Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. XIAOMI CORPORATION 小米集团 (A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability) Stock Codes: 1810 (HKD counter) and 81810 (RMB counter) RESULTS ANNOUNCEMENT FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 The board (the “ Board”) of directors (the “ Directors”) of Xiaomi Corporation 小米集团 (the “Company”) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively, the “ Group”) for the three and six months ended June 30, 2026. These interim results have been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting”, and reviewed by PricewaterhouseCoopers, the independent auditor of the Company, in accordance with International Standard on Review Engagements 2410, “Review of interim financial information performed by the independent auditor of the entity”, issued by the International Auditing and Assurance Standards Board. The interim results have also been reviewed by the audit committee of the Company (the “ Audit Committee ”). In this announcement, “we”, “us”, and “our” refer to the Company and where the context otherwise requires, the Group. KEY HIGHLIGHTS Unaudited Three months ended June 30, 2026 June 30, 2025 Year- over-year change March 31, 2026 Quarter- over- quarter change (Renminbi (“ RMB”) in millions, unless specified) Revenue 108,921.6 115,956.1 -6.1% 99,141.6 9.9% Gross profit 21,608.9 26,101.0 -17.2% 21,810.1 -0.9% Operating profit 10,870.2 13,436.7 -19.1% 5,312.6 104.6% Profit before income tax 11,565.3 14,402.8 -19.7% 5,728.7 101.9% Profit for the period 9,463.4 11,873.2 -20.3% 4,734.6 99.9% Non-IFRS Measure: Adjusted Net Profit 1 6,219.1 10,830.7 -42.6% 6,072.1 2.4% 1 See the section entitled “Non-IFRS Measure: Adjusted Net Profit” for more information about the non-IFRS measure.
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2 Unaudited Six months ended June 30, 2026 June 30, 2025 Year- over-year change (RMB in millions, unless specified) Revenue 208,063.2 227,249.4 -8.4% Gross profit 43,419.0 51,506.9 -15.7% Operating profit 16,182.8 26,562.1 -39.1% Profit before income tax 17,294.0 27,570.8 -37.3% Profit for the period 14,198.0 22,765.9 -37.6% Non-IFRS Measure: Adjusted Net Profit 12,291.2 21,506.3 -42.8% BUSINESS REVIEW AND OUTLOOK 1. Overall Performance In the second quarter of 2026, geopolitical uncertainties persisted, while significant increases in key component costs, including memory, along with intensified industry competition, continued to create headwinds for our business. Meanwhile, the artificial intelligence (AI) industry entered a phase of rapid advancement. We proactively optimized our operational management, focusing on foundational technology capabilities, including AI, to empower our “Human × Car × Home” ecosystem. Total revenue for the second quarter of 2026 reached RMB108.9 billion. Segment-wise, in the second quarter of 2026, revenue of our smartphone × AIoT segment reached RMB84.0 billion; revenue of our smart electric vehicle (“ EV”), AI and other new initiatives segment reached RMB24.9 billion. In this quarter, our adjusted net profit reached RMB6.2 billion. In the second quarter of 2026, our smartphone shipments reached 31.2 million units. According to Omdia, we maintained top 3 global smartphone shipment ranking for the 24th consecutive quarter. As of June 30, 2026, the number of connected IoT devices on our AIoT platform (excluding smartphones and tablets) reached a record high of 1,160.8 million, up 17.4% year- over-year. In June 2026, our global monthly active users (“ MAU”) 2 reached a record high of 766.5 million, up 4.8% year-over-year. In the second quarter of 2026, we achieved total deliveries of 104,199 vehicles, up 28.2% year-over-year. We continued to execute on our 2020–2030 goal of investing in foundational core technologies and becoming a global leader in the evolving realm of cutting-edge technologies. In the second quarter of 2026, our research and development (“ R&D”) expenses increased by 18.9% year-over-year to RMB9.2 billion. As of June 30, 2026, our research and development personnel accounted for 47.2% of our total employees. As of June 30, 2026, we have obtained more than 47,000 patents worldwide. 2 Including smartphones and tablets.
