Xiaomi's Profit Rises on Smartphone and IoT Sales, Strong EV Margins

By Jiahui Huang

Xiaomi grew its net profit and revenue in the second quarter, posting solid smartphone sales, record-high revenue from its Internet-of-Things segment, and strong margins in its electric-vehicle business.

The Chinese maker of smartphones and other consumer electronics said Wednesday that net profit rose 39% from a year earlier to 5.10 billion yuan, equivalent to $714.6 million. That beat the 4.47 billion yuan estimated by analysts polled by FactSet.

After adjusting for share-based compensation and other items, the company's quarterly profit was 6.18 billion yuan, compared with 5.14 billion yuan a year earlier.

Revenue for the quarter rose 32% to 88.89 billion yuan, beating the FactSet-compiled estimate for 87.36 billion yuan.

Revenue from Xiaomi's smartphone business rose 27% to 46.52 billion yuan, while revenue from its IoT and lifestyle products segment, which includes tablets, television sets and laptops, rose 20% to 26.76 billion yuan.

The Beijing-based company generated 6.2 billion yuan of revenue from its EV business after launching its first electric car, the SU7, in late March.

Xiaomi's gross profit margin fell to 20.7% from 21.0% a year earlier, and from 22.3% the previous quarter.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

August 21, 2024 06:15 ET (10:15 GMT)

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