AutoBeta(AutoBeta.net)08/22 Report--

Today, Xiaomi Group announced its results for the second quarter of this year. According to the financial report, Xiaomi Group's total revenue in the second quarter of this year was 88.9 billion yuan, an increase of 32% compared with the same period last year. The adjusted net profit was 6.2 billion yuan, an increase of 20.1% over the same period last year. As of the second quarter of this year, the cash reserve reached 141 billion yuan.

It is worth mentioning that in this financial report, the second-quarter results of Mimi cars have also been disclosed. As can be seen from the data, in the second quarter of this year, the revenue of smart electric vehicles was 6.4 billion yuan, and Xiaomi SU7 delivered 27307 units in a single season. Officials say they expect to reach the full-year target of 100, 000 vehicles ahead of schedule by November, sprinting on the new target of 120000 vehicles for the whole year.

Xiaomi SU7 is the first model of Xiaomi Automobile, which went on sale on March 28 this year. The new car is positioned as a medium and large pure electric sedan with a total of three models with a price range of 21.59-299900 yuan. As soon as the car came on the market, it became a hot market. Relevant data show that as of the end of July, Xiaomi SU7 accumulated sales of 43120 vehicles. And the lock volume of Xiaomi SU7 has exceeded 100000, which is very good for a new car.

Although Xiaomi SU7 has more orders, according to official disclosure, the profit of Xiaomi's car business is not high. Xiaomi's gross profit margin is 15.4%, less than 20%. Previously, ideal car CEO Li wanted to say that a gross profit margin of 15 to 25 per cent is a requirement for the healthy survival of car companies.

Although it is said that Xiaomi SU7 has a lot of orders at this stage, in fact, Xiaomi car has also invested a lot of money in research and development. Statistics show that Xiaomi spent 19.1 billion yuan on R & D last year, an increase of 19% over the same period last year. Lu Weibing, president of Xiaomi Group, once said: "although we continue to face a very challenging environment in the future, we will continue to invest in the future. Research and development is the leading link of industrial capacity, and Xiaomi will continue to increase R & D investment." According to Lu Weibing, the 19.1 billion R & D investment is specifically invested in low-level technologies such as systems, chips, AI and robots, as well as mobile phones, automobiles and other application products. In 2023, the cost of innovative business such as Xiaomi smart car increased to 6.7 billion yuan.

With regard to the topic of performance-to-price ratio of Xiaomi cars, Lei Jun revealed in a live broadcast: no pure electric car is making money, and in this industry with huge losses, we can't just talk about the ratio of performance to price. Every pure electric car has a strong performance-to-price ratio, because it's all at a loss. At the same time, it is also revealed that since Xiaomi entered the car-building industry, Xiaomi Group has invested more than 10 billion yuan in automobile research and development. Data show: March 30, 2021 Xiaomi Group founder Lei Jun announced to enter the field of car building. Lei Jun said at the time: "Xiaomi Automobile is the last major start-up project in my life. I am willing to bet all my reputation and lead the team to fight for Xiaomi Automobile. It is estimated that in the next 10 years, the investment will be 10 billion US dollars. In September of the same year, Xiaomi Automobile Co., Ltd. was established with a registered capital of 10 billion.

As we all know, building a car requires a lot of capital investment. Xiaomi Group is not short of funds. Lei Jun has said that it will take 15-20 years to become the top five car factory in the world in terms of sales. Officials also said they were ready to lose money for five consecutive years. In this regard, some people in the industry have also pointed out that as a cross-border car-building new force, it is also normal for Xiaomi cars to lose money on sales, which is generally done by many new energy car companies just entering the industry. As follow-up sales increase, the scale becomes larger, with a stable automobile supply chain and related industrial system, costs will be further reduced, and gross margin will rise sooner or later.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat