The board of directors of Xiaomi recently held the second highest profit since its listing in Xiaomi Automobile Factory, and Xiaomi welcomed the new "species" with outstanding achievements
On March 19, Xiaomi Group (1810. HK) released its performance announcement for 2023. The annual revenue was 271 billion yuan, and the adjusted net profit increased by 126.3% year on year to 19.3 billion yuan, far exceeding the market expectation.
Lu Weibing, partner and president of Xiaomi Group, said when talking about 2023, there are many uncertainties in 2023, including the macro environment and industry background, but Xiaomi's business lines have maintained steady development and efficient operation.
In the fourth quarter of 2023, Xiaomi's revenue increased to 73.2 billion yuan for two consecutive quarters, up 10.9% year on year, and its adjusted net profit was 4.9 billion yuan, up 236.1% year on year.
How can such achievements be achieved?
To a large extent, it benefited from the three things Xiaomi did from the top-level design.
First of all, the new ten-year goal of 2020-2023 was defined, that is, to be the leader of the new generation of global hard core technology; The second is to release the whole ecology of people, cars and homes, disassemble and implement them; The third is a new interpretation of millet's cultural values.
Lu Weibing pointed out in the financial report telephone conference that these three events have played an important role in the development of Xiaomi, and are also the general blueprint of Xiaomi's future development, providing a strong foundation for its long-term sustainable and steady development.
In the first year of the whole ecology of Renche Family, Xiaomi set out again
Specifically, in 2023, Xiaomi will implement Business strategy of "attaching equal importance to scale and profit" The first year is also the first year for Xiaomi Group to upgrade its new strategy of "full ecology of people, cars and homes".
"After announcing the strategic upgrade in China in October last year, in February this year, we released the whole ecological strategy of people, cars and homes to the world in Barcelona, and launched Xiaomi HyperOS, and launched Xiaomi 14 Ultra series for the first time globally." Lu Weibing said about the ecological strategy.
From the perspective of data performance, Xiaomi's profit accelerated in the first half of 2023, and its revenue continued to rise in the second half of 2023. In 2023, the overall gross profit margin of Xiaomi Group and the gross profit margin of each business segment hit a new record. The overall gross profit rate of Xiaomi Group reached 21.2%, up 4.2 percentage points year on year. In terms of business, the gross margin of smartphone business in 2023 will be 14.6%, up 5.6 percentage points year on year; The gross margin of IoT and consumer products business was 16.3%, up 1.9 percentage points year on year; The gross margin of Internet business was 74.2%, up 2.4 percentage points year on year. The Group's adjusted net profit reached 19.3 billion yuan, up 126.3% year on year.
In the second half of 2023, especially in the fourth quarter, Xiaomi achieved an adjusted net profit of 4.9 billion yuan, up 236.1% year on year. Lu Weibing explains "In the last fourth quarter, after Q3 revenue turned positive year on year, our revenue returned to double-digit growth at the same time, and continued the good trend of year-on-year profit growth in the third quarter."
The soldiers and horses have not moved, and the food and grass go first. When 2024 Xiaomi's new species is about to be released, Xiaomi starts with a bright financial report.
As of December 31, 2023, Xiaomi's cash reserves reached a record high of 136.3 billion yuan.
The growth rate of mobile phones far exceeds that of the global market
According to the latest data from International Data Corporation (IDC), the global smartphone shipments in 2023 will decline by 3.2% year on year, reaching 1.17 billion units.
However, we are pleased to see that the domestic "microclimate" has taken shape.
The financial report of Xiaomi Group shows that under the background of the decline of the mobile phone market, Xiaomi has maintained the top three in the world for three consecutive years, and its mobile phone revenue has increased for three consecutive quarters - in 2023, Xiaomi's global smartphone shipments will be 146 million, and its smartphone business revenue will reach 157.5 billion yuan, with a gross profit rate of 14.6%. In 2023, Xiaomi's smartphone ASP in the Chinese mainland market will grow by more than 19% year on year, a record high.
