Slide 1: Xiaomi Corporation Q2 2023 Results Announcement
Xiaomi Corporation Q2 2023 Results Announcement
Slide 2: Disclaimer
By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of Xiaomi Corporation (the “Company”, and together with its subsidiaries,
Slide 3: Q2 2023 Overall Performance
Q2 2023 Overall Performance Financial Performance Smartphone Market Position Revenue Adjusted Net Profit1 RMB RMB #3 51 markets Global Ranked Top 33 67.4 billion 5.1 billion, up 147.0% YoY Market Share Ranking3 Including expenses related to smart 12.9% 61 markets EV and other new initiatives2 Global
Slide 4: Global Smartphone Shipments Ranked No.3 in Q2 2023
Global Smartphone Shipments Ranked No.3 in Q2 2023 Achieved Leadership Across All Major Markets Globally Q2 2023 Smartphone Shipments Ranking and Market Share No.2 No.3 21.2% Europe No.5 12.9% No.2 13.4% Global 17.1% Mainland China Middle East No.3 No.3 14.1% 16.5% No.3 Southeast Latin America 8.6%
Slide 5: Steadfast Execution of Smartphone Premiumization Strategy
Steadfast Execution of Smartphone Premiumization Strategy Three Design Principles of Premium Smartphones: All-round performance, no shortcoming Focus on user experience, not on specifications Deep integration between software and hardware Premium Smartphone Mainland China RMB4,000-6,000 Smartphone a
Slide 6: Xiaomi MIX Fold 3: Combining Slim, Lightweight, and Flagship Experiences
Xiaomi MIX Fold 3: Combining Slim, Lightweight, and Flagship Experiences Launched in Mainland China in August 2023 5.26mm Unfolded Powerful Snapdragon 255g Lightweight 8 Gen 2 Leading Version Self-developed Surge Dual Batteries Self-developed Surge Proprietary Hinge P2 Charging Chip and Technology G
Slide 7: Premium Smartphones Contributed to Growth of Offline Retail Performance
Premium Smartphones Contributed to the Growth of Offline Retail Performance in Mainland China Average single-store GMV by Quarter1 % of Premium Smartphone Units Sold via Offline Retail Stores2 46.3% 45.8% 46.6% 45.2% 37.6% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 20
Slide 8: Long-term Value, Long-term Investment
Long-term Value, Long-term Investment Xiaomi Technology Philosophy Continuously invest in technologies that will benefit humanity 12 technology fields with 99 verticals Over RMB100 billion investment during the 5 years between 2022 to 2026 Xiaomi Technology Strategy (Software x Hardware) AI Focus on
Slide 9: R&D Expenses Reached RMB4.6 billion in Q2 2023
R&D Expenses Reached RMB4.6 billion in Q2 2023 R&D Expenses RMB Billions Number of Q2 2023 Number of Granted 20+ R&D Employees1 R&D Expenses Patents Globally1 Up 21.0% YoY ~52% 33,000+ of Total Employees1 16.0 13.2 Ranking of Valid Global Patent Families of Declared 5G Standard Essential Patent2 9.3
Slide 10: Continued to Explore New Frontier Cutting-edge Technology
Continued to Explore New Frontier Cutting-edge Technology Second-generation Bio-inspired Quadruped Robot CyberDog 2 ✓ More intelligent and lifelike ✓ Equipped with our self-developed CyberGear Micro-actuator, which further enhances mobility and supports high-difficulty maneuvers, such as continuous
Slide 11: Investments in AI Since 2016
Investments in AI Since 2016 2016.7 2017.9 2018.12 2021.3 2021.8 2023.4 AI CV Team Xiaomi AI Lab AI Camera Autonomous Xiaomi Robot LLM Team Algorithm Team Driving Team Team CV MACE CV MACE CV MACE CV MACE CV CloudML NLP CloudML Machine MAGE Acoustics CloudML Machine MAGE Machine CloudML Acoustics CV
Slide 12: Fully Embrace LLM
Fully Embrace LLM Goal of Xiaomi LLM Xiaomi AI Assistant (MAU over 110 million) Light and on-device model empowered by LLM is currently available for invitation testing AI-dedicated Fund focusing on LLM Notes: LLM denotes large language model. 12
Slide 13: Self-developed LLM Has Received Top Rankings from Authoritative Benchmarks
