Xiaomi Reports Robust Q2 2025 Financials, with Revenue Exceeding RMB116 Billion

TL;DR:

• Xiaomi Corporation announced its Q2 2025 revenue reached RMB116.0 billion (approx. RM68.3 billion), a 30.5% year-over-year increase.
• This marks the third consecutive quarter with revenue surpassing RMB100 billion.
• Adjusted net profit soared by 75.4% year-over-year to RMB10.8 billion (approx. RM6.35 billion).
• The company’s premiumization strategy is driving strong growth across its three core segments: smartphones, smart EVs, and smart home appliances.
• The Xiaomi YU7 SUV secured over 240,000 locked-in orders within 18 hours of its launch, with EV revenue topping RMB20 billion for the first time.

Xiaomi’s “Human x Car x Home” Strategy Fuels Record-Breaking Growth

Xiaomi Corporation today announced its financial results for the second quarter of 2025, revealing a period of exceptional growth and profitability. The Group’s revenue surged to RMB116.0 billion, while adjusted net profit hit a new high of RMB10.8 billion, demonstrating the success of its “Human x Car x Home” smart ecosystem strategy.

Smartphone Business Maintains Global Top 3 Position

Despite a challenging global market, Xiaomi’s smartphone business remained resilient, with revenue of RMB45.5 billion and shipments growing for the eighth consecutive quarter. According to Canalys (now part of Omdia), Xiaomi held a 14.7% global market share, securing a top-three ranking for the 20th consecutive quarter.

The Group’s premiumization strategy is paying off, with premium smartphone sales (priced at or above RMB3,000) in Mainland China accounting for 27.6% of total sales, a significant 5.5 percentage point increase year-over-year.

Xiaomi Smart EV Business Accelerates

The smart EV, AI, and other new initiatives segment saw remarkable growth, with revenue skyrocketing by 234% year-over-year to RMB21.3 billion. For the first time, EV revenue alone surpassed RMB20 billion, signaling a rapid shift into a scaled growth phase.

Xiaomi’s first SUV, the Xiaomi YU7 Series, launched in June to an overwhelming market response, receiving over 240,000 locked-in orders within just 18 hours. The company also announced that EV deliveries continued to climb, with 81,302 vehicles delivered in Q2, and the operating loss from the EV business narrowing.

IoT and AI Investments See Strong Returns

The IoT and lifestyle products segment achieved a new revenue record of RMB38.7 billion, a 44.7% year-over-year increase. The smart large home appliances business was a standout performer, with revenue up 66.2%. This growth defied market trends, with shipments of air conditioners, refrigerators, and washing machines all showing strong increases.

Xiaomi’s commitment to innovation is further evidenced by its record R&D spending of RMB7.8 billion in Q2, up 41.2% year-over-year. This investment has led to significant breakthroughs in AI, including the open-sourcing of its multimodal large language model, Xiaomi MiMo-VL-7B, and the audio reasoning large language model, MiDashengLM-7B, both of which have achieved state-of-the-art performance.