Investment Rating - Maintain "Buy" rating with a target price of HKD 23 [2][3] Core Views - Xiaomi Group's 2024Q1 revenue reached RMB 75.5 billion, a YoY increase of 27%, with adjusted net profit exceeding expectations at RMB 6.5 billion, up 101% YoY [1] - The core business adjusted net profit (excluding EV and other innovation expenses) was RMB 9 billion, better than expected [1] - Xiaomi's smartphone market share increased to 14% in 2024Q1, with shipments of 40.6 million units, up 34% YoY [1] - The company raised its 2024 SU7 delivery target from 100,000 to 120,000 units, with expected car gross margins of 5-10%, exceeding market expectations [2] Business Segments Smartphones - Smartphone revenue in 2024Q1 was RMB 46.5 billion, up 33% YoY, with a gross margin of 14.8%, an increase of 3.6 percentage points YoY [1] - The ASP (Average Selling Price) for smartphones in 2024Q1 was RMB 1,144.7, a slight decrease of 0.6% YoY, but both domestic and international ASPs increased [1] - Xiaomi's smartphone shipments are expected to continue growing, with market share and ASP likely to rise further in 2024 [1] AIoT and Internet Services - AIoT platform connected devices reached 786 million in 2024Q1, up 27% YoY, with 15.2 million users having five or more connected devices, a 24.2% YoY increase [1] - AIoT gross margin hit a record high of 19.9%, up 4.1 percentage points YoY, driven by higher-margin products like tablets and wearables [1] - Internet services revenue in 2024Q1 was RMB 8 billion, up 14.5% YoY, with overseas internet revenue reaching RMB 2.5 billion, accounting for 31.2% of total internet revenue [1] - Internet services gross margin was 74.2%, up 1.9 percentage points YoY, supported by higher-margin advertising revenue [1] Xiaomi Automotive - Xiaomi's automotive division plans to expand its intelligent driving team to 1,500 by the end of 2024 and 2,000 by 2025 [2] - The company aims to launch city NOA (Navigate on Autopilot) in 10 cities by May 2024 and nationwide by August 2024 [2] - Xiaomi's "Human x Car x Home" ecosystem strategy is expected to enhance user experience and increase profitability through IoT products and value-added services [2] Financial Forecasts - Revenue for 2024-2026 is projected at RMB 337.3 billion, RMB 389.1 billion, and RMB 434.2 billion, with YoY growth rates of 24%, 15%, and 12% respectively [2] - Non-GAAP core business net profit for 2024-2026 is forecasted at RMB 27 billion, RMB 29.5 billion, and RMB 32.1 billion, with YoY growth rates of 1%, 9%, and 8% respectively [2] - The company's 2024E P/E ratio for core business is 15x, with a 2x P/S ratio for the automotive segment [2] Market Performance - Xiaomi's stock price as of May 24, 2024, was HKD 18.30, with a total market capitalization of HKD 456.68 billion [3] - The company's 30-day average trading volume was 129.63 million shares [3]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group with a target price of HKD 24.0, representing a potential upside of 31.1% from the recent closing price of HKD 18.3 [2][3]. Core Insights - Xiaomi Group's Q1 2024 total revenue increased significantly by 27% year-on-year to RMB 75.5 billion, surpassing Bloomberg's consensus estimate of RMB 73.4 billion. The overall gross margin improved by 2.8 percentage points to 22.3% [1]. - Adjusted net profit for Q1 2024 grew by 100.8% year-on-year to RMB 6.5 billion, exceeding the market expectation of RMB 5.1 billion, despite incurring RMB 2.3 billion in expenses related to its automotive innovation business [1]. - The report highlights the successful launch of Xiaomi's first electric vehicle, the Xiaomi SU7 series, which has received strong market demand with 10,000 units delivered by mid-May 2024 [1]. Summary by Sections Smartphone Business - In Q1 2024, Xiaomi ranked third globally in smartphone shipments with a market share of 13.8%, shipping 40.6 million units, a year-on-year increase of 33.7%, outperforming the global smartphone market's growth of 9.8% [1]. - Revenue from the smartphone segment reached RMB 46.5 billion, up 32.9% year-on-year, with the average selling price (ASP) slightly decreasing by 0.6% to RMB 1,144 due to increased overseas market revenue [1]. Internet and IoT Services - Internet services revenue hit a record high of RMB 8 billion in Q1 2024, growing 14.5% year-on-year, with a gross margin of 74.2%, up 1.9 percentage points [1]. - Revenue from IoT and lifestyle products reached RMB 20.4 billion, a 21.0% year-on-year increase, with a gross margin of 19.9%, marking a significant improvement of 4.1 percentage points [1]. Automotive Business - The automotive business commenced successfully with the launch of the Xiaomi SU7 series, achieving 10,000 deliveries by May 15, 2024, and aiming for monthly deliveries exceeding 10,000 units by June 2024 [1]. - The report emphasizes the need to monitor the production capacity expansion plans for Xiaomi's automotive segment [1].