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3 We continued to advance our AI capabilities. Xiaomi MiMo-V2.5, our foundation model launched in April 2026, continued to receive widespread support from users globally. On the OpenRouter platform, Xiaomi MiMo-V2.5 ranked as the No. 1 model in weekly token usage 3 , reaching 10.5 trillion tokens. In June 2026, we officially unveiled Xiaomi Miloco 2.0 (Xiaomi Local Copilot 2.0), an open-source AI solution for home intelligence, powered by the Xiaomi MiMo large language model. Compared to Xiaomi Miloco 1.0 , Xiaomi Miloco 2.0 further explores new smart home scenarios, moving toward proactive home intelligence that “remembers, recognizes people, and takes action”. We simultaneously explore the frontier of embodied intelligence. In July 2026, we launched and open-sourced Xiaomi-Robotics-U0 , a 38-billion parameter multimodal autoregressive generative foundation model for embodied intelligence. On the WorldArena benchmark, Xiaomi-Robotics-U0 ranked No. 1 among 126 models worldwide with the highest overall score 4 . In the same month, we also launched Xiaomi-Robotics-1 , an embodied foundation model for real-world mobile manipulation tasks, pre-trained on 100,000 hours of real-world data. Xiaomi-Robotics-1 ranked No. 1 on the RoboCasa365 simulation benchmark 5 . Also in July 2026, we demonstrated our robotics capabilities at the Xiaomi EV factory. We improved the success rate of our robots in dual-side tasks at the self-tapping threaded insert nut loading station from 90.2% to 98%. Moreover, our robots were deployed at new workstations in the logistics area of the final assembly workshop, including center console side-cover sorting and returnable box folding, achieving success rates of 90% for both tasks. In June 2026, Xiaomi’s robotics team won first place in both the GigaBrain Challenge-RoboChallenge Track of the CVPR 2026 Workshops and the WBC (Whole Body Control) Track of the ICRA 2026, underscoring our cutting-edge R&D capabilities in embodied intelligence. In August 2026, we officially launched the beta version of Xiaomi HyperOS 4, our next- generation operating system. We continue to improve foundational experience and usability. We have added precise load calculation and memory preloading capabilities to our proprietary Xiaomi HyperCore, and established a runtime environment for Xiaomi HyperOS applications. In addition, we have upgraded our omni-ecosystem AI capabilities with the introduction of “Xiaomi Hyper XiaoAi 2.0”. Through improvements to the AI architecture and the integration of the Xiaomi MiMo large language model, it possesses enhanced task orchestration and content generation capabilities. Furthermore, we have conducted specialized optimizations for cross-app and cross-device scenarios, enabling AI to evolve from merely “understanding instructions” to actually “getting things done.” We steadily improved the operational efficiency of our new retail stores. As of June 2026, the number of our large Xiaomi stores (over 500 square meters) in the Chinese Mainland exceeded 270. At the same time, we steadily expanded our new retail model in the overseas markets, with the total number of overseas new retail stores surpassing 640, covering Southeast Asia, Europe, East Asia, Latin America, the Middle East, Africa, etc. In the second quarter of 2026, we continued to improve operating efficiency, with the operating expense ratio of our smartphone × AIoT segment reaching 14.2%, down 0.6 percentage points quarter-over-quarter. Meanwhile, we continued to invest proactively in the future, and our capital expenditures for the quarter amounted to approximately RMB3.6 billion, including RMB2.4 billion allocated to the smart EV, AI and other new initiatives segment. 3 From July 20, 2026 to July 26, 2026. 4 As of July 15, 2026. 5 As of July 15, 2026.
