Gelonghui, May 23 | Xiaomi Group-W (01810.HK) announced the results for the three months ended March 31, 2024. In the first quarter of 2024, we firmly implemented the Group's established strategy and continued to strengthen capacity building while operating steadily. The Group achieved significant growth in both revenue and profit. In the first quarter of 2024, Xiaomi Group's total revenue was RMB 75.5 billion, up 27.0% year on year, and adjusted net profit was RMB 6.5 billion, up 100.8% year on year, including expenses for innovative businesses such as smart electric vehicles of RMB 2.3 billion.

We are continuing to advance the “Full Ecology of People and Cars” group strategy announced in October 2023. In the first quarter of 2024, our global smartphone shipments reached 40.6 million units, a year-on-year increase of 33.7%. According to Canalys data, our global smartphone shipment ranking this quarter was stable in the top three, with a market share of 13.8%, ranking in the top three in the world for 15 consecutive quarters. In March 2024, the number of monthly active users worldwide reached a record high of 3, reaching 658.1 million, an increase of 10.6% over the previous year. As of March 31, 2024, the number of IoT devices (excluding smartphones, tablets and laptops) connected to our AIoT platform increased to 786.1 million, an increase of 27.2% over the previous year. On March 28, 2024, we officially released the first smart electric vehicle, the Xiaomi SU7 series, which is positioned as a “C-class high-performance, eco-technology sedan”. The XiaomiSU7 series received widespread attention in the market. As of April 30, 2024, the cumulative number of lock orders for the Xiaomi SU7 series reached 88,063 vehicles. As of May 15, 2024, the total number of new Xiaomi SU7 series vehicles delivered reached 10,000.

We are steadily advancing the “new ten-year goal”: investing in underlying core technology on a large scale and striving to become a new generation of global hard-core technology leaders. In the first quarter of 2024, our R&D expenditure reached RMB 5.2 billion, an increase of 25.4% over the previous year. As of March 31, 2024, we had 17,421 R&D personnel, accounting for 49.2% of the total number of employees. Furthermore, we are continuing to expand the Group's intellectual property capabilities. As of March 31, 2024, the Xiaomi Group has obtained more than 39,000 patents worldwide.

We continue to develop large models on the end side, focus on lightweight deployment of large models, and promote cloud integration. At the same time, we actively integrate AI into business operations, combine AI with user scenario requirements, and fully empower the “whole ecosystem of people and vehicles” strategy. In the personal user scenario, we deeply integrate the AI model with Xiaomi Surge OS to provide various functions such as real-time captions, Wensheng maps, and AI photos; in the smart car scenario, we integrate AI into the development and application of intelligent driving and smart cockpits; in the smart home scenario, Xiaomi HyperMind, the smart home thinking center, further enhances the user experience. At the same time, we are also actively using AI technology in new retail, intelligent manufacturing, etc., to improve business efficiency.

In 2024, we will efficiently implement the Group's “steady and enterprising” core business strategy. In the first quarter of 2024, the Group's overall gross margin reached 22.3%, an increase of 2.8 percentage points over the previous year. By business, in the first quarter of 2024, the gross margin of our smartphone business was 14.8%, up 3.6 percentage points from the previous year; the gross margin of the IoT and consumer products business was 19.9%, a record high, up 4.1 percentage points from the previous year; and the gross profit margin of the Internet business was 74.2%, up 1.9 percentage points from the previous year. In the first quarter of 2024, our adjusted net profit reached a record high of RMB 6.5 billion, a year-on-year increase of 100.8%. Abundant cash is an important foundation for the continued development of our core business and new business. As of March 31, 2024, our cash reserves were RMB 127.3 billion, an increase of 34.7% over the previous year. We are also actively repurchasing shares in the open market. Since this year6, our share repurchases amount to HK$2.25 billion, exceeding the total value of shares purchased in 2023.