On November 20, Xiaomi Group (hereinafter referred to as "Xiaomi") released its performance report for the three months ended September 30, 2023.。

Performance data show that in the third quarter, Xiaomi's total revenue reached 70.9 billion yuan (RMB, the same below), an increase of 0.6%, an increase of 5.3%。Gross profit was $16.1 billion, up 37.4%, an increase of 13.8%。Overall gross margin reached 22.7%。Adjusted net profit reached 6 billion yuan, up 182% year-on-year..9%, up 16.5%。

It is worth mentioning that in the third quarter, Xiaomi's overall inventory amount was 36.8 billion yuan, down 30% year-on-year..5%, the lowest water level in eleven quarters。In addition, as of September 30, 2023, Xiaomi's cash reserves amounted to $127.6 billion.。

                        

Smartphone business: high-end and overseas expansion

                              

In the third quarter, Xiaomi's smartphone business revenue was 41.6 billion yuan, with gross margin up from 8 in the same period last year..9% to 16.6%, double year-on-year。

Revenue from Xiaomi's smartphone segment decreased by 2% in the third quarter compared to the same period last year.。The company said this was due to a decrease in average selling price (ASP).。ASP for its smartphones decreased 5% YoY in Q3.8% to 997 per unit.0 yuan。The decline in ASP was mainly due to strong shipment growth in emerging markets with lower ASP such as Latin America, Africa and the Middle East.。

If compared to the previous quarter, the revenue of the Xiaomi smartphone segment increased by 13% in the third quarter..8%, mainly due to the improvement of overall sales。According to Canalys data, in the third quarter, Xiaomi ranked in the top three in global smartphone shipments, with a market share of 14.1%, up 0% YoY.5 percentage points, and achieved three consecutive quarters of market share increase.。Xiaomi is the only brand in the top three to achieve year-on-year growth in shipments this quarter。It is worth noting that Xiaomi has been ranked in the top three in the world for thirteen consecutive quarters。

In the third quarter, Xiaomi continued its high-end mobile phone strategy。In October 2023, Xiaomi released the Xiaomi 14 series in mainland China。Once issued, the series of products are popular in the market.。Third-party data shows that as of November 10, the total sales volume of the Xiaomi 14 series has reached 144.740,000 units, setting a record for Xiaomi's high-end flagship sales。In addition to hot sales, the Xiaomi 14 series is also well received, with a favorable rating of over 99% on the Jingdong platform.。

With six consecutive series of high-end smartphone products gaining high user reputation in their first month on the market, Xiaomi said it has gradually mastered the methodology of its high-end strategy and has been reaping the results.。The sales volume of Xiaomi 14 series in 5 minutes is 6 times of the first sales volume of Xiaomi 13 series, achieving leapfrog growth.。At the same time to help millet double eleven all-channel payment amount broke 22.4 billion yuan, a record for all years to promote a new record.。

At the Q3 results meeting, President Lu Weibing said, "Xiaomi's high-end line is still in the investment period, so it is difficult for us to make a big difference between the high-end and low-end gross margins."。But I think, the future of millet high-end space is still very large。On the whole, Xiaomi's scale today has not yet achieved quantitative to qualitative change.。"

However, he also stressed that Xiaomi's high-end has now made a breakthrough in terms of "quantity."。As for the presentation of financial results, I think it will take some time.。"I believe the potential of Xiaomi is there and we have the confidence to tap it.。"

In addition, in October, millet released a new operating system millet surging OS, which is also the key to millet to undertake the latest strategy。

In addition to continuing to go high-end, Xiaomi mobile phones are also accelerating overseas expansion。According to Canalys, in the quarter, Xiaomi ranked in the top three in smartphone shipments in 55 countries and regions around the world, and in the top five in smartphone shipments in 65 countries and regions.。

In the third quarter, Xiaomi's smartphone market share in all major markets increased month-on-month, with Europe's market share reaching 23.3 per cent; Latin America's market share reached 18 per cent..3%; Africa region city share reached 10.7%, up 4.7 percentage points; market share in the Middle East increased to 17.7%。

                                

IoT and consumer products: tablet shipments enter the world's top five for the first time

                           

In the third quarter, Xiaomi's IoT and consumer products revenue was 20.7 billion yuan, up 8.5%, a decrease of 7.1%。Gross margin reached 17.8%, up 4.3 percentage points, a record high。

As of September 30, 2023, the number of connected IoT devices on the Xiaomi AIoT platform reached nearly 700 million, an increase of 25.2%; the number of users with five or more devices connected to the Xiaomi AIoT platform reached 13.7 million, an increase of 26.0%。In September 2023, the number of monthly active users of Mijia APP increased by 16.0% to 84 million。

