XIAOMI(01810)2024-08-21 09:34Revenue and Profit - Xiaomi's total revenue for Q2 2024 reached RMB 88.9 billion, a 32.0% YoY increase[2] - Xiaomi's adjusted net profit for Q2 2024 was RMB 6.2 billion, a 20.1% YoY increase[2] - Total revenue for Q2 2024 was RMB 88.89 billion, up from RMB 67.35 billion in Q2 2023[16] - Adjusted net profit under non-IFRS measures was RMB 6.18 billion in Q2 2024, compared to RMB 5.14 billion in Q2 2023[16] - Total revenue increased by 32.0% from RMB 67.4 billion in Q2 2023 to RMB 88.9 billion in Q2 2024[18] - Adjusted net profit increased by 20.1% from RMB 5.1 billion in Q2 2023 to RMB 6.2 billion in Q2 2024[44] - Revenue grew 32% YoY to RMB 88.89 billion in Q2 2024 and 29.6% YoY to RMB 164.39 billion in H1 2024[92] - Net profit attributable to equity holders increased 38.9% YoY to RMB 5.1 billion in Q2 2024 and 17.9% YoY to RMB 9.28 billion in H1 2024[92] - Net profit for Q2 2024 was RMB 5.1 billion, up from RMB 4.2 billion in Q1 2024[76] - Adjusted net profit decreased by 4.9% from RMB 6.5 billion in Q1 2024 to RMB 6.2 billion in Q2 2024[76] - Net profit for the period was RMB 9,242,881 thousand with a net profit margin of 5.6%[79] - Non-IFRS adjusted net profit for the period was RMB 12,666,355 thousand with a net profit margin of 7.7%[79] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 9,280,063 thousand, an increase from RMB 7,873,814 thousand in the same period in 2023[108] Smartphone Business - Xiaomi's global smartphone shipments in Q2 2024 were 42.2 million units, a 28.1% YoY growth[4] - Xiaomi's high-end smartphone shipments in mainland China accounted for 22.1% of total smartphone shipments in Q2 2024, a 2.0 percentage point YoY increase[5] - Xiaomi's global smartphone shipments in Q2 2024 were 42.2 million units, a 28.1% YoY increase, with a 14.6% global market share[8] - Smartphone revenue increased by 27.1% from RMB 36.6 billion in Q2 2023 to RMB 46.5 billion in Q2 2024, driven by a 28.1% increase in smartphone shipments[22] - Smartphone cost of sales increased by 28.8% from RMB 31.7 billion in Q2 2023 to RMB 40.9 billion in Q2 2024, driven by increased sales and higher component costs[30] - Smartphone gross margin decreased from 13.3% in Q2 2023 to 12.1% in Q2 2024 due to intensified competition in mainland China and rising core component costs[38] - Smartphone revenue remained stable at RMB 46.5 billion in Q2 2024, with shipments increasing by 3.8% to 42.2 million units, despite a 3.6% decrease in ASP to RMB 1,103.5 per unit[50] - Smartphone gross margin decreased to 12.1% in Q2 2024 from 14.8% in Q1 2024, impacted by promotional activities and rising component costs[67] - Smartphone segment revenue increased to RMB 46,516,412 thousand in Q2 2024, up from RMB 36,595,461 thousand in Q2 2023[101] IoT and Lifestyle Products - Xiaomi's AIoT platform connected devices (excluding smartphones, tablets, and laptops) grew to 822.2 million, a 25.6% YoY increase[4] - Xiaomi's IoT and lifestyle products revenue in Q2 2024 reached a record high of RMB 26.8 billion, a 20.3% YoY increase, with a gross margin of 19.7%[10] - Xiaomi's AIoT platform connected 822.2 million devices (excluding smartphones, tablets, and laptops) as of June 30, 2024, a 25.6% YoY increase[10] - IoT and lifestyle products revenue increased by 20.3% from RMB 22.3 billion in Q2 2023 to RMB 26.8 billion in Q2 2024, reaching a historical high[23] - IoT and lifestyle products cost of sales increased by 17.1% from RMB 18.3 billion in Q2 2023 to RMB 21.5 billion in Q2 2024, driven by increased sales[31] - IoT and lifestyle products gross margin increased from 17.6% in Q2 2023 to 19.7% in Q2 2024, driven by higher margins in wearable products and smart home appliances[38] - IoT and lifestyle products revenue reached a record high of RMB 26.8 billion in Q2 2024, up 31.3% QoQ, driven by strong growth in smart home appliances[51] - IoT and lifestyle products segment revenue grew to RMB 26,760,314 thousand in Q2 2024, compared to RMB 22,253,866 thousand in Q2 2023[101] Internet Services - Xiaomi's global monthly active users reached 675.8 million in June 2024, an 11.5% YoY increase[4] - Internet services revenue reached RMB 8.3 billion in Q2 2024, a record high with an 11.0% YoY increase and a gross margin of 78.3%[12] - Global monthly active users reached 675.8 