Xiaomi Chairman Lu Weibing said he is “confident” the company will meet its target of delivering 120,000 electric vehicles by the end of the year. | Photo: Reuters
China’s Xiaomi Corp on Wednesday reported stronger-than-expected second-quarter revenue, disclosing for the first time the contribution of 6.2 billion yuan ($869.2 million) from its automotive business unit.
For the three months ended June, Xiaomi’s revenue rose 32 percent to 88.9 billion yuan, beating the 85.8 billion yuan estimated by analysts, according to LSEG.
The company first announced its entry into the electric vehicle business in 2021 as a diversification from its core smartphone operations.
Xiaomi began shipping its SU7 electric vehicles in early April after announcing that it would price its SU7 models competitively against Tesla’s offerings.
In the second quarter, it delivered 27,307 electric vehicles, generating 6.2 billion yuan in revenue. This is the first financial report to include details of its automotive business segment.
At a press conference after the earnings report, Xiaomi Chairman Lu Weibing said he is “confident” the company will hit its target of delivering 120,000 electric vehicles by the end of the year.
Since June, Xiaomi has implemented double-shift measures to ensure monthly deliveries exceed 10,000 units.
Xiaomi’s automotive business continues to post losses. The unit reported an adjusted loss of 1.8 billion yuan for the quarter, with a gross profit margin of 15.4%.
Lu said that as deliveries increase, the unit’s profitability is expected to improve over time.
The global smartphone market has shown signs of recovery since late last year after a prolonged period of sluggishness.
Xiaomi’s global smartphone shipments rose 27.4 percent to 42.3 million units in the second quarter, helping the company capture a 14.8 percent market share and place it in third position, according to industry research firm IDC.
In China, Xiaomi’s largest market for its smartphone business, shipments rose 16.5 percent, according to IDC.
Adjusted net income was 6.18 billion yuan, above the 4.8 billion yuan estimated by analysts.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 21, 2024 | 16:58 IS
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