2023-08-29 09:26Financial 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].