Photo/VCG

On August 21, Xiaomi Corporation reported a revenue of 164.395 billion yuan in the first half of 2024, a year-on-year increase of 29.6%, with an adjusted net profit of 12.666 billion yuan, a year-on-year increase of 51.3%. This means that Xiaomi Corporation earned an average of about 70 million yuan per day during the period. In addition, the latest second-quarter financial report showed a total revenue of 88.9 billion yuan, a year-on-year increase of 32.0%.

"This is the best quarterly report in Xiaomi's history! " wrote Lei Jun, CEO of Xiaomi.

In the smart car business segment, Lei Jun mentioned that deliveries are accelerating, with the annual target of 100,000 units expected to be met by November. In the second quarter, 27,307 units were delivered, generating 6.4 billion RMB in revenue with a gross margin of 15.4%. However, the segment still incurred a loss of 1.8 billion RMB due to high initial investments.

According to reports, in response to a loss of more than 60,000 yuan per vehicle, Xiaomi Coporation's President Lu Weibing emphasized the importance of scaling up Xiaomi's car business in the future.“Currently, Xiaomi’s automotive business is in its early stage with a small scale. The first car required significant investment and time to absorb costs; it is also an all-electric sedan, which has higher costs.”

However, after comparing with competitors like Tesla, Lu Weibing expressed satisfaction with the current gross margin of Xiaomi’s automotive business. Effective supply chain management, self-built factories, and supplier support contributed to the good gross margin performance. “Regarding future gross margins, I believe scale is very important. Once we achieve scale, costs will be significantly spread out,” said Lu Weibing.

As of June 30, 2024, Xiaomi had 87 car sales stores covering 30 cities in mainland China. Lu Weibing revealed that by the end of this year, Xiaomi's car retail stores will reach 220, covering 59 cities.