XIAOMI(HK:01810)2022-11-23 09:31Financial 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].