Xiaomi (1810) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB92.5 billion, up 30.5% year-over-year, with gross margin at 20.4% and adjusted net profit of RMB6.3 billion, up 4.4% year-over-year.

• Global smartphone shipments reached 43.1 million units, up 3.1% year-over-year, maintaining No. 3 global ranking and 13.8% market share.

• Smart EV segment delivered 39,790 SU7 vehicles in Q3, with cumulative deliveries of 67,157 units and strong ASP and gross margin performance.

• Cash resources hit a record RMB151.6 billion, up 18.7% year-over-year.

• Premiumization strategy drove higher ASPs and market share gains in high-end handsets.

Financial highlights

• Smartphone revenue: RMB47.5 billion, up 13.9% year-over-year; 43.1 million units delivered, ASP up 10.6%.

• IoT and lifestyle products revenue: RMB26.1 billion, up 26.3% year-over-year; gross margin reached 20.8%.

• Internet services revenue: RMB8.5 billion, up 9.1% year-over-year; global active users hit 686 million, up 10%.

• Smart EV and new initiatives revenue: RMB9.7 billion, up 52.3% sequentially; gross margin 17.1%.

• Cash reserves at RMB151.6 billion, up 18.7% year-over-year.

Outlook and guidance

• Targeting 130,000 SU7 vehicle deliveries in 2024, with 100,000 units already produced in 230 days.

• Expect continued rapid growth in home appliances and vehicle business, with Q4 vehicle sales projected to outperform Q3.

• Expansion of retail network to 15,000 shops by year-end and 20,000 by 2025, with focus on ultra-large stores in premium locations.

• Ongoing investment in R&D and premiumization strategy across all business lines, with higher expenses anticipated in 2025.

• Premiumization and overseas expansion to remain key growth drivers, especially in Europe, Southeast Asia, Middle East, Latin America, and Africa.