Xiaomi revenue of $67.4 billion in the second quarter of 2023, down 4% year-on-year,Adjusted profit of $514B, up 147% YoY, significantly better than market expectations。In the decline in revenue, adjusted profit rose sharply for one reason:cost control. As with the previous quarter,Xiaomi maintains profits by drastically reducing expenses。Revenue fell 4%, but cost of sales decreased by 8.9%, driven by a decrease of 8.9%Gross profit margin rose to 21%, record highbelongs to the more dazzling part of this performance. Overseas market revenue of $270.8 billion, down 18% year-on-year, as in the previous quarter, was mainly due to the low sales in India. In terms of operating expenses, sales and promotion expenses and administrative expenses decreased by 16% and 13% respectively, a total savings of $1 billion, which is one of the main reasons for the substantial growth. Automotive R&D costs of $1.4 billion, up 129% yoy, the amount reached a record high, reflecting Xiaomi's straight sprint on the car.If you exclude R&D expenses, adjusted profit could reach $61.9 billion, almost at a historical peak of $6,322 million in the second quarter of 2021. In summary, the decline in sales costs and the reduction in operating expenses are the reasons for this growth. In terms of inventory, it has fallen to its lowest level in ten quarters.
In terms of segment revenue, smartphone shipments in the second quarter amounted to 39.9 million, down 15.9% yoy, similar to IDC's figures released on August 11. Hand In 2023...