股份代號：1810（港幣櫃台）及 81810（人民幣櫃台） l l l 小米集团 (於開曼群島註冊成立以不同投票權控制的有限公司) 2023年中期報告 㛮ᷯ㛡⟳␌灭劳㕉⎌ᷯ㕉䈊灮ⶴ㕾㛮℮⎺䵴䪛www.mi.com ⎌倱Ṧ㈂䵴䪛 www.hkexnews.hk 䘽廋˿↣怺㒉敳奿⛪᷌徲䵴䪛䘽廋ḍ℮⎺応姌灭⋇㊮Ἀ᷏ 昒㕾⸶⟳˾屣⊛⟳␌㐚奃灭⥄怫䓪灮˾ᷯ㛡⟳␌˾ᷯ㛡⟳␌㐚奃灭⥄怫䓪灮˾ 㛅嬲応␌˾᷌ⷄ㕉Ẹ˾応↿⎌ấ堪⦖ẽ堪㟾灮ầấ㛁ℸẽ㇘K悪⌲⇹㛮 ḍ偣㜳灱✉⎱奃㰄䳤⎘ᷯ㛡⟳␌ḍ⌲⇹㛮˿ ⶴ怺㒉㇘塭奘䁼ⶴ⏎パầ暽⬒㕻⻑㓸⎘℮⎺応姌㇘⛪㓸⎘㇘㿑奿㛮℮⎺䵴 䪛䘽廋ḍᷯ㛡⟳␌㘄怉⇲⚲暥䙆偣㜳灱⎱㕾㎒↼奃㰄⽎ℏ屽䌴䘾ᷯ㛡⟳␌ ⌲⇹㛮˿ 偣㜳⎱晪㘄⏓楛㷱嬋⇺䘽姚嘗灭悷 ⮆ ⛲ ✂ 䁼 楛 㷱 䀥 ẖ 䙉 ⏐ ⣩ 怕 㜳 183 嘡⏊ᷯ⾅ 17M㧕灮䘾 ↼ ⏊ 䏈 㚺 朤 応 䞧灱 ㇘ 忑 怐 暽 悷 ⛲ ✂ xiaomi.ecom@computershare.com.hk 䘾↼応䞧灱奃㰄㚶㓻㈂怺㒉㓸⎘㛮℮ ⎺㖧⽎㈂㛋℮⎺応姌䙆㕻⻑灭㓸⎘⌲⇹㛮㇘忑怐㛮℮⎺䵴䪛ầ暽⬒㕻⻑㓸 ⎘灮⎌婠姂䈊㛮灭₇㓸⎘劳㕉䈊 炀㇘₇㓸⎘ᷯ㕉䈊 炀㇘⏎㘄 ...

IMI nl Xiaomi Corporation Q2 2023 Results Announcement By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of Xiaomi Corporation (the "Company", and together with its subsidiaries, the "Group") for use in presentations by the Group and does not constitute a recommendation regarding the securities of the Group. No part of this presentati ...

For AI, in terms of application, we first need to launch continuously new products, enhance performance. For example, in Mi Home, we have many offerings. We have to do allocation arrangements for our products. Internally, we have a lot of AI applications. We have to consider through AI and our new product launch, there will be new plans. In the second quarter, R&D expenses were RMB4.6 billion, up 21% year-on-year. Moving to the bottom line. In the second quarter, our adjusted net profit was RMB5.1 billion, ...

[0 -> 8] Ladies and gentlemen, thank you and welcome to Xiaomi's interim results announcement conference call. [8 -> 14] This conference will be recorded. If you have any objections, you may disconnect at this time. [14 -> 20] If you have any questions you would like to raise during the Q&A session, please press star 1. [20 -> 27] I would like to hand over to Ms. Anita Chen, Head of Investor Relations and Corporate Finance. [27 -> 38] Good evening, ladies and gentlemen. Welcome to the investor conference ca ...

