Xiaomi Corporation (“Xiaomi” or the “Group”; stock code:1810), a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an Internet of Things (“IoT”) platform at its core, announced its audited consolidated results for the year ended December 31, 2023 (“the Period”). In 2023, the Group’s total revenue was RMB271.0 billion, while its adjusted net profit surged by 126.3% to reach RMB19.3 billion. The increase in adjusted net profit far exceeded market expectations and marked the second highest profitability level since the Group’s listing. The smart Electric Vehicle (“EV”) business and other new initiatives expenses increased to RMB6.7 billion (excluding share-based compensation expenses related to smart EV and other new initiatives of RMB0.8 billion for the year). In the fourth quarter of 2023, Xiaomi’s total revenue grew for two consecutive quarters, reaching RMB73.2 billion, a 10.9% increase year-over-year (“YoY”), and its adjusted net profit increased by 236.1% YoY to RMB4.9 billion.
Throughout 2023, Xiaomi diligently executed its key operating strategy of “dual emphasis on scale and profitability”. It also marked the inaugural year of the Group’s upgraded corporate strategy of the “Human × Car × Home” smart ecosystem. In terms of business performance, the first half of 2023 saw accelerated profit growth, followed by a quarterly revenue rebound in the latter half of the year. Both indicators reflect the Group’s exceptional growth resilience and efficiency in business operations. As for the ecosystem development, Xiaomi unveiled its new operating system, “Xiaomi HyperOS” and held the Xiaomi EV Technology Launch event. The Xiaomi SU7 Series product launch event is scheduled for March 28, 2024, which is set to further enrich the Group’s ecosystem portfolio.
Premiumization drives robust demand for flagship smartphone models
In the smartphone segment, Xiaomi’s global smartphone shipments reached approximately 145.6 million units in 2023, with annual smartphone revenue hitting RMB157.5 billion and a gross profit margin of 14.6%. According to Canalys, Xiaomi maintained its No. 3 global smartphone shipments for three consecutive years. In the fourth quarter of 2023, the Group’s global smartphone shipments amounted to 40.5 million units, up 23.9% YoY.
Facing intense market competition, Xiaomi continued to embrace technology innovation and made a stride in the premium smartphone market. In 2023, the average selling price (“ASP”) of the Group’s smartphones in mainland China increased by over 19% YoY. According to third-party data, Xiaomi’s market share of smartphone sales in the RMB4,000-RMB6,000 price segment in mainland China reached 16.9% in 2023, up by 9.2 percentage points YoY. The ranking of sales in the same price segment rose to No. 1 in the fourth quarter. In mainland China, Xiaomi’s proportion of premium smartphones in mainland China (models with retail prices at or above RMB3,000) shipment represented more than 20% of the Group’s total smartphone shipments for the year.
As one of China’s most successful global brands, Xiaomi smartphones maintained a solid position in the global market last year. According to Canalys, in 2023, Xiaomi’s smartphone shipments ranked among the top three across 51 countries and regions globally and ranked among the top five across 65 countries and regions globally. Specifically, Xiaomi’s smartphone shipments ranked No. 2 in the Middle East, and ranked No. 3 in Latin America, Africa, and Southeast Asia, with market share growth in all these regions. Its flagship smartphone model garnered widespread acclaim, with the Xiaomi 14 series delivering excellent user experience.
Xiaomi’s new retail operating strategy of “storefront integration” has borne fruit, with a significant improvement in the efficiency of its offline retail stores. According to third-party data, in the full year of 2023, Xiaomi’s market share of smartphone shipments through offline channels in mainland China increased to 8.4%.
