Xiaomi Corporation, a major consumer electronics and smart manufacturing player, has reported a significant year-on-year (YoY) growth in its financial results for the first quarter of 2024. With its roots in smartphones and smart hardware integrated via an Internet of Things (IoT) platform, the company’s unaudited consolidated results showcased a robust growth trajectory, with revenue and net profits substantially increasing.
Record profits and revenue growth driven by diverse sectors
Xiaomi’s total revenue for the March 31, 2024 quarter reached RMB 75.5 billion (US$10.4 billion), marking a 27% increase YoY. The adjusted net profit for the company surged by an impressive 100.8% to RMB 6.5 billion (US$897 million), despite RMB 2.3 billion (US$317 million) in expenses related to its new smart Electric Vehicle (EV) business and other initiatives. This growth was attributed to Xiaomi’s strategy focusing on both scale and profitability, which saw the gross profit margin climb to 22.3%, up by 2.8 percentage points from the previous year.
The company’s core business areas, including smartphones, IoT and lifestyle products, and internet services, experienced double-digit revenue growth. Xiaomi’s strategic advancements in the smart EV sector were particularly noteworthy, contributing significantly to the company’s overall performance.
Strategic advancements in smartphone and IoT sectors
Xiaomi’s smartphone segment continued to excel, with global shipments increasing by 33.7% to 40.6 million units. This growth was supported by Xiaomi’s push into premium markets, with the average selling price of its smartphones rising. According to market analysis firm Canalys, the company has consistently held a top-three position globally in smartphone shipments for over three years.
In the IoT and lifestyle products sector, Xiaomi reported a historic revenue increase to RMB 20.4 billion (US$2.81 billion), up 21% YoY. This segment’s gross profit margin reached a record high of 19.9%, demonstrating strong momentum in Xiaomi’s smart large home appliances, which saw significant sales increases across air conditioners, refrigerators, and washing machines.
Expansion in internet services and smart EV initiatives
Internet services also saw a remarkable uptick, with revenues hitting a record RMB 8.0 billion (US$1.12 billion), a 14.5% increase YoY. The gross profit margin in this sector reached 74.2%, with user engagement at an all-time high — global monthly active users (MAU) surged to 658.1 million.
The launch of Xiaomi’s first smart EV, the Xiaomi SU7 Series, marked a milestone in the company’s expansion into the automobile industry. This vehicle introduction set a new industry record for rapid delivery, with over 10,000 vehicles delivered shortly after its release. Xiaomi has set an ambitious target of delivering over 100,000 new vehicles by the end of 2024.
Xiaomi continues to invest heavily in research and development, particularly in smart EV technology and autonomous driving capabilities. The company’s commitment to innovation remains strong, and it plans to significantly extend its sales and service network by the end of the year.