Financial Performance - For the second quarter of 2023, Xiaomi Corporation reported total revenue of RMB 67.3549 billion, a decrease of 4.0% year-on-year, but an increase of 13.2% quarter-on-quarter[2]. - The adjusted net profit for the second quarter reached RMB 5.1403 billion, representing a year-on-year increase of 147.0%[2]. - In Q2 2023, the company's revenue decreased by 4.0% year-on-year to RMB 67.35 billion, down from RMB 70.17 billion in Q2 2022[14]. - The smartphone segment revenue fell by 13.4% year-on-year to RMB 36.60 billion, with shipments decreasing by 15.8% to 32.9 million units[16]. - Internet services revenue reached a record high of RMB 7.44 billion, up 6.8% year-on-year, primarily due to increased advertising revenue[19]. - The company recorded a net profit of RMB 3,665.5 million in Q2 2023, compared to RMB 4,216.1 million in Q1 2023[29]. - For Q2 2023, the company reported a profit of RMB 3,665,524, with a net profit margin of 5.4%[46]. - The profit for the first half of 2023 reached RMB 7,881,662, with a net profit margin of 6.2%[47]. Market Position and Product Performance - Xiaomi's global smartphone shipments ranked in the top three, with a market share of 12.9%, an increase of 1.6 percentage points quarter-on-quarter[4]. - The market share of Xiaomi's smartphones priced between RMB 4,000 and RMB 6,000 in China increased by 6.2 percentage points to 12.7%[5]. - The Xiaomi MIX Fold 3 achieved sales of 2.25 times that of its predecessor within five minutes of launch[7]. - The company’s air conditioning product shipments surged over 90% year-on-year in Q2 2023[8]. - The Xiaomi TV ranked first in TV shipments in mainland China for the first half of 2023[8]. Research and Development - Xiaomi's R&D expenditure for the second quarter was RMB 4.6 billion, a year-on-year increase of 21.0%[5]. - The company plans to invest over RMB 100 billion in R&D from 2022 to 2026[5]. - The company’s R&D expenses increased to RMB 4.55 billion, up from RMB 3.76 billion in the previous year[13]. - R&D expenses rose by 10.7% from RMB 4.1 billion in Q1 2023 to RMB 4.6 billion in Q2 2023, primarily due to investments in smart electric vehicle and other innovative projects[39]. IoT and Consumer Products - The number of connected IoT devices on Xiaomi's AIoT platform reached 654.5 million, a year-on-year increase of 24.2%[4]. - The revenue from the IoT and lifestyle consumer products segment was RMB 22.3 billion, a year-on-year increase of 12.3%, with a gross margin of 17.6%, up 3.3 percentage points year-on-year[8]. - IoT and consumer products revenue increased to RMB 22,253.9 million, making up 33.0% of total revenue, compared to RMB 16,833.8 million in Q1 2023[31]. - Smart home appliances revenue grew over 200% quarter-on-quarter, with record shipments of smart air conditioners in mainland China[33]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023, amounted to RMB 31.5 billion, up from RMB 26.2 billion as of March 31, 2023[49]. - The total cash resources of the company reached RMB 113.2 billion as of June 30, 2023[49]. - The company reported a net cash generated from operating activities of RMB 18.943 billion, compared to RMB 1.218 billion in Q1 2023[52]. - The net cash used in investing activities for Q2 2023 was RMB 12.870 billion, primarily due to increases in short-term bank deposits and investments[53]. - The company raised funds through various bond issuances, including USD 800 million senior notes due in 2031 and USD 400 million green bonds due in 2051[50]. Legal and Compliance Issues - The company has been involved in legal investigations regarding compliance with tax and foreign exchange regulations in India, which may impact its financial performance[81]. - The company’s management is actively defending against legal claims and believes there are valid grounds to respond to the Indian authorities[81]. - The company has not been involved in any significant litigation or arbitration as of June 30, 2023[88]. Employee and Operational Metrics - As of June 30, 2023, the company had 32,464 full-time employees, with 16,834 in R&D roles[58]. - The total payroll expenses, including share-based compensation, amounted to RMB 4.4 billion in Q2 2023[58]. - Employee benefit expenses for the six months ended June 30, 2023, were RMB 8,918,568,000, an increase from RMB 7,968,639,000 in the same period of 2022, indicating an increase of about 12%[70].

Thank you, Mr. Lu. I would like to thank everyone for participating in our conference call. Just now, we have heard from Mr. Lu, as of May 21, 2023, our global MAU exceeded 600 million for the first time and reached a record high. We continuously enhance and refine our internet business operations. Included in our GHG goals is our plan to reduce greenhouse gas emissions from our main operating segments by at least 70% over 2021 levels by no later than 2030 followed by a 98% reduction from 2021 levels before ...

