Core Insights - Xiaomi Group reported a total revenue of 1159.56 billion yuan for Q2 2025, a year-on-year increase of 30.5%, and a net profit of 108.31 billion yuan, up 75.4% year-on-year [1][2] - Despite a challenging global smartphone market, Xiaomi's smartphone business showed positive growth, particularly in overseas markets, achieving significant market share increases in Southeast Asia and Europe [1][6] - The company aims to enter the "200 million club" in smartphone sales, positioning itself alongside Apple and Samsung as a leading player in the industry [8][9] Financial Performance - Xiaomi's smartphone and AIoT business generated 946.93 billion yuan in revenue, a 14.8% year-on-year increase, accounting for 81.7% of total revenue [5] - Smartphone revenue for Q2 was 455.2 billion yuan, a decrease of approximately 10% from Q1, primarily due to a decline in average selling price (ASP) [5][11] - ASP decreased from 1210.6 yuan in Q1 to 1073.2 yuan in Q2, influenced by a higher proportion of lower-priced smartphones sold in overseas markets [5][11] Market Position - Xiaomi's smartphone shipments reached 42.4 million units in Q2, a 1.5% increase from the previous quarter, with a market share of 16.8% in China, making it the top brand domestically [5][6] - In Southeast Asia, Xiaomi's market share rose to 18.9%, while in Europe, it regained the second position with a market share of 23.4%, surpassing Apple for the first time [6][9] Strategic Focus - The company is shifting its strategy from scale expansion to a focus on quality and profitability, aiming for high-end product offerings and ecosystem synergy [8][9] - Xiaomi's high-end smartphone sales accounted for 27.6% of total smartphone sales in China, a 5.5 percentage point increase year-on-year [8][11] - The company plans to adopt differentiated strategies in various international markets, focusing on product structure adjustments in mature markets and prioritizing scale in emerging markets [9][11] Business Structure Optimization - In Q2, Xiaomi's smartphone revenue share decreased to 39.3%, while IoT and lifestyle products increased to 33.4% [11] - IoT and lifestyle product revenue reached 387 billion yuan, a 44.7% year-on-year increase, with smart home appliances growing by 66.2% [11][12] - The smart electric vehicle and AI segment reported a revenue of 213 billion yuan, a staggering 234% increase year-on-year, despite a slight operational loss [12]

Core Viewpoint - Xiaomi Group reported a significant increase in revenue and net profit for Q2 2025, indicating strong growth despite challenges in the smartphone segment [3][4]. Financial Performance - Xiaomi Group's revenue for Q2 2025 reached 116 billion RMB, a year-on-year increase of 30.5% [3]. - The adjusted net profit for the same period was 10.8 billion RMB, reflecting a year-on-year growth of 75.4% [3]. - The gross profit for the smartphone segment was 5.22 billion RMB, with a gross margin of 11.5%, down from 12.1% in the previous year [3][4]. - IoT and lifestyle products generated a gross profit of 8.72 billion RMB, with a gross margin of 22.5%, up from 19.7% year-on-year [3]. - Internet services revenue was 6.86 billion RMB, with a gross margin of 75.4%, slightly down from 78.3% [3]. Segment Performance - Smartphone revenue decreased by 2.1% year-on-year to 45.5 billion RMB, attributed to a decline in average selling price (ASP) in overseas markets [4]. - IoT and lifestyle products saw a revenue increase of 44.7% year-on-year, reaching 38.7 billion RMB [4]. - Internet services revenue grew by 10.1% year-on-year to 9.1 billion RMB [4]. - The innovative business segment, including smart electric vehicles and AI, generated 21.3 billion RMB in revenue, with a loss of 300 million RMB [4]. Market Outlook - The smartphone market is expected to experience zero or minimal growth, leading Xiaomi to revise its sales target for the year to approximately 175 million units [5]. - The company aims to optimize product structure and improve ASP in response to market conditions [5]. - Xiaomi's R&D investment for the quarter was 7.8 billion RMB, a year-on-year increase of 41.2%, with an expected total investment of 30 billion RMB for the year [6].

