Full Year 2024 Xiaomi Corp Earnings Call Transcript
Key Points
- Xiaomi Corp (XIACF) achieved a significant milestone in 2024 with both annual revenue and net profit reaching new historical highs.
- The company's total revenue increased by 35% year-on-year, reaching RMB365.9 billion, while adjusted net profit rose by 41% to RMB27.2 billion.
- Xiaomi's smartphone shipments increased by more than 15% year-on-year, maintaining its position among the top 3 global manufacturers for 18 consecutive quarters.
- The IoT business continued to be a profit stabilizer, with an annual gross profit margin increase of 3.9 percentage points to 20.3%.
- Xiaomi's R&D investment in 2024 was RMB24.1 billion, with plans to increase it to RMB30 billion in 2025, emphasizing their commitment to technological innovation.
- Despite the growth, the smart EV and other innovative businesses incurred a loss of RMB6.2 billion, highlighting challenges in new ventures.
- The company faces bottlenecks in delivery times for its automobile segment, with waiting lists extending up to 40 weeks.
- Xiaomi's overseas IoT growth is slower compared to China, indicating potential challenges in international market expansion.
- The company is still in a heavy investment period for its automobile business, with no strict timeline for achieving profitability.
- There is a noted volatility in component prices, which could impact cost structures and profit margins in the short term.
Good evening, everyone. Welcome to the online telephone call of Xiaomi 2024. For this session, this will be recorded. (Operator Instructions) I now handle the conference over to the host today, Mrs. Anita Chen, Head of IR and the Corporate Finance. Please go ahead.
Good evening, ladies and gentlemen. Welcome to the investor conference call and audio webcast hosted by Xiaomi Corporation regarding the company's 2024 annual results. Before we start the call, we would like to remind you that this call may include forward-looking statements, which are underlined by a number of risks uncertainties and may not be realized in the future for various reasons.
Information about general market conditions come from a variety of sources outside of Xiaomi. This presentation also contains some unaudited non-IFRS financial measures that should be considered in addition to but not as a substitute for the company's financials prepared in accordance with the IFRS.
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