[3 -> 32] 大家好,欢迎大家今天参加小米集团2023年第一季度业绩发布投资者电话会议,本次会议将会录音。如果您有任何问题,可以现在挂断。如果您想在问答环节进行提问,请按新一键。取消提问,请按新二键。现在有请小米集团投资者关系团队主管Anita Chen为我们主持本次电话会议。Anita有请。谢谢。 [32 -> 52] 大家好,欢迎大家今天参加小米集团2023年第一季度业绩发布投资者电话会议。会议开始前,我们想提醒大家,本次会议可能包含前瞻性的陈述,这些陈述受各种风险和不确定性因素的影响,可能在未来因为多种因素无法实现。 [52 -> 76] 另外,有关整体市场状况的信息来自小米公司以外的其他渠道。本次会议包含一些未经审计的非国际财务报告准则的财务指标应作为补充信息,而不能替代公司根据国际财务报告准则编制的财务指标。出席本次会议的有小米集团合伙人总裁兼国际业务部总裁卢伟斌先生。 [76 -> 82] 小米集团副总裁兼首席财务官、天星数科董事长林世伟先生。 [82 -> 97] 会议开始,卢总将先分享公司最近的战略、更新及业务情况,随后,林总将回顾2023年第一季度的财务表现,最后,我们将进入问答环节。 ...

Financial Performance - Xiaomi Corporation reported total revenue of RMB 59.477 billion for Q1 2023, a decrease of 18.9% year-over-year[4]. - Adjusted net profit for Q1 2023 reached RMB 3.233 billion, representing a 13.1% increase compared to RMB 2.859 billion in Q1 2022[4]. - Revenue for Q1 2023 decreased by 18.9% to RMB 59.48 billion from RMB 73.35 billion in Q1 2022[17]. - Smartphone segment revenue fell by 23.6% to RMB 34.98 billion, with shipments down 21.1% to 30.4 million units[19]. - IoT and consumer products revenue decreased by 13.6% to RMB 16.83 billion, impacted by lower sales of smart TVs and laptops[20]. - Internet services revenue slightly decreased by 1.2% to RMB 7.03 billion, while overseas internet service revenue increased by 16.4% to RMB 1.8 billion[21]. - Gross profit decreased by 8.8% to RMB 11.59 billion, with a gross margin improvement from 17.3% to 19.5%[25]. - Operating profit for Q1 2023 was RMB 5.90 billion, a significant recovery from an operating loss of RMB 911.4 million in Q1 2022[22]. - Net profit for Q1 2023 was RMB 4.2 billion, up from RMB 3.1 billion in Q4 2022[47]. - The company reported a net income of RMB 4,500,457 thousand for the three months ended March 31, 2023, compared to RMB 3,895,114 thousand for the same period in 2022, reflecting an increase of 15.6%[69]. User Engagement and Market Share - The number of global MIUI monthly active users reached 594.8 million in March 2023, a year-over-year growth of 12.4%[5]. - The offline smartphone market share in China increased by 1.4 percentage points to 7.9% in Q1 2023[14]. - The Xiaomi 13 series and Xiaomi 13 Ultra contributed over 55% of sales from offline channels as of May 17, 2023[14]. Research and Development - Research and development expenses for Q1 2023 amounted to RMB 4.1 billion, a 17.7% increase year-over-year, with total R&D investment expected to exceed RMB 20 billion for the full year[6]. - R&D expenses increased to RMB 4.11 billion in Q1 2023, compared to RMB 3.49 billion in Q4 2022, indicating a focus on innovation and development[60]. - R&D expenses decreased by 12.5% from RMB 4.7 billion in Q4 2022 to RMB 4.1 billion in Q1 2023, mainly due to the progress of several R&D projects[42]. Product Performance - Xiaomi's smartphone business generated revenue of RMB 35 billion in Q1 2023, with global smartphone shipments totaling 30.4 million units, maintaining a market share of 11.3%[7]. - The average selling price (ASP) of smartphones in mainland China reached a historical high, increasing by over 18% year-over-year[5]. - In Q1 2023, the revenue from IoT and consumer products reached RMB 16.8 billion, with a gross margin of 15.7%[9]. - The smart home appliance segment saw revenue growth exceeding 60% year-over-year, with air conditioner shipments also increasing over 60%[10]. - The gaming business revenue grew 16.3% year-over-year to RMB 1.3 billion, marking the seventh consecutive quarter of revenue growth[12]. Inventory and Cash Flow - Xiaomi's inventory as of Q1 2023 was RMB 42.6 billion, a decrease of 24.1% year-over-year, marking the lowest level in nearly nine quarters[6]. - The company had cash and cash equivalents of RMB 26.2 billion as of March 31, 2023, down from RMB 27.6 billion at the end of 2022[50]. - Operating cash flow for Q1 2023 was RMB 12 billion, with a pre-tax profit of RMB 55 billion, adjusted for changes in working capital[53]. - The company experienced a net cash outflow from financing activities of RMB 14 billion in Q1 2023, compared to RMB 30 billion in Q4 2022[52]. Investments and Financial Position - As of March 31, 2023, the company held investments in over 420 companies, with a total book value of RMB 66.7 billion, representing a year-on-year growth of 12.7%[56]. - The company’s total liabilities decreased to RMB 115,823,343 thousand as of March 31, 2023, from RMB 129,584,151 thousand as of December 31, 2022, a reduction of