---
title: "Mobile business rebounds, XIAOMI-W's Q4 revenue hits a 7-quarter high, with adjusted net profit soaring by 236.1% year-on-year | Financial Report Insights"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/200179115.md"
description: "Q4 smartphone business ended 7 consecutive quarters of year-on-year decline, returning to positive growth"
datetime: "2024-03-19T11:39:58.000Z"
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---

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# Mobile business rebounds, XIAOMI-W's Q4 revenue hits a 7-quarter high, with adjusted net profit soaring by 236.1% year-on-year | Financial Report Insights

After the Hong Kong stock market closed on Tuesday, March 19, XIAOMI-WR announced its fourth quarter and full-year performance as of the end of last year.

The financial report shows that the company's revenue in the fourth quarter of last year was 73.24 billion yuan, a year-on-year increase of 10.9%, exceeding the market's expected 72.51 billion yuan, reaching a new high in seven quarters; **Operating profit reached 5.06 billion yuan, far exceeding the market's expected 3.43 billion yuan;** Adjusted net profit was 4.91 billion yuan, a year-on-year increase of 236.1%, also significantly higher than the market's expected 3.77 billion yuan; **Q4 achieved a gross profit margin of 21.3%, in line with expectations.**

Looking at the whole year, Xiaomi's total revenue in 2023 reached 270.97 billion yuan, slightly higher than the market's expected 270.06 billion yuan; Operating profit was 20.01 billion yuan, also higher than the market's expected 18.45 billion yuan. 
## Smartphone Business Ends Seven Consecutive Quarters of Decline

The smartphone business, which accounts for the majority of Xiaomi's revenue, had previously been affected by the overall consumer electronics market but seems to be showing signs of recovery based on the latest quarterly data.

The financial report shows that Xiaomi's smartphone division revenue in the last quarter was 44.2 billion yuan, exceeding the market's expected 43.26 billion yuan, with a year-on-year growth of 20.6%, ending seven consecutive quarters of decline.

According to Canalys data, global smartphone shipments in 2023 decreased by 4.3% year-on-year, but finally saw a 7.5% year-on-year growth in the last quarter of last year, ending seven consecutive quarters of decline.

Xiaomi's shipment volume also returned to year-on-year growth. In Q4, global smartphone shipments were 40.5 million units, a year-on-year increase of 23.9%, significantly outpacing the global market growth rate. Looking at the whole year, Xiaomi's smartphone shipments were 145 million units, ranking third globally with a market share of 12.8%, maintaining its position in the global top three for the 14th consecutive quarter.

Xiaomi also emphasized in the financial report that the average selling price (ASP) of its smartphones increased from 997 yuan per unit in the third quarter of last year to 1,091.7 yuan per unit in the fourth quarter, mainly due to the success of its high-end strategy. In particular, the Xiaomi 14 series released in October last year, with a starting price of 3,999 yuan, combined with the popularity effect, significantly raised Xiaomi's ASP. Xiaomi's founder Lei Jun has also regarded the continued strong sales of the Xiaomi 14 series as a major victory for Xiaomi in its high-end strategy.

## IoT and Lifestyle Consumer Products Performance Still Below Expectations, Lagging Behind Market Expectations

Affected by the decrease in revenue from smart TVs and laptops, Xiaomi's IoT and consumer products division performed poorly, with Q4 revenue of 20.3 billion RMB, a year-on-year decrease of 5.1%, falling short of the market's expected 20.93 billion RMB.

Xiaomi explained that revenue from smart TVs and laptops decreased from 6.5 billion RMB in Q4 2022 to 5.1 billion RMB in the same period last year, a 21.4% decrease mainly due to a decline in smart TV shipments.

However, Xiaomi's tablets were well received in overseas markets, with revenue growth achieved by the Xiaomi Pad 6 series and Redmi Pad SE series launched in May and August in overseas markets. Additionally, due to increased shipments of air conditioners, refrigerators, and washing machines in the domestic market, Xiaomi's smart home appliances revenue increased by 14.6% year-on-year.

Internet services revenue was 7.9 billion RMB, consistent with the expected 7.85 billion RMB; other revenue was 0.8 billion RMB.

## Investment of 6.7 billion RMB in innovative businesses such as car manufacturing over the past year

According to Xiaomi's previous announcement, the company will unveil the price of Xiaomi's car SV7 on March 28, but car manufacturing is not cheap.

Looking at the fourth quarter, Xiaomi's R&D expenses increased by 10.0% from 5 billion RMB in Q3 2023 to 5.5 billion RMB, with most of the money spent on car manufacturing. For the whole year, Xiaomi's R&D expenditure in 2023 was 19.1 billion RMB, a year-on-year increase of 19.2%, with the financial report explaining that the high growth was mainly due to R&D expenses related to Xiaomi's smart electric vehicle business and other innovative businesses.

Lei Jun announced on Weibo today that **Xiaomi has invested a total of 6.7 billion RMB in innovative businesses such as smart electric vehicles over the past year**, currently employing 17,800 R&D personnel, accounting for 53%. The group's strategy was upgraded to the "People-Car-Home Full Ecosystem" strategy in February, and SU7 will be officially launched and priced on March 28.

It can be foreseen that with the imminent launch of SU7, the sales volume of Xiaomi cars will directly affect the valuation of the company's automotive business.

In terms of other expenses, sales and promotion expenses increased by 24.8% from 4.7 billion RMB in Q3 2023 to 5.9 billion RMB in Q4 2023, mainly due to increased advertising and promotional expenses.

Advertising and promotional expenses increased by 39.5% from 1.8 billion RMB in Q3 2023 to 2.5 billion RMB in Q4 2023, mainly due to increased promotional activities and brand promotion of Xiaomi products in Q4 2023.

Administrative expenses increased by 8.6% from 1.4 billion RMB in Q3 2023 to 1.5 billion RMB in Q4 2023, mainly due to increased administrative personnel expenses and increased provision for credit losses on receivables

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