Our Self-developed LLM Has Received Top Rankings from Authoritative Benchmarks In C-EVAL and CMMLU evaluation Deployed an on-device LLM (1.3 billion) on benchmarks, our LLM (MiLM-6B) ranked smartphone, with a similar performance No.1 on some tasks as bigger (6 billion) among the same scale (<10 bill
Slide 14: Q2 2023 Revenue Achieved QoQ Growth of 13.2%
Q2 2023 Revenue Achieved QoQ Growth of 13.2% Revenue RMB Billions In Q2 2023 70.2 67.4 7.0 59.5 7.4 Total revenue RMB67.4 billion, up 13.2% QoQ 7.0 19.8 22.3 16.8 Smartphone revenue grew 4.6% QoQ IoT and lifestyle products revenue achieved YoY and QoQ growth 42.3 35.0 36.6 Internet services revenue
Slide 15: Gross Profit Margins Reached Record Highs
Gross Profit Margins Reached Record Highs Smartphone Gross Profit Margin AIoT Gross Profit Margin Overall Gross Profit Margin % % % 13.3% 21.0% 17.6% 15.7% 19.5% 11.2% 14.3% 14.3% 13.5% 17.2% 16.8% 16.6% 8.7% 8.9% 8.2% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q
Slide 16: Operating Expenses Decreased by RMB1.1 billion YoY
Operating Expenses1 Decreased by RMB1.1 billion YoY Operating Expenses RMB Billions 11.9 10.4 10.2 1.2 10.2 0.6 0.8 9.4 1.4 1.1 10.6 9.8 9.4 8.2 8.7 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Operating expenses (excluding expenses related Expenses related to smart EV and other new initiatives2 to smart
Slide 17: Adjusted Net Profit Increased 147.0% YoY
Adjusted Net Profit Increased 147.0% YoY Adjusted Net Profit1 RMB Billions 7.6% 5.4% 1.4 3.0% 3.0% 2.2% 1.1 0.6 0.8 5.1 1.2 3.2 2.1 2.1 1.5 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Adjusted Net Profit1 Expenses related to smart EV and other new initiatives2 Adjusted Net Profit1 Margin 1 Defined as pr
Slide 18: Lowest Inventory Levels in 10 Quarters
Lowest Inventory Levels in 10 Quarters Inventory RMB Billions 57.8 53.0 50.4 10.4 9.0 8.1 42.6 38.5 7.3 7.7 32.5 27.3 28.7 22.0 22.7 17.2 19.6 17.1 16.9 11.4 (2.4) (2.9) (3.5) (3.7) (3.3) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Raw materials Finished goods Others1 Provision for impairment 1 Includin
Slide 19: Strong Cash Position
Strong Cash Position Cash Resources1 RMB Billions 113.2 94.6 Our cash resources were approximately RMB113.2 billion Q1 2023 Q2 2023 1 Including but not limited to (i) cash and cash equivalents, (ii) restricted cash, (iii) short-term bank deposits, (iv) short-term investments measured at fair value t
Slide 20: Continued to Execute Our 2023 Operation Strategies
Continued to Execute Our 2023 Operation Strategies Continue to Invest in Smartphone Prudent Operations the Future Premiumization Cost Control and Dual Emphasis on Efficiency Scale and Improvement Profitability 20
Slide 21: Listed as Fortune Global 500 for the 5th consecutive year
FORTUNE ENA zy 2023, Listed as Fortune Global 500 for the 5th consecutive year
Slide 22: Achieve Carbon Neutrality by 2040
Achieve Carbon Neutrality by 2040 By 2040 Achieve carbon neutrality in our own operations of our existing businesses1 100% renewable energy 1 Based on our latest earnings announcement, our existing businesses include smartphones, IoT and lifestyle products, internet services, and others 22
Slide 23: Smartphones
Smartphones
Slide 24: Resilient Performance Despite Macroeconomic Headwinds
Resilient Performance Despite Macroeconomic Headwinds Smartphones Revenue RMB Billions In Q2 2023, smartphones revenue was RMB36.6 billion 42.3 36.6 35.0 Smartphone shipments were 32.9 million units ASP increased to RMB1,112, up 2.8% YoY Gross profit margin reached 13.3%, a record high Q2 2022 Q1 20
Slide 25: Global Smartphone Shipments Ranked No.3 in Q2 2023
Global Smartphone Shipments Ranked No.3 in Q2 2023 Q2 2023 Shipments Vendor Q2 2023 Market Share QoQ Shipments Changes (Million Units) Samsung 53.0 20.5% -12.2% Apple 43.0 16.7% -25.8% Xiaomi 33.2 12.9% 8.8% OPPO 25.2 9.8% -5.4% Transsion 22.7 8.8% 47.8% Others 81.0 31.4% 2.7% Total 258.2 100.0% -4.