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4 We are committed to continuously enhancing shareholder value and have been actively repurchasing our shares in the open market. We adopted a new share repurchase program on May 26, 2026, with a total amount of up to HKD20 billion. Since the beginning of this year 6 , we have repurchased approximately 377.5 million shares in the amount of approximately HK$11.7 billion, exceeding last year’s total repurchase amount. Our brand continued to gain recognition globally. In July 2026, we ranked No. 232 on the Fortune Global 500 list, up 65 spots from 2025, marking our 8th consecutive year on the list and our highest ranking since our debut in 2019. In the same month, we ranked No. 2 in the Top 50 2026 Kantar BrandZ Chinese Global Brand Builders, marking our 9th consecutive year on the list. 2. Smartphone × AIoT In the second quarter of 2026, revenue from our smartphone × AIoT segment reached RMB84.0 billion. The gross profit margin of our smartphone × AIoT segment reached 20.0%. Smartphones In the second quarter of 2026, the global smartphone industry faced broad headwinds from significant increases in memory costs. According to Omdia, global smartphone shipments were down 6% year-over-year in the second quarter of 2026. Facing these headwinds, we proactively optimized our product mix and pricing strategy, while actively adjusting shipment cadence. Our global smartphone shipments reached 31.2 million units in this quarter, and our smartphone revenue reached RMB42.1 billion, with a gross profit margin of 8.5%. We continued to advance our premiumization strategy and proactively improve our product mix. In the second quarter of 2026, the average selling price (“ ASP”) of our smartphones reached a record high, up 25.9% year-over-year to RMB1,351. According to third-party data, in the second quarter of 2026, our smartphone units with retail prices at or above RMB3,000 sold in the Chinese Mainland accounted for 32.1% of our total smartphone units sold, reaching a record high and up 4.5 percentage points year-over-year. In the RMB3,000-4,000 segment in the Chinese Mainland, our market share reached 16.2%, up 3.3 percentage points year-over- year. According to Omdia, in the second quarter of 2026, we ranked No. 3 globally in smartphone shipments, maintaining top 3 global smartphone shipment ranking for the 24th consecutive quarter. Our smartphone shipments ranked No. 2 in Southeast Asia, Latin America and the Middle East with market shares of 19.3%, 16.2% and 13.5%, respectively. We ranked No. 3 in Europe and Africa, with market shares of 16.5% and 10.9%, respectively. In the second quarter of 2026, our smartphone shipments ranked among the top three in 53 countries and regions globally and among the top five in 67 countries and regions globally. 6 From January 1, 2026 to August 13, 2026.
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5 IoT and lifestyle products In the second quarter of 2026, revenue from our IoT and lifestyle products reached RMB31.3 billion. The gross profit margin of our IoT and lifestyle products reached 20.1%. As of June 30, 2026, the number of connected IoT devices (excluding smartphones and tablets) on our AIoT platform reached 1,160.8 million, up 17.4% year-over-year. The number of users with five or more devices connected to our AIoT platform (excluding smartphones and tablets) reached 24.6 million, up 20.2% year-over-year. In June 2026, the MAU of our Xiaomi Home App grew to 124.1 million, up 9.7% year-over-year. The MAU of our AI Assistant (“ 小愛同學 ”) grew to 174.9 million, up 14.2% year-over-year. Our tablet business maintained stable performance. According to Omdia, in the second quarter of 2026, our tablet shipments advanced to No. 4 globally, among the top five for the 9th consecutive quarter and ranked No. 4 in the Chinese Mainland. According to Omdia, in the second quarter of 2026, our TWS earbud shipments ranked No. 2 globally and No. 2 in the Chinese Mainland. Our shipments of wearable bands 7 ranked No. 2 globally and No. 2 in the Chinese Mainland. Our overseas IoT and lifestyle products continued to grow. In the second quarter of 2026, driven by the expansion of overseas channels and broader product categories, our overseas IoT and lifestyle products revenue increased rapidly year-over-year. Notably, both the shipments and revenue of overseas tablet reached record highs in this quarter. Internet services In the second quarter of 2026, our internet services revenue reached RMB9.0 billion. The gross profit margin of our internet services was 76.8%, up 1.4 percentage points year-over-year. Our internet user base continued to expand. The MAU globally and in the Chinese Mainland both hit record highs. In June 2026, our global MAU reached 766.5 million, up 4.8% year-over- year, and our MAU in the Chinese Mainland reached 197.7 million, up 7.0% year-over-year. In June 2026, the global MAU of our smart TVs 8 reached 76.9 million, up 4.3% year-over-year. In the second quarter of 2026, our advertising business sustained growth momentum, with advertising revenue reaching RMB7.2 billion, up 4.8% year-over-year. Our overseas internet services revenue reached RMB2.9 billion. Overseas internet services revenue accounted for 32.1% of our total internet services revenue. 7 Including basic bands, basic watches and smart watches. 8 Including Xiaomi Box and Xiaomi TV Stick .