In the third quarter, Xiaomi's smart home appliance business revenue was $3 billion, up 11.0%。According to Ovie Cloud, omni-channel retail sales of air conditioners and washing machines fell 15% year-on-year in the third quarter, respectively.8% and 3.6%, while Xiaomi bucked the trend with the market under pressure。Xiaomi's air conditioning shipments in the first three quarters of 2023 have exceeded the 2022 full-year level.。Meanwhile, in the third quarter, Xiaomi's refrigerator shipments surged more than 95% year-on-year。

Smart TV and laptop third quarter revenue of $5 billion, down 14.1%, an increase of 5% month-on-month。According to Ovie Cloud, in the third quarter, Xiaomi TV maintained its first place in the ranking of TV shipments in mainland China.。In the double eleven shopping festival, millet TV S Pro Mini LED series full channel sales exceeded 200 million yuan。

In the office and entertainment scene, according to Canalys data, Xiaomi's global tablet shipments rose 120% year-on-year in the third quarter, entering the world's top five for the first time.。In mainland China, Xiaomi's tablet shipments remained third during the reporting period, and TWS headphones ranked second.。In the overseas market, Xiaomi tablet shipments maintained a strong momentum of development.。Among them, the Xiaomi Pad 6 series tablet launched in May and the Redmi Pad SE series tablet launched in August both recorded good sales results, thus driving the expansion of Xiaomi tablet in overseas markets.。

Xiaomi also said that the first batch of AIoT devices will be launched from December 2023 to January 2024.。

                       

Internet Services: Advertising Bright Performance

                      

In the third quarter, thanks to the increase in revenue from the advertising business, Xiaomi's Internet service revenue was 7.8 billion yuan, up 9.7%, an increase of 4.2%。At the same time, gross margin reached 74.4%, up 2.3 percentage points。

It is worth mentioning that in the third quarter, Xiaomi's overseas Internet service revenue increased by 35.8% to 2.3 billion yuan, a record high。Overseas Internet service revenue accounted for 30% of total Internet service revenue..0%, up 5% YoY.8 percentage points。

Xiaomi's advertising business recorded revenue of 5.4 billion yuan in the third quarter, up 15.7%, a record high。During the reporting period, Xiaomi achieved year-on-year growth in both domestic and overseas effect and brand advertising revenue in China.。

In the third quarter, Xiaomi's global Internet user scale continued to maintain a healthy growth trend。Xiaomi's MIUI monthly active users in the world and mainland China hit a record high again.。In September 2023, the number of monthly active users of MIUI worldwide reached 6.2.3 billion, up 10.5%。Among them, the number of monthly active users of MIUI in mainland China reached 1.5.2 billion, up 7.4%。In September 2023, Xiaomi's smart TV had over 64 million monthly active users worldwide。

In the game business, Xiaomi's revenue in the third quarter increased by 5.6% to $1.1 billion。Xiaomi's game business has achieved year-on-year revenue growth for 9 consecutive quarters。The company says this is due to flexible and diverse new user operating strategies and continuous operating strategy innovation。

                       

Lu Weibing: Xiaomi cars will occupy an important position in the Xiaomi ecology

                              

Some time ago, from the website of the Ministry of Industry and Information Technology, netizens saw several "ID photos" of Xiaomi cars.。

At the Q3 performance call, Lu Weibing said in response to questions about Xiaomi cars that Xiaomi cars will occupy a very important position in Xiaomi's entire ecological strategy, which can be said to be indispensable.。At present, there are about 3,000 R & D personnel in Xiaomi。

Lu Weibing said: "In the future, when users buy Xiaomi's products, they will not buy individual items, but a lifestyle or a solution that combines these products."。From this perspective, Xiaomi is already moving from a product company to an ecological company。"

In addition, he added: "You will definitely see that the car released by Xiaomi will have a particularly synergistic interaction with the group's existing consumer electronics represented by mobile phones, and I believe this synergy will gradually emerge.。Mr. Lei (Lei Jun) also said before that smart electric vehicles are a great integration of automobiles and consumer electronics. We believe that Xiaomi's deep accumulation in consumer electronics, coupled with our integration into automobiles, will definitely create a particularly large Chemical reaction。These chemical reactions I believe in the future will produce very good results。"

At the performance meeting, Lu Weibing said, millet car to maintain the first half of next year production target unchanged, and revealed that the plan will be carried out for the second "winter test"。Xiaomi entered the new energy vehicle track, hoping to use 15 to 20 years to enter the world's top five。

In addition, Lu Weibing also clarified the news that the industry is rumored to sell 100,000 cars a year in the future, saying that Lei Jun had not made such statements.。