Xiaomi Corporation-W achieved a record high revenue in the second quarter, with adjusted net profit of approximately 6.175 billion yuan, a year-on-year increase of 20.1%

According to the news from Zhitong Finance and Economics APP, Xiaomi Corporation-W (01810) announced its financial results for the second quarter of 2024, with revenue of approximately 88.888 billion RMB, reaching a historical high, a year-on-year increase of 32%, and a quarter-on-quarter increase of 17.7%. The gross profit was about 18.394 billion RMB, a year-on-year increase of 29.9% and a quarter-on-quarter increase of 9.3%; the adjusted net profit was about 6.175 billion RMB, a year-on-year increase of 20.1%. The period profit was about 5.07 billion RMB, a year-on-year increase of 38.3% and a quarter-on-quarter increase of 21.5%.

In the first half of 2024, the company achieved revenue of approximately 164.395 billion RMB, a year-on-year increase of 29.6%. The gross profit was about 35.224 billion RMB, a year-on-year increase of 36.8%. The period profit was about 9.243 billion RMB, a year-on-year increase of 17.3%. The adjusted net profit was about 12.666 billion RMB, a year-on-year increase of 51.3%.

The company continues to advance its "Smartphone + AIoT + Home" ecosystem strategy. In the second quarter of 2024, the company's global smartphone shipments reached 42.2 million units, a year-on-year increase of 28.1%. According to Canalys data, the company ranked top three in global smartphone shipments this quarter, with a market share of 14.6%, the fastest growth rate among the top five brands in shipments. The company has ranked top three in global smartphone shipments for sixteen consecutive quarters. At the same time, the company's user ecosystem continues to expand. In June 2024, the company's global monthly active users reached a historical high of 675.8 million, a year-on-year increase of 11.5%. As of June 30, 2024, the company's AIoT platform has connected IoT devices (excluding smartphones, tablets, and laptops) to 822 million, a year-on-year increase of 25.6%. On March 28, 2024, the company officially launched its first car product, the Xiaomi SU7 series, completing an important part of the company's product ecosystem matrix. In the second quarter of 2024, the Xiaomi SU7 series delivered 27,307 new cars.

The company continues to deepen its high-end strategy and constantly improve its product strength. In July 2024, the company released the new generation Xiaomi MIX Fold 4, achieving a lighter and thinner experience on the basis of flagship performance. The company also launched Xiaomi's first small folding phone, Xiaomi MIX Flip, balancing fashion and technology while achieving flagship performance. With the gradual iteration of the company's high-end methodology, the improvement of high-end product strength, and the accumulation of user mindshare, the company continues to benefit from positive changes in the high-end smartphone competition landscape. According to third-party data, in the second quarter of 2024, in mainland China, the company's high-end smartphone shipments accounted for 22.1% of the overall smartphone shipments, an increase of 2.0 percentage points year-on-year. According to third-party data, in the second quarter of 2024, the company's market share in the 3,000-4,000 RMB price range, 4,000-5,000 RMB price range, and 5,000-6,000 RMB price range in mainland China all saw year-on-year increases, with the 3,000-4,000 RMB price range market share at 16.8%, an increase of 5.4 percentage points year-on-year; the 4,000-5,000 RMB price range market share at 20.1%, an increase of 3.5 percentage points;The market share of RMB 5,000-6,000 price segment is 8.9%, up 2.3 percentage points year-on-year.

2024 is a year of further expansion and ecological upgrade for Xiaomi's new retail strategy. In the second quarter of 2024, the company's offline retail store count in mainland China continued to grow. As of June 30, 2024, the company had over 12,000 offline retail stores in mainland China. According to third-party data, in the second quarter of 2024, the company's market share of smartphone shipments through offline channels in mainland China was 10.4%, up 2.5 percentage points year-on-year. Additionally, during the 2024 618 shopping festival, the company achieved a total cumulative payment amount exceeding RMB 26.3 billion across all channels, setting a new record for Xiaomi's annual major promotions.

