Xiaomi Group (01810.HK) announced record-breaking revenue and profits for Q2 2025 after market close on August 19, demonstrating robust growth momentum across its business segments.

The financial report reveals Xiaomi Group's total Q2 revenue reached $159.4 billion (1159.6 billion RMB), a 30.5% year-over-year increase, marking the third consecutive quarter exceeding one trillion RMB. Adjusted net profit surged 75.4% year-over-year to $14.8 billion (108 billion RMB), the second straight quarter above 100 billion RMB.

Revenue from its closely watched innovation business segment—including smart electric vehicles and AI—reached $29.3 billion (213 billion RMB), a remarkable 233.9% increase year-over-year. Smart EV revenue specifically accounted for $22.6 billion (206 billion RMB), representing approximately 17.7% of total revenue, while other related businesses contributed $824 million (6 billion RMB). The segment's gross margin stood at 26.4% with operating losses narrowing significantly to $412 million (3 billion RMB).

Xiaomi attributed this automotive growth primarily to increased vehicle deliveries and higher Average Selling Prices (ASP). Deliveries surged 197.7% from 27,307 units in Q2 last year to 81,302 units this quarter, reflecting improved production capacity. The ASP for smart EVs rose 10.9% from approximately $31,400 (228,644 RMB) per vehicle last year to roughly $34,850 (253,662 RMB) this quarter, driven by strong deliveries of the premium Xiaomi SU7 Ultra model. In June, Xiaomi launched its first SUV model, the YU7, priced between $34,850 and $45,350 (253,500-329,900 RMB), which secured over 240,000 orders within 18 hours of its sales launch.

During the earnings call, Xiaomi Group President Lu Weibing expressed confidence in achieving the full-year delivery target of 350,000 vehicles, noting that the innovation business segment (including smart EVs and AI) is expected to become profitable on a quarterly basis in the second half of the year. As of June 30, Xiaomi had established 335 auto retail stores across 92 cities in mainland China.

Strong Performance Across Core Businesses

The core "Smartphone x AIoT" division reported revenue of $130.2 billion (947 billion RMB), a 14.8% year-over-year increase, accounting for nearly 81.7% of total revenue. Xiaomi's smartphone business generated $62.5 billion (455 billion RMB) in Q2, with global shipments reaching 42.4 million units—a 0.6% year-over-year increase. This marks the eighth consecutive quarter of shipment growth and the twentieth straight quarter maintaining a top-three global ranking.

Despite overall pressure in the global smartphone market, Xiaomi performed exceptionally well domestically. Q2 new device activations reached 11.5 million units, capturing 16.8% market share and claiming the top spot in China. Internationally, Xiaomi ranked among the top three smartphone vendors in 60 countries and regions, and among the top five in 69.

IoT and lifestyle consumer products revenue also hit a record high of $53.2 billion (387 billion RMB), up 44.7% year-over-year, with a gross margin of 22.5%. The number of connected devices on Xiaomi's AIoT platform (excluding smartphones, tablets, and laptops) reached 989.1 million, a 20.3% increase.

The company's major smart appliances performed particularly well in Q2, with revenue soaring 66.2% year-over-year amid increases in both volume and price. Xiaomi shipped over 5.4 million air conditioner units (up >60% year-over-year), over 790,000 refrigerators (up >25% year-over-year), and over 600,000 washing machines (up >45% year-over-year).

Investments and Retail Expansion

Xiaomi continued to ramp up R&D investment, with Q2 expenditures reaching $10.7 billion (78 billion RMB)—a 41.2% year-over-year increase. As of June 30, the company's R&D personnel count reached a record high of 22,641.

The company is also advancing its new retail strategy. In Q2, it added a net 1,700 new Mi Home stores in mainland China, bringing the total to over 17,000. Overseas, it now operates approximately 200 new retail stores.

Xiaomi's stock opened higher and gained throughout the trading day, closing up 5.24% at HK$12.74, with a market capitalization of HK$306.9 billion.

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