ml nl Xiaomi Corporation 2022 Fourth Quarter and Annual Results 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 p ...

[0 -> 6] 欢迎大家参加小米集团2022年第四季度级权力业绩发布投资者电话会议 [6 -> 7] 本次会议将会录音 [7 -> 9] 如果你有任何问题 [9 -> 10] 可以现在挂断 [10 -> 13] 如果你想在问答环节进行提问 [13 -> 15] 请按新意见 [15 -> 15] 取消提问 [15 -> 18] 请按信二键 [18 -> 25] 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 [25 -> 28] Anita有请 [28 -> 28] 大家好 [28 -> 35] 欢迎大家今天参加小米集团2022年第四季度集权业绩发布投资者电话会议 [35 -> 36] 会议开始前 [36 -> 38] 我们想提醒大家 [38 -> 41] 本次会议可能包含前瞻性的陈述 [41 -> 45] 这些陈述受各种风险和不确定因素的影响 [45 -> 48] 可能在未来因为多种因素无法实现 [48 -> 53] 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 [53 -> 59] 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 [59 -> 61] 应作为补 ...

Financial Performance - Xiaomi's total revenue for 2022 reached RMB 280 billion, with adjusted net profit of RMB 8.5 billion[3] - Total revenue decreased 14.7% YoY to RMB 280.0 billion in 2022[20] - Adjusted net profit for 2022 was RMB 8.5 billion, compared to RMB 22.0 billion in 2021[36] - Q4 2022 revenue decreased by 22.8% to RMB 66.0 billion from RMB 85.6 billion in Q4 2021[38] - Revenue decreased by 6.3% from RMB 70.5 billion in Q3 2022 to RMB 66.0 billion in Q4 2022[55] - Annual non-IFRS adjusted net profit for 2022 was RMB 8.52 billion, with a net profit margin of 3.0%[73] - Annual non-IFRS adjusted net profit for 2021 was RMB 22.04 billion, with a net profit margin of 6.7%[73] - Revenue for the year ended December 31, 2022, was RMB 280,044 million, a decrease of 14.7% compared to RMB 328,309 million in 2021[87] - Gross profit for 2022 was RMB 47,577 million, down 18.3% from RMB 58,261 million in 2021[87] - Net profit attributable to the company's owners for 2022 was RMB 2,474 million, a significant decrease of 87.2% from RMB 19,339 million in 2021[87] - Total revenue for 2022 decreased to RMB 280,044.02 million from RMB 328,309.15 million in 2021, with smartphone revenue dropping to RMB 167,217.18 million from RMB 208,868.94 million[96][97] - Gross profit for 2022 was RMB 47,577.19 million, down from RMB 58,260.94 million in 2021, with smartphone gross profit declining to RMB 14,968.76 million from RMB 24,861.09 million[96][97] - Net profit attributable to the company's owners decreased significantly to RMB 2,474,030 thousand in 2022 from RMB 19,339,321 thousand in 2021, representing a decline of 87.2%[103] - Diluted earnings per share dropped to RMB 0.10 in 2022 from RMB 0.76 in 2021, a decrease of 86.8%[103] Smartphone Business - Global smartphone shipments in 2022 were 150.5 million units, maintaining the third position globally with a market share of 12.8%[4] - Xiaomi's smartphone business revenue in 2022 was RMB 167.2 billion, with an average selling price (ASP) of RMB 1,111, a record high[6] - In Q4 2022, Xiaomi's smartphone revenue was RMB 36.7 billion, with shipments of 32.7 million units[6] - Xiaomi 13 series achieved the top sales ranking in the RMB 4,000-6,000 price segment in China for seven consecutive weeks post-launch[6] - Redmi K60 series achieved sales of 300,000 units within 5 minutes of its launch in December 2022[7] - Smartphone revenue decreased 19.9% YoY to RMB 167.2 billion, with shipments down 20.9%[22] - Smartphone segment revenue decreased by 27.3% YoY to RMB 36.7 billion in Q4 2022, with shipments dropping 25.9% to 32.7 million units and ASP declining 2.0% to RMB 1,121.0 per unit[40] - Smartphone revenue decreased by 13.7% from RMB 42.5 billion in Q3 2022 to RMB 36.7 billion in Q4 2022, with shipments dropping by 18.6% from 40.2 million units to 32.7 million units[57] - Smartphone segment gross margin declined to 8.2% in Q4 2022, impacted by a one-time cost of RMB 700 million related to updated after-sales service policies[48] - Smartphone segment sales cost decreased by 17.3% from RMB 184.0 billion in 2021 to RMB 152.2 billion in 2022, primarily due to reduced smartphone shipments, partially offset by increased inventory impairment provisions[27] IoT and Lifestyle