Xiaomi Corp Class B ((HK:1810)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Xiaomi Corp’s latest earnings call revealed a record-breaking quarter, marked by substantial growth across various segments, including smartphones, IoT, and EVs. The sentiment during the call was overwhelmingly positive, highlighting the company’s advancements in AI and chip technology, which bolster its market position. However, some challenges in global markets, particularly outside of China, were acknowledged as impacting overall performance.
Record-Breaking Revenue and Growth
Xiaomi reported a total revenue of RMB111.3 billion, representing a 47% increase year-on-year, marking the strongest single quarterly financial report in its history. The company’s adjusted net profit also exceeded expectations, reaching RMB10.7 billion, a 64% year-on-year increase.
Smartphone Market Leadership
Xiaomi reclaimed the number one spot in smartphone shipments in Mainland China, increasing its market share by 4.7 percentage points to 18.8%. The smartphone segment generated RMB50.6 billion in revenue, with a gross margin rising to 12.4%.
IoT Revenue Surge
The company’s IoT segment saw a revenue surge to RMB32.3 billion, up 59% year-on-year. This growth was driven by strong performance across various categories, including large home appliances and tablets.
AI and Chip Development
Xiaomi showcased significant advancements in core technology with the announcement of its first 3 nanometer flagship smartphone SOC chip, XRING O1, and an AI Big Model, Xiaomi MiMo.
EV Business Expansion
The EV business delivered 76,000 new EVs in Q1, with the Xiaomi SU7 series leading sales in its price range, contributing to a robust performance in this segment.
Challenges in Global Smartphone Market
Despite strong performance in China, Xiaomi faced challenges in global markets, particularly in India, where market share declined due to local issues and strategic adjustments.
Forward-Looking Guidance
Looking ahead, Xiaomi plans to increase its R&D investment to RMB30 billion by 2025, with a strong focus on AI and chip development. The company aims to continue its strategic focus on premiumization and expansion in IoT, with significant improvements expected in its high-end smartphone and large home appliance segments.
In summary, Xiaomi’s latest earnings call painted a picture of robust growth and strategic advancements, particularly in AI, chip technology, and EVs. While challenges remain in certain global markets, the company’s forward-looking guidance suggests a continued focus on innovation and expansion, promising a bright future for Xiaomi Corp.