XIAOMI(01810)2024-11-18 10:19Revenue and Profit - Xiaomi's total revenue for Q3 2024 reached RMB 92.5065 billion, a year-on-year increase of 30.5%[4] - Xiaomi's total revenue for the first nine months of 2024 was RMB 256.9012 billion, a year-on-year increase of 29.9%[6] - The company's adjusted net profit for Q3 2024 reached RMB 6.3 billion, a year-on-year increase of 4.4%[15] - Xiaomi's adjusted net profit in Q3 2024 was RMB 6.3 billion, including an adjusted net loss of RMB 1.5 billion for the "Smart Electric Vehicles and Other Innovative Businesses" segment[7] - Revenue increased by 4.1% from RMB 88.9 billion in Q2 2024 to RMB 92.5 billion in Q3 2024[80] - Adjusted net profit grew by 1.2% from RMB 6.2 billion in Q2 2024 to RMB 6.3 billion in Q3 2024[119] - Q3 2024 reported net profit was RMB 5,340,292 thousand with a net profit margin of 5.8%[124] - Non-IFRS net profit for Q3 2024 was RMB 6,251,965 thousand with a net profit margin of 6.8%[124] - Non-IFRS net profit for the first nine months of 2024 was RMB 18,918,320 thousand with a net profit margin of 7.4%[140] - Reported net profit for the first nine months of 2024 was RMB 14,583,173 thousand with a net profit margin of 5.7%[140] - Non-IFRS net profit for the first nine months of 2023 was RMB 14,363,088 thousand with a net profit margin of 7.3%[156] - Net profit attributable to the company's owners for the nine months ended September 30, 2024, was RMB 14,632,467 thousand, a 14.8% increase from RMB 12,747,675 thousand in the same period of 2023[190] Smartphone Business - Xiaomi's global smartphone shipments in Q3 2024 were 43.1 million units, a year-on-year increase of 3.1%[8] - Smartphone revenue for Q3 2024 was RMB 47.5 billion, a 13.9% year-on-year increase, with global shipments of 43.1 million units, up 3.1%[17] - Smartphone revenue grew by 13.9% YoY to RMB 47.4523 billion in Q3 2024, with ASP increasing by 10.6% to RMB 1,102.2[38] - Smartphone revenue rose by 2.0% from RMB 46.5 billion in Q2 2024 to RMB 47.5 billion in Q3 2024, driven by increased shipments[83] - The Xiaomi 15 series achieved sales of 1 million units faster than its predecessor, despite a higher starting price[18] - The sales cost of smartphones increased by 20.7% from RMB 34.7 billion in Q3 2023 to RMB 41.9 billion in Q3 2024, driven by higher sales and rising core component costs[50] - Smartphone gross margin decreased from 12.1% in Q2 2024 to 11.7% in Q3 2024, primarily due to higher core component costs[103] IoT and Lifestyle Products - Xiaomi's AIoT platform connected devices (excluding smartphones, tablets, and laptops) grew to 861.4 million by September 30, 2024, a year-on-year increase of 23.2%[8] - IoT and lifestyle products revenue for Q3 2024 reached RMB 26.1 billion, a 26.3% year-on-year increase, with a record-high gross margin of 20.8%[21] - The AIoT platform connected 861.4 million IoT devices (excluding smartphones, tablets, and laptops) as of September 30, 2024, up 23.2% year-on-year[21] - IoT and lifestyle products revenue rose by 26.3% YoY to RMB 26.1022 billion in Q3 2024[39] - IoT and lifestyle products revenue decreased by 2.5% from RMB 26.8 billion in Q2 2024 to RMB 26.1 billion in Q3 2024[84] - The sales cost of IoT and lifestyle products increased by 21.8% from RMB 17.0 billion in Q3 2023 to RMB 20.7 billion in Q3 2024, primarily due to increased sales[51] - IoT and lifestyle products gross margin increased from 19.7% in Q2 2024 to 20.8% in Q3 2024, driven by higher-margin products like wearables[104] - The gross margin of IoT and lifestyle products increased from 17.8% in Q3 2023 to 20.8% in Q3 2024, driven by higher-margin products[61] Internet Services - Internet services revenue for Q3 2024 hit a record RMB 8.5 billion, a 9.1% year-on-year increase, with a gross margin of 77.5%[25] - Internet services revenue increased by 9.1% YoY to RMB 8.4628 billion in Q3 2024[42] - Internet services revenue grew