Xiaomi pours in 1.4 billion yuan in innovative business including car-making in Q2 2023

Beijing (Gasgoo)- On August 29, Xiaomi Group unveiled its financial results for the second quarter and the first half of 2023, along with a teleconference meeting. The company also unveiled data point concerning Xiaomi's automaking endeavors.

Photo credit: Xiaomi

Although the second-quarter revenues experienced a slight dip, the company's gross profit, operating profit, and adjusted net profit all showcased year-on-year growth. Notably, Xiaomi’s operating profit reached 4.04 billion yuan, and net profit stood at 5.14 billion yuan, both reflecting a year-over-year surge of more than 130%. 

In the second quarter, the Chinese smartphone giant also invested a hefty 1.4 billion yuan in the R&D of innovative businesses including automaking. According to Xiaomi Group's Partner, President, and Chairman of the Brand Committee, Lu Weibing, prudent resource allocation played a significant role, noting that the figure was "a bit less than expected." 

Since announcing its foray into the automotive industry, Xiaomi Group has committed over 5.5 billion yuan based on publicly available financial data. The company has been diligently preparing across the board, from supply and manufacturing to product development and sales.

Although Lu Weibing emphasized during the financial briefing that Xiaomi's automotive initiatives lacked the company's authorization for detailed disclosure, he did offer some insight. He acknowledged that Xiaomi's vehicles have undergone successful summer testing in Xinjiang.

"We have not changed our goal of starting production and sales of the vehicles in the first half of 2024. As of now, everything is going very smoothly, exceeding our original expectations and plans," Lu Weibing remarked.

He also revealed that Xiaomi's automotive team now comprises nearly 3,000 R&D members. "When Xiaomi entered the automotive industry, we strategically positioned ourselves to be among the top five global electric vehicle brands. From the outset, our approach was entirely self-reliant. Virtually every aspect of our first car is developed in-house," he added.