Financial Report is Out | XIAOMI-W's Q1 Profit Improves, Gross Margin Reaches Record High

On Wednesday, XIAOMI-W released its Q1 2023 financial report.

XIAOMI-W's Q1 revenue was RMB 59.477 billion, a YoY decrease of 18.9%; adjusted net profit was RMB 3.2 billion, a YoY increase of 13.1%.

Importantly, XIAOMI-W's gross profit margin reached 19.5%, a historic high. The overall inventory amount was RMB 42.6 billion, a YoY decrease of 24.1%, the lowest level in nearly 9 quarters.

In addition, XIAOMI-W officially established an AI laboratory large model team in April, with over 1,200 personnel in the AI field; it will continue to explore AI-related user scenarios, leverage its own technological advantages, and open up more opportunities with partners in an open manner.

Q1 Financial Data

XIAOMI-W's Q1 revenue was RMB 59.477 billion, with a market expectation of RMB 59.891 billion and RMB 73.352 billion in the same period last year.

The adjusted net profit for Q1 was RMB 3.2 billion, compared to RMB 2.86 billion in the same period last year.

The overall gross profit margin for Q1 reached 19.5%, a historic high.

The net profit for Q1 was RMB 4.2 billion, compared to a loss of RMB 0.588 billion in the same period last year, with a market expectation of RMB 1.988 billion.

EPS for Q1 was RMB 0.17, with a market expectation of RMB 0.089 and a loss of RMB 0.02 in the same period last year.

R&D expenditure for Q1 reached RMB 4.1 billion, a YoY increase of 17.7%, and the total R&D investment for the full year 2023 is expected to exceed RMB 20 billion.

As of March 31, 2023, the number of R&D personnel reached 16,458, accounting for over 50% of the total number of employees.

In Q1, the overall inventory amount was RMB 42.6 billion, a YoY decrease of 24.1%, the lowest level in nearly 9 quarters.

Sub-item Business Data

In Q1, XIAOMI-W's smartphone business revenue was RMB 35 billion, a decrease of 23.6% YoY from RMB 45.8 billion, with a gross profit margin of 11.2%, up 3.1 percentage points QoQ.

This was mainly due to the decrease in smartphone shipments and ASP. XIAOMI-W's global smartphone shipments in Q1 were 30.4 million units.

In Q1, XIAOMI-W's internet service revenue was RMB 7 billion, with a gross profit margin of 72.3%.

In Q1, IoT and consumer products revenue was RMB 16.8 billion, with a gross profit margin of 15.7%.

In Q1, advertising revenue was RMB 4.4 billion. Gaming revenue increased by 16.3% YoY to RMB 1.3 billion, achieving counter-trend growth again. Overseas internet service revenue was RMB 1.8 billion, a YoY increase of 16.4%.