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6 3. Smart EV, AI and Other New Initiatives In the second quarter of 2026, revenue from our smart EV, AI and other new initiatives segment reached RMB24.9 billion, up 17.1% year-over-year, consisting of RMB23.9 billion from smart EV and RMB1.0 billion from other related businesses (including AI business revenue generated by the Xiaomi MiMo large language model series). In the second quarter of 2026, the gross profit margin of our smart EV, AI and other new initiatives segment was 19.2%. In the second quarter of 2026, the loss from operations 9 related to our smart EV, AI and other new initiatives segment was RMB2.6 billion. In the second quarter of 2026, the overall passenger vehicle market in the Chinese Mainland experienced a downturn, with retail volume declining by 22% year-over-year 10 . We achieved total deliveries of 104,199 vehicles in this quarter, up 28.2% year-over-year. In the first half of 2026, the Xiaomi SU7 Series ranked No. 1 in sales volume among pure electric sedans priced above RMB200,000 in the Chinese Mainland 11 . As of August 17, 2026, cumulative deliveries of our Xiaomi SU7 Series have exceeded 500,000 units. According to the July 2026 China Vehicle Value Retention Ratio Research Report, jointly released by China Automobile Dealers Association and Jingzhengu, the Xiaomi YU7 Series ranked first among one-year major pure electric vehicles, with a value retention ratio 12 of 82.8%. The Xiaomi SU7 Series ranked fourth, with a value retention ratio of 75.3%. Meanwhile, the Xiaomi SU7 Series ranked first in value retention ratio among one-year major pure electric sedans. We continued to refine our technologies and enrich our product portfolio. In July 2026, we officially unveiled the Xiaomi Kunlun Technical Architecture, including the Xiaomi Kunlun Platform, Xiaomi Kunlun HyperRange, and Xiaomi Kunlun Total Safety. Built on this technical architecture, we debuted our first extended-range SUV series: the Xiaomi SkyNomad Series , including two variants: the Xiaomi SkyNomad N90 Max and the Xiaomi SkyNomad N70 Max . We defined the Xiaomi SkyNomad Series as an “intelligent, reconfigurable, spacious SUV”. The Xiaomi SkyNomad Series adopts a fully flat floor from front to rear, with specially optimized rear wheel-arches packaging to deliver a rectangular layout. The extra-long seat slide rails offer flexible space utilization, accommodating face-to-face seating, a mobile workspace, and a flat-bed mode. In terms of Xiaomi Kunlun HyperRange, we use a large-battery extended- range architecture, dual-motor all-wheel drive, and Xiaomi Kunlun 1.5T range-extender unit. The Xiaomi SkyNomad Series delivers a CLTC 13 combined range of up to 1,705 km. In terms of Xiaomi Kunlun Total Safety, the Xiaomi SkyNomad Series adopts an Armor Cage-type body structure and integrated hot-stamped door ring, equipped with the Xiaomi Armor Scale Battery. And its multi-directional collision test standards exceed the industry’s stringent standards. The official pre-sale prices of the Xiaomi SkyNomad N90 Max and the Xiaomi SkyNomad N70 Max are RMB299,900 and RMB259,900, respectively, and are expected to launch in September 2026. 9 Income/(loss) from operations is defined as gross profit minus operating expenses. 10 According to China Passenger Car Association (CPCA). 11 Source: BitAuto, as of June 30, 2026. 12 Value Retention Ratio is calculated as used -car resale price divided by new -car manufacturer’s suggested retail price. 13 China Light-duty Vehicle Test Cycle.