Products - IoT and lifestyle products revenue in 2022 was RMB 79.8 billion, a year-on-year decrease of 6.1%, but Q4 revenue increased by 12.5% to RMB 21.4 billion[8] - Global smart TV shipments reached 12.4 million units in 2022, a year-on-year increase of 0.6%, despite a 5.6% decline in the global smart TV market[8] - Xiaomi's tablet shipments in China increased by over 160% year-on-year in 2022, with Q4 shipments hitting a record high[9] - IoT and lifestyle products revenue decreased 6.1% YoY to RMB 79.8 billion[23] - IoT and lifestyle products revenue in Q4 2022 accounted for 32.5% of total revenue, up from 29.3% in Q4 2021[39] - IoT and lifestyle products revenue decreased by 14.4% YoY to RMB 21.4 billion in Q4 2022, driven by lower demand for smart TVs and some lifestyle products, partially offset by growth in tablets and smart home appliances[41] - IoT and lifestyle products revenue increased by 12.5% from RMB 19.1 billion in Q3 2022 to RMB 21.4 billion in Q4 2022, driven by growth in smart TVs, laptops, and other consumer products[58] - IoT and lifestyle products gross margin improved to 14.3% in Q4 2022, driven by higher margins in smart home appliances and lower component costs for smart TVs[48] - IoT and lifestyle products segment sales cost decreased by 7.6% from RMB 73.9 billion in 2021 to RMB 68.3 billion in 2022, mainly due to reduced sales of IoT and lifestyle products[28] Internet Services - MIUI monthly active users reached 582.1 million in December 2022, a year-on-year increase of 14.4%[4] - Overseas internet service revenue in 2022 reached RMB 6.8 billion, a year-on-year increase of 35.2%, with Q4 revenue hitting a record high of RMB 1.9 billion[10] - Xiaomi's game business revenue in 2022 was RMB 4.1 billion, a year-on-year increase of 4.4%, with Q4 revenue up 8.7% to RMB 1 billion[11] - MIUI monthly active users globally reached 582.1 million in December 2022, a year-on-year increase of 14.4%, with 143.7 million in mainland China, up 10.7%[10] - Overseas internet service revenue increased 35.2% YoY to RMB 6.8 billion[24] - Internet services revenue in Q4 2022 accounted for 10.9% of total revenue, up from 8.5% in Q4 2021[39] - Internet services revenue decreased by 1.4% YoY to RMB 7.2 billion in Q4 2022, while MIUI MAUs increased by 14.4% YoY to 582.1 million in December 2022[42] - Internet services revenue increased by 1.5% from RMB 7.1 billion in Q3 2022 to RMB 7.2 billion in Q4 2022, primarily due to growth in advertising revenue[58] - Internet services segment sales cost increased by 9.0% from RMB 7.3 billion in 2021 to RMB 8.0 billion in 2022, driven by higher costs in advertising, TV value-added services, and gaming, partially offset by reduced financial technology costs[29] AIoT Platform - AIoT platform connected devices (excluding smartphones, tablets, and laptops) reached 589.4 million, up 35.8% year-on-year[4] - AIoT platform connected IoT devices reached 589.4 million, a 35.8% YoY increase[15] - Users with five or more connected IoT devices reached 11.6 million, a 32.5% YoY increase[15] - Monthly active users of "Xiao Ai" assistant grew 7.1% YoY to 114.6 million[15] - MIUI 14 improved system fluency by 60% and AIoT product discovery speed by 50%[15] - Offline channel AIoT product GMV increased over 27% YoY in 2022[16] - Monthly average GMV per store in Jan-Feb 2023 increased over 30% compared to Q4 2022[16] Overseas Market - Overseas market revenue accounted for 49.2% of total revenue, reaching RMB 137.8 billion in 2022[5] - Revenue from Mainland China accounted for 50.8% of total revenue in 2022, slightly up from 50.2% in 2021[98] R&D and Innovation - R&D expenditure in 2022 was RMB 16 billion, with a compound annual growth rate of 38.4% from 2017 to 2022[5] - Xiaomi's global patent portfolio exceeded 30,000 patents, covering over 60 countries and regions as of December 31, 2022[5] - Xiaomi's smart electric vehicle R&D team has grown to approximately 2,300 people, with a