased by 33.7% YoY to 40.6 million units.
- Revenue: Reached RMB 46.5 billion (approx. RM 30.7 billion), marking the fourth consecutive quarter of growth.
- Gross Profit Margin: Improved to 14.8%, up 3.6 percentage points YoY.
- Market Share: Maintained top three global smartphone shipment ranking for 15 consecutive quarters with a 13.8% market share.
2. IoT and Lifestyle Products:
- Revenue: Increased by 21.0% YoY to RMB 20.4 billion (approx. RM 13.5 billion).
- Gross Profit Margin: Reached a record high of 19.9%, up 4.1 percentage points YoY.
- Smart Home Appliances: Significant growth with air conditioner shipments up 63%, refrigerator shipments up 52%, and washing machine shipments up 47% YoY.
3. Internet Services:
- Revenue: Achieved a record high of RMB 8.0 billion (approx. RM 5.3 billion), up 14.5% YoY.
- Gross Profit Margin: 74.2%.
- Global MAU: Reached 658.1 million, up 10.6% YoY.
- Overseas Revenue: Hit RMB 2.5 billion (approx. RM 1.7 billion), accounting for 31.2% of total internet services revenue.
Smart EV Business and Technological Advancements
Xiaomi’s smart EV business demonstrated remarkable performance:
- Launch: The Xiaomi SU7 Series was officially launched on March 28, 2024.
- Orders and Deliveries: As of April 30, cumulative locked-in orders reached 88,063 vehicles; deliveries hit 10,000 vehicles by May 15.
- Production Target: Over 100,000 new vehicle deliveries for 2024, with plans to start double shift production in June.
- Sales and Service Network: Expanding to 219 sales stores across 46 cities and 143 service centers in 86 cities by the end of 2024.
Research and Development
Xiaomi continues to invest heavily in R&D:
- Q1 2024 R&D Expenses: RMB 5.2 billion (approx. RM 3.4 billion), up 25.4% YoY.
- Autonomous Driving: Achieved significant advancements in autonomous driving technology, with plans for nationwide rollout of City Navigate on Autopilot (NOA) on Xiaomi Pilot Max by August 2024.
Xiaomi’s growth is underpinned by its strategic emphasis on scale and profitability, leveraging its strong cash reserves and innovative capabilities to drive continuous advancements across its product portfolio and new business ventures.