2024-08-26 09:34:34
Xiaomi announced its unaudited consolidated results for the first half of 2024 – up to and including 30 June 2024.
According to the announcement, it recorded double-digit revenue growth (year-over-year) for the third consecutive quarter, with revenue reaching RMB88.9 billion, a result corresponding to 32% growth (year-over-year).
Adjusted net profit reached RMB6.2 billion, a figure corresponding to a 20.1% increase (year-on-year), thus underscoring the company’s steady growth. Overall gross margin remained strong at 20.7%. Xiaomi’s three core businesses – smartphones, IoT and lifestyle products, and internet services – exceeded market expectations, with revenues of RMB 46.5 billion, RMB 26.8 billion and RMB 8.3 billion, respectively. Revenue from the EV division and other new initiatives amounted to RMB 6.4 billion. The Group’s overall performance exceeded public expectations, marking a new phase of explosive growth.
Within the 2nd quarter, Xiaomi’s cash reserves reached RMB141 billion (up to June 30), thus providing the important foundations required for a stable development of both its new and traditional activities. Driven by a steady investment strategy towards new foundational technologies, Xiaomi’s AI technology has contributed significantly to its business development, improving product capabilities whether it is smartphones or EVs, while also improving the performance of the Xiaomi Smart Factory. The advancement of Xiaomi’s “Human x Car x Home” smart ecosystem is expected to breathe new life into the company’s business and boost its future growth.
First in growth among the top 5 smartphone brands
During the second quarter, worldwide smartphone shipments reached 42.2 million units – a figure corresponding to an increase of 28.1% (year-over-year). According to Canalys, Xiaomi has maintained its position among the top three smartphone brands worldwide for 16 consecutive quarters, with a 14.6% market share. At the same time, Xiaomi is the fastest growing smartphone brand among the top five, in terms of shipments.
Xiaomi’s smartphone business saw significant growth in Q2 with revenue of RMB46.5 billion – a figure corresponding to 27.1% growth (year-over-year). According to Canalys within the second quarter Xiaomi’s smartphone shipments were among the top three in 58 countries and regions of the world and among the top five in 70 countries and regions of the world. This development highlights Xiaomi’s growing influence in international markets, with faster expansion into Latin America, Southeast Asia, the Middle East and Africa. In Latin America, Xiaomi’s smartphone shipments were among the top two for the first time in its history.
IoT revenue soars with air conditioner shipments up 40%
Xiaomi’s IoT and lifestyle products business maintained its upward trajectory in Q2, setting a new revenue record of RMB26.8 billion – a figure corresponding to 20.3% growth (year-over-year). The large home appliances segment also continued to perform strongly with revenue increasing by 38.7%.
According to Canalys, Xiaomi’s global tablet shipments doubled in Q2 (year-over-year), making the company the fastest-growing in the category in terms of shipments among the top 5. In terms of shipments of Xiaomi wearables, the company was ranked number 3 worldwide and number 2 in China. TWS earbuds shipments ranked the company number 3 worldwide and number 1 in China.
Within the B’ quarter air conditioner shipments exceeded 3.3 million units – a figure corresponding to a 40% increase (year-on-year). During the same period, Xiaomi’s refrigerators and washing machines also saw strong growth, with shipments exceeding 600,000 and 400,000 units respectively.
Steady growth of internet services
Within Q2, Xiaomi’s internet services maintained steady growth, with revenue from the category rising 11% to a record RMB8.3 billion. As Xiaomi continues to deepen and develop its global partner network, international internet service revenue increased by 32.9% (year-on-year), reaching RMB2.7 billion and increasing its share of total revenue from internet services to 32.1%.
The Internet user base continued to expand, and monthly active users (“MAU”) both globally and in mainland China set records. In June 2024, global MAU reached 675.8 million, up 11.5% (year-over-year), while mainland China’s MAU reached 164.4 million, up 10.1% ( year-to-year).
Over 27,000 Smart EVs to have been delivered within the second quarter
Since the debut of Xiaomi’s first smart EV, the Xiaomi SU7 series, the market results have greatly exceeded expectations. In Q2 revenue from EV business and other new initiatives reached RMB 6.4 billion. The Group is continuously increasing the production and delivery of Xiaomi SU7 Series vehicles. In Q2, deliveries reached 27,307 vehicles, with monthly deliveries exceeding 10,000 units for two consecutive months. The increase in production capacity exceeds that of its competitors, demonstrating strong competitive power.
Since June, Xiaomi’s EV Factory has been operating in a double shift, aiming to meet the group’s target of delivering 100,000 vehicles by November, ahead of schedule. The Company will also aim to deliver 120,000 vehicles of the Xiaomi SU7 series for the year 2024. By June 30, 2024, Xiaomi had already opened 87 smart EV sales centers in mainland China, thus causing a continuous increase in orders and providing users with a full range professional car protection.
The Group’s abundant cash resources ensure that the Xiaomi smart electric vehicle business can maintain its focus on technology and product development amid intense market competition, thereby enhancing its influence and competitiveness. Xiaomi continues to accumulate in-depth capabilities of its own research, achieving new progress and breakthroughs in key technologies that greatly enhance product competitiveness. In July 2024, the Group unveiled the Xiaomi SU7 Ultra prototype, announcing plans to record an outstanding speed performance on the Nürburgring’s Nordschleife circuit in October. The goal is for the SU7 Ultra to become the fastest four-door electric vehicle on the track within the next decade.
AI fully empowers the “Human x Car x Home” smart ecosystem
The Group continued to adopt artificial intelligence to enhance the “Human x Car x Home” smart ecosystem. In the second quarter, Xiaomi’s R&D investment continued to expand, with spending reaching RMB 5.5 billion, up 20.7% (year-on-year). Xiaomi’s AI technology has made innovative breakthroughs in various fields, most notably in the field of EVs. This technology is widely applied, offering strong technical support for Autopilot, automated parking and voice interaction with the help of Xiaomi AI.
In terms of smartphones, Xiaomi has enhanced the AI assistant’s multimodal recognition and understanding capabilities, offering users a host of features such as AI document analysis and AI video creation. These innovations underpin Xiaomi’s growth in the premium market.
According to third-party data, in Q2 2024 Xiaomi’s premium smartphone models priced at least RMB3,000 accounted for 22.1% of total smartphone shipments in mainland China, an annual increase of 2.0 percentage points. The market shares of smartphones in the RMB3,000 to 4,000, RMB4,000 to 5,000 and RMB5,000 to 6,000 price ranges were 16.8%, 20.1% and 8.9% respectively, all recording year-on-year growth.
On July 19, Xiaomi introduced its new foldable flagship, the Xiaomi MIX Fold 4, along with its first compact foldable device, the Xiaomi MIX Flip, in mainland China. The performance of the two foldable smartphones significantly exceeded expectations, further strengthening Xiaomi’s reputation in the premium market. Xiaomi MIX Flip has garnered significant recognition for its unique foldable design and innovative 4.01-inch external display with offline AI translation capabilities.