target for mass production in the first half of 2024[14] - R&D expenses increased by 21.7% from RMB 13.2 billion in 2021 to RMB 16.0 billion in 2022, primarily due to increased expenses in innovative businesses such as smart electric vehicles[30] - R&D expenses increased by 22.0% YoY to RMB 4.7 billion in Q4 2022, primarily due to higher costs in innovative businesses like smart electric vehicles[49] - Research and development expenses increased by 21.7% to RMB 16,028 million in 2022 compared to RMB 13,167 million in 2021[87] Brand and User Loyalty - Xiaomi's brand loyalty ranked first among Android smartphone manufacturers in China for two consecutive years, with 50.1% of users choosing Xiaomi again when replacing smartphones[7] Cash Flow and Financial Position - Cash and cash equivalents as of December 31, 2022, were RMB 27.607 billion, a decrease from RMB 28.071 billion as of September 30, 2022[77] - Total cash resources as of December 31, 2022, amounted to RMB 94.3 billion, including cash and cash equivalents, restricted cash, short-term and long-term bank deposits, and short-term and long-term investments[75] - Net cash generated from operating activities in Q4 2022 was RMB 4.112 billion, compared to a net cash used in operating activities of RMB 1.470 billion in Q3 2022[77] - Net cash used in investing activities in Q4 2022 was RMB 708.1 million, primarily due to changes in long-term bank deposits[79] - Net cash used in financing activities in Q4 2022 was RMB 3.617 billion, mainly due to changes in borrowings and credit facility payables[80] - Total borrowings as of December 31, 2022, were RMB 23.6 billion, down from RMB 25.8 billion as of September 30, 2022[80] - Capital expenditures in Q4 2022 were RMB 1.379 billion, a decrease from RMB 1.703 billion in Q3 2022[81] - The company invested in over 420 companies and other long-term investments, with a total book value of RMB 63.9 billion as of December 31, 2022, a 5.9% year-over-year increase[81] - The company's cash and cash equivalents increased by 17.4% to RMB 27,607 million as of December 31, 2022, from RMB 23,512 million at the end of 2021[89] - Operating cash flow for 2022 was negative at RMB 4,389.73 million, compared to a positive RMB 9,785.29 million in 2021[91] - Net cash from investing activities in 2022 was RMB 15,548.77 million, a significant improvement from the negative RMB 45,007.95 million in 2021[91] - Cash and cash equivalents at the end of 2022 increased to RMB 27,607.26 million from RMB 23,511.58 million at the end of 2021[91] Expenses and Costs - Gross profit decreased by 18.3% from RMB 58.3 billion in 2021 to RMB 47.6 billion in 2022, with gross margin dropping from 17.7% to 17.0%[29] - Gross profit decreased by 22.4% YoY to RMB 11.4 billion in Q4 2022, with gross margin slightly increasing to 17.2% from 17.1% in Q4 2021[48] - Total sales cost decreased by 22.9% YoY to RMB 54.7 billion in Q4 2022, with smartphone sales cost dropping 25.7% to RMB 33.7 billion[44][45] - Sales and marketing expenses increased by 19.9% from RMB 4.9 billion in Q3 2022 to RMB 5.9 billion in Q4 2022, driven by higher advertising and promotional spending[65] - Employee benefits expenses increased to RMB 16,607.99 million in 2022 from RMB 13,821.53 million in 2021[99] - Inventory impairment provisions rose significantly to RMB 7,794.47 million in 2022 from RMB 2,831.53 million in 2021[99] - Tax expenses decreased to RMB 1,431.39 million in 2022 from RMB 5,133.80 million in 2021[100] - Inventory impairment provisions increased significantly to RMB 3,470,360 thousand in 2022 from RMB 1,331,147 thousand in 2021, representing a 160.7% increase[106] Investments and Equity - The company invested in over 420 companies and other long-term investments, with a total book value of RMB 63.9 billion as of December 31, 2022, a 5.9% year-over-year increase[81] - Fair value changes of investments shifted from a loss of RMB 2.4 billion in Q3 2022 to a gain of RMB 3.8 