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7 We continue to strengthen our EV safety systems. In June 2026, in the assessment under the C-ICAP (China Intelligent-connected Car Assessment Programme, Revision of Version 2024), the Xiaomi YU7 14 achieved the highest ratings across all four dimensions: driving assistance, parking assistance, smart cockpit and privacy protection. In July 2026, in the safety tests under the C-NCAP (China New Car Assessment Programme, 2024 Edition), the Xiaomi YU7 15 achieved a “Five-Star Plus Rating” safety certification. The Xiaomi YU7 performed exceptionally across all three safety test dimensions: occupant protection, VRU (vulnerable road user) protection and active safety. We are continuously honing our technologies through track testing. In June 2026, our Xiaomi YU7 GT with Track Package set the first autonomous driving lap record at the Nürburgring Nordschleife, achieving a lap time of 10:29.483. 4. Corporate Social Responsibility (CSR) As we advanced the development of low-carbon materials, we continued to increase our investment in the proprietary research and development of core materials. Our self-developed Xiaomi Titan Alloy 2.0 has achieved carbon emissions of 1.1 kgCO 2e per kilogram, representing approximately a 93% reduction compared with conventional primary aluminum. It has been verified under the international Environmental Product Declaration (EPD) system and registered. While maintaining excellent structural strength, it also delivers enhanced toughness, with all performance metrics meeting stringent automotive structural component standards. Xiaomi Titan Alloy 2.0 has entered mass production and is deployed in the New-Generation Xiaomi SU7 Series and the Xiaomi YU7 Series. This material technology breakthrough further strengthened our proprietary technology capabilities and enhanced the competitiveness of premium products in our smart EV business, while reinforcing the low-carbon competitiveness of our products in global markets. In terms of poverty and disaster relief, in July 2026, following floods, hailstorms, and other disasters in Guangxi, Hubei, Gansu, Liaoning, Jilin, Hebei and other regions, the Xiaomi Foundation donated RMB10 million in cash to support emergency relief, transitional resettlement, and post-disaster reconstruction in the affected areas. To promote technology innovation, as of June 30, 2026, the Xiaomi Innovation Joint Fund 16 has cumulatively donated approximately RMB274 million, supporting 182 research teams in the Chinese Mainland. 14 The tested model was the long-range version of Xiaomi YU7 . 15 The tested model was the long-range version of Xiaomi YU7 . 16 Established with donations from Beijing Xiaomi Foundation.
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8 MANAGEMENT DISCUSSION AND ANALYSIS Second Quarter of 2026 Compared to Second Quarter of 2025 The following table sets forth the comparative figures for the second quarter of 2026 and the second quarter of 2025: Unaudited Three months ended June 30, 2026 June 30, 2025 (RMB in millions) Revenue 108,921.6 115,956.1 Cost of sales (87,312.7) (89,855.1) Gross profit 21,608.9 26,101.0 Research and development expenses (9,231.3) (7,763.4) Selling and marketing expenses (8,648.5) (7,778.0) Administrative expenses (1,481.7) (1,627.1) Fair value changes on financial instruments measured at fair value through profit or loss 6,457.7 3,363.5 Share of net profits of investments accounted for using the equity method 42.4 86.9 Other income 2,159.6 299.4 Other (losses)/gains, net (36.9) 754.4 Operating profit 10,870.2 13,436.7 Finance income, net 695.1 966.1 Profit before income tax 11,565.3 14,402.8 Income tax expenses (2,101.9) (2,529.6) Profit for the period 9,463.4 11,873.2 Non-IFRS Measure: Adjusted Net Profit 6,219.1 10,830.7
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9 Revenue Revenue decreased by 6.1% from RMB116.0 billion in the second quarter of 2025 to RMB108.9 billion in the second quarter of 2026. The following table sets forth our revenue by segment in the second quarter of 2026 and the second quarter of 2025: Unaudited Three months ended June 30, 2026 June 30, 2025 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT 84,025.8 77.1% 94,692.8 81.7% Smart EV, AI and other new initiatives 24,895.8 22.9% 21,263.3 18.3% Total revenue 108,921.6 100.0% 115,956.1 100.0% Smartphone × AIoT Revenue from our smartphone × AIoT segment decreased by 11.3% from RMB94.7 billion in the second quarter of 2025 to RMB84.0 billion in the second quarter of 2026. The following table sets forth our revenue by line of our smartphone × AIoT segment in the second quarter of 2026 and the second quarter of 2025: Unaudited Three months ended June 30, 2026 June 30, 2025 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT Smartphones 42,118.7 38.7% 45,520.0 39.3% IoT and lifestyle products 31,278.0 28.7% 38,712.2 33.4% Internet services 9,043.7 8.3% 9,097.7 7.8% Other related businesses 1,585.4 1.4% 1,362.9 1.2% Total revenue of smartphone × AIoT segment 84,025.8 77.1% 94,692.8 81.7%
