Chinese tech giant Xiaomi has reported adjusted net profits of 6.5 billion yuan ($897.6 million) for the first quarter of 2024. The company revealed its unaudited consolidated financial results for January to March 2024, showcasing double-digit Year-on-Year growth for two consecutive quarters.
Revenue and Profit Growth
Xiaomi primarily focuses on consumer electronics and smart manufacturing, with smartphones and hardware interconnected by its core IoT platform. The Xiaomi Group’s total revenue surged by 27% YoY to 75.5 billion yuan ($10.42 billion). The adjusted net profit soared by 100.8% to 6.5 billion yuan ($897.6 million). Additionally, the report highlighted that Xiaomi spent about 2.3 billion yuan ($317.6 million) on the development of its smart electric vehicle brand.
Improved Profit Margins
Xiaomi’s gross profit margin climbed to 22.3%, a 2.8% YoY increase. The profitability of Xiaomi's core businesses underpins its remarkable financial performance in Q1 2024. The results indicate that Xiaomi’s premiumization strategy has been successful, with the rising ASP of smartphones contributing significantly. The global smartphone shipments by Xiaomi grew by 33.7% YoY during the period, reaching 40.6 million units shipped. The smartphone revenue marked its fourth consecutive quarterly growth, amounting to 46.5 billion yuan ($6.42 billion). Xiaomi also retained its position as one of the top-three leading smartphone brands globally.
IoT and Internet Services
The business margin for Xiaomi’s Internet of Things (IoT) sector reached a record high. Large home appliances within the smart category displayed strong momentum for the period ending on March 31, 2024. Revenue from IoT and lifestyle products hit a record 21% YoY increase, reaching 20.4 billion yuan ($2.82 billion). Moreover, consistent growth in internet services continues to fuel the brand’s global expansion plans. Xiaomi also reported progress in its EV business strategy, with plans to scale up production to 100,000 units annually.
Overall, the outlook for Xiaomi remains very promising, with similar impressive performance anticipated for the subsequent quarters of 2024.