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 22.80 HKD, compared to the current price of 18.30 HKD [4]. Core Insights - The company achieved a record high adjusted net profit margin in Q1 2024, with a significant year-on-year revenue increase of 27% to 755 billion RMB. The three core business segments—smartphones, IoT, and internet services—showed strong growth, with revenues increasing by 32.9%, 21.0%, and 14.5% respectively [2][3]. - The SU7 electric vehicle model has received over 88,000 pre-orders, with a target of delivering 120,000 units for the year [3]. Summary by Sections Financial Performance - Q1 2024 revenue reached 755 billion RMB, up 27% year-on-year. The adjusted net profit was 6.5 billion RMB, marking a 100.8% increase, with a historical high net profit margin of 8.6% [2]. - The smartphone segment generated 465 billion RMB in revenue, with a shipment volume of 4.06 million units, reflecting a 33.7% year-on-year increase [2][3]. - IoT revenue grew by 21.0% to 204 billion RMB, achieving a record high gross margin of 19.9% [2]. - Internet services revenue increased by 14.5% to 80 billion RMB, with a gross margin of 74.2% [2]. Business Segments - The smartphone business saw a gross margin of 14.8%, despite a slight decline due to increased BOM costs and inventory provisions. The expected gross margin for the smartphone segment for the full year is projected to be between 12-13% [2]. - The IoT segment's strong performance is attributed to high-margin products such as tablets and smart appliances, with expectations for a gross margin above 18% for the year [2]. - The internet services segment is expected to benefit from an increasing global user base and higher-end device sales, driving revenue growth [2]. Future Outlook - The company has adjusted its profit forecasts for 2024, 2025, and 2026, increasing the Non-IFRs net profit estimates to 16.6 billion, 18.3 billion, and 21 billion RMB respectively [3]. - The report anticipates continued growth driven by the successful launch of the SU7 and improvements in the company's core business operations [3].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 22.80, compared to the current price of HKD 18.30 [4]. Core Insights - The company reported a record high adjusted net profit margin of 8.6% in Q1 2024, with a non-IFRS net profit of CNY 6.5 billion, representing a year-on-year growth of 100.8% [2][3]. - Revenue for Q1 2024 reached CNY 75.5 billion, a 27% increase year-on-year, driven by strong growth across its three core business segments: smartphones, IoT, and internet services [2][3]. - The company aims to deliver 120,000 units of its new electric vehicle model, SU7, in 2024, with over 88,000 pre-orders already secured [3]. Summary by Sections Financial Performance - Q1 2024 revenue was CNY 75.5 billion, with smartphone, IoT, and internet service revenues increasing by 32.9%, 21.0%, and 14.5% year-on-year, respectively [2]. - The gross margin for Q1 2024 was 22.3%, with a historical high non-IFRS net profit margin of 8.6% [2][3]. - The smartphone business generated CNY 46.5 billion in revenue, with a gross margin of 14.8%, despite a slight decline in average selling price (ASP) [2][3]. Business Segments - IoT revenue grew to CNY 20.4 billion in Q1 2024, with a gross margin of 19.9%, marking a historical high [2]. - Internet services revenue reached CNY 8 billion, with a gross margin of 74.2%, driven by a 25% increase in advertising revenue [2]. Future Outlook - The company expects smartphone gross margins to stabilize between 12-13% for the full year 2024, despite potential fluctuations during promotional periods [2]. - The IoT segment is projected to maintain a gross margin above 18% for 2024, supported by strong sales of high-margin products [2]. - The internet services segment is anticipated to benefit from an increasing global user base and enhanced monetization capabilities [2].