million in June 2024, up 11.5% YoY, with mainland China monthly active users at 164.4 million, up 10.1% YoY[12] - Internet services revenue increased by 11.0% from RMB 7.4 billion in Q2 2023 to RMB 8.3 billion in Q2 2024, reaching a historical high[24] - Internet services gross margin rose from 74.1% in Q2 2023 to 78.3% in Q2 2024, primarily due to increased advertising revenue and higher advertising margins[38] - Internet services revenue hit a record high of RMB 8.3 billion in Q2 2024, up 2.7% QoQ, primarily due to increased advertising revenue[52] - Internet services gross margin improved to 78.3% in Q2 2024, up from 74.2% in Q1 2024, driven by higher advertising revenue[68] - Internet services segment revenue rose to RMB 8,265,611 thousand in Q2 2024, up from RMB 7,444,079 thousand in Q2 2023[101] Smart Electric Vehicle Business - Xiaomi SU7 series delivered 27,307 units in Q2 2024, aiming for 100,000 cumulative deliveries by November 2024 and 120,000 by year-end[6] - Smart electric vehicle business revenue reached RMB 6.2 billion in Q2 2024, with 27,307 Xiaomi SU7 series vehicles delivered[14] - Xiaomi SU7 series cumulative delivery target for 2024 is 120,000 vehicles, with 100,000 expected to be delivered by November 2024[14] - Xiaomi SU7 Ultra prototype features a 1,548PS tri-motor all-wheel drive system and debuted the second-generation Kirin battery[14] - Smart electric vehicle revenue in Q2 2024 was RMB 6.2 billion, with 27,307 Xiaomi SU7 series vehicles delivered[26] - Smart electric vehicle revenue surged to RMB 6.2 billion in Q2 2024, up significantly from RMB 18.4 million in Q1 2024[54] - Smart electric vehicles and other innovative businesses recorded a gross margin of 15.4% in Q2 2024[38] - Smart electric vehicle gross margin increased to 15.4% in Q2 2024 from 12.6% in Q1 2024[68] - Operating expenses for the smart electric vehicle and other innovative business segments in Q2 2024 were RMB 2.9 billion[69] - The company officially launched its smart electric vehicle business on March 28, 2024, impacting financial performance[98] - The smart electric vehicle business is now reported as a separate segment due to its distinct product and customer base[99] R&D and Innovation - Xiaomi's R&D expenditure reached RMB 5.5 billion in Q2 2024, a 20.7% YoY increase, with R&D personnel accounting for 48.7% of total employees[6] - R&D expenses increased by 20.7% from RMB 4.6 billion in Q2 2023 to RMB 5.5 billion in Q2 2024, mainly due to higher expenses related to smart electric vehicles and other innovative businesses[39] - R&D expenses increased by 6.6% from RMB 5.2 billion in Q1 2024 to RMB 5.5 billion in Q2 2024[70] - R&D expenses rose 20.7% YoY to RMB 5.5 billion in Q2 2024 and 22.9% YoY to RMB 10.66 billion in H1 2024[92] - Total employee count reached 37,525 as of June 30, 2024, with 18,290 in R&D roles[88] Overseas Market - Xiaomi's overseas market revenue in Q2 2024 was RMB 38.1 billion, accounting for 42.8% of total revenue[5] - Overseas internet services revenue grew by 32.9% YoY to RMB 2.7 billion in Q2 2024, accounting for 32.1% of total internet services revenue[13] - Global other regions contributed 42.8% of total revenue in Q2 2024, amounting to RMB 38,075,160 thousand[103] - Xiaomi Technology India Private Limited faces investigations and notices from Indian authorities regarding compliance with income tax, customs, and foreign exchange regulations, with INR 46,165,134,000 (approximately CNY 4,023,291,000) restricted as of June 30, 2024[117] Gross Margin and Costs - Xiaomi's overall gross margin in Q2 2024 was 20.7%, with the smartphone×AIoT segment at 21.1% and smart EV segment at 15.4%[7] - Total cost of sales increased by 32.5% from RMB 53.2 billion in Q2 2023 to RMB 70.5 billion in Q2 2024[26] - Gross profit increased by 29.9% from RMB 14.2 billion in Q2 2023 to RMB 18.4 billion in Q2 2024, with gross margin decreasing from 21.0% to 20.7%[34] - Total gross profit and gross margin for Q2 2024 were RMB 18.4 billion and 20.7%, respectively, compared to RMB 14.2 billion in Q2 2023[35] - Total cost of sales increased by 20.1% to RMB 70.5 billion in Q2 2024, with the smartphone segment accounting for 46.0% of total revenue[55][59] - Gross profit rose by 9.3% to RMB 18.4 billion in Q2 2024, while gross margin declined to 20.7% from 22.3% in Q1 