billion in Q4 2022, primarily due to gains in preferred stock investments[65] - Share of profits from equity-accounted investments turned from a loss of RMB 265.0 million in Q3 2022 to a profit of RMB 3.6 million in Q4 2022, driven by improved performance of investee companies[66] - Short-term investments measured at fair value through profit or loss decreased to RMB 9,845,910 thousand in 2022 from RMB 29,311,848 thousand in 2021, a reduction of 66.4%[104] - Long-term investments in equity securities (ordinary shares) decreased to RMB 18,726,499 thousand in 2022 from RMB 22,755,228 thousand in 2021, a decline of 17.7%[104] Share Transactions and Capital - The company repurchased a total of 235,248,000 B-class shares during the reporting period, with a total consideration of approximately HKD 2,756,518,651[112] - A total of 6,392,324 Class A shares were converted into Class B shares on March 11, 2022, with 5,756,989 shares converted by Lei Jun through Smart Mobile Holdings Limited and 635,335 shares by Bin Lin through Bin Lin 2021 A Trust[113] - A total of 13,488,051 Class A shares were converted into Class B shares on June 10, 2022, with 12,147,469 shares converted by Lei Jun through Smart Mobile Holdings Limited and 1,340,582 shares by Bin Lin through Bin Lin 2021 A Trust[113] - 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 by Bin Lin through Bin Lin 2021 A Trust[113] - 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 by Bin Lin through Bin Lin 2021 A Trust[113] - The company received net proceeds of approximately $3.1 billion from the 2020 placement and subscription, intended for increasing working capital, expanding market share, investing in strategic ecosystems, and other general corporate purposes[118] - The company received net proceeds of approximately $889.6 million from the 2027 bonds, intended for increasing working capital, expanding market share, investing in strategic ecosystems, and other general corporate purposes[119] - The company received net proceeds of approximately $789.0 million from the 2031 bonds, intended for general corporate purposes[120] - The company received net proceeds of approximately $392.8 million from the green bonds, intended for financing or refinancing eligible projects under the company's green financing framework[121] Other Financial Metrics - Other income increased by 186.8% YoY to RMB 588.7 million in Q4 2022, mainly due to higher government subsidies[51] - Other income increased by 200.9% from RMB 195.7 million in Q3 2022 to RMB 588.7 million in Q4 2022, primarily due to increased government subsidies[67] - Other net losses increased by 27.3% from RMB 415.0 million in Q3 2022 to RMB 528.3 million in Q4 2022, mainly due to deemed disposal losses from equity-accounted investments[67] - Net financial income increased by 163.0% from RMB 170

Xiaomi Corporation (OTCPK:XIACF) Q3 2022 Results Conference Call November 23, 2022 6:30 AM ET Company Participants Anita Chan - Head of Investor Relations and Corporate Finance Wang Xiang - Partner and President, Xiaomi Corporation Alain Lam - Vice President and Chief Financial Officer and Chief Executive Officer, Airstar Digital Technology Conference Call Participants Andy Meng - Morgan Stanley Timothy Zhao - Goldman Sachs Kyna Wong - Credit Suisse Gokul Hariharan - JPMorgan Operator Ladies and gentlemen, ...

IMI nl Xiaomi Corporation Q3 2022 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 ...

Ladies and gentlemen, thank you for standing by and welcome to Xiaomi 2022 third quarter results announcement conference call. Today's conference call is being recorded. If you have any objections, you may disconnect at this time. If you have any questions you would like to raise during the Q&A section later, please press star one on your telephone keypad to register your questions. Should you wish to cancel your questions, please press star two. I'd now like to hand the conference over to your host today, ...