证券研究报告·海外公司点评·资讯科技器材(HS) 小米集团-W（01810.HK） 2024 年一季报点评：业绩超预期，“人车家” 2024 年 05月 25日 齐头并进 证券分析师 张良卫 买入（维持） 执业证书：S0600516070001 021-60199793 [ 盈Ta 利bl 预e_ 测EP 与S] 估 值 2022A 2023A 2024E 2025E 2026E zhanglw@dwzq.com.cn 研究助理 李博韦 营业总收入（百万元） 280044 270970 329333 364684 400121 执业证书：S0600123070070 同比(%) (14.78) (3.24) 21.54 10.73 9.72 libw@dwzq.com.cn 归母净利润（百万元） 2474 17475 16130 19692 22578 同比(%) (87.21) 606.34 (7.70) 22.08 14.65 股价走势 EPS-最新摊薄（元/股） 0.10 0.70 0.65 0.79 0.90 小米集团-W 恒生指数 P/E（现价&最新摊薄） 184.59 26.13 28.31 23 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported Q1 2024 earnings that exceeded market expectations, achieving revenue of 75.5 billion RMB, a year-on-year increase of 27%, and an adjusted net profit of 6.5 billion RMB, a year-on-year increase of 101%, marking a historical high [2][3] Summary by Sections Mobile Business - In Q1, the mobile business generated revenue of 46.5 billion RMB, a year-on-year increase of 33%, with a gross margin of 14.8%, up 3.6 percentage points year-on-year. The company shipped 40.6 million smartphones, a year-on-year increase of 34%, significantly outperforming the global average growth rate of 9.8%. The market share stood at 13.8%, maintaining a position among the top three globally for fifteen consecutive quarters [3] IoT and Internet Business - The IoT and lifestyle consumer products segment achieved revenue of 20.4 billion RMB in Q1, a year-on-year increase of 21%, with a gross margin of 19.9%, a historical high, up 4.1 percentage points year-on-year. Key categories showed healthy growth, with TWS shipments ranking second globally and first in mainland China. Wearable product shipments in mainland China increased by 70%, while tablet shipments globally rose by 93%, and smart home appliance revenue grew by 46% [4] - The internet business generated revenue of 8 billion RMB in Q1, a historical high, with a year-on-year increase of 15% and a gross margin of 74.2%, up 1.9 percentage points year-on-year. Advertising revenue was 5.5 billion RMB, and gaming revenue was 1.2 billion RMB. The user base continues to expand, with monthly active users reaching a historical high, creating a positive ecosystem with the mobile and IoT businesses [4] Automotive Business - As of April 30, the company had accumulated 88,063 orders for the SU7 model. The target for this year is to ensure the delivery of 100,000 vehicles, with aspirations to deliver 120,000. Starting in June, the company will implement a double-shift system in its factories, aiming to deliver at least 10,000 vehicles that month. The sales network will also be expanded, with plans to cover 46 cities with 219 stores and 86 cities with 143 service centers by the end of the year [5] Earnings Forecast and Investment Rating - The earnings forecast for the company has been adjusted upwards for 2024-2026, with expected net profits of 16.1 billion, 19.7 billion, and 22.6 billion RMB respectively. The latest closing price corresponds to P/E ratios of 28.3, 23.2, and 20.0 for the respective years, maintaining a "Buy" rating [5]

Investment Rating - The investment rating for Xiaomi Group-W (01810.HK) is maintained as "Buy" [2][3][10] Core Views - The sustained upward momentum in the automotive sector, along with high-end product strategies and export growth, is expected to enhance the long-term outlook for the company [3] - The expansion of the IoT business scale and gross margin has exceeded expectations, while short-term losses in innovative sectors like automotive are anticipated to be lower than market expectations [4][5] - The adjusted net profit forecasts for 2024-2026 are 20.3 billion, 22.7 billion, and 21.9 billion RMB, reflecting year-on-year growth rates of 5.3%, 11.9%, and -3.8% respectively [3][6] Summary by Relevant Sections Financial Performance - In Q1 2024, the company reported revenue of 75.5 billion RMB, a year-on-year increase of 27%, and an adjusted