Xiaomi shares rose 5.6% to HK$27.64 on Thursday, outperforming a flat Hang Seng Index as investors reacted to the company’s second-quarter results.
The Chinese consumer electronics and automotive group posted revenue of RMB 108.9 billion, a 9.9% increase from the same period last year. Adjusted net profit reached RMB 6.2 billion, up 2.4% sequentially.
Smartphone segment performance strengthened, with average selling prices hitting a record high and gross margins expanding to 8.5% despite elevated memory component costs. The internet services segment delivered a gross margin of 76.8%, supported by growing user engagement.
Xiaomi’s electric vehicle and smart EV business delivered 104,199 units in the quarter, while pre-sale orders for the new Pengcheng EV model surpassed internal expectations. Global monthly active users across Xiaomi’s ecosystem reached 767 million, an all-time high.
Management noted that memory costs are stabilizing, with increases expected to moderate in the coming quarters. The company’s diversified revenue streams and improving profitability in core segments underpinned investor confidence.