by 2.4% from RMB 8.3 billion in Q2 2024 to RMB 8.5 billion in Q3 2024[86] - The gross margin of internet services increased from 74.4% in Q3 2023 to 77.5% in Q3 2024, primarily due to increased advertising revenue[61] - Internet service cost increased by 6.4% from RMB 1.8 billion in Q2 2024 to RMB 1.9 billion in Q3 2024, driven by higher advertising and other value-added service costs[96] Smart Electric Vehicles - Xiaomi delivered 39,790 Xiaomi SU7 series vehicles in Q3 2024, with a total of 67,157 vehicles delivered by September 30, 2024[8] - Smart electric vehicle revenue in Q3 2024 was RMB 9.5 billion, with 39,790 Xiaomi SU7 series vehicles delivered[45] - Xiaomi SU7 series delivered 39,790 new vehicles in Q3 2024, with cumulative production reaching 100,000 units by November 13, 2024[26] - Xiaomi SU7 Ultra pre-sales reached 3,680 units within 10 minutes, priced at RMB 814,900[30] - Smart electric vehicle revenue surged by 52.1% from RMB 6.2 billion in Q2 2024 to RMB 9.5 billion in Q3 2024, driven by increased deliveries[89] - Smart electric vehicle and innovation business cost surged by 49.1% from RMB 5.4 billion in Q2 2024 to RMB 8.0 billion in Q3 2024, due to increased vehicle deliveries[99] - Smart electric vehicle and innovation business gross margin improved from 15.4% in Q2 2024 to 17.1% in Q3 2024, due to higher ASP and lower core component costs[105] R&D and Innovation - Xiaomi's R&D expenditure in Q3 2024 was RMB 6 billion, a year-on-year increase of 19.9%[11] - Xiaomi's R&D expenses in Q3 2024 were RMB 5.9568 billion, up 19.9% YoY[33] - The R&D expenses increased by 19.9% from RMB 5.0 billion in Q3 2023 to RMB 6.0 billion in Q3 2024, mainly due to increased expenses related to innovative businesses such as smart electric vehicles[65] - R&D expenses rose from RMB 5.5 billion in Q2 2024 to RMB 6.0 billion in Q3 2024[78] - R&D expenses for the nine months ended September 30, 2024, increased to RMB 16,613,900 thousand, a 21.9% rise from RMB 13,634,383 thousand in the same period of 2023[190] - R&D expenses increased by 8.3% from RMB 5.5 billion in Q2 2024 to RMB 6.0 billion in Q3 2024, mainly due to higher expenses in smart electric vehicle and innovation business[108] Global User Base and Market Presence - Xiaomi's global monthly active users reached a record high of 685.8 million in September 2024, a year-on-year increase of 10.1%[8] - The company's global monthly active users reached 685.8 million in September 2024, a 10.1% year-on-year increase[25] - Xiaomi's offline retail stores in mainland China exceeded 13,000 by September 30, 2024[12] - The company's global wearable product shipments in Q3 2024 grew over 50% year-on-year, with smartwatches and TWS earbuds hitting record highs[23] Financial Position and Cash Flow - Cash reserves as of September 30, 2024, stood at RMB 151.6 billion, up 18.7% year-on-year[15] - Cash and cash equivalents as of September 30, 2024, were RMB 39.7 billion[162] - Net cash from operating activities for Q3 2024 was RMB 12,858.1 million[167] - Net cash used in investing activities for Q3 2024 was RMB 9,028.4 million[167] - Net cash used in financing activities for Q3 2024 was RMB 3,554.4 million[167] - Net increase in cash and cash equivalents for Q3 2024 was RMB 275.3 million[168] - The company's total cash reserves as of September 30, 2024, amounted to RMB 151.6 billion[170] - Net cash generated from operating activities in Q3 2024 was RMB 12.9 billion, primarily due to pre-tax profit of RMB 6.8 billion[172] - Net cash used in investing activities in Q3 2024 was RMB 9 billion, mainly due to a net increase in long-term bank deposits of RMB 8.9 billion[173] - Net cash used in financing activities in Q3 2024 was RMB 3.6 billion, primarily due to repayment of borrowings of RMB 1 billion[174] - The company's total borrowings as of September 30, 2024, were RMB 27.4 billion[175] - Capital expenditures for mobile × AIoT