net profit of 6.5 billion RMB, up 100.8% year-on-year [4] - The mobile business generated revenue of 46.5 billion RMB, a 32.9% increase year-on-year, while the IoT business revenue reached 20.4 billion RMB, growing 21% year-on-year [4] - The gross margin for the IoT business improved to 19.9%, up 4.2 percentage points year-on-year, driven by a focus on high-margin products [4] Future Projections - The company expects mobile shipments in 2024 to be between 160 million and 165 million units, with a projected gross margin of 12-13% [5] - IoT business revenue growth is anticipated to slightly exceed 10% in 2024, supported by seasonal demand for home appliances and traditional marketing peaks [5] - The automotive sector's losses are expected to be lower than market forecasts due to sufficient prior orders and faster-than-expected production ramp-up [5] Valuation Metrics - The current stock price of 18.94 HKD corresponds to P/E ratios of 22.4, 20.0, and 20.8 for the years 2024-2026 [3][6] - The projected operating revenue for 2024 is 337.17 billion RMB, with a year-on-year growth of 24.4% [6] - The net profit for 2024 is expected to be 20.3 billion RMB, reflecting a 5.3% increase year-on-year [6]

2024 年 5 月 24 日 CMB 国际全球市场 | 股票研究 | 公司更新 小米 （ 1810 HK ） 第 1 季度利润率强劲 ； SU7 交付目标乐观 小米第 1 季度的收入 / 净利润同比增长 27 ％ / 101 ％，超过了我们 / 普遍的预期，这主要是 由更强的 GPM，改善的收入组合和更好的财务收入推动的。展望未来，小米重申了其对智能 目标价 25.39 港元 手机全球份额增长，新零售战略执行和 EV 出货量交付以及管理层的积极看法。指导目标为每 （ 先前 TP 23.77 港元 ） 年 120 电动汽车交付量 （ 与之前的指导相比，100 ） 。我们相信小米的份额增长势头、 涨 / 跌 34.0% AIoT 销售实力和海外互联网收入将继续推动盈利增长至 FY24E - 25E 。我们将 FY24 - 26E 现价 18.94 港元中国技术 每股收益提高 12 - 16%，以考虑强劲的第一季度业绩，并将基于 SOTP 的 TP 提高至 25.39 亚历克斯 NG 港元。即将到来的催化剂包括 SU7 出货量的进展和智能手机市场份额的增长。 (852) 3900 0881  1Q24 以更好的 ...

M N 24 May 2024 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) 1Q24 beat on strong margins; Positive on upbeat SU7 delivery target Target Price HK$25.39 Xiaomi’s 1Q24 revenue/net profit growth of 27%/101% YoY beat our/consensus (Previous TP HK$23.77) estimates, mainly driven by a stronger GPM, improving revenue mix and better Up/Downside 34.0% finance incomes. Looking ahead, Xiaomi reiterated its positive view on Current Price HK$18.94 smartphone global share gains, new ...

Financial Performance - Xiaomi's total revenue for Q1 2024 reached RMB 75.5 billion, a 27.0% year-over-year increase[3] - Adjusted net profit for Q1 2024 was RMB 6.49 billion, a 100.8% year-over-year increase[3] - Total revenue in Q1 2024 was RMB 75.5 billion, a 27.0% YoY increase from RMB 59.5 billion in Q1 2023[14] - Adjusted net profit under non-IFRS measures was RMB 6.49 billion in Q1 2024, compared to RMB 3.23 billion in Q1 2023[13] - Gross profit increased by 45.2% from RMB 11.6 billion in Q1 2023 to RMB 16.8 billion in Q1 2024, with gross margin improving from 19.5% to 22.3%[22] - Adjusted net profit surged 100.8% from RMB 3.2 billion in Q1 2023 to RMB 6.5 billion in Q1 2024[28] - Revenue increased by 3.1% from RMB 73.2 billion in Q4 2023 to RMB 75.5 billion in Q1 2024[30] - Gross profit increased by 7.8% from RMB 15.6 billion in Q4 2023 to RMB 16.8 billion in Q1 2024, with gross margin improving from 21.3% to 22.3%[37] - Profit for the period was RMB 4.2 billion in Q1 2024, compared to RMB 4.7 billion in Q4 2023[44] - Adjusted net profit increased by 32.2% from RMB 4.9 billion in Q4 2023 to RMB 6.5 billion in Q1 2024[44] - Revenue for the three months ended March 31, 2024, increased to RMB 75,506,822 thousand, up 27% from RMB 59,477,134 thousand in the same period last year[60] - Gross profit rose to RMB 16,829,717 thousand, a 45% increase compared to RMB 11,591,567 thousand in 2023[60] - Net profit attributable to the company's owners was RMB 4,182,061 thousand, slightly down from RMB 4,203,839 thousand in the same period last year[60] - Total revenue for the three months ended March 31, 2024, was RMB 75.51 billion, a significant increase from RMB 59.48 billion in the same