Financial Performance - For the third quarter of 2022, Xiaomi Corporation reported total revenue of RMB 70.47 billion, a decrease of 9.7% year-over-year[1]. - The adjusted net profit for the third quarter was RMB 2.12 billion, down 59.1% compared to the same period last year[1]. - In Q3 2022, total revenue decreased by 9.7% year-over-year to RMB 70,474.3 million from RMB 78,062.9 million in Q3 2021[20][21]. - The company reported a net loss of RMB 1,474.0 million for Q3 2022, compared to a profit of RMB 788.6 million in Q3 2021[20]. - Gross profit for Q3 2022 was RMB 11,721.9 million, down from RMB 14,292.3 million in Q3 2021[20]. - The gross margin for Q3 2022 was approximately 16.6%, down from 18.3% in Q3 2021[20]. - Adjusted net profit decreased by 59.1% from RMB 5.2 billion in Q3 2021 to RMB 2.1 billion in Q3 2022[39]. - The total comprehensive income for the nine months ended September 30, 2022, was RMB 4,040,637 thousand, down from RMB 16,314,251 thousand in the same period of 2021[81]. Smartphone Segment - Xiaomi's global smartphone shipments reached 40.2 million units in the third quarter, with a market share of 13.6%[4]. - Smartphone revenue fell by 11.1% year-over-year to RMB 42,514.2 million, with shipments decreasing by 8.4% to 40.2 million units[23]. - Revenue from the smartphone segment for the three months ended September 30, 2022, was RMB 42,514,239 thousand, a decrease of 11.0% from RMB 47,824,932 thousand in the same period of 2021[87]. Internet Services - The company's internet services revenue reached RMB 17 billion in the third quarter, marking a historical high and accounting for 24.2% of total internet services revenue[7]. - Internet services revenue decreased by 3.7% year-over-year to RMB 7,066.6 million, despite a 16.1% increase in MIUI monthly active users to 563.9 million[25]. - The revenue from internet services in Q3 2022 was RMB 7.1 billion, a quarter-on-quarter increase of 1.4%[14]. Research and Development - Research and development expenses for the third quarter amounted to RMB 4.1 billion, reflecting a year-over-year increase of 25.7%[5]. - R&D expenses increased to RMB 4,069.8 million from RMB 3,237.7 million year-over-year[20]. - R&D expenses rose by 8.1% from RMB 3.8 billion in Q2 2022 to RMB 4.1 billion in Q3 2022, driven by increased spending on innovative businesses such as smart electric vehicles[50]. IoT and Lifestyle Products - IoT and lifestyle products revenue was RMB 19.1 billion in Q3 2022, a quarter-on-quarter decline of 3.8%[11]. - IoT and lifestyle products revenue decreased by 9.0% year-over-year to RMB 19,058.6 million, while smart home appliances saw over 70% year-over-year growth[24]. - Smart TV shipments reached 3.3 million units in Q3 2022, a year-on-year increase of 9.3%[11]. Market Performance - In Q3 2022, the smartphone market share in Europe reached 23.3%, a year-on-year increase of 1.8 percentage points, ranking second overall[9]. - Xiaomi's overseas market revenue was RMB 35.6 billion, accounting for 50.5% of total revenue[7]. - The average selling price (ASP) of smartphones increased by approximately 9% year-over-year in the third quarter[6]. Cash Flow and Financing - The operating cash flow for Q3 2022 was a net cash outflow of RMB 1,470.5 million, compared to a net inflow of RMB 1,649.2 million in Q2 2022[68]. - The company reported an investment cash inflow of RMB 8,629.6 million for Q3 2022, contrasting with an outflow of RMB 9,942.1 million in Q2 2022[68]. - The company’s financing activities resulted in a net cash outflow of RMB 7,871.6 million in Q3 2022, compared to a net inflow of RMB 1,282.2 million in Q2 2022[68]. Employee and Operational Metrics - As of September 30, 2022, the company employed 35,314 full-time employees, with 16,911 in R&D roles[76]. - The company had no significant off-balance-sheet commitments or arrangements as of September 30, 2022[74]. - The company’s total cash resources as of September 30, 2022, were RMB 94.3 billion[65]. Corporate Governance - The company has complied with the corporate governance code as of September 30, 2022, except for the separation of the roles of Chairman and CEO[100]. - The company believes that having the same individual serve as both Chairman and CEO enhances unified leadership and effective strategic planning[100].