Core Insights - Xiaomi Group reported a total revenue of 116 billion yuan for Q2 2025, marking a 30.5% year-on-year increase and surpassing the 100 billion yuan mark for three consecutive quarters [1] - Adjusted net profit reached 10.8 billion yuan, a significant year-on-year growth of 75.4% [1] Revenue Breakdown - The automotive business entered a phase of scaled growth, generating 21.3 billion yuan in revenue, with 81,302 new car deliveries in the quarter and a cumulative delivery exceeding 300,000 units [1] - Smartphone shipments totaled 42.4 million units, achieving year-on-year growth for eight consecutive quarters, maintaining a top-three position globally for five years [1] - Revenue from IoT and consumer products reached 38.7 billion yuan, a 44.7% year-on-year increase, with significant growth in smart home appliances [1] Product Performance - In the 4,000-5,000 yuan price segment, Xiaomi holds a market share of 24.7% in mainland China, ranking first, while the 5,000-6,000 yuan segment saw a market share increase of 6.5 percentage points to 15.4% [1] - Smart home appliances saw remarkable performance, with air conditioner shipments exceeding 5.4 million units (over 60% year-on-year growth), refrigerator shipments over 790,000 units (over 25% growth), and washing machine shipments over 600,000 units (over 45% growth) [1] R&D Investment - The company invested 7.8 billion yuan in R&D for the quarter, a 41.2% year-on-year increase, with a total of 22,641 R&D personnel, a record high [2] - The successful launch of the self-developed 3nm flagship SoC chip and the open-sourcing of the multimodal large model Xiaomi MiMo-VL-7B were notable achievements [2]

Core Viewpoint - Xiaomi Group's Q1 2025 performance shows significant growth, with revenue increasing by 47.4% year-on-year to 111.3 billion yuan and adjusted net profit surpassing 10.7 billion yuan, a 64.5% increase year-on-year [2][4]. Financial Performance - Xiaomi Group's adjusted net profit has been on a continuous rise for three consecutive quarters, with Q1 2025 setting a new record [4]. - The core business revenue from mobile and IoT reached 92.7 billion yuan, a 22.8% increase year-on-year, with mobile revenue at 50.6 billion yuan (up 8.9%) and IoT revenue at 32.3 billion yuan (up 58.7%) [4]. - Major home appliance sales saw significant growth, with air conditioner shipments exceeding 1.1 million units (up over 65%), refrigerators over 880,000 units (up over 65%), and washing machines over 740,000 units (up over 100%) [4]. Automotive and Innovation Business - Revenue from smart electric vehicles and AI innovation reached 18.6 billion yuan, with approximately 75,900 units of the Xiaomi SU7 series delivered in Q1 2025, totaling over 258,000 units delivered by May 21, 2025 [4][8]. - Xiaomi aims to deliver 350,000 vehicles in 2025, indicating a strong focus on the automotive sector [8]. Market Position and Valuation - Xiaomi Group's stock price has seen significant increases, with a 121% rise in 2022, and a 49.42% increase in 2023 despite recent market fluctuations [7][8]. - The company has a rolling P/E ratio of 52.4, making it the highest valued among companies with a market cap exceeding 1 trillion HKD [7]. Research and Development Investment - In Q1 2025, Xiaomi invested 6.7 billion yuan in R&D, a 30.1% increase year-on-year, with plans to reach 30 billion yuan in total R&D investment for the year [8]. - The company announced a commitment to invest 200 billion yuan in R&D over the next five years, aiming to become a leader in core technology [8]. Fund Management and Market Sentiment - Public funds have increased their holdings in Xiaomi Group, with a total of 49.31 million shares added in Q1, bringing the total market value of holdings to 43.1 billion yuan [11]. - Xiaomi ranks third in market value among Hong Kong stocks, following Tencent and Alibaba, indicating strong institutional interest [11].