XIAOMI(HK:01810) 3 6 Ke·2025-08-21 09:31Core Viewpoint - Xiaomi has reported its strongest quarterly performance to date, with significant revenue growth and a successful high-end strategy in the smartphone market, while also expanding its IoT and electric vehicle segments [1][2][3]. Financial Performance - Revenue for Q2 reached 116 billion yuan, a year-on-year increase of 30.5%, marking a historical high for five consecutive quarters [1]. - Gross margin improved to 22.5%, up 1.8 percentage points year-on-year [1]. - Adjusted net profit reached 10.8 billion yuan, a year-on-year increase of over 75%, also a historical high for three consecutive quarters [1]. Smartphone Business - Smartphone revenue was 45.5 billion yuan with a shipment volume of 42.4 million units, achieving year-on-year growth for eight consecutive quarters [3]. - Xiaomi's global smartphone market share reached 14.7%, ranking third, while it ranked first in mainland China [3]. - The high-end strategy has led to an increase in average selling price (ASP), with market shares in the 4000-5000 yuan and 5000-6000 yuan segments rising to 24.7% and 15.4%, respectively [6][7]. IoT and Consumer Products - IoT and consumer products revenue was 38.7 billion yuan, a year-on-year increase of 44.7%, driven by growth in major appliances and wearable products [8]. - Smart home appliances saw a revenue increase of 66.2%, indicating a successful strategy against price competition [8]. Electric Vehicle Business - In Q2, Xiaomi delivered 81,302 vehicles, a year-on-year increase of 197.7% [10]. - The new Xiaomi YU7 model achieved over 240,000 orders within 18 hours of launch [10]. - Revenue from smart electric vehicles reached 21.3 billion yuan, accounting for 18.3% of total revenue [10]. Ecosystem and User Engagement - Xiaomi's ecosystem includes over 730 million monthly active users globally, with a significant increase in users owning multiple connected devices [20][21]. - The average annual spending per user is 12,000 yuan, four times that of typical brand users [21]. - The company has a strong focus on user feedback and co-creation, leading to successful product launches [15]. Research and Development - Xiaomi has 22,300 R&D personnel and plans to invest 300 billion yuan in R&D over the next five years, with a focus on chip development [19]. Market Position and Valuation - Xiaomi's unique business structure and ecosystem provide a competitive edge, with a projected market value of 1.62 trillion yuan for 2025 [26]. - The company is positioned not just as a device manufacturer but as a platform for interconnected digital life, enhancing its long-term value potential [27].