XIAOMI(HK:01810)2023-11-20 09:48Financial Performance - Xiaomi Corporation reported a total revenue of RMB 70.894 billion for Q3 2023, a year-on-year increase of 0.6%[2]. - The adjusted net profit for Q3 2023 reached RMB 5.990 billion, representing a significant increase of 182.9% compared to the same period last year[2]. - The company achieved a gross profit of RMB 16.110 billion in Q3 2023, up 37.4% year-on-year[2]. - In Q3 2023, the overall gross margin reached 22.7%, with smartphone business gross margin at 16.6%, up 7.7 percentage points year-on-year[7]. - The adjusted net profit for Q3 2023 was RMB 6 billion, representing a year-on-year increase of 182.9%[7]. - Revenue for Q3 2023 increased by 0.6% to RMB 70.9 billion from RMB 70.5 billion in Q3 2022[16]. - The net profit for Q3 2023 was RMB 4.9 billion, compared to RMB 3.7 billion in Q2 2023[47]. - Adjusted net profit rose by 16.5% from RMB 5.1 billion in Q2 2023 to RMB 6.0 billion in Q3 2023[47]. - The company reported a total cost of goods sold of RMB 54,784,701 thousand for the three months ended September 30, 2023, compared to RMB 58,752,360 thousand in the same period of 2022, a decrease of 6.8%[72]. Smartphone Business - Xiaomi's global smartphone shipments ranked among the top three, with a market share of 14.1%, an increase of 0.5 percentage points year-on-year[4]. - Xiaomi's global smartphone shipments in Q3 2023 reached 41.8 million units, a year-on-year increase of 4.0% and a quarter-on-quarter increase of 27.0%[8]. - Smartphone segment revenue decreased by 2.0% to RMB 41.6 billion, with ASP dropping 5.8% to RMB 997.0, despite a 4.0% increase in shipment volume to 41.8 million units[18]. - The Xiaomi 14 series achieved sales volume in the first 5 minutes that was 6 times that of the Xiaomi 13 series, marking significant growth[6]. - The smartphone market share in Europe reached 23.3% and in Latin America 18.3% in Q3 2023, indicating strong regional performance[9]. IoT and Consumer Products - The AIoT platform connected 698.9 million IoT devices as of September 30, 2023, marking a year-on-year increase of 25.2%[4]. - In Q3 2023, the revenue from IoT and lifestyle consumer products reached RMB 20.7 billion, a year-on-year increase of 8.5%, with a gross margin of 17.8%, up 4.3 percentage points[10]. - IoT and consumer products revenue rose by 8.5% to RMB 20.7 billion, driven by strong sales of tablets and smart appliances[19]. - The number of connected IoT devices on the AIoT platform reached 698.9 million, a year-on-year growth of 25.2%, while users with five or more connected devices reached 13.7 million, up 26.0%[10]. Research and Development - Xiaomi's R&D expenditure for Q3 2023 was RMB 5 billion, a year-on-year increase of 22.0%[5]. - The company plans to invest over RMB 100 billion in R&D from 2022 to 2026[5]. - The introduction of the ITR and DSTE systems in 2023 aims to enhance feedback loops from users and R&D, improving overall operational efficiency[6]. - R&D expenses increased by 22.0% to RMB 5.0 billion, primarily due to investments in electric vehicle and innovation-related projects[24]. Internet Services - Internet services revenue in Q3 2023 was RMB 7.8 billion, a year-on-year increase of 9.7%, with a gross margin of 74.4%, up 2.3 percentage points[12]. - Overseas internet services revenue increased by 35.8% year-on-year to RMB 2.3 billion, accounting for 30.0% of total internet services revenue[13]. - The advertising business generated RMB 5.4 billion in revenue, a year-on-year increase of 15.7%[12]. Cash Flow and Investments - The company had cash and cash equivalents of RMB 317 billion as of September 30, 2023, compared to RMB 315 billion as of June 30, 2023[52]. - The net cash generated from operating activities for the nine months ended September 30, 2023, was RMB 33.49 billion, compared to a net cash used of RMB 8.50 billion in the same period of 2022[69]. - The company reported a net cash inflow of RMB 3.62 billion for the nine months ended September 30, 2023, compared to an inflow of RMB 3.52 billion in the same period of 2022[69]. - As of September 30, 2023, the company has invested in over 430 companies, with a total book value of RMB 66.5 billion, representing a year-on-year growth of 7.1%[61]. Employee and Operational Metrics - The company had a total of 33,038 full-time employees as of September 30, 2023, with 17,563 in research and development roles[62]. - The total compensation expenses, including share-based payments, were RMB 4.8 billion in Q3 2023[62]. - Employee benefits expenses for the three months ended September 30, 2023, were RMB 4,831,999 thousand, an increase from RMB 4,317,273 thousand in the same period of 2022, representing a growth of 11.9%[74]. Legal and Governance - The company has not made any provisions related to ongoing legal investigations in India, which involve a potential restriction of RMB 3,920,959,000[85]. - The company has complied with all provisions of the Corporate Governance Code during the nine months ending September 30, 2023, except for the separation of the roles of Chairman and CEO[89]. - As of September 30, 2023, the company is not involved in any significant litigation or arbitration[91].