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Xiaomi Group Announcement of financial results for the province second quarter of 2023It shows a strong increase in net profit and advertising revenue despite the decline in smartphone
Xiaomi Group Announcement of financial results for the province second quarter of 2023It shows a strong increase in net profit and advertising revenue despite the decline in smartphone shipments and overall turnover.
According to the financial report, Xiaomi Group’s turnover in the second quarter was 67.35 billion yuan, down 4.0% year-on-year. However, the net improvement reached 5.14 billion in Yuan, an increase of 147.0% year-on-year. The Xiaomi Group attributed this development to its “smartphone x AIoT” strategy, which has led to a huge diversification in products and services.
In the first half of the year, Xiaomi Group’s total turnover was 126.83 billion yuan, down 11.6% year-on-year. However, adjusted net profit increased 69.5% year-on-year to Yuan 8.37 billion. Xiaomi Group underlined that its advertising revenues increased by 13.0% year-on-year in the second quarter, reaching a new maximum of 5.1 billion Yuan. This is due to the complete confirmation of the refining processes and the confirmation of all the information on the top of the smartphone.
Revenue of Xiaomi Group’s smartphone segment fell 13.4% year-on-year to 36.6 billion yuan in the second quarter. This is mainly due to reduced smartphone speed, global chip technology and intensification of competition in the market. But the Xiaomi Group has increased the average price of smartphone sales thanks to the launch of new premium models such as the Mi 11 Ultra and Mi Mix Fold.
Xiaomi Group also maintained its leadership in the smart TV and portable computer market in mainland China. Revenue from these products was Yuan 4.7 billion, down 10.1% year-on-year in the second quarter. This is mainly due to the non-commercial demand due to the pandemic and the calories demanded due to good logistics. However, Xiaomi Group has increased its smart TV shipments in mainland China thanks to strong demand and wide product range.
Xiaomi Group also showed strong growth in the smart devices segment; Its revenues rose more than 70% year-on-year to Yuan 9 billion in the second quarter. This pursuit was mainly driven by a significant increase in smart air conditioner shipments in mainland China, which hit a record high in a single quarter. Xiaomi Group has also expanded its product range in this segment with the launch of new models such as Mi Air Purifier Pro H and Mi Smart Projector 2 Pro.
Xiaomi Group also strengthened its position in the global AIoT platform; The number of active monthly MIUI users reached 606 million in June 2023, up 10.8% year-on-year. At the same time, the number of devices connected to IoT (excluding smartphones, tablets and laptops) on Xiaomi’s AIoT platform increased by 24.2% year-on-year to 654.5 million as of June 30, 2023.
Finally, the Xiaomi Group continued to invest in research and development to support its technological innovation. Xiaomi Group’s research and development spending reached Yuan 4.6 billion in the second quarter, up 21% year-on-year. Xiaomi Group plans to invest more than 100 billion Yuan in research and development in five years (2022-2026). As of June 30, 2023, Xiaomi Group’s research and development staff reached 16,834 units, or almost 52% of the total number of employees.
As a result, the Xiaomi Group has demonstrated a strong resilience and adaptability to all the challenges of the market and the environment. The Xiaomi Group has maintained its vision of making technology accessible to everyone and has continued to provide high-quality products and services to its users around the world. Xiaomi Group expects sustainable growth and profitability in the future.
Source: T Today
John Wilkes is a seasoned journalist and author at Div Bracket. He specializes in covering trending news across a wide range of topics, from politics to entertainment and everything in between.
