Xiaomi’s 2023 Q3 financial report has now been released : total revenue is 70.9 billion yuan, returning to positive growth this quarter. Adjusted net profit was 6 billion yuan, a year-on-year increase of 182.9%. 1.7 billion yuan was invested in innovative businesses such as smart electric vehicles. Xiaomi continues to invest heavily in underlying core technologies, with Q3 R&D expenditure of 5 billion yuan, a year-on-year increase of 22.0%, and the proportion of R&D personnel has exceeded 53%.
Lei Jun said: "As a technology company, Xiaomi has always regarded 'technology as the basis' as an iron rule. We are determined to develop large-scale underlying core technologies and invest unswervingly in them. We have sufficient cash reserves to support continuous innovation. At the end of the quarter, Xiaomi's total cash reserves reached RMB 127.6 billion, once again hitting a new high."
The announcement pointed out that Xiaomi’s R&D expenditure this quarter was RMB 5 billion, a year-on-year increase of 22.0%. The company also plans to invest 100 billion yuan in research and development within five years (2022-2026). In terms of talent echelon, as of the end of the third quarter, Xiaomi’s number of engineers accounted for more than 53%. Xiaomi's new ten-year goal (2020-2030) is to invest heavily in underlying core technologies and strive to become the world's next-generation hard-core technology leader.
Xiaomi's smartphone business returned to growth this quarter, with global market share reaching 14.1%, increasing quarter-on-quarter for three consecutive quarters. Global smartphone shipments were 41.8 million units, a year-on-year increase of 4.0% and a month-on-month increase of 27.0%. The IoT business achieved simultaneous growth in revenue and gross profit margin. Q3 IoT and consumer product revenue reached RMB 20.7 billion, a year-on-year increase of 8.5%, and gross profit margin hit a record high of 17.8%, a year-on-year increase of 4.3 percentage points.
Total Internet business revenue reached RMB 7.8 billion, a record high, with gross profit margin of 74.4%, a year-on-year increase of 2.3 percentage points. Advertising revenue hit a record high, reaching RMB 5.4 billion; the game business achieved year-on-year revenue growth for nine consecutive quarters, reaching RMB 1.1 billion. Overseas Internet business revenue this quarter reached RMB 2.3 billion, a year-on-year increase of 35.8%, accounting for 30.0% of the overall Internet revenue, a year-on-year increase of 5.8 percentage points.
This quarter, Xiaomi's global MIUI monthly active users reached 623 million, a year-on-year increase of 10.5%; mainland China's MIUI monthly active users reached 152 million, a year-on-year increase of 7.4%.
