Xiaomi announced this year’s third quarter results. According to the statement, the company’s adjusted net profit increased by 182.9 percent to 6 billion RMB. The company’s gross profit reached a record level, driven by effectively implemented key strategies.
Xiaomi has significantly increased both its revenue and profitability by resolutely implementing its core operating strategies that focus on “focusing on scale and profitability” and delivering high quality. The Group experienced positive year-on-year quarterly revenue growth for the first time in the last six quarters and quarterly profit reached its highest level in two years. In the third quarter of 2023, the group’s total revenue increased to RMB 70.9 billion. Adjusted net profit reached RMB 6 billion, an increase of 182.9 percent compared to the previous year. The group’s adjusted net profit in the first three quarters exceeded market estimates, reaching 1.7 times last year’s total.
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Xiaomi made a statement on the issue
Lei Jun, Founder, Chairman and CEO of Xiaomi CorporationIn October 2023, it set a new target for the 2020-2030 period. In line with the new goal, the Group is committed to making sustainable investments in core technologies and is committed to being a leader in the emerging field of global cutting-edge technologies. This new goal underlines Xiaomi’s belief in research and development investments. Xiaomi’s R&D expenditure reached RMB 5 billion in the third quarter of 2023, an increase of 22 percent compared to the same period of the previous year. R&D employees have grown to account for more than 53 percent of the total workforce. The group updated its strategy from “Smartphone x AIoT” to “Human x Automobile x Home” and introduced Xiaomi HyperOS, the new operating system that combines all the needs of consumers, from personal devices to smart home products and smart mobile solutions, in a single smart ecosystem.
In the third quarter of 2023, a slight decrease of 1.1 percent was recorded in global smartphone sales compared to the same period in the previous year. Despite the headwinds, Xiaomi’s smartphone sales recorded growth both compared to the previous year and the previous quarter. Worldwide smartphone sales reached 41.8 million units, the highest level in the last six quarters.