Summary of Xiaomi Corp 2Q25 Earnings Call Company Overview - **Company**: Xiaomi Corp - **Industry**: Technology Hardware - **Market Cap**: US$170,748 million - **Stock Rating**: Overweight - **Price Target**: HK$62.00 - **Current Stock Price**: HK$52.40 Key Financial Highlights - **Adjusted Net Profit**: Rmb10.831 billion, up 75.4% YoY and 1.5% QoQ, marking the highest quarterly profit in company history [1] - **Total Revenue**: Rmb115.956 billion, representing a 30% increase YoY and 4% QoQ [9] - **Revenue Breakdown**: - **AIoT**: Rmb38.7 billion, up 45% YoY, 18% above estimates [1] - **Electric Vehicles (EV)**: Rmb21.3 billion, more than doubled YoY, 6% above forecast [2] - **Smartphones**: Rmb45.5 billion, down 2% YoY, 8% below forecast [2] - **Internet Services**: Rmb9.1 billion, up 10% YoY, 5% below estimates; overseas revenue reached Rmb3.0 billion, up 12.6% YoY [2] Margin Analysis - **Gross Profit Margin (GPM)**: Improved by 1.8 percentage points YoY to 22.5%, but declined 0.3 percentage points QoQ [3] - **Smartphone GPM**: Declined to 11.5%, down 0.7 percentage points YoY and 0.9 percentage points QoQ [3] - **AIoT GPM**: Improved to 22.5%, but declined 2.7 percentage points QoQ [3] - **EV GPM**: Increased to 26.4%, up 3.3 percentage points QoQ [3] Future Outlook - **3Q-4Q25 Expectations**: EV delivery is anticipated to be the key driver for growth, with expectations of increased delivery volumes for the YU7 model, which has a higher average selling price (ASP) and better margins [4] - **Smartphone Margins**: Expected to hit bottom in 3Q25, with a potential turnaround in 4Q25 [4] Additional Insights - **AIoT and EV Growth**: Stronger-than-expected growth in AIoT and EV segments offset the weakness in smartphone sales, leading to revenue and gross profit exceeding estimates by 2-3% [8] - **Investor Sentiment**: Anticipation of increased EV delivery volumes is likely to improve investor sentiment in the second half of 2025 [8] Risks and Considerations - **Downside Risks**: Smartphone gross margin pressure due to inventory de-stocking and weak demand, along with fierce competition in the EV market [14] This summary encapsulates the key points from Xiaomi Corp's 2Q25 earnings call, highlighting financial performance, future outlook, and potential risks.

作者：情报员 天眼查资料显示，北京小米移动软件有限公司，成立于2012年，位于北京市，是一家以从事软件和信息 技术服务业为主的企业。企业注册资本148800万人民币。通过天眼查大数据分析，北京小米移动软件有 限公司共对外投资了4家企业，参与招投标项目139次，专利信息5000条，此外企业还拥有行政许可123 个。 本文源自：金融界 金融界2025年8月20日消息，国家知识产权局信息显示，北京小米移动软件有限公司取得一项名为"缺陷 检测方法及装置、终端及存储介质"的专利，授权公告号CN114531507B，申请日期为2020年11月。 ...

金融界2025年8月20日消息，国家知识产权局信息显示，北京小米移动软件有限公司取得一项名为"一种 资源冲突处理方法、装置及可读存储介质"的专利，授权公告号CN114557115B，申请日期为2022年01 月。 本文源自：金融界 作者：情报员 天眼查资料显示，北京小米移动软件有限公司，成立于2012年，位于北京市，是一家以从事软件和信息 技术服务业为主的企业。企业注册资本148800万人民币。通过天眼查大数据分析，北京小米移动软件有 限公司共对外投资了4家企业，参与招投标项目139次，专利信息5000条，此外企业还拥有行政许可123 个。 ...

Core Viewpoint - The electric vehicle (EV) business has become the biggest highlight for Xiaomi in the latest quarter, with both Morgan Stanley and UBS emphasizing that EV deliveries will be a key driver for the stock price in the second half of the year [1][5][11]. Financial Performance - Xiaomi's Q2 2025 adjusted net profit reached 10.831 billion RMB, a year-on-year increase of 75.4%, marking the highest quarterly profit in history [3]. - Total revenue for Q2 reached 115.956 billion RMB, a year-on-year growth of 30% and a quarter-on-quarter growth of 4%, exceeding Morgan Stanley's expectations by 3% [15]. - The company's overall gross margin improved to 22.5%, up 1.8 percentage points year-on-year, but down 0.3 percentage points quarter-on-quarter [8]. Business Segment Analysis - The EV business showed a gross margin of 26.4%, significantly up by 3.3 percentage points quarter-on-quarter, indicating strong profit potential [8]. - AIoT business gross margin was 22.5%, up 2.8 percentage points year-on-year but down 2.7 percentage points quarter-on-quarter [9]. - The smartphone business faced challenges with a gross margin of 11.5%, down 0.7 percentage points year-on-year and 0.9 percentage points quarter-on-quarter, reflecting intense market competition [10]. Electric Vehicle Business Insights - UBS maintains a delivery forecast of 720,000 units for 2026, assuming full capacity operation of the second-phase factory [14]. - The average selling price of EVs increased by 6.4% quarter-on-quarter to 254,000 RMB, driven by high-end models SU7 Ultra and YU7 [11]. - The strong order intake for the YU7 model is expected to drive EV delivery volumes, which will be a key catalyst for stock price growth in the second half of the year [13]. Market Outlook - Morgan Stanley maintains an "Overweight" rating with a target price of 62 HKD, indicating an 18% upside potential from the current stock price [1][5]. - The company's diversified business strategy is proving effective, with the rapid development of the EV business opening new growth avenues [17].