approximately 10.6%[63]. - The company’s total borrowings decreased from RMB 23.6 billion as of December 31, 2022, to RMB 22.5 billion as of March 31, 2023[54]. Corporate Governance and Compliance - The company has adhered to all provisions of the Corporate Governance Code as of March 31, 2023, except for the separation of the roles of Chairman and CEO, which are held by Lei Jun[77]. - The Audit Committee, consisting of one non-executive director and two independent non-executive directors, reviewed the unaudited interim results for the three months ended March 31, 2023[78]. - As of March 31, 2023, the company is not involved in any significant litigation or arbitration, and there are no pending significant claims against the company[79].

Financial Performance - Total revenue for 2022 reached RMB 280.04 billion, with adjusted net profit of RMB 8.52 billion[9] - Gross profit for 2022 was RMB 47.58 billion, down from RMB 58.26 billion in 2021[9] - Operating profit for 2022 was RMB 2.82 billion, a significant decrease from RMB 26.03 billion in 2021[9] - Revenue decreased by 14.7% to RMB 280.04 billion in 2022 compared to RMB 328.31 billion in 2021[31] - Gross profit declined to RMB 47.58 billion in 2022 from RMB 58.26 billion in 2021[30] - Adjusted net profit for 2022 was RMB 8.52 billion, down from RMB 22.04 billion in 2021[30] - Adjusted net profit for 2022 was RMB 8,518,007 thousand, with a net profit margin of 3.0%[59] - Adjusted net profit for 2021 was RMB 22,039,474 thousand, with a net profit margin of 6.7%[59] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 273.51 billion, with non-current assets at RMB 113.09 billion[10] - Equity attributable to the company's owners stood at RMB 143.66 billion as of the end of 2022[10] - Total liabilities as of December 31, 2022, were RMB 129.58 billion, with current liabilities at RMB 89.63 billion[10] - The company's total equity and liabilities amounted to RMB 273.51 billion at the end of 2022[10] - Cash and cash equivalents increased from RMB 23.5 billion in 2021 to RMB 27.6 billion in 2022[62] - Total cash resources as of December 31, 2022, amounted to RMB 94.3 billion[62] - The debt-to-asset ratio improved from -31.1% in 2021 to -35.6% in 2022, reflecting a net cash position[63] - Total borrowings decreased to RMB 23.6 billion in 2022 from RMB 26.2 billion in 2021[65] Smartphone Business - Smartphone and IoT business remained stable despite global economic challenges, with global economic growth slowing from 6.2% in 2021 to 3.4% in 2022[13] - Global smartphone shipments in 2022 decreased by 11.7% year-on-year, reaching a nine-year low, while the company's global smartphone shipments reached 150.5 million units, maintaining the third position with a market share of 12.8%[14] - The company's smartphone business revenue in 2022 was RMB 167.2 billion, with an average selling price (ASP) of RMB 1,111, a record high[15] - Xiaomi 13 series achieved the top sales ranking in the RMB 4,000-6,000 price segment for seven consecutive weeks in mainland China after its launch[15] - Redmi K60 series sold over 300,000 units within the first five minutes of its launch in December 2022[16] - Smartphone segment revenue decreased by 19.9% to RMB 167.22 billion in 2022, with smartphone shipments dropping by 20.9% to 150.5 million units[33] - Smartphone ASP increased by 1.3% to RMB 1,111.3 per unit in 2022[33] - Smartphone division gross margin decreased from 11.9% in 2021 to 9.0% in the reporting period, primarily due to increased inventory clearance efforts, USD appreciation, and higher inventory impairment provisions[42] IoT and Lifestyle Products - IoT and lifestyle product revenue in 2022 was RMB 79.8 billion, a year-on-year decrease of 6.1%, while global smart TV shipments reached 12.4 million units, up 0.6% year-on-year[18] - Air conditioner shipments increased by over 50% year-on-year in 2022, with online market retail share rising by 1.3%, and refrigerator shipments nearly doubled year-on-year[18] - Tablet shipments in mainland China grew by over 160% year-on-year in 2022, with the company ranking third in market share and second in wearable wristbands and TWS earphone shipments[18] - IoT and lifestyle products revenue decreased by 6.1% to RMB 79.79 billion in 2022, driven by lower sales of smart TVs and other IoT products in overseas markets[34] - Global smart TV shipments grew by 0.6% to 12.4 million units in 2022, outperforming