Xiaomi’s Revenue Rises 31% After Second EV Fires Up Consumers

Xiaomi Corp. reported a 31% increase in quarterly revenue to 116 billion yuan ($16.2 billion), exceeding analyst estimates, with net income roughly doubling to 11.9 billion yuan. This robust performance was primarily driven by the successful launch of its second electric vehicle, which saw 81,302 units delivered in Q2, contributing to over 157,000 deliveries in the first half. The strong EV sales effectively counteracted a deceleration in smartphone demand, highlighting the company's successful diversification strategy.

Analysis

Xiaomi Corp. reported a robust quarterly performance, with revenue climbing 31% to 116 billion yuan, marginally surpassing the consensus analyst estimate of 115 billion yuan. Net income demonstrated significant leverage, approximately doubling to 11.9 billion yuan. This outperformance is directly attributable to the company's successful diversification into the electric vehicle market, which is effectively counteracting slowing demand in its core smartphone business. The EV division's momentum is substantial, with 81,302 cars delivered in the second quarter, bringing the first-half total to over 157,000 vehicles. This rapid scaling validates Xiaomi's strategic pivot and execution capabilities, positioning it on a clear path to exceed its full-year delivery targets and establishing a new, significant growth driver for the company.

Key Decisions for Investors

• The proven ability to rapidly scale in the competitive EV market, evidenced by over 157,000 deliveries in the first half, warrants a re-evaluation of the company's long-term growth profile beyond its legacy smartphone business.
• Investors should closely monitor the profitability of the automotive segment to assess its long-term impact on group-level margins, especially as it becomes a larger part of the revenue mix relative to the slowing smartphone division.
• Sustained momentum in quarterly EV delivery figures is now the primary catalyst and key performance indicator to watch, as continued success validates the diversification thesis while any deceleration could pose a significant risk to sentiment.