period last year[67] - Net profit attributable to the company's owners for Q1 2024 was RMB 4,182,061 thousand, slightly down from RMB 4,203,839 thousand in Q1 2023[73] - Diluted earnings per share for Q1 2024 were RMB 0.16, compared to RMB 0.17 in Q1 2023[73] Smartphone Business - Global smartphone shipments in Q1 2024 reached 40.6 million units, a 33.7% year-over-year increase[4] - Xiaomi's global smartphone market share in Q1 2024 was 13.8%, maintaining its position in the top three globally[4] - Xiaomi's smartphone business revenue in Q1 2024 was RMB 46.5 billion, a 32.9% year-over-year increase[7] - Xiaomi's market share in the RMB 5,000–6,000 price segment in mainland China reached 10.1%, a 5.8 percentage point year-over-year increase[7] - Smartphone segment revenue increased by 32.9% from RMB 35.0 billion in Q1 2023 to RMB 46.5 billion in Q1 2024, driven by a 33.7% increase in smartphone shipments to 40.6 million units[16] - Smartphone segment gross margin improved from 11.2% in Q1 2023 to 14.8% in Q1 2024 due to product mix optimization and lower core component costs[22] - Smartphone revenue grew by 5.1% from RMB 44.2 billion in Q4 2023 to RMB 46.5 billion in Q1 2024, driven by a 4.9% increase in ASP to RMB 1,144.7 per unit[31] - Smartphone gross margin decreased from 16.4% in Q4 2023 to 14.8% in Q1 2024 due to higher core component costs and inventory provisions[37] - Smartphone segment revenue increased to RMB 46.48 billion, up from RMB 34.98 billion in the same period last year[67] - Gross profit for the smartphone segment was RMB 6.88 billion, up from RMB 3.93 billion in the previous year[67] IoT and Lifestyle Products - The number of connected IoT devices (excluding smartphones, tablets, and laptops) reached 786.1 million, a 27.2% year-over-year increase[4] - IoT and lifestyle products revenue reached RMB 20.4 billion in Q1 2024, a 21.0% YoY increase, with a segment gross margin of 19.9%, up 4.1 percentage points YoY[8] - IoT and lifestyle products revenue grew by 21.0% from RMB 16.8 billion in Q1 2023 to RMB 20.4 billion in Q1 2024, with tablet revenue surging 70.5% due to a 92.6% increase in global tablet shipments[17] - IoT and lifestyle products revenue slightly increased by 0.1% from RMB 20.3 billion in Q4 2023 to RMB 20.4 billion in Q1 2024, with tablet revenue up 16.6%[32] - IoT and lifestyle products gross margin improved from 13.9% in Q4 2023 to 19.9% in Q1 2024, driven by higher-margin product sales[37] - IoT and lifestyle products segment revenue grew to RMB 20.37 billion, compared to RMB 16.83 billion in the previous year[67] - Gross profit for the IoT and lifestyle products segment was RMB 4.05 billion, compared to RMB 2.65 billion in the same period last year[67] Internet Services - Internet services revenue hit a record RMB 8.0 billion in Q1 2024, up 14.5% YoY, with a gross margin of 74.2%, up 1.9 percentage points YoY[9] - Overseas internet services revenue grew 39.0% YoY to RMB 2.5 billion in Q1 2024, accounting for 31.2% of total internet services revenue, up 5.5 percentage points YoY[10] - Internet services revenue rose 14.5% from RMB 7.0 billion in Q1 2023 to RMB 8.0 billion in Q1 2024, with overseas internet services revenue jumping 39.0% to RMB 2.5 billion[18] - Internet services revenue rose by 2.1% from RMB 7.9 billion in Q4 2023 to RMB 8.0 billion in Q1 2024, primarily due to growth in gaming revenue[33] - Internet services segment revenue rose to RMB 8.05 billion, up from RMB 7.03 billion in the same period last year[67] - Gross profit for the internet services segment was RMB 5.98 billion, up from RMB 5.08 billion in the previous year[67] R&D and Innovation - Xiaomi's R&D expenditure in Q1 2024 was RMB 5.2 billion, a 25.4% year-over-year increase[4] - R&D expenses increased by 25.4% from RMB 4.1 billion in Q1 2023 to RMB 5.2 billion in Q1 2024, driven by investments in smart EV and other innovative businesses[22] - R&D