Xiaomi in China Surpasses 1 Trillion KRW in Electric Vehicle Quarterly Sales... 27,000 Units Delivered in Q2

In April, Xiaomi unveiled its first electric vehicle (SU7), and the company has now announced second-quarter results that exceeded expectations. Although the business itself posted a net loss due to limited market share and high development costs, the gross profit margin performed well, reaching the mid-15% range.

According to Chinese economic media Caixin on the 21st, Xiaomi's second-quarter revenue rose 32% year-on-year to 88.88 billion yuan (approximately 16.63 trillion KRW), and net profit increased by 20.1% to 6.175 billion yuan. These figures surpassed Bloomberg analysts' estimates, which had forecast revenue of 86.9 billion yuan and net profit of 3.8 billion yuan.

[Image source=Reuters Yonhap News]

This earnings report attracted even more market attention as it was the first disclosure since the launch of Xiaomi's electric vehicle SU7. According to Xiaomi, revenue from innovative businesses including electric vehicles in Q2 reached 6.369 billion yuan, accounting for 7.2% of total revenue. The gross profit margin for the electric vehicle business was 15.4%, higher than Xiaopeng's 6.4% during the same period and also surpassing Nio's 9.2% first-quarter gross profit margin, which has yet to announce its Q2 results. Tesla's automotive business gross profit margin for Q2 was 18.5%.

Lin Xuwei, Xiaomi's Chief Financial Officer (CFO), attributed this to "better-than-expected delivery volumes, supply chain support, and contributions from automotive peripheral products," adding that "the overall profit margin (12.1%) remains at a good level."

Xiaomi's vehicle deliveries in Q2 totaled 27,300 units, with cumulative deliveries reaching approximately 35,688 units as of the end of July. Capital expenditure on innovative businesses such as smart electric vehicles amounted to 298 million yuan, representing 21% of the total.

The net loss related to the electric vehicle business in Q2 was around 1.8 billion yuan. At the earnings conference, Xiaomi President Lu Weibing explained that "the losses were due to Xiaomi's limited electric vehicle market share and high vehicle development costs." He also stated that the annual delivery target is 100,000 units by November, and that the number of electric vehicle sales stores, which stood at 87 across 30 cities as of June, will be expanded to 100 stores by the end of this year.

Maintaining its position as the world's third-largest smartphone manufacturer for 16 consecutive quarters, Xiaomi's smartphone shipments in Q2 reached 42.2 million units, a 28% increase year-on-year. Smartphone revenue during this period rose 27.1% year-on-year to 46.5 billion yuan. The average selling price of smartphones fell slightly from 1,112.2 yuan in Q2 last year to 1,103.5 yuan this year. The company explained this as a result of intensified competition in the Chinese mainland market and increased sales in emerging markets.

This content was produced with the assistance of AI translation services.