XIAOMI(HK:01810)2023-05-24 09:30Financial 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].