Xiaomi 2022 Annual Results Slightly Beat Market Estimates

Amid the global macroeconomic headwinds in 2022, Xiaomi reached a total revenue of RMB280 billion ($40,77 billion) and an adjusted net profit of RMB8.5 billion, slightly beating market estimates. In the fourth quarter of 2022, Xiaomi’s total revenue amounted to RMB66.0 billion and its adjusted net profit was RMB1.5 billion.

“Dual emphasis on scale and profitability“ is Xiaomi’s new 2023 operating strategy. With the newly established Group Business Operation Committee and Group Human Resources Committee, Xiaomi will coordinate and optimize its strategic structure, operational management, and resource allocation. The focus will be on improving quality, bolstering efficiency, and developing a viable long-term governance system. The aim is to further unleash the potential of consumer demand and technological innovation, following the gradual easing of macroeconomic pressures.

Xiaomi's smartphone business posted revenue of RMB167.2 billion for the year. The average selling price of its smartphones also rose for four consecutive years to reach RMB1,111. In 2022, revenue from IoT and lifestyle products amounted to RMB79.8 billion. Within this segment, revenue in Q4 increased by 12.5% quarter-over-quarter to RMB21.4 billion. Revenue from internet services reached RMB28.3 billion, of which revenue from overseas internet services increased by 35.2% year-over-year to RMB6.8 billion. In the fourth quarter of 2022, revenue from overseas internet services reached another record high of RMB1.9 billion.

Advertising revenue reached RMB18.5 billion for the full year, and RMB4.7 billion in the fourth quarter of 2022. The Group’s gaming revenue also reached RMB4.1 billion in 2022, up 4.4% year-over-year. In the fourth quarter of 2022, gaming revenue reached RMB1.0 billion, up 8.7% year-over-year, marking the sixth consecutive quarter of year-over-year improvements.