Chinese device maker Xiaomi saw revenue growth rebound in the final quarter of 2023, driven by double-digit gains in smartphone sales, with net profit jumping sharply on one-offs. 

Net profit in Q4 surged 50.3 per cent year-on-year to CNY4.7 billion ($652.8 million), aided by a CNY1.3 billion investment gain and a jump in finance income of CNY600 million.

Total revenue increased 10.9 per cent to CNY73.2 billion. Smartphone sales grew 20.6 per cent to CNY44.2 billion, with shipments rising 23.9 per cent to 40.5 million units and the ASP dipping 2.6 per cent to CNY1,092.

The decline in ASP was attributed to strong growth in emerging markets such as Latin America and Africa, which have lower ASPs, partially offset by an increase in ASP in mainland China due to the launch of premium models in Q4.

In its earnings statement, the vendor highlighted inventory levels returned to normal, with raw material stocks falling nearly 24 per cent from a high in 2021 and finished goods down 5.6 per cent from a peak in 2022.

IoT and lifestyle products sales fell 5.1 per cent to CNY20.3 billion; internet services revenue rose 9.9 per cent to CNY7.9 billion, driven by gains in advertising. The number of connected IoT devices on its AIoT platform increased 25.5 per cent to 739.7 million at end-December.

R&D expenses in the quarter increased 16.2 per cent to CNY5.5 billion, primarily due to an increase in costs related to its smart EV business and other new initiatives.