the market decline of 5.6%[34] - IoT and lifestyle product division gross margin increased from 13.1% in 2021 to 14.4% in the reporting period, driven by lower core component prices and improved gross margins in smart TVs and smart home appliances[42] - IoT and lifestyle product division sales cost decreased by 7.6% from RMB 73.9 billion in 2021 to RMB 68.3 billion in the reporting period, mainly due to a decrease in IoT and lifestyle product sales[40] Internet Services - Internet service revenue reached RMB 28.3 billion in 2022, a year-on-year increase of 0.4%[19] - Overseas internet business revenue reached RMB 6.8 billion in 2022, a year-on-year increase of 35.2%, accounting for 24.0% of total internet service revenue[19] - Advertising business revenue reached RMB 18.5 billion in 2022, a year-on-year increase of 2.1%[19] - Game business revenue reached RMB 4.1 billion in 2022, a year-on-year increase of 4.4%[19] - Smart TV global monthly active users exceeded 58 million in December 2022, with paying users increasing by 23.0% year-on-year to 6.0 million[19] - Internet services revenue increased by 0.4% to RMB 28.32 billion in 2022, with overseas internet services revenue growing by 35.2% to RMB 6.8 billion[36] - Internet services division gross margin decreased from 74.1% in 2021 to 71.8% in the reporting period, mainly due to a decline in advertising business gross margin[43] - Internet services division sales cost increased by 9.0% from RMB 7.3 billion in 2021 to RMB 8.0 billion in the reporting period, driven by increased costs in advertising, TV value-added services, and gaming, partially offset by reduced financial technology business costs[41] R&D and Innovation - The company incurred RMB 3.1 billion in expenses for innovative businesses, including smart electric vehicles, in 2022[13] - R&D expenditure in 2022 reached RMB 16 billion, with a compound annual growth rate of 38.4% from 2017 to 2022, and the company plans to invest over RMB 100 billion in R&D from 2022 to 2026[14] - R&D expenses increased to RMB 16.03 billion in 2022, up from RMB 13.17 billion in 2021[30] - R&D expenses increased by 21.7% from RMB 13.2 billion in 2021 to RMB 16.0 billion in the reporting period, primarily due to increased expenses in innovative businesses such as smart electric vehicles[44] Global Market Performance - Overseas market revenue in 2022 accounted for 49.2% of total revenue, reaching RMB 137.8 billion, with smartphone shipments ranking in the top three in 54 countries and regions globally[14] - Global MIUI monthly active users reached 582.1 million in December 2022, a year-on-year increase of 14.4%, and the number of connected IoT devices (excluding smartphones, tablets, and laptops) reached 589.4 million, up 35.8% year-on-year[14] - Global MIUI monthly active users reached 582.1 million in December 2022, a year-on-year increase of 14.4%[19] - AIoT platform connected devices reached 589.4 million by the end of 2022, a year-on-year increase of 35.8%[23] - MIUI 14 system fluency improved by 60%, AIoT product discovery speed increased by 50%, and transmission speed increased by 77%[24] - Offline channel AIoT product GMV increased by over 27% year-on-year in 2022[25] - Xiaomi 13 series offline channel sales contribution reached 55% by the end of February 2023[25] Investments and Financial Activities - The company invested in over 420 companies with a total book value of RMB 63.9 billion, a 5.9% year-over-year increase[66] - Total investment value, including fair value of listed and unlisted companies, reached RMB 65.2 billion as of December 31, 2022[66] - The company recorded a post-tax net gain of RMB 1.2 billion from the disposal of investments in 2022[66] - The company issued $600 million in 3.375% senior notes due 2030 and $855 million in zero-coupon convertible bonds due 2027[64] - In 2021, the company issued $800 million in 2.875% senior notes due 2031 and $400 million in 4.100% green bonds due 2051[64] - The net proceeds from the 2020 placement and subscription amounted to approximately $3.1 billion, fully utilized by the end of 2022 for business expansion, market share increase, strategic ecosystem investment, and general corporate purposes[168][169] - The net proceeds from the 2027 bond issuance were approximately $889.6 million, fully utilized by the end of 2022 for similar purposes as the 2020 placement[170][171] - The net proceeds from the 2031 bond