Core Viewpoint - Xiaomi Group reported record-high revenue and profit for Q2 and the first half of 2025, achieving growth in a challenging global consumer electronics market [1][4]. Financial Performance - Total revenue for Q2 reached 116 billion yuan, a year-on-year increase of 30.5% and a quarter-on-quarter increase of 4.2% [4]. - Adjusted net profit for Q2 was 10.8 billion yuan, a significant year-on-year increase of 75.4%, marking the fifth consecutive quarter of record highs [4]. - For the first half of 2025, total revenue was 227.2 billion yuan, with adjusted net profit of 21.5 billion yuan, a year-on-year growth of 69.8% [4]. - Overall gross margin improved to 22.5%, with the electric vehicle segment achieving a gross margin of 26.4% [4]. Business Segments - Xiaomi's smartphone business showed resilience with Q2 global shipments of 42.4 million units, maintaining a top-three position globally and regaining the top spot in the domestic market [6]. - The electric vehicle segment delivered over 81,000 vehicles in Q2, with a significant monthly delivery of over 30,000 units in July, and a gross margin of 26.4% [8]. - The smart home appliance segment saw a revenue increase of 66.2% in Q2, with air conditioning units showing a shipment of over 5.4 million units [9]. Strategic Outlook - Xiaomi aims for a 1% annual market share growth domestically and targets entering the "200 million club" in global sales over the next three to five years [7]. - The company plans to expand in emerging markets while focusing on high-end product growth in mature markets like Europe and Southeast Asia [7]. - Xiaomi's electric vehicle business is expected to achieve profitability in the second half of the year, with plans to enter the European market by 2027 [8]. Technological Advancements - Xiaomi has invested heavily in R&D, with 22,600 researchers and a Q2 R&D expenditure of 7.8 billion yuan, a year-on-year increase of 41.2% [10]. - The company successfully developed the self-researched O1 flagship chip, which is a significant step towards high-end positioning and technological independence [11]. - Xiaomi's ecosystem is supported by its self-developed operating system, 澎湃OS, enhancing seamless connectivity across devices [11]. User Engagement - As of June 2025, Xiaomi's global monthly active users reached 731 million, with nearly 1 billion connected IoT devices [12]. - The electric vehicle segment has attracted high-value users, with a notable percentage of new users coming from iPhone owners [13].

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 66.86 HKD [1][7] Core Views - The company has shown strong product innovation and delivery capabilities, with record monthly deliveries in its automotive segment and significant growth in IoT and home appliance businesses [6][10] - The revenue and adjusted net profit reached new quarterly highs, indicating robust financial performance [10] - The automotive gross margin has significantly improved, and the IoT business is experiencing rapid growth, contributing to the overall positive outlook for the company [6][10] Financial Performance Summary - The company’s revenue for 2023 is projected at 270,970 million HKD, with a year-on-year growth of -3%. By 2025, revenue is expected to reach 484,886 million HKD, reflecting a 33% growth [9] - Operating profit is forecasted to increase from 20,009 million HKD in 2023 to 49,537 million HKD in 2025, with a substantial year-on-year growth of 102% [9] - The net profit attributable to the parent company is expected to grow from 17,475 million HKD in 2023 to 42,655 million HKD in 2025, marking an 80% increase [9] - The earnings per share (EPS) is projected to rise from 0.67 HKD in 2023 to 1.64 HKD in 2025 [9] Product and Market Performance - In Q2 2025, the company achieved a revenue of 1160 million HKD, a 30% year-on-year increase, with an adjusted net profit of 108 million HKD, up 75% year-on-year [10] - The automotive segment generated 206 million HKD in revenue in Q2 2025, with a gross margin of 26.4%, indicating strong consumer acceptance of high-end models [10] - The IoT and lifestyle product segment reached a record revenue of 387 million HKD in Q2 2025, growing 45% year-on-year, with significant contributions from major appliances [10]

