Xiaomi Corporation ("Xiaomi" or "the Group"; Stock Code: 1810), a consumer electronics and smart manufacturing company leading in smartphones and connected smart hardware on the Internet of Things (IoT) platform, has released its unaudited performance results for the three months ending June 30, 2024 ("Q2 2024" or "the period"). Xiaomi reported a double-digit revenue growth compared to the same quarter last year (YoY) for the third consecutive quarter in Q2 2024, with revenue reaching 88.9 billion yuan, an increase of 32% from the same quarter last year. Adjusted net profit stood at 6.2 billion yuan, up 20.1% from the same quarter last year, reinforcing strong growth. The overall gross margin remained robust at 20.7%. Xiaomi's three core businesses—smartphones, IoT products and lifestyle, and internet services—generated revenues of 46.5 billion yuan, 26.8 billion yuan, and 8.3 billion yuan, respectively. Revenue from the smart electric vehicle business and other new projects totaled 6.4 billion yuan. The overall performance of the Group exceeded expectations, marking a new milestone in leapfrog growth. In Q2, Xiaomi's cash surged to 141 billion yuan as of June 30, providing a crucial foundation for sustainable development of core and new businesses, supporting the company's rapid and continuous growth driven by ongoing investments in core technologies. Xiaomi's AI technology significantly enhances the company's business development by improving product capabilities and smart experiences in Xiaomi's smartphones and smart electric vehicles, while also optimizing the operations of Xiaomi's smart factories. The development of Xiaomi's "Human x Car x Home" smart ecosystem is expected to stimulate the company's business and strengthen the sustainability of future growth.

Xiaomi is the fastest-growing brand among the top 5 smartphone brands globally, with rapid global expansion.

In Q2, Xiaomi's global smartphone shipments reached 42.2 million units, an increase of 28.1% from the same quarter last year. According to Canalys, Xiaomi maintained its position as one of the top three smartphone brands globally for 16 consecutive quarters, with a market share of 14.6%. Xiaomi is the fastest-growing brand among the top 5 smartphone brands worldwide in terms of smartphone shipments.

Xiaomi's smartphone business reported strong growth with Q2 revenue of 46.5 billion yuan, up 27.1% from the same quarter last year. According to Canalys, in Q2, the smartphone shipment of the business group ranked in the top three in 58 countries and regions worldwide and in the top five in 70 countries and regions. This growth underscores Xiaomi's increasing influence in international markets, with rapid expansion in Latin America, Southeast Asia, the Middle East, and Africa. Additionally, Xiaomi's smartphone shipments ranked second for the first time in Latin America.

IoT business revenue skyrockets, with air conditioner sales in Q2 surging over 40%.

Xiaomi's IoT and lifestyle product business continued to grow in Q2, achieving record revenue of 26.8 billion yuan, an increase of 20.3% from the same quarter last year. Meanwhile, the large home smart appliance segment continued to perform strongly, with revenue up 38.7% from the same quarter last year.

According to Canalys, Xiaomi's global tablet shipments in Q2 doubled compared to the same quarter last year, making Xiaomi the fastest-growing tablet brand among the top 5 in terms of shipments. Xiaomi's wearable device shipments ranked third globally and second in China, while TWS headphone shipments ranked third globally and first in China.

In Q2, Xiaomi's air conditioner shipments exceeded 3.3 million units, up over 40% from the same quarter last year. During this period, Xiaomi's refrigerators and washing machines also saw significant growth, with shipments exceeding 600,000 units and 400,000 units, respectively.

Internet services business grows strongly, with monthly active users worldwide and in mainland China increasing by over 10% respectively.

During this period, internet services continued to grow rapidly, with revenue increasing by 11% to reach a record high of 8.3 billion yuan, while Xiaomi continued to expand its global partner network. Revenue from internet services abroad increased by 32.9% from the same quarter last year, reaching 2.7 billion yuan in Q2, raising the share of total internet service revenue to 32.1%.

The internet user base continues to expand, with monthly active users ("MAU") worldwide and in mainland China reaching record highs. In June 2024, the global MAU reached 675.8 million, an increase of 11.5% from the same quarter last year, while the MAU in mainland China reached 164.4 million, up 10.1% from the same quarter last year.

Smart electric vehicle business exceeds expectations with over 27,000 units delivered in Q2.

Since the launch of Xiaomi's first smart electric vehicle, the Xiaomi SU7 Series, market feedback has exceeded expectations. In Q2, revenue from the smart electric vehicle business and other new projects reached 6.4 billion yuan. The business group accelerated the production and delivery of the Xiaomi SU7 Series smart electric vehicles. In Q2, 27,307 units of the Xiaomi SU7 Series were delivered, with monthly deliveries exceeding 10,000 units for two consecutive months. The increase in production capacity outpaced competitors and demonstrated strong competitive capability.

Since June, Xiaomi's electric vehicle factory has begun operating on a two-shift basis, aiming to achieve the business group's goal of delivering 100,000 vehicles by November ahead of schedule. Additionally, the company aims to deliver 120,000 units of the Xiaomi SU7 Series smart electric vehicles by the end of 2024. As of June 30, 2024, Xiaomi has opened 87 smart electric vehicle sales centers in mainland China to drive continuous order growth while providing comprehensive professional vehicle protection for users.

The Group's ample cash reserves allow Xiaomi's smart electric vehicle business to maintain a focus on technology and product development amid fierce market competition. This enhances the company's core influence and competitiveness. Furthermore, Xiaomi continues to enhance its self-research capabilities and achieve advancements and new developments in core technologies that significantly improve product competitiveness. In July 2024, the business group launched the Xiaomi SU7 Ultra prototype and announced plans to set a remarkable lap time at the Nürburgring Nordschleife in October, aiming to become the fastest four-door electric vehicle on the track in the next decade.

AI empowers Xiaomi's "Human x Car x Home" smart ecosystem, driving growth in the premium market.

The business group continues to leverage AI to enhance the "Human x Car x Home" smart ecosystem. In Q2, Xiaomi's research and development investment continued to expand, with expenses reaching 5.5 billion yuan, an increase of 20.7% from the same quarter last year. Xiaomi's AI technology has fostered new innovations across various sectors, particularly in the smart electric vehicle sector. This technology is widely applied, providing strong technical support for autopilot systems, automatic parking systems, and voice interaction through Xiaomi's AI assistant.

For smartphone products, Xiaomi has improved the AI assistant's multi-modal recognition and understanding capabilities, offering various features to users, such as AI document analysis and AI video creation. These innovations support Xiaomi's growth in the premium market.

According to third-party data, in Q2 2024, Xiaomi's premium smartphones priced at 3,000 yuan and above accounted for 22.1% of total smartphone shipments in mainland China, an increase of 2.0 percentage points from the same quarter last year. The market share of smartphones in the price ranges of 3,000 to 4,000 yuan, 4,000 to 5,000 yuan, and 5,000 to 6,000 yuan stood at 16.8%, 20.1%, and 8.9%, respectively, all showing growth from the same quarter last year.

On July 19, Xiaomi launched its new flagship foldable device, the Xiaomi MIX Fold 4, along with the first compact foldable device, the Xiaomi MIX Flip, in mainland China. The performance of both foldable smartphones exceeded expectations and enhanced Xiaomi's reputation in the premium market. The Xiaomi MIX Flip received widespread acclaim for its unique foldable design and new innovations, including an external 4.01-inch display with offline AI translation capabilities.