issuance were approximately $789.0 million, fully utilized by the end of 2022 for general corporate purposes[172][173] - The net proceeds from the green bond issuance were approximately $392.8 million, fully utilized by the end of 2022 for financing or refinancing eligible green projects[174][175] Corporate Governance and Shareholder Structure - The company has 32,543 full-time employees, with 16,171 engaged in R&D as of December 31, 2022[67] - The company repurchased 235,248,000 Class B shares for a total consideration of HKD 2,756,518,651 during the reporting period[77] - A total of 24,341,769 Class A shares were converted into Class B shares on October 28, 2022, with 21,922,431 shares converted by Lei Jun through Smart Mobile Holdings Limited and 2,419,338 shares converted by Bin Lin through Bin Lin 2021 A Trust[80] - A total of 2,937,275 Class A shares were converted into Class B shares on March 22, 2023, with 2,645,338 shares converted by Lei Jun through Smart Mobile Holdings Limited and 291,937 shares converted by Bin Lin through Bin Lin 2021 A Trust[80] - The company plans to issue 363,148,688 new shares (approximately 1.8% of the weighted average number of issued Class B shares) under the Post-IPO Share Option Plan and Post-IPO Share Award Plan[81] - The maximum number of shares that can be issued under the Pre-IPO Employee Share Option Plan is 2,512,694,900 Class B shares[84] - As of the latest practicable date, the company has granted 267,673,823 unexercised share options and restricted share units (approximately 1.07% of the issued share capital) under the Pre-IPO Employee Share Option Plan[88] - The company has three share plans: Pre-IPO Employee Share Option Plan, Post-IPO Share Option Plan, and Post-IPO Share Award Plan[81] - The Pre-IPO Employee Share Option Plan expired on August 24, 2022, after a 10-year term, but unexercised awards remain valid[87] - The Post-IPO Share Option Plan aims to provide selected participants with proprietary interests to encourage them to work actively for the benefit of the company and its shareholders[91] - Eligible participants under the Post-IPO Share Option Plan include employees, directors, consultants, and other related parties of the group[92] - The total number of B shares that may be issued upon the exercise of all options granted under the post-IPO share option plan and any other share option plans is 1,568,094,311 shares, not exceeding 10% of the issued B shares as of the listing date[93] - As of December 31, 2022, the total number of shares available for grant under the post-IPO share option plan is 1,447,394,311 shares, representing approximately 5.8% of the company's issued share capital[98] - A total of 233,500,000 share options have been granted under the post-IPO share option plan as of December 31, 2022[98] - The post-IPO share option plan is valid and effective for ten years from the listing date[97] - The total number of B shares that may be issued under the post-IPO share incentive plan without shareholder approval is 1,118,806,541 shares, with an annual grant limit of 3% of the total issued shares[102] - As of December 31, 2022, 387,027,516 reward shares were available for grant under the post-IPO share incentive plan[102] - The total number of new B shares that may be issued under the post-IPO share incentive plan will not exceed 1,118,806,541 shares[103] - As of December 31, 2022, 956,637,549 new shares were available for issuance under the post-IPO share incentive plan, representing approximately 3.8% of the company's issued share capital[103] - No maximum quota set for participants under the share incentive plan[104] - No payment or purchase price required for awarded shares under the share incentive plan[105] - The share incentive plan will terminate 10 years after the listing date or earlier if decided by the board[107] - Total awarded shares under the share incentive plan as of December 31, 2022, amounted to 564,256,129[108] - The fair value of awarded shares is determined based on the market value at the grant date[108] - The remaining duration of the share incentive plan post-IPO is approximately over 5 years[107] - Awarded shares do not carry voting rights until vested[106] - The board may determine the vesting conditions and periods for awarded shares[105] - The share incentive plan prohibits granting awards during restricted periods before financial results announcements[104] - The plan