HIGHLIGHTS
- The company said that it has officially completed business registration in the electric vehicle field with the registered capital for its subsidiary of 10 billion yuan (US$1.55 billion).
- For research and development, Xiaomi currently has more than 16,000 engineers, and in 2019 they spent 10 billion yuan on this extremely important segment.
- In the second quarter of 2021, Xiaomi posted a record revenue of 87.8 billion yuan, up 64% year-on-year and surpassing analyst expectations.
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Completing the business registration in the electric vehicle field
Recently, the company said that it has officially completed business registration in the electric vehicle field with the registered capital for its subsidiary of 10 billion yuan (US$1.55 billion). Previously, to improve the competitiveness of the electric vehicle business that the company plans to launch shortly, Xiaomi bought self-driving car company Deepmotion for about $ 77.37 million.
As some giants like Baidu and Huawei Technologies see the car industry as their next target, in March Xiaomi also announced it would enter this promising business.
Lei Jun, Xiaomi’s CEO previously said that the company’s cash reserves totaled 108 billion yuan by the end of 2020, allowing the group to be able to withstand risks related to the business segment. car business.
Xiaomi is confident in the talent pool and technological advantages that it possesses
Lei Jun, Xiaomi’s CEO previously said that the company’s cash reserves totaled 108 billion yuan by the end of 2020, allowing the group to be able to withstand risks related to the business segment. car business.
For research and development, Xiaomi currently has more than 16,000 engineers, and in 2019 they spent 10 billion yuan on this extremely important segment. With advantages in artificial intelligence, new materials and other areas will help the group create a competitive advantage for the automotive business.
Roy Lu, Director of Gasgoo Automotive Research Institute, said that the auto industry is part of Xiaomi’s AI-enabled Internet of Things ecosystem. In addition, the business also invests in Chinese electric car startups such as Nio and Xpeng Motors through the joint venture Shunwei Capital. However, Xiaomi’s change of role from an investor to a competitor will prompt Nio and Xpeng Motors to prepare more carefully for the possible impact of Xiaomi’s entry into the electric car market.
Matthew Kanterman and Nathan Naidu, analysts at Bloomberg Intelligence, said Xiaomi’s entry into China’s electric vehicle market will open up a new growth area for the group.
In the second quarter of 2021, Xiaomi posted a record revenue of 87.8 billion yuan, up 64% year-on-year and surpassing analyst expectations, thanks to rapid growth in the domestic market. foreign school.
Also in the second quarter, Xiaomi shipped 52.8 million smartphone units, marking an annual growth of 83%, according to data from market research firm Canalys. This makes Xiaomi the second smartphone manufacturer in the world, surpassing Apple.
Phan Quyen
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