Overview
- Xiaomi reported Q2 group revenue of RMB 108.9 billion and adjusted net profit of RMB 6.2 billion in results published on Tuesday.
- The company’s EV arm posted RMB 23.9 billion in revenue and delivered 104,199 vehicles in Q2 but recorded a RMB 2.6 billion operating loss for the quarter.
- Average selling price fell to RMB 229,312 and EV gross margin dropped to 19.2% as a smaller share of higher-priced SU7 Ultra sales and higher component and AI-related costs compressed margins.
- Sharp memory and other component price increases erased roughly 40% of quarterly profit and coincided with weak smartphone shipments, adding pressure across Xiaomi’s hardware business.
- Xiaomi plans to start Sky Nomad deliveries in September and must ramp production at its Beijing plant—which gained extended-range clearance in June—to meet a 2026 target of 550,000 EVs and shore up profitability.