ensures compliance with applicable securities laws and regulations[104] - Total unvested reward shares as of December 31, 2022, amounted to 566,410,221[109] - The fair value of reward shares granted in 2022 was determined based on the market price at the grant date[109] - The company granted a total of 1,799,732 reward shares in 2022[109] - The weighted average market price of shares before the grant date in 2022 was 13.94[109] - The company's reward shares granted on March 23, 2022, had a fair value of 14.20 at the grant date[110] - The total reward shares granted under the post-IPO share reward plan amounted to 3,179,543 as of December 31, 2022[110] - The company did not enter into any equity-linked agreements during the reporting period[111] Leadership and Management - Lei Jun, the company's CEO, is responsible for strategy, corporate culture, and key products[114] - Lin Bin, co-founder and Vice Chairman, responsible for international business expansion including India and Indonesia, and domestic market sales and after-sales services[115] - Liu De, co-founder and Senior Vice President, oversees recruitment, promotion, training, and evaluation of mid-to-senior management, and organizational structure design[115] - Liu Qin, non-executive director and member of the audit committee, co-founded 5Y Capital, an early investor in the company[116] - Chen Dongsheng, independent non-executive director, has extensive experience in corporate governance and led reforms at Taikang Insurance Group[117] - Wang Shunde, independent non-executive director and chairman of the audit committee, has a strong background in financial management and strategic planning[118] - Tang Weizhang, independent non-executive director and chairman of the nomination committee, brings over 30 years of academic and administrative experience[118] - Lei Jun, aged 53, serves as the founder, CEO, Chairman, and Executive Director of the company, as well as the CEO of the smart electric vehicle business[120] - Lin Bin, aged 55, is a co-founder, Vice Chairman, and Executive Director of the company[120] - Lu Weibing, aged 47, is a partner, President of the Group, and President of the International Business Department, responsible for the mobile phone division, ecosystem chain division, major appliances division, China region, and India region[120] - Zhang Feng, aged 53, is a partner and Senior Vice President, serving as the President of the Major Appliances Division, with over 20 years of experience in the mobile phone and communications industry[121] - Zeng Xuezhong, aged 49, is the Senior Vice President and President of the Mobile Phone Division, responsible for the R&D and production of mobile phone products, with extensive experience in corporate strategy and innovation[121] - Yan Kesheng, aged 52, is the Vice President and General Manager of the Intelligent Manufacturing Department, responsible for intelligent manufacturing system-level solutions[121] - Lin Shiwei, aged 49, is the Vice President and Chief Financial Officer of the Group, also serving as the Chairman of Tianxing Digital Technology[122] - Zhu Dan, aged 45, is the Vice President and Deputy President of the Mobile Phone Division R&D, with significant contributions to the development of the camera and display departments[122] - Wang Xiaoyan, aged 48, is the Vice President and President of the China Region, playing a key role in the construction of the new retail business in China[122] - Qu Heng, aged 41, is the Vice President, Chairman of the Group's Technology Committee, and Chairman of the Group's Information Security and Privacy Committee, responsible for the quality and procurement committees[123] Shareholder and Voting Rights - Lei Jun holds 4,132,

Financial Data and Key Metrics - Global smartphone market declined by 12% YoY in 2022 to below 1.2 billion units, a record low in the past nine years [4] - Mainland China's smartphone market dropped by 14% YoY in 2022 to below 300 million units, a record low in the last decade [4] - Xiaomi's R&D expenses reached RMB16 billion in 2022, with a CAGR of 38% from 2017 to 2022, and are expected to exceed RMB20 billion in 2023 [6] - Xiaomi's total revenue in 2022 was RMB280 billion, with an adjusted net profit of RMB8.5 billion, including RMB3.1 billion in expenses related to smart EV and other new initiatives [43] - Xiaomi's global smartphone shipments in 2022 were 150 million units, maintaining