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10 (i) Smartphones Revenue from our smartphones decreased by 7.5% from RMB45.5 billion in the second quarter of 2025 to RMB42.1 billion in the second quarter of 2026, primarily due to the decrease in our smartphone shipments, partially offset by the increase in our smartphone ASP. Our smartphone shipments decreased by 26.5% from 42.4 million units in the second quarter of 2025 to 31.2 million units in the second quarter of 2026, primarily due to the optimization of our product portfolio and the reduction in shipments of our mid-range and low-end smartphones, as well as the weakened global demand driven by the continued increase in price of key components. The ASP of our smartphones increased by 25.9% from RMB1,073.2 per unit in the second quarter of 2025 to RMB1,351.0 per unit in the second quarter of 2026, a record high, primarily due to the optimization of our product portfolio, the higher contribution of smartphone shipments in the Chinese Mainland, as well as the increased ASP in the overseas markets driven by the successful launch of Xiaomi 17T Series in May 2026. (ii) IoT and lifestyle products Revenue from our IoT and lifestyle products decreased by 19.2% from RMB38.7 billion in the second quarter of 2025 to RMB31.3 billion in the second quarter of 2026, primarily due to the decreased revenue in the Chinese Mainland resulting from the reduction in national subsidies, partially offset by the increased revenue in the overseas markets, driven by tablets, smart TVs and wearables. (iii) Internet services Revenue from our internet services decreased by 0.6% from RMB9.1 billion in the second quarter of 2025 to RMB9.0 billion in the second quarter of 2026, primarily due to the decreased revenue from our gaming business and other value-added services, partially offset by the increased revenue from our advertising business. (iv) Other related businesses Revenue from our other related businesses increased by 16.3% from RMB1.4 billion in the second quarter of 2025 to RMB1.6 billion in the second quarter of 2026, primarily due to the increased revenue from sales of materials, partially offset by the decreased revenue from installation services provided for air conditioners. Smart EV, AI and Other New Initiatives Revenue from our smart EV, AI and other new initiatives segment increased by 17.1% from RMB21.3 billion in the second quarter of 2025 to RMB24.9 billion in the second quarter of 2026. Revenue from our smart EV increased by 15.9% from RMB20.6 billion in the second quarter of 2025 to RMB23.9 billion in the second quarter of 2026, primarily due to the increase in our vehicle deliveries, partially offset by the decrease in our vehicle ASP. Our vehicle deliveries increased by 28.2% from 81,302 units in the second quarter of 2025 to 104,199 units in the second quarter of 2026, primarily due to the increased deliveries of Xiaomi YU7 Series , partially offset by the decreased deliveries of Xiaomi SU7 Ultra . The ASP of our smart EV decreased by 9.6% from
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11 RMB253,662 per unit in the second quarter of 2025 to RMB229,312 per unit in the second quarter of 2026, primarily due to the lower contribution from deliveries of Xiaomi SU7 Ultra . Revenue from our other related businesses increased by 56.5% from RMB0.6 billion in the second quarter of 2025 to RMB1.0 billion in the second quarter of 2026, primarily due to the increased revenue from after-sales services related to our smart EV business, as well as the increased revenue from our AI business related to Xiaomi MiMo large language model series. Cost of Sales Our cost of sales decreased by 2.8% from RMB89.9 billion in the second quarter of 2025 to RMB87.3 billion in the second quarter of 2026. The following table sets forth our cost of sales by segment in the second quarter of 2026 and the second quarter of 2025: Unaudited Three months ended June 30, 2026 June 30, 2025 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT 67,208.8 61.7% 