Core Viewpoint - The competition between Gree and Xiaomi in the air conditioning market is intensifying, with Xiaomi's market share rapidly approaching that of Gree, raising concerns about Gree's market position [1][3]. Market Share Analysis - As of July, the top five players in the Chinese air conditioning market are Midea (26.8%), Gree (17.2%), Xiaomi (13.7%), Haier, and Aux [3]. - Xiaomi's market share increased by 53.9% year-on-year, while Gree's share decreased by 16.9% [3]. - In the online market, Xiaomi's share reached 16.71%, surpassing Gree's 15.22%, and is close to Midea's 18.61% [5]. Consumer Demographics - Xiaomi has successfully attracted younger consumers, which poses a challenge for Gree, traditionally favored by older demographics who value Gree's established reputation for quality [6]. - The younger generation, particularly those born in the 90s and 00s, is becoming the primary consumer group, influencing market dynamics [6]. Ecosystem Advantage - Xiaomi benefits from a comprehensive ecosystem, which enhances its ability to attract and retain customers across various product categories, making it easier to gain market share compared to Gree [8]. - The brand loyalty developed through Xiaomi's ecosystem encourages consumers to choose Xiaomi products across different categories, while Gree's ecosystem remains relatively limited [8].

Core Viewpoint - Xiaomi has achieved significant growth in its second-quarter financial results, with a total revenue of 116 billion yuan, marking a year-on-year increase of 30.5%, and an adjusted net profit of 10.8 billion yuan, up 75.4% [5]. Group 1: Financial Performance - Xiaomi's total revenue for Q2 reached 116 billion yuan, a 30.5% increase year-on-year [5]. - The adjusted net profit for the same period was 10.8 billion yuan, representing a 75.4% year-on-year growth [5]. - Xiaomi has maintained over 100 billion yuan in revenue for three consecutive quarters [3]. Group 2: Automotive Business - The focus of attention has shifted from mobile phones to the automotive sector, with Xiaomi's new car deliveries reaching 81,302 units in Q2, a remarkable year-on-year increase of 197.7% [10]. - Cumulative deliveries of Xiaomi cars have exceeded 300,000 units since their launch 15 months ago [10]. - July marked the first month where deliveries surpassed 30,000 units [11]. Group 3: Smartphone Business - Despite a 2.1% year-on-year decline, the smartphone business generated 45.5 billion yuan in revenue [13]. - In Q2, Xiaomi shipped 42.4 million smartphones, with an average selling price of 1,073 yuan, achieving year-on-year growth for eight consecutive quarters [13]. - Xiaomi holds a 16.8% market share in the domestic market, ranking first, and a 23.4% share in Europe, ranking second [13]. Group 4: High-End Market Strategy - Xiaomi's high-end strategy has shown positive results, with a 24.7% market share in the 4,000-5,000 yuan price range, ranking first [14]. - The market share in the 5,000-6,000 yuan range increased by 6.5 percentage points year-on-year to 15.4% [14]. - R&D investment has significantly increased, with a quarterly expenditure of 7.8 billion yuan, up 41.2% year-on-year [14]. Group 5: Upcoming Products - Xiaomi's self-developed flagship SoC chip has begun mass production, with anticipation for its inclusion in the upcoming Xiaomi 16 series [15]. - The Xiaomi 16 series is expected to feature four versions, including a special edition with a magnetic lens attachment [16]. - The series will include advanced display technologies and upgraded camera specifications, maintaining a starting price similar to the previous generation at 4,299 yuan [22].

Group 1 - The "China Online Consumption Brand Index" (CBI) and "Global Brand China Online Top 500" (CBI500) show a growth in online consumer brand index from 63.38 in Q1 2025 to 65.17 in Q2 2025, indicating a trend towards purchasing quality brand products among Chinese consumers [1][2] - The CBI series, developed by Peking University and supported by Alibaba, is the first brand value assessment system based on actual consumer purchasing behavior, filling a gap in traditional macro indicators [2][6] - The CBI index reveals significant seasonal fluctuations in online consumption, with higher values in Q2 and Q4 due to major shopping events like 618 and Double 11, where consumers prefer quality brands over low-priced alternatives [3][5] Group 2 - The top five brands in the CBI500 for this quarter are Apple, Midea, Xiaomi, Haier, and Huawei, with Midea rising to second place due to increased sales and search volume in summer categories [7] - The CBI500 ranking reflects real consumer behavior, with seasonal changes in brand rankings driven by actual sales and search data during shopping festivals [7][8] - A new "Fast-Moving Consumer Goods (FMCG) New Brands List" has been introduced, highlighting the growth potential of emerging brands, with 48 out of 50 listed brands being new Chinese brands [8][9] Group 3 - The research indicates that attracting high-value consumer groups and encouraging repeat purchases are key factors for new brands transitioning from temporary popularity to sustained success [9] - Brands are advised to shift from a "traffic-driven" approach to "user lifecycle management" to effectively engage high-value users through product innovation and service experience [9]