expenses decreased by 5.6% from RMB 5.5 billion in Q4 2023 to RMB 5.2 billion in Q1 2024, with stable spending on smart EV and other innovative projects[38] - R&D expenses increased to RMB 5,159,387 thousand, up 25% from RMB 4,113,360 thousand in the previous year[60] Market Share and Regional Performance - Xiaomi's market share in the Middle East reached 20.9%, a 7.1 percentage point year-over-year increase[7] - Revenue from Mainland China accounted for 49.8% of total revenue, while global other regions contributed 50.2%[68] Cash and Financial Position - Xiaomi's cash reserves as of March 31, 2024, were RMB 127.3 billion, a 34.7% year-over-year increase[6] - The company's total cash resources as of March 31, 2024, amounted to RMB 127.3 billion[50] - Cash and cash equivalents stood at RMB 34.9 billion as of March 31, 2024, compared to RMB 33.6 billion as of December 31, 2023[47] - The net cash used in operating activities for Q1 2024 was RMB 9.3 billion, primarily due to a RMB 8.7 billion increase in inventory and a RMB 3.6 billion increase in prepayments and other receivables[51] - The net cash generated from investing activities for Q1 2024 was RMB 10.7 billion, mainly due to a RMB 6.9 billion net decrease in short-term investments at fair value and a RMB 6.2 billion net decrease in short-term bank deposits[52] - The net cash used in financing activities for Q1 2024 was RMB 100 million, primarily due to RMB 1.9 billion in share repurchases and RMB 1 billion in deferred consideration for intangible asset acquisitions[52] - The company's total borrowings as of March 31, 2024, were RMB 27.7 billion, a slight decrease from RMB 27.9 billion at the end of 2023[53] - Cash and cash equivalents increased to RMB 34,896,211 thousand, up from RMB 33,631,313 thousand at the end of 2023[62] - Net cash used in operating activities was RMB 9,287,058 thousand, compared to net cash generated from operating activities of RMB 1,218,761 thousand in 2023[64] - Net cash generated from investing activities was RMB 10,710,999 thousand, a significant improvement from net cash used in investing activities of RMB 1,622,151 thousand in 2023[64] - Total equity increased to RMB 167,593,801 thousand, up from RMB 164,261,768 thousand at the end of 2023[63] Investments and Share Repurchases - The company invested in approximately 430 companies with a total book value of RMB 65.2 billion as of March 31, 2024, a 2.2% decrease year-over-year[55] - The company repurchased 163,134,400 B-class shares for a total consideration of HKD 2,245,467,263 during Q1 2024[81] - The company repurchased a total of 163,134,400 shares in the first four months of 2024, with a total cost of approximately HKD 2,245,467,263[82] - The number of issued B shares decreased by 138,100,000 due to the cancellation of repurchased shares in January and February 2024, and the ongoing cancellation of shares repurchased in March and April 2024[82] - A total of 29,373,916 A shares were converted to B shares on March 14, 2024, with 26,454,431 shares converted by Lei Jun through Smart Mobile Holdings Limited and 2,919,485 shares converted by Lin Bin through Apex Star LLC[83] - The company has not purchased, sold, or redeemed any securities listed on the Stock Exchange during the three months ended March 31, 2024, and up to the date of the announcement[83] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code except for the separation of the roles of Chairman and CEO, which are currently held by Lei Jun[84] - The Audit Committee reviewed the unaudited interim results for the three months ended March 31, 2024, and discussed accounting policies, practices, and internal control matters with senior management and external auditors[85] - As of March 31, 2024, the company was not involved in any significant litigation or arbitration, and there were no pending or threatened significant claims against the company[86] - No