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Xiaomi announces 11% revenue growth on strong smartphone sales

Attendees gather before a Xiaomi announcement introducing the company's first electric car, the SU7, in Beijing, China December 28, 2023

BEIJING, March 19 (mod1s) - China's Xiaomi (1810.HK), opens new tab reported a 10.9% gain in fourth-quarter revenue and topped adjusted net profit projections bolstered by strong smartphone sales as the industry shows signs of revival. 

Revenue grew to 73.24 billion yuan ($10.17 billion) in the October-December quarter vs the 73.17 billion projected by analysts, LSEG statistics showed. 

"As previously expected, the overall smartphone shipments in the second half of 2023 were better than the first half," Xiaomi President Lu Weibing stated on an earnings call.

"The global consumer electronics market continues to show a gradual recovery trend." 

The company's adjusted net profit surged 236.1% to 4.9 billion yuan, exceeding the 3.89 billion projected by experts. 

The smartphone sector has been exhibiting indications of resurgence after a protracted period of sluggishness. 

Xiaomi's fourth-quarter worldwide smartphone sales were up 23% from a year earlier to 40.7 million devices, putting it third internationally with a market share of 13%, statistics from researcher Canalys indicated.

In China, its biggest market, its shipments were up 12% to 9.5 million smartphones, putting it fifth, likewise with a market share of 13%. 

Xiaomi got a lift from the launching of its premium Mi 14 series, which saw sales reach 1 million devices within the first week of its October launch. 

EV LAUNCH 

Still, an increasingly crowded market has seen Xiaomi move away from its main smartphone business. It is well recognized in China for residential appliances, and it has gone into electric automobiles - a strategy initially highlighted in 2021.

Xiaomi wants to begin delivery of its first automobiles in China this month via 59 of its outlets across 29 cities. Market observers anticipate to discover the pricing during a March 28 launch event. 

During the results call, Xiaomi President Lu stated the business hopes to capture third place in the battery-powered luxury vehicle sector. He did not offer specifics on how Xiaomi aims to attain this objective. 

Xiaomi's move into EVs - billed by CEO and founder Lei Jun as his final significant entrepreneurial attempt - comes at a time of fierce pricing rivalry in China.

The business has teamed with a subsidiary of state-owned manufacturer BAIC to develop EVs in a Beijing facility with an annual capacity of 200,000 cars. 

Xiaomi spent 10 billion yuan building the vehicle,Lei has revealed, and has vowed to spend $10 billion in the automotive market over the next decade. 

Xiaomi's financial report indicated that research and development spending for the full year 2023 climbed by 19.2% to 19.1 billion yuan mostly due to costs linked with its EV business and other efforts. 

($1 = 7.1994 Chinese yuan renminbi)


Source: https://www.reuters.com/

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