Xiaomi Corp Class B ((HK:1810)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Xiaomi’s latest earnings call paints a picture of robust financial health and operational success, with the company achieving record revenue and profits across multiple segments. The sentiment during the call was overwhelmingly positive, driven by significant market share gains in the smartphone sector and impressive growth in AIoT and smart appliances. Despite facing challenges in the competitive smartphone industry, the overall outlook remains optimistic.
Record-Breaking Revenue and Growth
Xiaomi reported a total revenue of RMB 116 billion for Q2 2025, marking a 30.5% increase year-on-year. This achievement represents the fifth consecutive quarter of record-breaking performance. The company’s adjusted net profit also saw a substantial rise, reaching RMB 10.8 billion, up 75% from the previous year.
Smartphone Market Leadership
The company has solidified its position as a leader in the smartphone market, ranking among the top three globally with a market share of 14.7%. Xiaomi led smartphone sales in Mainland China and saw significant growth in overseas markets, ranking #1 in Southeast Asia and #2 in Europe, the Middle East, and Latin America.
AIoT and Smart Appliances Success
Xiaomi’s AIoT division achieved record revenue of RMB 38.7 billion, a 44.7% increase year-on-year. The smart appliances segment also performed well, with a 66.2% rise in revenue, driven by strong air conditioner shipments exceeding 5.4 million units.
Automobile Segment Achievements
The company’s electric vehicle segment delivered 81,302 vehicles in Q2 2025, generating RMB 21.3 billion in revenue. With a gross margin of 26.4%, Xiaomi plans to expand into the European market by 2027, signaling its ambitions in the automotive industry.
Technological and R&D Advancements
Xiaomi’s commitment to innovation is evident in its R&D expenditure, which reached RMB 7.8 billion, a 41.2% increase year-on-year. The company launched its first self-developed 3-nanometer flagship chip and introduced AI innovations, including AI glasses and multimodal large models.
Smartphone Industry Challenges
Despite Xiaomi’s impressive growth, the global smartphone industry remains stagnant, with minimal anticipated growth for the year. Rising costs in memory and battery materials present challenges to maintaining gross margins, highlighting the competitive nature of the industry.
Forward-Looking Guidance
Xiaomi’s forward-looking guidance remains optimistic, with the company highlighting its strong financial performance in Q2 2025. The smartphone business continues to hold a top-three global position, and the AIoT division’s revenue growth is expected to persist. Xiaomi’s commitment to R&D and innovation underscores its strategy to maintain competitive advantage and drive future growth.
In summary, Xiaomi’s earnings call reflects a positive sentiment with record-breaking financial results and strategic advancements across various segments. While challenges in the smartphone industry persist, the company’s robust performance and forward-looking strategies position it well for continued success.