Core Insights - Xiaomi is facing a crisis in its smartphone business, with Q2 2025 revenue at 45.5 billion yuan, a decrease of 1 billion yuan year-on-year, despite a 4.5 percentage point increase in market share for mid-to-high-end models [1] - The company is shifting focus to the African market, appointing several executives to enhance its presence there, as indicated by CEO Lei Jun's statement on increasing investment in Africa [1][2] - The African smartphone market is highly competitive, with local brand Transsion holding a dominant position, making it challenging for Xiaomi to gain market share [5][7] Xiaomi's Strategy in Africa - Xiaomi's initial entry into Africa began in 2015, but it struggled to establish a strong presence due to reliance on a single distributor and lack of direct channels [2] - The company has since adopted a "ground strategy," focusing on low-cost sub-brands like Redmi and A series, and has expanded operations to 16 African countries by 2024 [2][5] - Xiaomi's approach includes local partnerships and direct store openings to improve market penetration in smaller cities and towns [2] Competitive Landscape - Transsion has been operating in Africa for over 15 years, establishing a robust sales network and catering to local consumer preferences with tailored products [4][5] - In Q1 2025, Transsion achieved a market share of 47% in Africa, while Xiaomi's share was only 13%, indicating the significant challenge Xiaomi faces in this market [5][6] - Other competitors like Samsung and OPPO are also active in Africa, with Samsung holding a 21% market share in Q1 2025 [6][7] Market Dynamics - The African smartphone market is characterized by a growing demand for affordable devices, with a 6% year-on-year increase in shipments in Q1 2025 [13] - Despite the overall growth, there are disparities in market performance across different countries, with some experiencing declines due to economic factors [14][15] - Xiaomi's strategy to focus on low-cost models aligns with the purchasing power of African consumers, who are increasingly seeking value [15] Future Prospects - Xiaomi aims to leverage its experience from the Indian market to establish a strong foothold in Africa, targeting the middle and lower segments with competitively priced products [18][24] - The company is also exploring opportunities in the electric vehicle market in Africa, which presents a significant growth potential given the low penetration of electric vehicles [22][25] - By building a localized team and enhancing its service offerings, Xiaomi hopes to create a comprehensive ecosystem that includes both smartphones and related services [19][20]

Core Insights - Xiaomi Group reported a total revenue of 116 billion yuan for Q2 2025, representing a year-on-year growth of 30.5%, and a net profit of 11.9 billion yuan, up 134.2% year-on-year [1] - Adjusted net profit, based on non-IFRS measures, reached 10.8 billion yuan, reflecting a 75.4% increase year-on-year [1] Financial Performance - Revenue and profit reached historical highs, indicating strong performance in the second quarter [2] - The company’s air conditioning sales exceeded 5 million units, contributing significantly to the IoT business revenue growth [6][21] - The overall growth in the home appliance sector was reported at 66%, with air conditioning being a standout category [21] IoT and Retail Expansion - The AIoT segment showed robust growth in both domestic and international markets, driven by the expansion of retail channels [3][4] - Xiaomi plans to open 400 to 500 new retail stores globally by the end of the year, with a target of over 1,000 stores in the following year [4] - The company’s IoT business is expected to benefit significantly from the establishment of a controlled retail channel [4] Mobile Business Insights - The mobile business experienced a slight decline in gross margin due to rising component costs, particularly in memory and battery materials [5][6] - The company anticipates a recovery in mobile gross margins by Q4 2025, coinciding with the launch of new products [5][6] - Long-term gross margin improvement in the mobile segment is expected to be driven by a focus on high-end products and technological investments [6] R&D and AI Investments - R&D spending increased by over 40% year-on-year, with significant investments in core technologies such as chips and AI [7][25] - The company is committed to enhancing its AI capabilities, with 25% of its R&D budget allocated to AI technology development [25] Automotive Business - The automotive segment achieved a gross margin of 26.4%, benefiting from a strategic focus on high-end vehicle offerings [10] - The average selling price of vehicles reached approximately 253,000 yuan, indicating a successful high-end market entry [10] - The company aims to achieve profitability in its automotive business by the second half of the year, although cumulative profitability remains a long-term goal [11][18] International Market Strategy - Xiaomi's international internet business is growing faster than its domestic counterpart, with a focus on localized operations to enhance user engagement [12][13] - The company plans to enter the European market by 2027, leveraging its established business model from China [19][20] Home Appliance Sector - The home appliance business is expected to continue its growth trajectory, with significant potential remaining in the Chinese market [24] - The company is focused on maintaining competitive pricing and product quality despite industry-wide price wars [21][24]

Core Viewpoint - Xiaomi Group reported strong financial results for Q2 2025, with total revenue reaching 1160 billion RMB, a year-on-year increase of 30.5%, and net profit of 119 billion RMB, up 134.2% [2][4]. Financial Performance - Total revenue for Q2 2025 was 115,956.1 million RMB, a 30.5% increase from 88,887.8 million RMB in Q2 2024, and a 4.2% increase from 111,293.3 million RMB in Q1 2025 [5]. - Gross profit reached 26,101.0 million RMB, up 41.9% year-on-year [5]. - Adjusted net profit was 10,830.7 million RMB, reflecting a 75.4% increase compared to 6,175.4 million RMB in Q2 2024 [5]. Business Segments - The smartphone segment saw a 27.6% share of high-end smartphone sales in mainland China, a 5.5% increase year-on-year, with significant market share gains in the 4000-5000 RMB and 5000-6000 RMB price segments [5][7]. - The automotive segment reported revenue exceeding 200 billion RMB, with Q2 deliveries reaching 81,302 units, totaling over 300,000 units delivered by July 10 [7][8]. - The IoT and consumer products segment generated 387 billion RMB in revenue, a 44.7% increase, with smart home appliances growing by 66.2% [8]. R&D and Future Strategy - R&D investment in Q2 reached 78 billion RMB, a 41.2% increase, with an expected total investment of 300 billion RMB for the year [8]. - Xiaomi plans to open 1,000 new stores annually overseas, aiming for 10,000 stores in five years, enhancing its retail strategy [9].

