China tech giant Xiaomi posts solid quarterly sales growth

BEIJING: Chinese smartphone and household tech giant Xiaomi on Wednesday (Aug 21) announced solid revenue growth for the second quarter of the year, despite sluggish consumption in the world’s second-largest economy.
The brand’s presence is strongly felt in China, with its wide range of products spanning mobiles, tablets, smartwatches, headphones, scooters and, recently, electric vehicles.
The world’s third-largest smartphone maker, Xiaomi reported revenue of 88.9 billion yuan (US$12.5 billion) in the second quarter, an increase of 32 per cent year-on-year, according to a statement to the Hong Kong Stock Exchange.
Its profit rose 38.9 per cent year-on-year during the period to reach 5.1 billion yuan (US$714.5 million).
The Hong Kong-listed firm launched its first car – the SU7 – in March, officially entering the highly competitive Chinese EV market.
“We expect to achieve the goal of delivering 100,000 vehicles of Xiaomi SU7 Series by November 2024, ahead of schedule,” the firm said in the statement.
Revenue from the “smart EV and other new initiatives segment” stood at 6.4 billion yuan (US$897 million) during the period, the statement said, revealing for the first time the contribution of its auto unit.
But Xiaomi’s smartphone business still accounted for a much larger proportion of its revenue during the second quarter, pulling in 46.5 billion yuan (US$6.5 billion).
Founded in 2010, Beijing-based Xiaomi has charted meteoric growth in recent years, propelled by high sales of its cost-effective products.
And with the flourishing of China’s EV sector in recent years, the firm has been one of many local tech giants to introduce automotive products.
Hybrid and electric cars accounted for more than half of all automotive sales during July, a first for the world’s largest vehicle market.