Xiaomi achieved strong quarterly revenue growth compared to the previous year, with an adjusted net profit of over 765 million euros, an increase of 182.9% compared to the previous year.
Of particular interest are mobile phones (read below) where the gross profit margin reached a record 16.6%.
Overall, the Group’s adjusted net profit for the first three quarters of 2023 was 1.7 times last year’s total, “exceeding market estimates”, according to a statement to newsrooms.
The founder, chairman and CEO of Xiaomi Corporation, Lei Jun, set a new goal for 2020-2030 in October this year, declaring the Group’s commitment to “sustainable investments in fundamental technologies” and committing to “becoming a leader in the evolving global reduction” advanced technologies.”
In the third quarter of 2023, Xiaomi’s research and development (R&D) expenditure amounted to more than 649 million euros, an increase of 22% compared to the previous year, with the R&D team increasing and now accounting for more than 53% of the total workforce represents.
“The Group has updated its strategy from ‘Smartphone x AIoT’ to ‘Human x Car x Home’ and unveiled its new operating system Xiaomi HyperOS, which integrates all consumer needs into a smart ecosystem, from personal devices to smart home products and smart mobility”indicates the note.
Also in the third quarter of this year, the Group’s gross profit margin reached 22.7%, marking an increase for four consecutive quarters. The total inventory amounted to almost 4.7 billion euros, a decrease of 30.5% compared to the previous year, reaching the lowest level in the past eleven quarters, which led Xiaomi to “flexibly adjust its strategy activities in response to the changing industry demands.”
At the same time, the group’s “monetary resources continued to increase, reaching a record of more than 16.2 billion euros”.
Smartphone sales are rising against the global trend
In the third quarter of this year, global smartphone shipments fell slightly (1.1%) year-on-year, but Xiaomi’s smartphone shipments “defied all expectations” and increased both year-on-year and quarter-on-quarter last year.
Global smartphone shipments totaled 41.8 million units, the highest level in the past six quarters, leading to 13.8% revenue growth for Xiaomi’s smartphone business to over €5.3 billion, with gross profit margin reaching a record of 16.6%, an increase of 7.7% compared to last year.
Source: DN