Core Viewpoint - Xiaomi is aggressively pursuing a "high-end" strategy to compete with global leaders like Apple, as evidenced by its recent financial performance and strategic focus on high-end products [3][4]. Financial Performance - In Q2, Xiaomi reported revenue of 116 billion yuan, a year-on-year increase of 30.5%, marking the third consecutive quarter of exceeding 100 billion yuan [2]. - Adjusted net profit reached 10.8 billion yuan, up 75.4% year-on-year, with multiple metrics hitting historical highs [2]. Strategic Focus - Xiaomi's emphasis on "high-end" products was highlighted by President Lu Weibing, who mentioned the term 10 times during the earnings call, indicating its critical importance to the company's strategy [2][3]. - The company is investing heavily in research and development, with R&D spending reaching 7.8 billion yuan in Q2, a 41.2% increase year-on-year, and the number of R&D personnel exceeding 22,000 [4]. Product Development - Xiaomi's high-end strategy extends beyond smartphones to include its entire ecosystem, including automotive and home appliances [4]. - The average selling price of Xiaomi's cars has surpassed 250,000 yuan, positioning them competitively against brands like BMW and Mercedes [4]. Market Position - In the Chinese market, Xiaomi maintained a leading smartphone market share of 16.8% in Q2, with high-end models accounting for 27.6% of its sales [5]. - The company has seen significant growth in the high-end segment, with market share in the 4,000-6,000 yuan price range rising to 24.7%, an increase of 4.5 percentage points year-on-year [5]. Competitive Landscape - Xiaomi's competition with Huawei and Apple is intensifying, particularly in the high-end market, where Huawei has regained its position as a leading player [5][11]. - Despite Xiaomi's growth, it still lags behind Apple in terms of overall scale and profitability, with Apple's revenue for Q3 2025 reaching approximately 940.36 billion yuan [11]. Global Expansion - Xiaomi's international strategy focuses on emerging markets, with over half of its sales in the high-end segment coming from overseas [7]. - The company has achieved significant market penetration in Southeast Asia and ranks second in Europe and Latin America [7]. Future Outlook - Xiaomi aims to reach a target of shipping 200 million smartphones, positioning itself as a potential challenger to Apple and Samsung in the global market [7]. - The ongoing competition between Xiaomi and Apple is expected to be a significant narrative in the global tech industry in the coming years [12].

Group 1 - The core viewpoint of the report indicates that due to weak smartphone demand and rising raw material costs, the adjusted net profit forecast for Xiaomi Group-W (01810) for 2025 has been lowered by 5.9% to 46.139 billion yuan, while the profit forecast for 2026 remains unchanged [1] - The current stock price corresponds to a price-to-earnings ratio of 27.0 times for 2025 and 18.5 times for 2026, with a target price of 70.0 HKD, implying a potential upside of 33.6% [1] Group 2 - In Q2 2025, the adjusted net profit exceeded expectations, with revenue reaching 1159.56 billion yuan, a year-on-year increase of 30.5%, slightly below expectations by 1.7%, while the adjusted net profit attributable to shareholders was 10.831 billion yuan, a year-on-year increase of 75.4%, exceeding expectations by 6.4% [2] - The growth in IoT business revenue was a key driver, alongside better-than-expected automotive gross margins [2] Group 3 - In Q2 2025, Xiaomi's smartphone shipments increased by 0.6% year-on-year to 42.4 million units, maintaining a global market share of 14.7%, ranking third [3] - Market share improvements were noted in Southeast Asia, Europe, Latin America, and Africa, with increases of 1.6 percentage points, 3.4 percentage points, 1.0 percentage point, and 2.7 percentage points respectively [3] - The ASP (average selling price) of smartphones decreased by 2.7% year-on-year to 1,073 yuan, while the smartphone gross margin fell by 0.7 percentage points to 11.5% due to a higher proportion of low-margin products [3] Group 4 - IoT revenue grew by 44.7% year-on-year to 38.712 billion yuan in Q2 2025, driven by significant growth in major appliances, wearables, and tablets, with air conditioner shipments exceeding 5 million units [4] - The IoT gross margin decreased by 2.7 percentage points to 22.5% due to the impact of the "618" promotional event, but it remained at a good level [4] - Internet business revenue increased by 10.1% year-on-year to 9.097 billion yuan, with a gross margin decline of 3.0 percentage points to 75.4%, attributed to changes in advertising revenue structure [4] Group 5 - In Q2 2025, the company delivered 81,300 vehicles, with an ASP of 253,700 yuan, and the gross margin increased by 3.27 percentage points to 26.4%, primarily due to economies of scale and increased deliveries of the Ultra model [5] - The company is optimistic about the profit elasticity from automotive order deliveries and the long-term ecological value of its "people, vehicles, and home" strategy [5]

