Xiaomi, the Chinese tech giant, announced its second-quarter results on Tuesday, showcasing impressive growth and surpassing analysts’ expectations. Here are the key highlights from the report:
Net Profit Surpasses Estimates
Xiaomi reported a net profit of 3.67 billion yuan ($503.4 million), more than doubling from the previous year. This figure exceeded analysts’ estimates of 3.21 billion yuan, according to a poll conducted by S&P Global Market Intelligence.
Revenue Beats Expectations
Despite a slight decline of 4.0% from the previous year, Xiaomi’s second-quarter revenue stood at 67.35 billion yuan, surpassing the estimated figure of 65.55 billion yuan in the S&P Global poll.
Notable Factors
Tablet Sales Boost
Xiaomi experienced a substantial increase in revenue from tablet sales, with a growth rate of 27%. This surge was largely driven by the successful launch of the Xiaomi Pad 6 series in April. The company’s Internet of Things and lifestyle products segment, including tablets, saw a significant boost in gross profit by 38%, reaching 3.91 billion yuan.
R&D Investments
Xiaomi’s commitment to research and development remained strong in the second quarter. The company’s expenses in this area rose by 21% to 4.6 billion yuan, primarily due to increased investment in its electric-vehicle business and other innovative initiatives.
Smartphone Segment Performance
Despite facing a decline in revenue, Xiaomi’s smartphone segment demonstrated impressive growth. The gross profit for this segment surged by 33% to 4.87 billion yuan. This increase was attributed to higher contributions from the sales of premium products, reduced costs of key components, and improved inventory management in the overseas market. Although smartphone shipments dropped by 16% to 32.9 million units, the segment revenue only fell by 13% to 36.60 billion yuan.
For more information, please contact Xiaomi at www.xiaomi.com.
