Xiaomi has released its Q2 2024 financial results, reporting total revenue of 116 billion yuan ($16 billion USD) and an adjusted net profit of 10.8 billion yuan ($1.5 billion USD).

Smartphone revenue reached 45.5 billion yuan ($6.3 billion USD), with global smartphone shipments totaling 42.4 million units. Revenue from the smart home appliance division surged 66.2% year-on-year, with air conditioner shipments exceeding 5.4 million units.

Revenue from innovation businesses, including smart electric vehicles and AI, came in at 21.3 billion yuan ($2.9 billion USD). Xiaomi Auto delivered 81,302 vehicles in the quarter, bringing cumulative deliveries since its launch to over 300,000 units by July.

Within this segment, smart electric vehicle revenue specifically accounted for 20.6 billion yuan ($2.8 billion USD), while other related businesses contributed 600 million yuan ($82.5 million USD).

Profitability Outlook

The gross profit margin for the innovation business unit stood at 26.4% for the quarter, with an operating loss of 300 million yuan ($41.3 million USD).

Lu Weibing, Partner and President of Xiaomi Group, expressed confidence in achieving the full-year delivery target of 350,000 Xiaomi vehicles.

"In Q2 2024, revenue from our innovation businesses, including smart EVs and AI, surged 234% to 21.3 billion yuan ($2.9 billion USD). Our operating loss narrowed significantly to just 300 million yuan ($41.3 million USD), and we expect to achieve quarterly profitability in the second half of the year," he stated.

"However, from 2022 through the first half of 2025, our total investment in innovation businesses like automotive will exceed 30 billion yuan ($4.1 billion USD). Therefore, on a cumulative basis, the new business still shows a substantial loss."

For context, the company incurred a loss of approximately 45,300 yuan ($6,230 USD) for every vehicle sold last year.

Strategic Direction

Lu Weibing emphasized that Xiaomi will not participate in the ongoing automotive price war or engage in cutthroat competition. He stated that the critical task for Xiaomi Auto is to successfully deliver its vehicles to customers.

In a significant strategic move, Xiaomi Auto is planning to enter the European electric vehicle market in 2027.

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