and smart electric vehicle innovation businesses were RMB 31.847 billion and RMB 14.313 billion respectively[177] - The company invested in approximately 430 companies with a total book value of RMB 64.9 billion as of September 30, 2024[180] - Total restricted bank deposits as of September 30, 2024, amounted to RMB 4.9 billion[186] - Net cash generated from operating activities was RMB 15,388.685 million, a decrease from RMB 33,489.982 million in the same period last year[197] - Net cash used in investing activities was RMB 6,319.313 million, compared to RMB 29,321.565 million in the previous year[197] - Net cash used in financing activities was RMB 3,099.077 million, up from RMB 548.255 million in the prior year[197] - Net increase in cash and cash equivalents was RMB 5,970.295 million, compared to RMB 3,620.162 million in the same period last year[198] - Beginning cash and cash equivalents were RMB 33,631.313 million, up from RMB 27,607.261 million in the previous year[198] - The impact of exchange rate changes on cash and cash equivalents was RMB 53.746 million, down from RMB 425.143 million in the prior year[198] - Ending cash and cash equivalents were RMB 39,655.354 million, compared to RMB 31,652.566 million in the same period last year[199] Gross Profit and Margin - Xiaomi's overall gross profit margin in Q3 2024 was 20.4%, with the "Smartphone × AIoT" segment at 20.8% and the "Smart Electric Vehicles and Other Innovative Businesses" segment at 17.1%[12] - The gross profit increased by 17.2% from RMB 16.1 billion in Q3 2023 to RMB 18.9 billion in Q3 2024, while the gross margin decreased from 22.7% to 20.4%[56] - The gross margin of the smartphone × AIoT division decreased from 22.7% in Q3 2023 to 20.8% in Q3 2024[60] - Gross profit increased from RMB 18.4 billion in Q2 2024 to RMB 18.9 billion in Q3 2024[78] - Gross profit rose by 2.6% from RMB 18.4 billion in Q2 2024 to RMB 18.9 billion in Q3 2024, while gross margin declined from 20.7% to 20.4%[100] - Gross profit for the nine months ended September 30, 2024, was RMB 54,105,304 thousand, up 29.2% from RMB 41,862,294 thousand in the same period of 2023[190] Sales and Marketing Expenses - The sales and marketing expenses increased by 32.6% from RMB 4.7 billion in Q3 2023 to RMB 6.3 billion in Q3 2024, driven by expenses related to smart electric vehicles and overseas logistics for the smartphone × AIoT business[66] - Xiaomi's total sales cost in Q3 2024 increased by 34.4% YoY to RMB 73.6251 billion[47] - The sales cost of the smartphone × AIoT division increased by 19.7% from RMB 54.8 billion in Q3 2023 to RMB 65.6 billion in Q3 2024[49] - Sales cost increased by 4.4% from RMB 70.5 billion in Q2 2024 to RMB 73.6 billion in Q3 2024[91] - Other related business cost increased by 12.7% from RMB 1.0 billion in Q2 2024 to RMB 1.1 billion in Q3 2024[97] ESG and Corporate Responsibility - Xiaomi's MSCI ESG rating improved from BB to BBB in October 2024[31] Employee and Organizational Structure - The company had 42,057 full-time employees as of September 30, 2024, with 20,436 in R&D roles[182] Assets and Liabilities - Total assets as of September 30, 2024, amounted to RMB 350,945,365 thousand, up 8.2% from RMB 324,247,439 thousand as of December 31, 2023[193] - Property, plant, and equipment increased to RMB 16,154,692 thousand as of September 30, 2024, a 17.7% rise from RMB 13,720,825 thousand as of December 31, 2023[193] - Long-term bank deposits surged to RMB 39,929,852 thousand as of September 30, 2024, a 118.3% increase from RMB 18,293,650 thousand as of December 31, 2023[193] - Total equity attributable to the company's owners as of September 30, 2024, was RMB 177,244,056 thousand, an 8.1% increase from RMB 163,995,489 thousand as of December 31, 2023[195] - Total liabilities as of September 30, 2024, were RMB 173,120,841 thousand, up 8.2% from RMB 159,985,671 thousand as of December 31, 2023[195]