XIAOMI(HK:01810) Di Yi Cai Jing·2025-08-19 15:22Core Viewpoint - Xiaomi Group reported a strong revenue growth of 30.5% year-on-year for Q2, driven by IoT and lifestyle products, despite a slight decline in smartphone revenue [2] Financial Performance - Q2 revenue reached 116 billion RMB, with a net profit of 10.8 billion RMB, marking a 75.4% increase year-on-year [2] - Smartphone revenue was 45.5 billion RMB, down 2.1% year-on-year, attributed to a decrease in average selling price (ASP) in overseas markets [2] - IoT and lifestyle products generated 38.7 billion RMB, showing a significant growth of 44.7% year-on-year [2] - Internet services revenue was 9.1 billion RMB, up 10.1% year-on-year [2] - Revenue from innovative segments, including electric vehicles and AI, totaled 21.3 billion RMB, with a loss of 300 million RMB [2] Margin Analysis - The gross margin for smartphones decreased from 12.1% in the previous year to 11.5% in Q2, influenced by increased promotional activities and competition [2][3] - The company anticipates a recovery in smartphone gross margin in Q4, focusing on high-end products and investments in chips, operating systems, and AI [3] Market Outlook - The overall smartphone market growth is expected to be flat or minimal, leading Xiaomi to revise its sales target to approximately 175 million units for the year [3] - The company emphasizes optimizing product structure and improving ASP in response to market conditions [3] R&D Investment - R&D expenditure for Q2 was 7.8 billion RMB, a 41.2% increase year-on-year, with an expected total investment of 30 billion RMB for the year [4] - Cash and cash equivalents decreased from 39.336 billion RMB to 36 billion RMB year-on-year [4]