74,212.7 64.0% Smart EV, AI and other new initiatives 20,103.9 18.5% 15,642.4 13.5% Total cost of sales 87,312.7 80.2% 89,855.1 77.5% Smartphone × AIoT Cost of sales related to our smartphone × AIoT segment decreased by 9.4% from RMB74.2 billion in the second quarter of 2025 to RMB67.2 billion in the second quarter of 2026. The following table sets forth our cost of sales by line of our smartphone × AIoT segment in the second quarter of 2026 and the second quarter of 2025: Unaudited Three months ended June 30, 2026 June 30, 2025 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT Smartphones 38,519.5 35.4% 40,299.7 34.8% IoT and lifestyle products 25,005.9 23.0% 29,990.6 25.9% Internet services 2,101.5 1.9% 2,242.0 1.9% Other related businesses 1,581.9 1.4% 1,680.4 1.4% Total cost of sales of smartphone × AIoT segment 67,208.8 61.7% 74,212.7 64.0%
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12 (i) Smartphones Cost of sales related to our smartphones decreased by 4.4% from RMB40.3 billion in the second quarter of 2025 to RMB38.5 billion in the second quarter of 2026, primarily due to the decreased sales of our smartphones, partially offset by the increased price of key components. (ii) IoT and lifestyle products Cost of sales related to our IoT and lifestyle products decreased by 16.6% from RMB30.0 billion in the second quarter of 2025 to RMB25.0 billion in the second quarter of 2026, primarily due to the decreased sales of our IoT and lifestyle products. (iii) Internet services Cost of sales related to our internet services decreased by 6.3% from RMB2.2 billion in the second quarter of 2025 to RMB2.1 billion in the second quarter of 2026, primarily due to the decreased cost of our advertising business and gaming business. (iv) Other related businesses Cost of sales related to our other related businesses decreased by 5.9% from RMB1.7 billion in the second quarter of 2025 to RMB1.6 billion in the second quarter of 2026, primarily due to the decreased sales from installation services provided for air conditioners. Smart EV, AI and Other New Initiatives Cost of sales related to our smart EV, AI and other new initiatives segment increased by 28.5% from RMB15.6 billion in the second quarter of 2025 to RMB20.1 billion in the second quarter of 2026, primarily due to the increased sales of our smart EV and AI business. Gross Profit and Margin As a result of the foregoing, our gross profit decreased by 17.2% from RMB26.1 billion in the second quarter of 2025 to RMB21.6 billion in the second quarter of 2026. Our gross profit margin decreased from 22.5% in the second quarter of 2025 to 19.8% in the second quarter of 2026.
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13 The following table sets forth our gross profit and margin by segment in the second quarter of 2026 and the second quarter of 2025: Unaudited Three months ended June 30, 2026 June 30, 2025 Gross profit Gross margin % Gross profit Gross margin % (RMB in millions, unless specified) Smartphone × AIoT 16,817.0 20.0% 20,480.1 21.6% Smart EV, AI and other new initiatives 4,791.9 19.2% 5,620.9 26.4% Total gross profit and margin 21,608.9 19.8% 26,101.0 22.5% Smartphone × AIoT The gross profit margin from our smartphone × AIoT segment decreased from 21.6% in the second quarter of 2025 to 20.0% in the second quarter of 2026. The following table sets forth our gross profit and margin by line of our smartphone × AIoT segment in the second quarter of 2026 and the second quarter of 2025: Unaudited Three months ended June 30, 2026 June 30, 2025 Gross profit Gross margin % Gross profit Gross margin % (RMB in millions, unless specified) Smartphone × AIoT Smartphones 3,599.2 8.5% 5,220.3 11.5% IoT and lifestyle products 6,272.1 20.1% 8,721.6 22.5% Internet services 6,942.2 76.8% 6,855.7 75.4% Other related businesses 3.5 0.2% (317.5) (23.3%) Total gross profit and margin of smartphone × AIoT segment 16,817.0 20.0% 20,480.1 21.6% The gross profit margin from our smartphones decreased from 11.5% in the second quarter of 2025 to 8.5% in the second quarter of 2026, mainly due to the increased price of key components. The gross profit margin from our IoT and lifestyle products decreased from 22.5% in the second quarter of 2025 to 20.1% in the second quarter of 2026, mainly due to the decreased gross profit margin in the Chinese Mainland resulting from the increased price of key components, partially offset by the increased gross profit margin and higher revenue contribution of certain lifestyle products and wearables in the overseas markets.
