Hong Kong, 18 Aug 2026 – Xiaomi Corporation (Xiaomi-W, 01810.HK) reported second-quarter 2026 revenue of RMB108.92 billion, down 6.1% year-on-year (YoY) but up 9.9% versus the preceding quarter. Gross margin contracted to 19.8% (Q2 2025: 22.5%), sending gross profit down 17.2% to RMB21.61 billion. Operating profit fell 19.1% YoY to RMB10.87 billion, while profit for the period dropped 20.3% to RMB9.46 billion. Non-IFRS adjusted net profit slid 42.6% YoY to RMB6.22 billion, though it inched up 2.4% from Q1 2026.

Segment performance diverged sharply. • Smartphone × AIoT revenue declined 11.3% YoY to RMB84.03 billion, hit by global demand softness and higher memory costs. Smartphone shipments fell 26.5% to 31.2 million units, yet average selling price rose 25.9% to RMB1,351, reflecting ongoing premiumisation. Segment gross margin eased to 20.0% (-1.6 ppt YoY). • IoT & lifestyle products revenue contracted 19.2% to RMB31.28 billion; internet services held broadly flat at RMB9.04 billion, with a margin of 76.8% (+1.4 ppt YoY). • Smart EV, AI & other new initiatives revenue grew 17.1% to RMB24.90 billion, supported by a 28.2% rise in vehicle deliveries to 104,199 units. Smart EV revenue reached RMB23.90 billion (+15.9% YoY); vehicle ASP decreased 9.6% to RMB229,312 as mix shifted toward new-generation SU7 models. Segment gross margin declined to 19.2% (-7.2 ppt YoY).

For the first half of 2026, consolidated revenue was RMB208.06 billion (-8.4% YoY) and profit for the period totalled RMB14.20 billion (-37.6 % YoY). H1 adjusted net profit came in at RMB12.29 billion, down 42.8% YoY.

Investment in innovation accelerated. Q2 R&D expenses increased 18.9% YoY to RMB9.23 billion, accounting for 8.5% of revenue. Xiaomi highlighted progress in AI, launching the MiMo-V2.5 foundation model, Mi Miloco 2.0 smart-home solution and robotics models Xiaomi-Robotics-U0 and Xiaomi-Robotics-1.

Capital expenditure reached RMB3.62 billion in Q2, with RMB2.38 billion directed to the smart EV, AI and other new initiatives segment. Cash resources stood at RMB219.30 billion, including cash and cash equivalents of RMB37.25 billion; total borrowings were RMB39.28 billion.

Shareholder returns continued via buybacks. Under the HKD20 billion programme launched on 26 May 2026, Xiaomi repurchased about 377.47 million Class B shares for roughly HKD11.67 billion up to 13 August 2026. Corresponding weighted-voting-right shares were converted to maintain WVR ratios.

Management cites component cost inflation and intensified competition as near-term headwinds but emphasises sustained investment in “Human × Car × Home” AI-driven ecosystems and upcoming product launches, including the Xiaomi SkyNomad extended-range SUV series expected in September 2026.