Group 1 - Xiaomi Group reported a record high in Q2 revenue and net profit, achieving revenue of 116 billion yuan, a year-on-year increase of 30.5%, and an adjusted net profit of 10.8 billion yuan, a year-on-year increase of 75.4% [1] - The automotive business is entering a phase of rapid growth, with significant narrowing of losses and a key breakthrough in the high-end market. Revenue from smart electric vehicles and AI innovation businesses reached 21.3 billion yuan, a year-on-year increase of 234%, with operational losses of 300 million yuan, significantly reduced [1] - Xiaomi's automotive business will not engage in price wars, focusing instead on maintaining healthy business operations, with a goal to expand globally by 2027 [1] Group 2 - Despite intense price competition in the air conditioning market, Xiaomi's home appliance business continues to grow, with revenue from major appliances increasing by 66.2% year-on-year. Air conditioner shipments are expected to exceed 5.4 million units, a year-on-year increase of over 60%, setting a historical record [2] - Xiaomi is the only brand among the top ten online air conditioning brands to achieve both volume and price growth in the first half of the year [2]

他还重申：小米汽车不会参与任何的价格战，不内卷，小米汽车的业务健康度已经是业内一流的水平。 小米汽车2027出海的目标不变，我们已经在做汽车出海的前期调研和准备，中国汽车品牌就要到全球去 参与竞争，我们一起把中国汽车在全球范围之内做大和做强。 8月19日，小米集团发布第二季度业绩公告。第二季度，小米收入和净利润均创单季度历史新高，实现 营收1160亿元，同比增长30.5%；经调整净利润108亿元，同比增长75.4%。 8月20日，小米集团总裁卢伟冰发微博表示，小米集团第二季度财报再创历史新高！和大家汇报一下业 绩情况。 对于汽车业务什么时候扭亏为盈，全年交付目标是否有改变？卢伟冰在视频中表示，小米汽车的业务步 入规模增长的快车道，亏损大幅收窄，超高端实现了关键突破。 第二季度智能电动汽车及AI等创新业务收入213亿元，同比增长234%，业务经营亏损3亿元，大幅收 窄，下半年有望开始盈利。 "不过我们智能电动汽车及AI等创新业务2022年到2025年上半年累计费用投入超过300亿元，所以累计依 然有较大的亏损。" 责任编辑：李思阳 ...

Core Insights - Xiaomi Group reported a strong performance in Q2 2025, achieving revenue of RMB 115.96 billion, marking a 30.5% year-on-year increase, and a net profit of RMB 11.9 billion, with adjusted net profit reaching a record high of RMB 10.8 billion, up 75.4% year-on-year [1] Revenue Performance - For the first half of 2025, Xiaomi's total revenue reached RMB 227.25 billion, reflecting a 38.2% year-on-year growth, with adjusted profit at RMB 21.51 billion, a significant increase of 177.5% [1] - The gross profit for the first half was RMB 51.5 billion, up 46.2% from RMB 35.22 billion in the same period last year [1] Business Segment Analysis - The revenue from the smart electric vehicle and AI innovation segment in Q2 was RMB 21.3 billion, with smart electric vehicle revenue at RMB 20.6 billion and a gross margin of 26.4%. Operating losses narrowed from RMB 500 million in Q1 to RMB 300 million, with expectations of profitability in the second half of the year [1] - Xiaomi delivered 81,300 vehicles in Q2 2025, bringing the total for the first half to 157,000, nearing half of the annual target of 350,000 [1] IoT and Consumer Products - The IoT and consumer products segment achieved revenue of RMB 38.7 billion, a 44.7% increase from RMB 26.7 billion year-on-year, accounting for 33.4% of total revenue, with a gross margin improvement of 2.8% to 22.5% [2] - Major appliances saw significant growth, with air conditioner shipments exceeding 5.4 million units (over 60% growth), refrigerators at over 790,000 units (over 25% growth), and washing machines at over 600,000 units (over 45% growth) [2] Smartphone Business - The smartphone segment reported revenue of RMB 45.5 billion, a decline of 2.1% year-on-year, representing 39.3% of total revenue, down from 52.3% the previous year, with a gross margin of 11.5% [2] - Despite the revenue decline, Xiaomi remains among the top three smartphone manufacturers globally, with a market share of 14.7% and global shipments of approximately 4.24 million units [2] R&D Investment - Xiaomi increased its R&D spending in Q2 by 41.2% to RMB 7.8 billion, reflecting the company's commitment to enhancing its chip development capabilities [3]