Xiaomi’s Q1 2024 revenue exceeded expectations, and adjusted net profit increased by more than 100 percent year-on-year
On May 23, Xiaomi Group (HK01810) released its Q1 2024 performance announcement, with revenue of RMB 75.5 billion, a year-on-year increase of 27%. Adjusted net profit reached RMB 6.5 billion (including RMB 2.3 billion in expenses for innovative businesses such as smart electric cars), a year-on-year increase of 100.8%. The overall gross profit margin in Q1 reached 22.3%, an increase of 2.8 percentage points year-on-year, achieving a double increase in quality and efficiency.
The report shows that Xiaomi’s global smartphone shipments increased by 33.7% year-on-year to 40.6 million units, achieving year-on-year growth for three consecutive quarters. Revenue increased quarter-on-quarter to RMB 46.5 billion for four consecutive quarters. According to Canalys data, Xiaomi’s global smartphone shipments have ranked in the top three for 15 consecutive quarters, with a market share of 13.8%.
Xiaomi’s IoT and consumer goods business also achieved a historic breakthrough, with revenue increasing by 21.0% year-on-year to RMB 20.4 billion; gross profit margin increased significantly by 4.1 percentage points year-on-year to 19.90%.
Xiaomi’s Internet business maintained steady growth. According to the report, Internet service revenue increased by 14.5% year-on-year to RMB 8 billion, and gross profit margin increased to 74.2%. In March 2024, the number of monthly active users worldwide reached 658 million, a year-on-year increase of 10.6%. Among them, the number of monthly active users in mainland China reached 160 million, a year-on-year increase of 9.7%. Q1 overseas Internet revenue reached RMB 2.5 billion, a record high, and the proportion of overall Internet revenue increased to 31.2%.
Xiaomi’s car debut exceeded expectations. Among car buyers, female buyers accounted for 28%, and it is expected that female car owners will account for 40%-50%; in addition, BBA (Mercedes-Benz, BMW, Audi) users accounted for 29% of buyers and Apple user buyers accounted for 51.9%. As of 24:00 on April 30, the number of Xiaomi SU7 series lock orders reached 88,063 units, and as of 10:00 on May 15, the 10,000th new car was delivered.
In addition, Xiaomi’s R&D expenditure in Q1 reached RMB 5.2 billion, a year-on-year increase of 25.4%. As of March 31, 2024, Xiaomi’s cash reserves reached RMB 127.3 billion, supporting Xiaomi’s continued investment in its automotive business, getting rid of short-term profit pressure, and focusing on the ultimate polishing of product performance.