Chinese tech powerhouse Xiaomi has reported adjusted net profits of 6.5 billion yuan ($897.6 million) for the first quarter of 2024. The company announced its unaudited consolidated financial results for January to March 2024 with double-digit Year-on-Year growth for two consecutive quarters.
Xiaomi is mainly focused on consumer electronics and smart manufacturing, with smartphones and hardware connected by its core IoT platform. The Xiaomi Group’s total revenue increased by 27% YoY to 75.5 billion yuan ($10.42 billion). The adjusted net profit increased by 100.8% to 6.5 billion yuan ($897.6 million). The report also indicated that Xiaomi incurred about 2.3 billion yuan ($317.6 million) in expenses in the development of the brand’s smart electric vehicle.
Xiaomi’s gross profit margin reached 22.3% which was an increase of 2.8% YoY. The profitability of the core businesses of Xiaomi is at the heart of its impressive financial performance in Q1 2024. The results show that Xiaomi’s premiumization strategy paid off with the rising ASP of smartphones. Xiaomi’s global smartphone shipments increased by 33.7% YoY during the period (40.6 million units shipped). Smartphone revenue achieved the fourth consecutive quarterly growth and reached 46.5 billion yuan ($6.42 billion). Xiaomi also maintained its top-three position as a leading smartphone brand globally.
The business margin of Xiaomi’s Internet of Things (IoT) was very impressive, hitting a record high. Smart large home appliances showed strong momentum within the period ending on March 31, 2024. Revenue from IoT and lifestyle products increased by a record 21% YoY to 20.4 billion yuan ($2.82 billion). Furthermore, solid internet services growth continues to spur the brand’s global expansion plans. Xiaomi also sees improvement in its EV business strategy as it plans to scale up production to 100,000 units per year.
Overall, the outlook remains very promising for Xiaomi. It is expected that the same impressive performance is expected for the subsequent quarters of 2024.
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