other significant events affecting the group occurred between March 31, 2024, and the date of the announcement[87] Employee and Operational Metrics - The company had 35,423 full-time employees as of March 31, 2024, with 17,421 in R&D roles[56] - Employee benefit expenses rose to RMB 5.19 billion, compared to RMB 4.50 billion in the previous year[69] Inventory and Assets - Inventory increased to RMB 51,918,525 thousand in Q1 2024 from RMB 44,422,837 thousand at the end of 2023[76] - Total assets as of March 31, 2024, stood at RMB 326,971,545 thousand, compared to RMB 324,247,439 thousand at the end of 2023[62] - Short-term investments measured at fair value through profit or loss decreased to RMB 13,264,991 thousand in Q1 2024 from RMB 20,193,662 thousand at the end of 2023[73] - Long-term investments measured at fair value through profit or loss decreased to RMB 58,499,936 thousand in Q1 2024 from RMB 60,564,274 thousand at the end of 2023[73] - Trade receivables and bills decreased to RMB 11,213,539 thousand in Q1 2024 from RMB 12,150,928 thousand at the end of 2023[75] - Trade payables decreased to RMB 60,547,077 thousand in Q1 2024 from RMB 62,098,500 thousand at the end of 2023[79] Legal and Tax Issues - Xiaomi India's bank accounts with INR 45,750,963 thousand (approximately RMB 3,969,354 thousand) were restricted due to ongoing tax investigations[80] Smart EV Business - Xiaomi SU7 series cumulative orders reached 88,063 units by April 30, 2024, with 10,000 units delivered by May 15, 2024[11] - Xiaomi aims to deliver over 10,000 Xiaomi SU7 series vehicles monthly by June 2024[11] Miscellaneous - Global monthly active users of Mi Home app reached 89.1 million in March 2024, a 14.0% YoY increase[8] - Global monthly active users reached 658.1 million in March 2024, a 10.6% YoY increase, with 160.4 million in mainland China, up 9.7% YoY[9] - AIoT platform connected devices (excluding smartphones, tablets, and laptops) reached 786.1 million, a 27.2% YoY increase, with 15.2 million users connecting five or more devices, up 24.2% YoY[8] - Cost of goods sold and licensing fees increased to RMB 53.76 billion, up from RMB 42.76 billion in the same period last year[69] - Sales and marketing expenses increased by 33.6% from RMB 4.1 billion in Q1 2023 to RMB 5.5 billion in Q1 2024, driven by higher advertising and logistics costs[22] - Sales and marketing expenses decreased by 7.3% from RMB 5.9 billion in Q4 2023 to RMB 5.5 billion in Q1 2024, mainly due to reduced advertising and promotional activities[39] - Administrative expenses remained stable at RMB 1.5 billion in Q1 2024 compared to Q4 2023, driven by increased credit loss provisions for receivables, partially offset by reduced professional service fees[40] - Fair value changes of financial instruments at fair value through profit or loss shifted from a gain of RMB 600 million in Q4 2023 to a loss of RMB 1.2 billion in Q1 2024, primarily due to fair value losses on listed equity investments[40] - Share of net profit from investments accounted for using the equity method increased by 85.0% from RMB 84.0 million in Q4 2023 to RMB 155.4 million in Q1 2024[40] - Other income decreased by 39.9% from RMB 300 million in Q4 2023 to RMB 200 million in Q1 2024, mainly due to reduced VAT input tax credits and government subsidies[40] - Net finance income increased by 140.2% from RMB 600 million in Q4 2023 to RMB 1.5 billion in Q1 2024, driven by changes in the fair value of financial liabilities payable to fund investors[42] - Income tax expense increased by 7.7% from RMB 974.0 million in Q4 2023 to RMB 1,049.2 million in Q1 2024, primarily due to higher deductible expenses in Q4 2023[43] - Operating profit decreased to RMB 3,683,038 thousand, down 38% from RMB 5,900,209 thousand in 2023[60] - Total borrowings increased to RMB 27,705,897 thousand in Q1 2024 from RMB 27,857,345 thousand at the end of 2023[77]