the number three position globally for the second consecutive year [52] Business Segment Performance - Smartphone revenue in 2022 was RMB167.2 billion, accounting for 60% of total revenue [20] - IoT and lifestyle products revenue in 2022 was RMB79.8 billion, accounting for 28% of total revenue, with 590 million connected IoT devices on the AIoT platform, up 36% YoY [22] - Internet services revenue in 2022 was RMB28.3 billion, accounting for 10% of total revenue, with overseas internet services revenue reaching RMB6.8 billion, up 35% YoY [23][24] - Xiaomi's global smartphone ASP hit a record high of RMB1,111 in 2022 [21] Market Performance - Xiaomi maintained a 13% global market share in smartphones in 2022, ranking third globally [14] - In Europe, Xiaomi maintained a 21% market share in 2022, ranking first in Spain with a 33% market share, second in Italy, and third in France and Germany [14] - In Mainland China, Xiaomi ranked first in the RMB3,000 to RMB4,000 price segment in Q4 2022 and first in the RMB4,000 to RMB5,000 price segment among Android smartphones in January 2023, with a 27% market share [13] Company Strategy and Industry Competition - Xiaomi's premiumization strategy has made significant progress, with brand loyalty exceeding 50% one month after product launch in 2022, ranking first among Android smartphone brands [12][13] - The company plans to invest over RMB100 billion in R&D from 2022 to 2026, focusing on hardware and software integration and premium smartphone development [6][7] - Xiaomi is focusing on prudent operations and localization strategies in key overseas markets, aiming to build a secure and efficient global operating platform [7] Management Commentary on Operating Environment and Future Outlook - The global smartphone industry faced challenges in 2022, including macroeconomic headwinds, rising inflation, foreign exchange fluctuations, and geopolitical tensions, leading to weakened consumer demand and excess inventory [11] - Xiaomi is cautiously optimistic about the market in 2023, expecting potential exchange rate stabilization and normalized inventory levels [19] - The company is undertaking a dual emphasis on scale and profitability, focusing on internal operating efficiency and risk management [50] Other Important Information - Xiaomi's overall gross profit margin in 2022 was 17%, above the previous five-year average of 15.2%, with smartphone gross margin at 9% and IoT and lifestyle products gross margin reaching a new annual high of 14.4% [25][26] - The company's total inventory in Q4 2022 was RMB50.4 billion, down 3.7% YoY and 4.8% QoQ [28] - Xiaomi repurchased 235 million shares in 2022, totaling HKD 2.8 billion, and continues to advance its ESG efforts, including carbon footprint management [60][61] Q&A Session Summary Question: Current inventory levels in overseas markets - Xiaomi's inventory in Q4 2022 was RMB50.4 billion, down 15% from the beginning of the year, with costs in Q4 at RMB28.4 billion, down from RMB31 billion in the middle of the year [33][34] Question: Impact of cost reduction and efficiency improvement on ASP - Xiaomi's ASP is expected to improve due to the premiumization strategy, with the Xiaomi 13 series performing well and contributing to higher ASP [37][69][70] Question: Outlook for internet business and gaming revenue in 2023 - Xiaomi expects growth in internet services, particularly in gaming, as the market shows signs of recovery and more users engage with gaming platforms [71][94] Question: Gross profit margin for smartphones in 2023 - Xiaomi expects smartphone gross margin to improve in 2023, with contributions from premiumization, cost-cutting, and potential exchange rate stabilization [75][97] Question: Plans for offline shops and integration with premiumization strategy - Xiaomi is focusing on integrating offline shops and improving efficiency, with premium products like the Xiaomi 13 series contributing significantly to GMV [76][78][98] Question: Impact of ChatGPT on Xiaomi's AIoT business - Xiaomi is closely following developments in AI, including ChatGPT, and has a team of 1,200 people working on AI technologies, with plans to integrate advanced capabilities into its products [116] Question: Risk exposure to recent financial market volatility - Xiaomi has no deposits with affected banks and works primarily with Tier 1 banks, maintaining a robust and stable capital management strategy [82][118]