Another record-breaking financial report! XIAOMI-W (01810.HK) latest earnings announcement has drawn significant market attention.

On the evening of August 19, Xiaomi released its Q2 2025 and interim results, showing the company achieved operating revenue of 115.956 billion yuan in Q2, up 30.45% year-over-year. This marks the third consecutive quarter with revenue exceeding 100 billion yuan. The company recorded adjusted net profit of 10.831 billion yuan, up 75.4% year-over-year, representing the second consecutive quarter surpassing 10 billion yuan.

Xiaomi's main business segments include smartphones, automobiles, and home appliances. In Q2, Xiaomi smartphone shipments reached 42.4 million units, achieving year-over-year growth for eight consecutive quarters and maintaining global top-three ranking for 20 consecutive quarters. IoT and lifestyle products revenue hit a record high of 38.7 billion yuan, primarily driven by significant growth in smart home appliance revenue.

The highly anticipated automotive business delivered 81,300 units in Q2. As of July 10, Xiaomi's cumulative auto deliveries exceeded 300,000 units. Xiaomi President Lu Weibing posted on Weibo that the automotive business narrowed its Q2 losses to 300 million yuan, with profitability expected to begin in the second half, maintaining the unchanged 2027 overseas expansion target.

Xiaomi continues to increase R&D investment. In Q2 2025, R&D spending reached 7.8 billion yuan, up approximately 41% year-over-year. As of late June 2025, the company employed about 22,600 R&D personnel.

**Quarterly Revenue and Net Profit Reach New Highs**

Xiaomi achieved record-breaking operational performance again. According to the latest results, Q2 2025 operating revenue reached 115.956 billion yuan, up 30.45% year-over-year. This represents the third consecutive quarter with revenue exceeding 100 billion yuan, with sequential quarterly growth. In Q4 2024 and Q1 2025, the company achieved operating revenues of 109.005 billion yuan and 111.293 billion yuan respectively, up 45.66% and 47.09% year-over-year.

In Q2 2025, Xiaomi's net profit attributable to shareholders reached 11.873 billion yuan, up 134.2% year-over-year. Adjusted net profit was 10.831 billion yuan, up 75.4% year-over-year, marking the second consecutive quarter exceeding 10 billion yuan. In Q1 2025, adjusted net profit was 10.676 billion yuan, up 64.5% year-over-year.

These figures demonstrate consecutive record highs in quarterly revenue and net profit. Overall, in H1 2025, Xiaomi achieved operating revenue of 227.249 billion yuan, up 38.2% year-over-year, and adjusted net profit of 21.506 billion yuan, up 69.80% year-over-year.

The record-breaking revenue and profit performance is supported by strong results across all three major business segments. In Q2 2025, Xiaomi's smartphone × AIoT business revenue reached 94.7 billion yuan, up 14.8% year-over-year, setting a new record. Within this, smartphone business revenue was 45.5 billion yuan, while IoT and lifestyle products revenue reached 38.7 billion yuan, up 44.7% year-over-year to a record high. Smart home appliance revenue surged 66.2% year-over-year, achieving both volume and price growth. Internet services revenue was 9.1 billion yuan, up 10.1% year-over-year.

For smartphones, Q2 shipments reached 42.4 million units, up 0.6% year-over-year, maintaining growth for eight consecutive quarters. According to Canalys data, Xiaomi ranked third globally in Q2 2025 smartphone shipments with a 14.7% market share, maintaining top-three ranking for 20 consecutive quarters.

In smart home appliances, Q2 air conditioner shipments exceeded 5.4 million units, reaching a record high with over 60% year-over-year growth. Refrigerator shipments exceeded 790,000 units, up over 25% year-over-year. Washing machine shipments exceeded 600,000 units, up over 45% year-over-year.

Xiaomi's internet services revenue grew steadily, with overseas internet revenue growth accelerating. In June 2025, global monthly active users reached 731 million, while mainland China monthly active users reached 185 million. As of June 30, IoT devices connected to Xiaomi's AIoT platform reached 989 million units, all setting new records.

**Increased R&D Investment Drives Premium Strategy**

Xiaomi's impressive performance is partly related to its premium positioning strategy. "Premium positioning" has become a key operational focus for Xiaomi.

Xiaomi's smartphone premium strategy shows clear results. In Q2 2025, Xiaomi ranked first in smartphone sales in mainland China, while ranking top five in 69 countries and regions internationally. Premium smartphone sales accounted for 27.6% of total smartphone sales, up 5.5 percentage points year-over-year.

According to third-party data, in Q2 2025, Xiaomi ranked first in mainland China's 4,000-5,000 yuan price segment with 24.7% market share, up 4.5 percentage points year-over-year. In the 5,000-6,000 yuan price segment, market share increased 6.5 percentage points year-over-year to 15.4%.

In home appliances, Xiaomi's smart appliances achieved counter-trend ASP (average selling price) growth amid industry price wars, further improving product mix. According to AVC data, Xiaomi was the only brand among the top ten online air conditioner brands in H1 to achieve both volume and price growth.

The closely watched automotive business delivered 81,300 units in Q2 2025. As of July 10, cumulative deliveries exceeded 300,000 units. With YU7 deliveries not yet started in Q2, H1 2025 deliveries already exceeded 157,000 units.

In Q2, Xiaomi's automotive business operating losses narrowed to 300 million yuan from Q1's 500 million yuan. Lu Weibing indicated that Xiaomi Auto is expected to begin profitability in the second half. However, cumulative investment in smart electric vehicles, AI and other innovative businesses from 2022 to H1 2025 exceeded 30 billion yuan, resulting in substantial cumulative losses.

Lu Weibing also stated that Xiaomi Auto will not participate in price wars or engage in destructive competition, maintaining its unchanged 2027 overseas expansion target while currently conducting preliminary research and preparation for international expansion.

Regarding R&D, Xiaomi invested 6.712 billion yuan and 7.763 billion yuan in Q1 and Q2 2025 respectively, up 30.1% and 41.2% year-over-year. From 2022 to 2024, annual R&D investments were 16.028 billion yuan, 19.098 billion yuan, and 24.050 billion yuan respectively. As of late June 2025, Xiaomi employed approximately 22,600 R&D personnel.

Xiaomi's global brand influence continues expanding. In June 2025, Xiaomi was selected for the "2025 Kantar BrandZ Chinese Global Brands" top 50, ranking second. In July 2025, Xiaomi was included in the Fortune Global 500 list for the seventh consecutive year, ranking 297th, up 100 positions from 2024.