小米集团2023年Q2业绩PPT演示文稿.pdf

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,the Group)for use inpresentations by the Group and does not constitute a recommendation regarding the securities of the Group.No part of this presentation should form the basis of,or be relied onin connection with,any contract or commitment or investment decision whatsoever.No representation or warranty,express or implied,is made as to,and no reliance should be placed on,the fairness,accuracy,completeness or correctness of the information,oropinions contained herein.Neither the Company nor any of the Companys subsidiaries,affiliates,advisors or representatives shall have any responsibility or liability whatsoever(for negligence or otherwise)for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.Theinformation set out herein may be subject to updating,completion,revision,verification and amendment and such information may change materially.This presentation is based on the economic,regulatory,market and other conditions in effect on the date hereof.It should be understood that subsequent developments mayaffect the information contained in this presentation,which neither the Company nor its subsidiaries,affiliates,advisors or representatives are under an obligation to update,reviseor affirm.The information communicated in this presentation may contain certain statements that are or may be forward looking.These statements typically contain words such as will,may,expects,forecasts,plans and anticipates and words of similar import.By their nature forward looking statements involve risk and uncertainty because they relate toevents and depend on circumstances that will occur in the future.There may be additional material risks that are currently not considered to be material or of which the Companyand its advisors or representatives are unaware.Against the background of these uncertainties,readers should not rely on these forward-looking statements.Neither theCompany nor its subsidiaries,affiliates,advisors or representatives assume any responsibility to update forward-looking statements or to adapt them to future events ordevelopments.This presentation and the information contained herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy orsubscribe for any securities of the Company or any of its subsidiaries or affiliates in any jurisdiction.The securities of the Company have not been and will not be registered underthe U.S.Securities Act of 1933,as amended(the Securities Act),and may not be offered,sold or delivered within the United States or to U.S.persons absent from registrationunder or an applicable exemption from the registration requirements of the United States securities laws.In addition,certain information related to other companies and market in general presented in this presentation has been obtained from publicly available information.Theaccuracy and appropriateness of that information has not been verified by the Company and cannot be guaranteed.No invitation is made by this presentation or the information contained herein to enter into,or offer to enter into,any agreement to purchase,acquire,dispose of,subscribe for orunderwrite any securities or structured products,and no offer is made of any shares in or debentures of a company for purchase or subscription except as permitted underrelevant laws.23Q2 2023 Overall Performance1Defined as profit for the period,as adjusted by adding back(i)share-based compensation,(ii)net fair value changes on investments,(iii)amortization of intangible assets resulting from acquisitions,(iv)changes of value of financial liabilities to fund investors,and(v)income tax effects of non-IFRS adjustments2 Expenses related to smart EV and other new initiatives do not include share-based compensation expenses related to smart EV and other new initiatives3 According to Canalys,by shipments in Q2 20234In June 20235As of June 30,2023,excluding smartphones,tablets and laptops6According to AVC,by shipments in 1H 2023RevenueRMB67.4 billion Adjusted Net Profit1RMB5.1 billion,up 147.0%YoY Financial PerformanceSmartphone Market Position#3 Global Market Share Ranking3606.0 millionGlobal MIUI MAU410.8%YoY149.3 millionMainland China MIUI MAU46.5%YoYUser BaseAIoT PlatformIncluding expenses related to smart EV and other new initiatives2RMB1.4 billion12.9%Global Market Share351 marketsRanked Top 3361 marketsRanked Top 53654.5 millionAIoT Connected Devices524.2%YoY13.0 millionUsers with 5 or MoreConnected Devices527.8%YoY#1 TV Shipments in Mainland China6#1 TWS Brand in Mainland China3#3 Tablet Brand in Mainland China3Global Smartphone Shipments Ranked No.3 in Q2 2023Achieved Leadership Across All Major Markets Globally4Q2 2023 Smartphone Shipments Ranking and Market ShareSource:Canalys,by shipmentsMarket Share Improved Compared with Q1 2023 Ranking Improved Compared with Q1 2023 