Beijing (ZXZC)- On May 24, Chinese tech giant Xiaomi Group unveiled its financial performance for the first quarter of 2023, with a quarterly revenue of 59.477 billion yuan, which dropped 18.9% year over year.

Photo credit: Xiaomi

The company’s adjusted net profit stood at 3.233 billion yuan in Q1 2023. Xiaomi said that its quarterly expenses from innovative businesses like smart electric vehicles amounted to 1.1 billion yuan.

Despite the prevailing global economic uncertainties, Xiaomi remained steadfast in its core business operations, adhering to a strategy that emphasizes both scale and profitability. The company focused on optimizing operational efficiency and making steady investments for the future. In the first quarter of this year, Xiaomi's R&D expenditure reached 4.1 billion yuan, representing a 17.7% hike year-on-year. 

The company expects its total R&D investment to exceed 20 billion yuan for the full year of 2023.

Additionally, Xiaomi provided updates on its automotive business. During a conference call following the release of the Q1 financial report, Xiaomi Group's President, Lu Weibing, confirmed that the company's car-making venture would proceed as planned and was on track to meet or slightly exceed expectations. Moreover, Xiaomi's automotive division is scheduled to conduct winter and summer testing this year.

Lu Weibing also highlighted the significant presence of Xiaomi's AI team, which comprises over 1,200 professionals engaged in various areas of business, including the smart voice assistant “Xiao Ai” and autonomous driving.