Xiaomi (1810) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached RMB 88.9 billion, up 32% year-on-year, marking a historical high, with strong growth across all major business segments.

• Adjusted net profit for Q2 2024 was RMB 6.2 billion, up 20.1% year-on-year, and cash resources hit a record RMB 141.0 billion, up 24.5% year-on-year.

• Global smartphone shipments in Q2 2024 were 42.2 million units, up 28.1% year-on-year, maintaining a top-three global ranking with 14.6% market share.

• Smart EV segment delivered 27,307 SU7 vehicles in Q2 2024, with revenue of RMB 6.4 billion and a full-year delivery target of 120,000 units.

• IoT and lifestyle products revenue hit RMB 26.8 billion, up 20.3% year-on-year; internet services revenue reached RMB 8.3 billion, up 11% year-on-year.

Financial highlights

• Group gross profit margin was 20.7% in Q2 2024; smartphone × AIoT margin was 21.1%; smart EV and new initiatives margin was 15.4%.

• Operating profit for Q2 2024 was RMB 5.9 billion, up 45.7% year-on-year.

• Adjusted net loss for smart EV and new initiatives was RMB 1.8 billion.

• Cash reserves reached RMB 141.0 billion as of June 30, 2024.

• Share buyback totaled nearly HKD 3.7 billion YTD, with a plan up to HKD 10 billion.

Outlook and guidance

• Full-year EV delivery target raised to over 120,000 units, with 100,000 SU7 vehicles expected by November 2024.

• Continued focus on premiumization and global expansion for smartphones and IoT.

• Ongoing investment in R&D and AI integration across product lines.

• Internet business gross profit margin expected to remain high and sustainable.

• Nationwide coverage of City NOA smart driving scheduled for August 2024.