Xiaomi's Q4 2024 earnings report interpretation—The strongest in history, both new and old businesses are thriving

Today$XIAOMI-W(01810.HK) released its Q4 2024 financial report. After reviewing the data, it's best described by Lei Jun's Weibo comment as "the strongest performance in history."

For the financial report, although market expectations were already high, the data still far exceeded them. Let's look at the charts first!

Xiaomi's financial report has been analyzed many times, and the core views remain unchanged: the certainty of the EV business is increasing, the smartphone segment is making progress despite the overall market downturn, and the IOT segment, especially home appliances, is showing significant growth. There have been too many interpretations of Xiaomi's financial reports, and many perspectives remain consistent. Here are the key takeaways:

1. Total revenue, smartphone, IOT, and internet service revenues all hit record highs. Quarterly revenue exceeded 100 billion, with total revenue growth at 48%, traditional business growth at 26.1%, IOT growth at 51%, smartphone growth at 16.7%, and quarterly net profit growth at 69.4%. Even the traditional business net profit grew by 23.1%. Xiaomi's high growth isn't solely driven by EVs. Excluding the EV business, Xiaomi's revenue last year was 330 billion, with growth exceeding 20%, especially the IOT segment's 50%+ growth, which is exceptionally impressive. Even for traditional businesses, Xiaomi's Q4 performance was strong, with 20%+ growth and a corresponding 20+ valuation. Xiaomi's growth rate is already among the highest for scaled tech companies in China!

2. The EV business speaks for itself—sales are visible to all. Q4 gross margin reached 20.4%, with quarterly revenue of 16.7 billion yuan. Q4 losses narrowed to 700 million yuan, and breakeven is imminent. This is a miracle among new EV makers. The 2025 delivery target has been raised to 350,000 units, compared to last year's 136,000. ASP will also increase, and this year's EV business is expected to contribute over 80 billion yuan in revenue, solidifying it as the second growth curve.

3. The IOT segment is outstanding, with revenue growth exceeding 50%, especially in home appliances. Facing Xiaomi's air conditioners, "Auntie Dong" (Dong Mingzhu) has completely abandoned her image and is desperately smearing Lei Jun. Such tactics only make Xiaomi's home appliances sell even better.

4. The smartphone segment has relatively low growth at 16%, but it's still among the best performers in the industry, especially as Xiaomi gradually stabilizes its foothold in the domestic high-end market.

5. Xiaomi's stock price has now reached a new high of 57 HKD, marking a new milestone with a market cap nearing 1.5 trillion. Although many critics have quieted down, some still question whether Xiaomi is worth this valuation. Such skepticism is normal. In a previous article, I projected that based on 2025 performance, 57 HKD isn't cheap, but looking ahead to 2026, it aligns with 1 trillion for traditional businesses + 500 billion for EVs. For details, refer to the earlier article. Whether it's expensive depends on how far you look—it's definitely a bit pricey now. Link:Is Xiaomi Worth 1 Trillion?—Xiaomi Valuation Analysis

I. Overall Financial Data: Quarterly Revenue Exceeds 100 Billion

1.Revenue: Xiaomi's Q4 revenue reached 109.01 billion yuan, up 48.5% YoY, marking the fourth consecutive quarter with growth exceeding 27%. Traditional smartphone + AIOT + internet services grew by 26.1%, while the EV business contributed 16.66 billion yuan, becoming Xiaomi's steady second growth curve. Even excluding the EV business, this growth rate is exceptionally high among Chinese stocks, with all major segments hitting record highs.

Smartphone revenue: 51.31 billion yuan, up 16% YoY, accounting for 47.1% of total revenue;

AIOT revenue: 30.85 billion yuan, up 51.7% YoY, accounting for 28.3%;

Internet services revenue: 9.34 billion yuan, up 18.5% YoY, accounting for 10.3%;

EV revenue: 16.662 billion yuan, accounting for 15.3% of total revenue.

2.Adjusted Net Profit: Adjusted net profit was 8.316 billion yuan, with EV losses at 700 million yuan, up 69.4% YoY.

3.Gross Margin: Xiaomi's overall Q4 gross margin was 20.6%, down 3.4% YoY, mainly due to declining margins in smartphones and IOT, attributed by the report to rising component costs.

Overall financial data:

II. EV Business: Gross Margin Reaches 20.3%

The EV business generated 16.66 billion yuan in Q4 revenue, with a gross margin of 20.4% and losses of just 700 million yuan. These results are unimaginable for a company that started making cars just over three years ago. This is a miracle among new EV makers. The 2024 delivery target was raised to 136,000 units, and the 2025 target is 350,000 units. Q4 ASP for Xiaomi cars was 234,322 yuan per unit. The SU7 Ultra and YU7 will further boost ASP in 2025, making 80 billion yuan in annual revenue achievable.

The SU7's success exceeded 99% of people's expectations, including Lei Jun's own. The SU7's performance deserves a 99/100 score. As a newcomer, Xiaomi's achievements are nothing short of miraculous. The SU7 Ultra is priced at over 500,000 yuan, with 10,000 units pre-ordered at launch. While criticisms of Xiaomi's cars are acceptable, these results are undeniable. The next challenge for Xiaomi is ramping up production and ensuring the YU7 can replicate the SU7's success.

III. Smartphone Business Performance: Strong Domestic Results

The smartphone business is relatively straightforward, with the industry stabilizing—no new entrants and no major players exiting, leaving little room for high growth. According to Canalys, Xiaomi ranked third globally in Q4 market share. This quarter, smartphone revenue hit a record high of 51.31 billion yuan, up 16% YoY. ASP reached 1,202 yuan, thanks to the performance of premium models.

Global smartphone market in Q4:

In the domestic market, Xiaomi maintained its fourth-place position in Q4, with 29% growth ranking first—the highest in recent years. This is due to the improving reputation of the number series and the positive impact of the SU7 on Xiaomi's smartphone sales. Key data for Xiaomi's premium models:

1) In 2024, premium smartphones accounted for 23.3% of total domestic shipments, up 3.0 percentage points YoY;

2) Xiaomi ranked first in the 4,000–5,000 yuan price segment, with a 24.3% market share, up 0.2 percentage points YoY;

3) In the 5,000–6,000 yuan price segment, Xiaomi's market share reached 9.7%, up 1.3 percentage points YoY.

China's smartphone market in Q4:

Xiaomi smartphone business data:

IV. IOT Business Performance: Surges 51.7%

IOT revenue reached 30.87 billion yuan in Q4, up 51.7% YoY, marking the fourth consecutive quarter with 20%+ growth and a record high. Smart home appliances performed exceptionally well, even provoking "Auntie Dong" (Dong Mingzhu). Key data from the report:

1) Air conditioner shipments exceeded 6.8 million units, up over 50% YoY;

2) Refrigerator shipments exceeded 2.7 million units, up over 30% YoY;

3) Washing machine shipments exceeded 1.9 million units, up over 45% YoY.

AIOT business data:

V. Internet Business: Revenue Hits Another Record High

Internet services revenue reached 9.34 billion yuan in Q4 2024, up 18.5% YoY, with a gross margin of 76.6%, setting another record. Growth was mainly driven by advertising. Although this segment's contribution is small, its high profitability makes it a key source of Xiaomi's earnings. With growing smartphone and EV shipments, this segment still has room for expansion!

Xiaomi internet business data:

Disclaimer: This article reflects personal views and does not constitute investment advice! Original content is hard work—likes and follows are the best support!