Financial Statement Highlights Xiaomi's Growth in EV Business Amidst Smartphone Sales

Xiaomi's Financial Statement and EV Business Performance

Chinese smartphone maker Xiaomi has disclosed significant details in its financial statement regarding its electric vehicle (EV) business. The company generated 6.4 billion yuan (approximately US$897.8 million) in revenue during the second quarter as production and deliveries of its new SU7 sedan ramp up, striving to meet aggressive annual delivery targets. Despite a net loss of 1.8 billion yuan in its EV unit, Xiaomi reported a 32% increase in total revenue to 88.9 billion yuan year on year.

Monthly Deliveries and Market Challenges

Xiaomi delivered 27,307 SU7s between April and June, with Lu Weibing, the president, indicating that monthly deliveries reached around 10,000 in June. Despite selling the SU7 at a loss, the company maintains a 15% gross profit margin due to higher deliveries than expected. Lei Jun, founder and CEO, stated that the EV market presents intensified competition, leading to strategic pricing.

Production Expansion Plans

The EV factory in Beijing has implemented double shifts to boost production, aiming for a total of 120,000 units by the end of the year, which aligns with its delivery target of 100,000 SU7s. The plans include expanding its EV retail network to 100 centers by year-end, following positive performance in the smartphone sector.