In the fourth quarter, according to Canalys data, Xiaomi's smartphone shipments ranked among the top three in the world for 14 consecutive quarters. In the fourth quarter of 2023, the shipment volume increased by 23.9% year on year to 40.5 million units, which is much faster than the global market.
In the fourth quarter, in the price range of 5000 yuan to 6000 yuan in the Chinese market, millet market share ranked first, reaching 28.2%, up 20.6 percentage points year on year.
"This shows that we can continue to break out in the high-end market. The Xiaomi 14 series is a phenomenal product of domestic high-end machines, achieving a historic leap." What makes Xiaomi smile is the performance of the Xiaomi 14 series.
Xiaomi 14 series will be launched in October 2023. On February 22, 2024, Xiaomi will go further, bringing a new generation of professional image flagship Xiaomi 14 Ultra, equipped with a new generation of Leica Summilux lens, Xiaomi's world's first AI large model computing and photography platform Xiaomi AISP, equipped with two self-developed signal enhancement chips Pengpai T1, and supporting two-way satellite communication, The body adopts a new millet dragon armor structure, equipped with 2K innovative full-length micro curved screen.
The Redmi brand also reported good news frequently, and its global sales exceeded 1 billion units on the tenth anniversary. The Redmi K70 series has been on sale for three months, with a cumulative sales volume of more than 2.8 million units, and ranks first in the whole network sales at the price range of RMB 2000-3000.
Not only that, in terms of Xiaomi's IoT and consumer products business, it contributed 80.1 billion yuan to Xiaomi's revenue, and its gross profit margin reached 16.3%. As of December 31, 2023, the number of connected devices (excluding smart phones, tablets and laptops) of Xiaomi AIoT platform has reached 740 million. In terms of Internet service business, both revenue and gross profit margin will reach a record high in 2023, reaching 30.1 billion yuan, and the gross profit margin will rise to 74.2%.
Automobile leads, aiming to be the top five in the world in 15-20 years
Lei Jun, the chairman of Xiaomi Group, will be the first event in 2024 to award the engineers of Xiaomi with the annual technology award of one million US dollars, which is the highest internal specification award of Xiaomi, to award teams with less than 10 people who have made key breakthroughs in major technological innovation projects.
It is understood that, "Technology oriented" is Xiaomi's unchangeable iron rule, and engineer culture is the background of Xiaomi's gene.
This can be seen from the R&D investment in 2023. The annual R&D expenditure of Xiaomi Group was 19.1 billion yuan, up 19.2% year on year. It has made outstanding achievements in operating systems, new energy vehicles, artificial intelligence, robots, mobile images and other related fields. As of December 31, 2023, the number of millet R&D personnel has reached 17800, accounting for 53%.
Accumulate so as to meet the key battle.
The core of the whole ecology of RenCheJia is "car". Xiaomi officially announced to build a car in 2021, and on March 28, 2024, Xiaomi will officially release the Xiaomi SU7 series, Delivery upon listing and quantity upon delivery. In 29 cities across the country, 59 stores opened appointments simultaneously.
The confidence to dare to join and really invest is the cash reserve of 136.3 billion yuan.
Prepared by Lei Jun for Xiaomi Automobile The goal is to win the top five in the world in the next 15-20 years In the past year, the cost of innovative businesses such as Xiaomi Smart Car has increased to 6.7 billion yuan (excluding 800 million yuan of stock compensation related to innovative businesses such as smart electric vehicles), of which 2.4 billion yuan was spent in the fourth quarter (excluding 200 million yuan of stock compensation related to innovative businesses such as smart electric vehicles).
To win the future, someone asked Lei Jun how to view the competition Xiaomi will face?
He replied: We are confident because we are Xiaomi Motors.
"The centennial auto track is the beginning of China's auto journey, and there will be more wonderful stories ahead. See you on March 28."
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