Xiaomi Reveals its Q2 2023 Earnings Report: Gross Profit Margin Increased with Other Significant Growth

One of the leading Chinese consumer electronics manufacturers, Xiaomi, has unveiled its Q2 2023 earnings report. With more emphasis on scale and profitability, Xiaomi managed to sustain its leadership and was able to boost profits.

Read more about it below.

Xiaomi Q2 2023 Earnings Report

In Q2 2023, Xiaomi made a quarterly revenue of RMB 67.4 billion. The company also managed to make an adjusted net profit of RMB 5.1 billion, marking a 147% YoY growth. The gross profit margin reached a record high of 21% and the cash reserve reached RMB 113.2 billion, again setting a new record. The company’s smart EV and other expenses for new initiatives amount to RMB 1.4 billion.

Regarding its smartphone sales, Xiaomi’s ASP(average selling price) in mainland China marked a 24% YoY increase, and the sales of smartphones ranging between RMB 4,000 and RMB 6,000 also increased with a 6.2 percentage points YoY growth. The gross profit margin of smartphones also hit a quarterly record of 13.3%. Xiaomi has also been ranked 2nd in the shipment of smartphones to the European market with a market share of 21.2%.

Two smartphones were launched by Xiaomi in the month of August – the third foldable device from the brand, Xiaomi Mix Fold 3, and the last smartphone of the Redmi K60 series, Redmi K60 Ultra, and both these smartphones had record high first-day sales. Compared to its predecessor, Xiaomi sold 2.25 times more units of the Mix Fold 3 smartphone, and over 220,000 units of the K60 Ultra smartphone were sold on its first day. For twelve consecutive quarters, Xiaomi has also been ranked among the top 3 smartphone brands with 20.1% premium smartphones sold with respect to the overall smartphones that have been sold.

In other segments too, Xiaomi was able to make a significant profit and increase in sales. IoT and lifestyles product revenue for Q2 2023 is RMB 22.3 billion and the gross profit margin hit a record high of 17.6%. There was also a 70% YoY growth in smart large home appliances revenue as well. Regarding the brand’s AIoT products, Xiaomi’s smart TV is ranked 1, TWS earbuds are also ranked 1, and its tablet devices are ranked 3, in terms of their popularity.

The internet services revenue of the company also hit a record high in Q2 2023. With a gross profit of 74.1%, it reached RMB 7.4 billion. Overseas internet services revenue also reached RMB 2.0 billion, again a record-high revenue.

Finally, the advertising revenue of the company was RMB 5.1 billion and the global MIUI MAU(monthly active users) reached 606 million. Both these are also record highs compared to the previous quarters.

Xiaomi has also been continuously investing in bringing out the best technologies that will help and benefit humans, and this is their core philosophy. In Q2 2023, the brand invested RMB 4.6 billion as an R&D investment with 16,832 R&D personnel, amounting to approximately 52% of the total workforce of Xiaomi.

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