Slide 26: Mainland China Smartphone Shipments Ranked No.5 in Q2 2023
Mainland China Smartphone Shipments Ranked No.5 in Q2 2023 Q2 2023 Shipments Vendor Q2 2023 Market Share QoQ Shipments Changes (Million Units) vivo 11.4 17.8% 0.6% OPPO 11.4 17.7% -9.8% Apple 10.4 16.2% -22.2% HONOR 10.3 16.0% 5.6% Xiaomi 8.6 13.4% 1.4% Others 12.2 19.0% 0.7% Total 64.3 100.0% -5.0%
Slide 27: Redmi K60 Ultra: Dual-chip Ultra Performance
Redmi K60 Ultra: Dual-chip Ultra Performance Launched in Mainland China in August 2023 Performance MediaTek Pixelworks Dimensity 9200+ X7 Camera Charging Sony IMX800 Flagship Sensor Xiaomi AI Image 120W Wired Charging Solution 2.0 5,000mAh Sales Volume Exceeded 220,000 Units in the First Five Minute
Slide 28: AIoT
AIoT
Slide 29: Global Leading Consumer AIoT Platform
Global Leading Consumer AIoT Platform Number of Connected Devices1 Users with 5 or More Devices Mi Home App MAU Millions Connected to Xiaomi’s AIoT Millions Platform1 Millions 13.0 82.9 12.3 654.5 11.6 78.1 10.9 75.8 618.0 10.2 70.8 72.4 589.4 558.3 526.9 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2
Slide 30: Increased IoT and Lifestyle Products Revenue
Increased IoT and Lifestyle Products Revenue IoT and Lifestyle Products Revenue RMB Billions 22.3 In Q2 2023, IoT and lifestyle products 19.8 revenue reached RMB22.3 billion, up 12.3% YoY 16.8 Gross profit margin reached 17.6%, a record high Q2 2022 Q1 2023 Q2 2023 30
Slide 31: Smart Large Home Appliances: Solid Growth
Smart Large Home Appliances: Solid Growth Revenue Reached a Record High, up 70%+ YoY in Q2 2023 Air Washing Refrigerators Conditioners Machines Air conditioner shipments reached a Refrigerator shipments reached a record high Washing machine shipments exceeded record high of over 2.3 million units in
Slide 32: Smart TV: No.1 TV Shipments in Mainland China in 1H 2023
Smart TV: No.1 TV Shipments in Mainland China in 1H 2023 No.1 TV Shipments in Mainland China in 1H 20231 Global Smart TV Shipments in Q2 2023 2.6 million Ranked Top 5 Globally2 Xiaomi TV S Pro 100" Launched in Mainland China in August 2023 1 According to AVC, by shipments in 1H 2023 2 According to A
Slide 33: Tablet: Fast-growing Brand in Mainland China
Tablet: Fast-growing Brand in Mainland China Xiaomi Pad 6 Max 14 with 14” Screen Launched in Mainland China in August 2023 Mainland China Shipments in Q2 2023 up 50%+ YoY Ranked Top 31 1 According to Canalys, by shipments in Q2 2023 33
Slide 34: Wearables: Leading Position in Mainland China
Wearables: Leading Position in Mainland China Leading Brand New Product Launch Xiaomi Smart Band 8 Pro TWS Wearable Bands Launched in Mainland China in August 2023 Mainland China Mainland China A high-resolution 1.74” AMOLED screen Shipments1 Shipments1 A variety of compatible accessories No.1 No.2
Slide 35: Internet Services
Internet Services
Slide 36: Global MIUI MAU Reached 606 million and Mainland China 149 million
Global MIUI MAU Reached 606 million and Mainland China MIUI MAU Reached 149 million in Q2 2023 YoY % Global MIUI MAU 10.8% Millions 606.0 582.1 594.8 563.9 11.2 18.2 12.7 547.0 17.0 Global MIUI MAU1 reached 606.0 million, YoY growth of 59.1 million (10.8%) Mainland China MIUI MAU1 reached 149.3 Q2 2
Slide 37: Record Internet Services Revenue
Record Internet Services Revenue Internet Services Revenue RMB Billions YoY % 7.0 7.0 7.4 In Q2 2023, internet services revenue 1.3 reached RMB7.4 billion, a record high 1.5 1.3 -12.8% 1.0 1.0 1.3 7.5% Advertising revenue reached a record high, up 13.0% YoY 5.1 4.5 4.4 13.0% Gaming revenue continued
Slide 38: Overseas Internet Services Revenue Reached a Record High
Overseas Internet Services Revenue Reached a Record High Overseas Internet Services Revenue as % of Total Internet Services Revenue In Q2 2023, overseas internet 26.8% services revenue reached a record 26.1% 25.7% high of RMB2.0 billion, up 19.7% YoY, 23.9% 24.2% accounting for 26.8% of total intern
Slide 39: ESG
ESG
Slide 40: ESG Awards and Recognitions
ESG Awards and Recognitions S&P Global Institutional Investor Named on the inaugural Best ESG Sustainability Yearbook 2023 (China Edition) in Technology Hardware Sector Selected as Industry Mover For two consecutive years 40
Slide 41: Giving Back to Our Community
Giving Back to Our Community Disaster Relief RMB25 million rainstorm disaster donation to Beijing and Hebei in August 20231 Talent Development 2023 Xiaomi Scholarships and Xiaomi Young Talents Program Newly-joined School List2 ... 1 By Beijing Xiaomi Foundation 2 Schools are ranked in no specific or
Slide 42: IR@xiaomi.com
IR@xiaomi.com https://ir.mi.com/