The group continues to deepen its global layout and focus on global market growth opportunities. In the second quarter of 2024, the group's overseas market revenue was RMB 38.1 billion, accounting for 42.8% of total revenue. According to Canalys data, in the second quarter of 2024, the group ranked top three in smartphone shipments in 58 countries and regions globally, top five in 70 countries and regions, and for the first time, ranked top two in smartphone shipments in the Latin American region. With the improvement in the group's global brand recognition and global operational capabilities, the group's overseas AIoT business is also steadily growing. According to Canalys data, in the second quarter of 2024, the group's tablet products ranked top five in global shipments, with a significant year-on-year increase of 2.6 percentage points to 6.0% market share; the group's TWS earphones ranked top three in global shipments; and the group's wearable wristband devices ranked top three in global shipments.

The second quarter of 2024 was the first complete delivery quarter after the release of the Xiaomi SU7 series. The company fulfilled its user commitment of "release to market, market to delivery, delivery to volume" by delivering 27,307 new Xiaomi SU7 series vehicles in the second quarter of 2024. To meet user demand, the company is working to increase production capacity. In June 2024, the company's Xiaomi car factory started double-shift production, and in July 2024, the production line was optimized and maintained. The company expects to achieve the target of delivering 100,000 new Xiaomi SU7 series vehicles ahead of schedule in November 2024, and aims to sprint towards a new target of delivering 120,000 new Xiaomi SU7 series vehicles for the full year of 2024. Additionally, the company continues to expand the new retail network for Xiaomi cars to drive continuous brand strength improvement. As of June 30, 2024, the company's car sales outlets had reached 87, covering 30 cities in mainland China.

Furthermore, the company is steadily advancing its "New Decade Goals": making large-scale investments in core bottom-layer technologies, and striving to become a new generation global leader in hardcore technology. In the second quarter of 2024, the group's R&D expenditure reached RMB 5.5 billion, a year-on-year increase of 20.7%. As of June 30, 2024, the group had 18,290 R&D personnel, accounting for 48.7% of total employees. Additionally, the company continues to expand its group's intellectual property capabilities, with Xiaomi Group having obtained over 40,000 patents globally as of June 30, 2024In July 2024, the company officially announced the launch of the new generation Xiaomi smartphone intelligent factory. Located in Changping District, Beijing, the entire factory has a total investment of RMB 2.4 billion, with an annual production capacity of 10 million flagship phones. By deeply researching and developing manufacturing equipment, the factory achieves 100% automation of key processes; completes the industry-leading full-chain industrial big data infrastructure construction, realizing 100% digitization of industrial production. The Xiaomi smartphone intelligent factory marks another major step for Xiaomi in hardcore technology.

The group continues to expand AI comprehensive empowerment, dedicated to enhancing product capabilities and user experiences with AI. In July 2024, the company released voice large models for the first time and first installed them on the Xiaomi SU7 series, providing external wake-up defense functions for the Xiaomi SU7 series. At the same time, the company upgraded Xiao Ai's multimodal recognition and understanding capabilities, providing users with functions such as AI document Q&A and AI intelligent editing. Finally, the company will fully upgrade large models and Xiao Ai for products such as smartphones, tablets, TVs, and speakers, providing users with a more intelligent experience.

In the second quarter of 2024, the group's overall gross profit margin reached 20.7%. Looking at business segments, in the second quarter of 2024, the "Smartphone × AIoT" segment's gross profit margin was 21.1%, and the "Smart Electric Vehicles and other innovative businesses" segment's gross profit margin was 15.4%. The company continues to reduce costs and increase efficiency. In the second quarter of 2024, the group's overall operating expense ratio was 14.2%, a year-on-year decrease of 1.0 percentage points, with the "Smartphone × AIoT" segment's operating expense ratio at 11.7%, a year-on-year decrease of 1.1 percentage points. In the second quarter of 2024, the group's adjusted net profit reached RMB 6.2 billion, a year-on-year increase of 20.1%. Sufficient cash reserves are an important foundation for the sustainable development of the group's core and new businesses. As of June 30, 2024, the group's cash reserves were RMB 141 billion. The company is also actively repurchasing stocks in the open market. The company has obtained board approval for a HKD 10 billion repurchase quota on June 6, 2024. Since the beginning of this year, the company's stock repurchase amount has reached approximately HKD 3.68 billion, equivalent to approximately 248 million shares