2024[64] - Gross profit increased 29.9% YoY to RMB 18.39 billion in Q2 2024 and 36.8% YoY to RMB 35.22 billion in H1 2024[92] - Cost of goods sold and license fees for Q2 2024 were RMB 64,865,246 thousand, compared to RMB 47,641,858 thousand in Q2 2023[105] Cash and Financial Position - Xiaomi's adjusted net profit in Q2 2024 was RMB 6.2 billion, a 20.1% YoY increase, with cash reserves of RMB 141 billion as of June 30, 2024[7] - Total cash resources as of June 30, 2024, amounted to RMB 141 billion[84] - Cash and cash equivalents as of June 30, 2024, were RMB 39.3358 billion[83] - Operating cash flow for Q2 2024 was RMB 11.8176 billion[83] - Investment cash outflow for Q2 2024 was RMB 8.0019 billion[83] - Financing cash inflow for Q2 2024 was RMB 566.3 million[83] - Capital expenditures for Q2 2024 totaled RMB 1.4313 billion[87] - Total borrowings as of June 30, 2024, were RMB 30 billion[86] - Fair value changes of investments for the period ended June 30, 2024, were RMB 2,853,149 thousand[79] - Total investment portfolio value decreased by 3.4% YoY to RMB 65.4 billion as of June 30, 2024[88] - Company recorded RMB 300 million in after-tax net income from investment disposals in Q2 2024[88] - Total assets increased to RMB 342.18 billion as of June 30, 2024, up from RMB 324.25 billion as of December 31, 2023[94] - Property, plant, and equipment rose to RMB 15.78 billion, a 15% increase from RMB 13.72 billion at the end of 2023[94] - Long-term bank deposits surged to RMB 32.99 billion, an 80% increase from RMB 18.29 billion at the end of 2023[94] - Inventory grew to RMB 51.52 billion, up 16% from RMB 44.42 billion at the end of 2023[94] - Cash and cash equivalents increased to RMB 39.34 billion, up 17% from RMB 33.63 billion at the end of 2023[94] - Total equity rose to RMB 173.20 billion, up 5.4% from RMB 164.26 billion at the end of 2023[95] - Net cash from operating activities was RMB 2.53 billion, compared to RMB 20.16 billion in the same period of 2023[96] - Trade receivables and bills as of June 30, 2024, amounted to RMB 14,217,264 thousand, an increase from RMB 12,467,886 thousand as of December 31, 2023[112] - Inventory as of June 30, 2024, was RMB 54,082,758 thousand, up from RMB 46,599,233 thousand as of December 31, 2023[113] - Trade payables as of June 30, 2024, totaled RMB 66,772,473 thousand, compared to RMB 62,098,500 thousand as of December 31, 2023[116] - Short-term investments measured at fair value through profit or loss as of June 30, 2024, were RMB 18,561,997 thousand, down from RMB 20,193,662 thousand as of December 31, 2023[110] - Long-term investments measured at fair value through profit or loss as of June 30, 2024, were RMB 33,360,313 thousand, compared to RMB 34,444,516 thousand as of December 31, 2023[110] - The company's borrowings as of June 30, 2024, were RMB 21,037,527 thousand, a decrease from RMB 21,673,969 thousand as of December 31, 2023[114] - The credit loss provision for trade receivables and bills as of June 30, 2024, was RMB 568,448 thousand, up from RMB 316,958 thousand as of December 31, 2023[112] Sales and Marketing - Sales and marketing expenses grew by 31.8% from RMB 4.5 billion in Q2 2023 to RMB 5.9 billion in Q2 2024, driven by increased overseas logistics, advertising, and personnel costs[39] - Sales and promotion expenses rose by 7.6% from RMB 5.5 billion in Q1 2024 to RMB 5.9 billion in Q2 2024[71] Other Income and Expenses - Other income increased by 55.5% from RMB 200 million in Q2 2023 to RMB 300 million in Q2 2024, mainly due to higher government subsidies[41] - Other income increased by 82.5% from RMB 200 million in Q1 2024 to RMB 300 million in Q2 2024[72] - Financial income net decreased by 48.6% from RMB 1.5 billion in Q1 2024 to RMB 800 million in Q2 2024[74] - Income tax expenses increased by 53.4% from RMB 1.0 billion in Q1 2024 to RMB 1.6 billion in Q2 2024[75] - Other net gains/(losses) shifted from a loss of RMB 69.5 million in Q1 2024 to a gain of RMB 549.6 million in Q2 2024[73] - Employee benefits expenses for Q2 2024 were RMB 5,358,712 thousand, up from RMB 4,418,111 thousand in Q2 2023[105] - Current income tax expense for Q2 2024 was RMB 1,626,168 thousand, compared to RMB 1,476,060 thousand in Q2 2023[106] - Total compensation expenses increased by 3.4% QoQ to RMB 5.4 billion in Q2 2024[88] Share