Xiaomi's Q1 adjusted net profit doubled year-on-year, aiming to deliver 120,000 vehicles in 2024 | Financial Report Insights

On Thursday, May 23, after the Hong Kong stock market closed, Xiaomi Group announced its first-quarter performance ending March 31, 2024.

The financial report shows that Xiaomi Group's first-quarter revenue was 75.51 billion RMB, a year-on-year increase of 27%, exceeding the market's estimated 73.54 billion. Operating profit was 3.683 billion RMB, a year-on-year decrease of 37.6%, with the market estimate at 5.07 billion RMB.

Adjusted net profit was 6.5 billion RMB, a year-on-year increase of 100.8%, exceeding the market's expectation of 5.13 billion RMB, including 2.3 billion RMB in expenses for innovative businesses such as smart electric vehicles. The overall gross profit margin also increased, up 2.8 percentage points year-on-year to 22.3%.

In the highly anticipated automotive business, as of April 30, 2024, the cumulative locked order volume of the Xiaomi SU7 series has reached 88,063 units, and as of May 15, 2024, the cumulative delivery of new vehicles in this series has reached 10,000 units.

During the conference call after the release of Xiaomi's financial report, Xiaomi President Lu Weibing stated that Xiaomi aims to ensure that the full-year delivery volume in 2024 reaches 100,000 units, striving for a target of 120,000 deliveries.

The core smartphone business continued to recover, with first-quarter revenue of 46.5 billion RMB, a year-on-year increase of 32.9%, exceeding the market's expected 73.54 billion, achieving year-on-year growth for three consecutive quarters.

The gross profit margin of this business in the first quarter was 14.8%, compared to 11.2% in the same period last year, mainly due to product structure improvements and a decrease in core component costs.

Xiaomi's global smartphone shipments were 40.6 million units, a year-on-year increase of 33.7%, significantly outperforming the global market's average growth of 9.8%. According to Canalys data, Xiaomi ranked in the top three in shipments this quarter, with a market share of 13.8%, maintaining a stable position in the global top three for the 15th consecutive quarter.

However, the average selling price (ASP) of smartphones slightly decreased year-on-year, from 1,151.6 RMB per unit in the same period last year to 1,144.7 RMB per unit, a slight decrease of 0.6%. Xiaomi stated that this was due to an increased proportion of lower ASP overseas market revenue.

Revenue from IoT and lifestyle consumer products division was 20.4 billion RMB, an increase of 21.0% year-on-year, surpassing the market's expected 19.66 billion. The gross profit margin increased from 15.7% in the same period last year to 19.9% Xiaomi stated that the increase in revenue and gross profit margin was mainly due to the growth in revenue from tablets, smart home appliances, and wearable products.

Specifically, tablet revenue increased by 70.5% year-on-year, with a 92.6% year-on-year increase in global tablet shipments; smart home appliance revenue increased by 46.0% year-on-year, mainly driven by increased shipments of air conditioners, refrigerators, and washing machines in mainland China; revenue from smart TVs and laptops remained stable year-on-year.

Xiaomi made a breakthrough in wearable devices, with Canalys data showing that Xiaomi's Q1 TWS earphone shipments ranked first in the mainland China market and surpassed Samsung for the first time in the global market, rising to second place.

In addition, the Internet services division generated revenue of 8 billion RMB, exceeding market expectations of 7.7 billion RMB, with an increase in advertising revenue partially offset by a decrease in gaming revenue.

In terms of monthly active users, Xiaomi's global monthly active user base reached 658 million in March 2024, a 10.6% year-on-year growth. As of the first quarter, the number of IoT devices connected to the AIoT platform increased to 790 million, a 27.2% year-on-year growth.

Xiaomi Aims to Deliver 120,000 Vehicles by the End of the Year

The Xiaomi SU7 series has attracted widespread market attention, with a cumulative order volume of 88,063 units as of April 30, 2024. As of May 15, 2024, the cumulative delivery of new vehicles reached 10,000 units.

Xiaomi's goal is to achieve a monthly delivery of over 10,000 units for the Xiaomi SU7 series in June, with a full-year delivery target of 120,000 vehicles in 2024. The previously disclosed delivery target for the SU7 was over 100,000 units.

In terms of smart cabins, the Xiaomi SU7 series is equipped with the Xiaomi Penglai OS, enabling smooth cross-device connectivity between the car system and mobile phones, as well as connectivity with Xiaomi's smart home devices. Additionally, the Xiaomi SU7 series features the AI assistant "Xiao Ai Classmate" for voice interaction in five audio zones, further enhancing the user experience. Moreover, the central console of the Xiaomi SU7 series supports multi-device expansion, allowing for a rich smart ecosystem.

In terms of sales and service network development, Xiaomi plans to expand its sales and service network for Xiaomi vehicles to 219 sales outlets covering 46 cities and 143 service centers covering 86 cities by the end of 2024