No.3No.314.1%14.1%SoutheastAsiaNo.4No.415.015.0%IndiaNo.3No.38.68.6%AfricaNo.2No.221.221.2%EuropeNo.2No.217.1%17.1%Middle EastNo.3No.316.5%16.5%Latin AmericaNo.5No.513.4%13.4%Mainland ChinaNo.3No.312.9%12.9%GlobalSteadfast Execution of Smartphone Premiumization Strategy51 By units sold in mainland China,according to third-party data.Premium smartphones in mainland China are smartphones with retail prices at or above RMB3,000RMB4,000-6,000 Smartphone Market Share1 in Mainland ChinaMainland China Smartphone ASP(RMB)Premium Smartphone as%of Total Smartphone Units Sold in Mainland China112.7%6.5%Q2 2022Q2 2023Q2 2022Q2 202324%+16.9%20.1%Q2 2022Q2 2023Three Design Principles of Premium Smartphones:All-round performance,no shortcomingFocus on user experience,not on specificationsDeep integration between software and hardware 3.3%6Xiaomi MIX Fold 3:Combining Slim,Lightweight,and Flagship ExperiencesProprietary Hinge Technology5.26mm Unfolded255g LightweightQuad Camera System with Leica Optical Lens Covering Five Focal Lengths Powerful Snapdragon 8 Gen 2 Leading VersionSelf-developed Surge Dual BatteriesSelf-developed Surge P2 Charging Chip and G1 Battery Management ChipWireless ChargingTwo Exceptional Displays with Peak Brightness up to 2,600 NitsLaunched in Mainland China in August 2023Sales Volume Reached 2.25 times of Last Generationin the First Five Minutes of Sales Launch 7Premium Smartphones Contributed to the Growth of Offline Retail Performance in Mainland China1Average single-store GMV by quarter is calculated as the total GMV generated from offline retail stores in the quarter divided by the average of the number of offline retail stores at the beginning and the end of the quarter2By units sold in mainland China,according to third-party data.Premium smartphones in mainland China are smartphones with retail prices at or above RMB3,000Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Average single-store GMV by Quarter1%of Premium Smartphone Units Sold via Offline Retail Stores2 46.3%45.2%37.6%45.8%46.6%Q2 2022Q3 2022Q4 2022Q1 2023Q2 20238Long-term Value,Long-term InvestmentContinuously invest in technologies that will benefit humanity12 technology fields with 99 verticalsOver RMB100 billion investment during the 5 years between 2022 to 2026(Software x Hardware)AIFocus on fundamental technology and long-term commitment to investmentDeep integration between software and hardware empowered by AIXiaomi Technology PhilosophyXiaomi Technology Strategy9R&D Expenses Reached RMB4.6 billion in Q2 2023Number of R&D Employees152%of Total Employees1Number of Granted Patents Globally133,000+RMB BillionsR&D Expenses3.25.87.59.313.216.08.7201720182019202020212022202320+Ranking of Valid Global Patent Families of Declared 5G Standard Essential Patent2RankingTop 10 PatentOwnerGlobal Patents1Huawei14.59%2Qualcomm10.04%10Xiaomi4.10%1As of June 30,20232Global 5G Standard Essential Patent and Standard Proposal Research Report(2023)issued by China Academy of Information and Communications TechnologyQ2 2023R&D ExpensesUp21.0%YoY10Continued to Explore New Frontier Cutting-edge TechnologyMore intelligent and lifelikeEquipped with our self-developed CyberGear Micro-actuator,which further enhances mobility and supports high-difficulty maneuvers,such as continuous back flips,and fall recoveryA fusion sensing and decision-making system,offering 19 sensors for vision,touch and hearingOpen-source ecosystem that attracts different levels of users to participateSecond-generation Bio-inspiredQuadruped Robot CyberDog 211Investments in AI Since 20162016.7AI CV Team2017.9Xiaomi AI Lab2018.12AI Camera Algorithm Team2021.3Autonomous Driving Team2021.8Xiaomi Robot Team2023.4LLM TeamCVMachine learningMACEMAGECloudMLMulti-mediaCVAcousticsVoiceNLPKnowledge graphMachine learningLLMMACECloudMLMiNLPGraph platformMulti-mediaSearch recommendation CVMachine learningMACEMAGECloudMLCVMachine learningMACECloudMLCVAcousticsVoiceNLPKnowledge graphMachine learningLLMCloudMLNLPCVCloudMLMiNLP3,000+AI-related employeesNotes:CV denotes computer vision.NLP denotes natural language processing.LLM denotes large language model.12Fully Embrace LLMXiaomi AI Assistant(MAU over 110 million)empowered by LLM is currently available for invitation testingGoal of Xiaomi LLM Light and on-device modelNotes:LLM denotes large language model.AI-dedicated Fund focusing on LLM13Our Self-developed LLM HasReceived Top Rankings from Authoritative BenchmarksIn C-EVAL and CMMLU evaluation benchmarks,our LLM(MiLM-6B)ranked No.1among the same scale(10 billion)modelsDeployed an on-device LLM(1.3 billion)on smartphone,with a similar performance on some tasks as bigger(6 billion)cloud-based models*Results as of August 11,2023*Results as of August 11,2023CMMLU Chinese multi-tasking audio comprehension assessment,data as of August 11,2023Notes:LLM denotes large language model.CMMLU42.3 35.0 36.6 19.8 16.8 