Financial Performance - Xiaomi Group reported total revenue of 143.52 billion CNY for the six months ending June 30, 2022, a decrease of 12.8% compared to 164.67 billion CNY in the same period of 2021[19]. - The company's net profit for the same period was 24.48 billion CNY, down 16.5% from 29.31 billion CNY year-over-year[19]. - The company reported a revenue of 1,435 million, representing a 49% year-over-year increase[21]. - The company reported a revenue of 143,522.4 million for the second quarter of 2022, down from 164,671.2 million in the same period of 2021, representing a decrease of approximately 12.8%[30]. - The company reported a net loss for the second quarter of 2022 was 7,257.9 million, compared to a net loss of 6,076.2 million in the second quarter of 2021[30]. - The company reported a revenue of 1,365,377 million, representing a 1.9% increase compared to the previous year[53]. - The company reported a revenue of $8.30 billion for the quarter ending June 30, 2022, reflecting a year-over-year increase of 17%[86]. - The company reported total revenue of $45,817,637 for 2022, up from $28,838,232 in 2021, representing a growth of approximately 59%[106]. - The company reported a revenue of $3.45 billion for Q2 2022, representing a 75% increase compared to Q2 2021[102]. IoT and Product Development - IoT and lifestyle products generated revenue of 39.3 billion CNY, accounting for 27.4% of total revenue, reflecting a growth of 49.8% year-over-year[20]. - The number of connected IoT devices reached 526.9 million, an increase of 77.6% compared to the previous year[20]. - The revenue from the IoT segment is projected to grow by 11% in the upcoming quarters[21]. - The company plans to invest 10 billion CNY in research and development over the next three years to enhance its technology and product offerings[20]. - The company is focusing on expanding its market share in the premium smartphone segment, targeting a 13.8% increase in this category[22]. - The company aims to enhance its IoT product offerings, targeting a revenue increase of 14.3% in this segment for 2023[42]. - The company is investing in R&D for new technologies, with a budget increase of 25% for 2022[24]. - The company is focusing on new product development, with plans to launch several innovative technologies in the next fiscal year[91]. Market Expansion and Strategy - The company aims to expand its market presence in Europe and India, targeting a 20% increase in market share by the end of 2023[20]. - The company plans to expand its market presence in Southeast Asia, targeting a 32% market share by the end of 2023[24]. - The company is focusing on market expansion strategies, particularly in the IoT sector, to enhance its competitive position[47]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[40]. - The company is exploring potential acquisitions to enhance its market position and diversify its product portfolio[93]. - The company is exploring market expansion opportunities, particularly in emerging markets, to drive future growth[75]. - The company plans to expand its market presence with a focus on IoT technologies, aiming for a 15.6% growth in this segment[49]. - The company is exploring potential mergers and acquisitions to enhance its market position and drive future growth[55]. User Engagement and Growth - MIUI's active users reached 547 million, with a 93.1 million increase in the last quarter[21]. - The user base increased by 9.8% in 2022, with a total of 55 million active users reported[22]. - User data showed a 25% increase in active users compared to 2021, totaling 10.6 million[23]. - The company reported a user growth rate of 8.0% year-over-year as of June 30, 2022[28]. - User data indicates a significant increase in active users, with a total of 143.52 million users reported in Q2 2022, up from 164.67 million in Q2 2021[113]. - The company achieved a user retention rate of 24.50%, which is a key metric for its ongoing customer engagement strategy[72]. - User data showed a total of 61 million active users as of June 30, 2022, indicating a growth of 8% compared to the previous year[87]. - User data showed a total of 67.69 million active users, up from 71.63 million in the previous quarter[102]. Research and Development - The company plans to invest in R&D for innovative products, aiming to maintain a competitive edge in the market[22]. - The company is investing heavily in R&D for new technologies, with a budget allocation of $70.17 billion for 2022[114]. - Research and development expenses increased to $1.5 billion, representing 18% of total revenue, as the company invests in new technologies[87]. - The company has invested in research and development, allocating 12,390,784 million towards new technology initiatives[54]. - The company reported a significant increase in R&D expenses, reaching $1,365,377 in Q2 2022 compared to $834,823 in Q2 2021, reflecting a growth of approximately 64%[91]. - The company is focusing on enhancing its technology and product offerings to remain competitive in the market[105]. - The company is committed to investing in research and development to foster innovation and maintain a competitive edge[74]. Future Outlook - The company expects a revenue growth of 14.6% in the upcoming year, with a target of 880 million units sold[22]. - Future guidance suggests continued revenue growth, with expectations to exceed $150 billion in Q3 2022[115]. - The company anticipates a revenue growth of 10% for the upcoming quarter, driven by new product launches and market expansion strategies[61]. - Future guidance indicates a continued focus on innovation and technology advancements to drive growth[64]. - The company has set a performance guidance of 10% revenue growth for the next fiscal year, reflecting a cautious but optimistic outlook[124]. - Future projections indicate a strong upward trend in revenue, with expectations of surpassing previous records in the upcoming quarters[73]. - The company is exploring potential acquisitions to enhance its market position, targeting a 15% growth in market share through strategic mergers[124]. - Overall, the company remains optimistic about its growth trajectory and is focused on executing its strategic initiatives effectively[75].