Group 1 - Xiaomi Group-W (01810.HK) reported a record revenue of RMB 116 billion and a net profit of RMB 10.8 billion for Q2 2025, marking a year-on-year increase of 30.5% and 75.4% respectively [1] - The "Mobile × AIoT" segment generated RMB 94.7 billion in revenue, up 14.8% year-on-year, while the "Smart Electric Vehicles and AI Innovation" segment reached RMB 21.3 billion, both achieving historical highs [1] - The total smartphone shipments for Q2 2025 were 42.4 million units, reflecting a 0.6% year-on-year growth, maintaining a global market share of 14.7% and ranking among the top three for 20 consecutive quarters [2] Group 2 - Xiaomi's active user base reached a record high of 731.2 million globally by June 2025, representing an 8.2% year-on-year increase [2] - The number of connected IoT devices on Xiaomi's AIoT platform grew to 989.1 million, a 20.3% increase year-on-year [2] - Research and development expenditure for Q2 2025 was RMB 7.8 billion, up 41.2% year-on-year, with the number of R&D personnel reaching a historical high of 22,641 [2] Group 3 - Xiaomi's retail presence expanded significantly, with over 1,700 new Xiaomi Home stores opened in mainland China, bringing the total to over 17,000, while international retail stores reached approximately 200 [2]

Core Insights - Xiaomi Group reported a total revenue of 116 billion RMB for Q2 2025, marking a year-on-year increase of 30.5%, and net profit reached 11.9 billion RMB, up 134.2% [2][5] - The company achieved historical highs in multiple metrics, including core and innovative business revenues, with operating income growing over 30% for five consecutive quarters [5] Revenue Breakdown - Revenue for Q2 2025 was 115,956.1 million RMB, a 30.5% increase from 88,887.8 million RMB in Q2 2024, and a 4.2% increase from 111,293.3 million RMB in Q1 2025 [8] - Gross profit reached 26,101.0 million RMB, up 41.9% year-on-year, while operating profit surged 128.2% to 13,436.7 million RMB [8] Business Segments Performance - In the smartphone segment, Xiaomi's high-end smartphone sales accounted for 27.6% of total sales in mainland China, a 5.5% increase year-on-year, with significant market share gains in the 4000-5000 RMB and 5000-6000 RMB price segments [10][12] - The automotive division reported revenue exceeding 20 billion RMB, with Q2 deliveries reaching 81,302 units, bringing total deliveries to over 300,000 units as of July 10 [10][12] Home Appliances and R&D - The IoT and lifestyle products segment generated 387 billion RMB in revenue, a 44.7% increase, with smart home appliances growing by 66.2% [12] - R&D investment for Q2 reached 78 billion RMB, a 41.2% increase, with an expected total investment of 300 billion RMB for the year [12] Retail Strategy - Xiaomi plans to expand its retail presence, aiming for 30,000 stores in China and 1,000 overseas stores annually, with a long-term goal of establishing 10,000 overseas Xiaomi stores within five years [13][14]

AIoT（人工智能与物联网）业务撑起了小米上半年的增长。 2025年8月19日，小米集团发布了截至6月30日的半年报，数据显示，其总营收同比增长38.2%至2272.49亿元，毛利同比增长46.2%至515.07亿元，两项数据 均创新高。 具体来看，集团上半年智能手机业务保持稳健增长，收入达961.32亿元，毛利为115.02亿元；AIoT业务收入同比增长50.7%至710.51亿元，创历史新高，毛利 达168.76亿元，超越手机业务成为贡献利润的第一主力。 回溯十年前，雷军与董明珠的"10亿赌约"将传统制造与互联网模式的碰撞推向风口，而后两家企业在技术路线、市场份额等领域的纠葛持续发酵。2025年3 月，格力将全国门店陆续更名"董明珠健康家"，试图以个人IP绑定家电叙事。 而在当下，小米通过"手机×AIoT×智能汽车"的生态协同，已将类似的生活场景需求转化为实实在在的业务增长，半年报数据清晰勾勒出小米的蜕变。 增长中承压的基本盘 从单一手机厂商成长为覆盖"人车家全生态"的生态型科技集团，多业务协同的增长逻辑在小米身上愈发清晰。 2025年上半年，小米总营收及毛利同比分别增长38.2%、46.2%，而经营利润 ...