22.3 7.0 7.0 7.4 Q2 2022Q1 2023Q2 2023Internet servicesOthersSmartphonesIoT and lifestyle productsRMB BillionsRevenue59.570.214In Q2 2023Total revenue RMB67.4 billion,up 13.2%QoQSmartphone revenue grew 4.6%QoQIoT and lifestyle products revenue achieved YoY and QoQ growthInternet services revenue reached a record highQ2 2023 Revenue Achieved QoQ Growth of 13.2%67.4Gross Profit Margins Reached Record Highs15%Smartphone Gross Profit Margin8.7%8.9%8.2%11.2%13.3%Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 202316.8%16.6%17.2%19.5%21.0%Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023%Overall Gross Profit Margin%AIoT Gross Profit Margin14.3%13.5%14.3%15.7%17.6%Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 202316Operating Expenses1Decreased by RMB1.1 billion YoY9.8 9.4 10.6 8.2 8.7 0.6 0.8 1.2 1.1 1.4 Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Operating expenses(excluding expenses related to smart EV and other new initiatives2)Expenses related to smart EV and other new initiatives2RMB BillionsOperating Expenses11.99.410.210.410.21 Excluding expenses related to smart EV and other new initiatives.Expenses related to smart EV and other new initiatives do not include share-based compensation expenses related to smart EV and other new initiatives2 Expenses related to smart EV and other new initiatives do not include share-based compensation expenses related to smart EV and other new initiatives2.12.11.53.25.10.60.81.21.11.43.0%3.0%2.2%5.4%7.6%Q2 2022Q3 2022Q4 2022Q1 2023Q2 202317Adjusted Net Profit Increased 147.0%YoYAdjusted Net Profit1Expenses related to smart EV and other new initiatives2RMB BillionsAdjusted Net Profit11 Defined as profit for the period,as adjusted by adding back(i)share-based compensation,(ii)net fair value changes on investments,(iii)amortization of intangible assets resulting from acquisitions,(iv)changes of value of financial liabilities to fund investors,and(v)income tax effects of non-IFRS adjustments2 Expenses related to smart EV and other new initiatives do not include share-based compensation expenses related to smart EV and other new initiativesAdjusted Net Profit1MarginLowest Inventory Levels in 10 Quarters181 Including work in progress,spare parts,and others17.2 19.6 17.1 16.9 11.4 32.5 27.3 28.7 22.0 22.7 10.4 9.0 8.1 7.3 7.7(2.4)(2.9)(3.5)(3.7)(3.3)Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Raw materials Finished goodsOthers1Provision for impairmentRMB BillionsInventory57.853.050.442.638.5Strong Cash Position1994.6113.2Q1 2023Q2 2023Our cash resources were approximately RMB113.2 billionCash Resources1RMB Billions1 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 through profit or loss,(v)short-term investments measured at amortized cost,(vi)long-term bank deposits and(vii)other investments included in long-term investments measured at fair value through profit or lossContinued to Execute Our 2023 Operation Strategies20Prudent OperationsContinue to Invest in the FutureSmartphone PremiumizationDual Emphasis on Scale and ProfitabilityCost Control and Efficiency Improvement22Achieve Carbon Neutrality by 2040By 2040Achieve carbon neutrality in our own operations of our existing businesses1100%renewable energy1 Based on our latest earnings announcement,our existing businesses include smartphones,IoT and lifestyle products,internet services,and othersSmartphones24Resilient Performance Despite Macroeconomic HeadwindsIn Q2 2023,smartphones revenue was RMB36.6 billionSmartphone shipments were 32.9 million unitsASP increased to RMB1,112,up 2.8%YoYGross profit margin reached 13.3%,a recordhighRMB BillionsSmartphones Revenue42.3 35.0 36.6 Q2 2022Q1 2023Q2 202325VendorQ2 2023 Shipments(Million Units)Q2 2023 Market ShareQoQ Shipments Changes Samsung53.020.5%-12.2%Apple43.016.7%-25.8%Xiaomi33.212.9%8.8%OPPO25.29.8%-5.4%Transsion22.78.8%47.8%Others81.031.4%2.7%Total258.2100.0%-4.3%Source:Canalys,by shipmentsGlobal Smartphone Shipments Ranked No.3 in Q2 202326VendorQ2 2023 Shipments(Million Units)Q2 2023 Market ShareQoQ Shipments Changes vivo11.417.8%0.6%OPPO11.417.7%-9.8%Apple10.416.2%-22.2%HONOR10.316.0%5.6%Xiaomi8.613.4%1.4%Others12.219.0%0.7%Total64.3100.0%-5.0%Mainland China Smartphone Shipments Ranked No.5 in Q2 2023Source:Canalys,by shipments27Redmi K60 Ultra:Dual-chip Ultra PerformanceLaunched in Mainland China in August 2023120W Wired Charging 5,000mAhSony IMX800 Flagship SensorXiaomi AI Image Solution 2.0MediaTek Dimensity 9200+PerformanceCameraChargingPixelworksX7Sales Volume Exceeded 220,000 Units in the First Five Minutes of Sales Launch AIoTGlobal Leading Consumer AIoT Platform1Excluding smartphones,tablets and laptopsNumber of Connected Devices129526.9 558.3 589.4 618.0 654.5 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023MillionsMi Home App MAU70.8 72.4 75.8 78.1 82.9 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023