Financial Data and Key Metrics Changes - Total revenue for Q2 2022 reached RMB70.2 billion, with adjusted net profit at RMB2.1 billion, including RMB611 million in expenses related to smart EV and other initiatives [8][19] - Smartphone revenue was RMB42.3 billion, IoT and Lifestyle Products revenue was RMB19.8 billion, and Internet services revenue was RMB7 billion [8][45] - Gross margin for the quarter was 16.8%, with smartphone gross margin decreasing to 8.7% due to promotional efforts and increased costs from U.S. dollar appreciation [45][46] Business Line Data and Key Metrics Changes - Smartphone shipments increased by 1.5% quarter-over-quarter to 39.1 million units, with a global market share growth to 14% [31][10] - IoT and Lifestyle Products revenue grew by 1.7% quarter-over-quarter, reaching RMB19.8 billion, with the number of connected devices on the AIoT platform increasing over 40% year-over-year [35][20] - Internet Services revenue remained stable at RMB7 billion, with overseas Internet Services revenue achieving a record high of RMB1.7 billion, up 52.1% year-over-year [42][41] Market Data and Key Metrics Changes - Xiaomi maintained its number three position in global smartphone shipments, with market share in Europe at 22% and 16% in Mainland China [9][10] - The company ranked top 3 in 55 markets and top 5 in 77 markets globally [34] - In Mainland China, the smartphone market share in the RMB3,000 to RMB4,000 price segment increased by 3.5 percentage points year-over-year to 18.2% [22] Company Strategy and Development Direction - The company is focused on stabilizing its core business and investing in R&D and technological innovation to enhance long-term competitiveness [7][12] - Xiaomi plans to invest RMB3.3 billion in autonomous driving technology and aims to become an industry leader in smart EV by 2024 [14][29] - The company continues to explore innovations across various technology settings, including smart homes, smart manufacturing, and robotics [13][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from rising global inflation, foreign exchange fluctuations, and COVID-19 resurgence impacting market demand [6][18] - The company remains optimistic about the second half of the year, expecting improved smartphone shipments due to upcoming promotional events [58][66] - Management emphasized the importance of maintaining a healthy gross margin and improving the quality of premium smartphones to drive Internet Services revenue [65][66] Other Important Information - Xiaomi was named on the Fortune Global 500 list for the fourth consecutive year, ranking 266, up 72 spots from the previous year [15][20] - The company is committed to corporate social responsibility, including initiatives for accessibility and data security [49][50] Q&A Session Summary Question: Impact of high-end smartphone models on gross margins - Management noted that the decline in gross margin was due to promotional activities and FX issues, with expectations for improved margins in the second half due to new product launches [53][54][56] Question: Inventory impairment and finished goods inventory - Management explained that inventory provisions are made according to IFRS standards, and while finished goods inventory is high, measures will be taken to reduce it in the second half [60][61] Question: Outlook for Internet Services revenue and MAU growth - Management indicated that MAU growth has been strong, particularly in overseas markets, and while ad budgets in China are under pressure, overseas revenue is expected to remain healthy [63][64] Question: Drivers of overseas Internet business growth - Management highlighted pre-installation and search revenue growth as key drivers, with ongoing efforts to improve monetization in developed markets [68][69] Question: Update on IoT market and overseas demand - Management expressed optimism for growth in the IoT market despite current challenges, citing high logistical costs and macroeconomic factors affecting overseas demand [71][72]

IMI nl Xiaomi Corporation Q2 2022 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 ...