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14 The gross profit margin from our internet services increased from 75.4% in the second quarter of 2025 to 76.8% in the second quarter of 2026, mainly due to the increased gross profit margin and higher revenue contribution of our advertising business, partially offset by the decreased gross profit margin of our gaming business. Smart EV, AI and Other New Initiatives The gross profit margin from our smart EV, AI and other new initiatives segment decreased from 26.4% in the second quarter of 2025 to 19.2% in the second quarter of 2026, primarily due to the lower contribution from deliveries of Xiaomi SU7 Ultra , the increased price of key components and the increased cost related to our AI business. Operating Expenses Our operating expenses increased by 12.8% from RMB17.2 billion in the second quarter of 2025 to RMB19.4 billion in the second quarter of 2026. Our operating expenses related to our smart EV, AI and other new initiatives segment increased by 25.7% from RMB5.9 billion in the second quarter of 2025 to RMB7.4 billion in the second quarter of 2026. Research and Development Expenses Our research and development expenses increased by 18.9% from RMB7.8 billion in the second quarter of 2025 to RMB9.2 billion in the second quarter of 2026, primarily due to the increased research and development expenses related to our smart EV, AI and other new initiatives, especially the higher investments in our AI infrastructure, and the pace of our research projects related to smartphone × AIoT. Selling and Marketing Expenses Our selling and marketing expenses increased by 11.2% from RMB7.8 billion in the second quarter of 2025 to RMB8.6 billion in the second quarter of 2026, primarily due to the increase in selling and marketing expenses related to our smart EV business and expenses related to expansion of our new retail stores in the overseas markets. Administrative Expenses Our administrative expenses decreased by 8.9% from RMB1.6 billion in the second quarter of 2025 to RMB1.5 billion in the second quarter of 2026, primarily due to the decrease in compensation for administrative personnel. Fair Value Changes on Financial Instruments Measured at Fair Value Through Profit or Loss Our fair value changes on financial instruments measured at fair value through profit or loss increased from a gain of RMB3.4 billion in the second quarter of 2025 to a gain of RMB6.5 billion in the second quarter of 2026, primarily due to the higher fair value gains of both other investments in private equity investment funds and unlisted preferred shares investments in the second quarter of 2026.
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15 Share of Net Profits of Investments Accounted for Using the Equity Method Our share of net profits of investments accounted for using the equity method decreased from RMB86.9 million in the second quarter of 2025 to RMB42.4 million in the second quarter of 2026. Other Income Our other income increased from RMB0.3 billion in the second quarter of 2025 to RMB2.2 billion in the second quarter of 2026, primarily due to the increase in subsidy income. Other (Losses)/Gains, Net Our net other (losses)/gains changed from a net gain of RMB754.4 million in the second quarter of 2025 to a net loss of RMB36.9 million in the second quarter of 2026, primarily due to the decrease of disposal gains of investments accounted for using the equity method. Finance Income, Net Our net finance income decreased from RMB1.0 billion in the second quarter of 2025 to RMB0.7 billion in the second quarter of 2026, primarily due to the decrease of net interest income. Income Tax Expenses Our income tax expenses decreased from RMB2.5 billion in the second quarter of 2025 to RMB2.1 billion in the second quarter of 2026, primarily due to the decrease of taxable profit in the second quarter of 2026. Profit for the Period As a result of the foregoing, our profit for the period decreased by 20.3% from RMB11.9 billion in the second quarter of 2025 to RMB9.5 billion in the second quarter of 2026. Adjusted Net Profit Our adjusted net profit decreased by 42.6% from RMB10.8 billion in the second quarter of 2025 to RMB6.2 billion in the second quarter of 2026.
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16 Second Quarter of 2026 Compared to First Quarter of 2026 The following table sets forth the comparative figures for the second quarter of 2026 and the first quarter of 2026: Unaudited Three months ended June 30, 2026 March 31, 2026 (RMB in millions) Revenue 108,921.6 99,141.6 Cost of sales (87,312.7) (77,331.5) Gross profit 21,608.9 21,810.1 Research and development expenses (9,231.3) (8,954.4) Selling and marketing expenses (8,648.5) (8,276.5) Administrative expenses (1,481.7) (1,630.4) Fair value changes on financial instruments measured at fair value through profit or loss 6,457.7 848.5 Share of net profits of investments accounted for using the equity method 42.4 43.8 Other income 2,159.6 1,085.4 Other (losses)/gains, net (36.9) 386.1 Operating profit 10,870.2 5,312.6 Finance income, net 695.1 416.1 Profit before income tax 11,565.3 5,728.7 Income tax expenses (2,101.9) (994.1) Profit for the period 9,463.4 4,734.6 Non-IFRS Measure: Adjusted Net Profit 6,219.1 6,072.1
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17 Revenue Revenue increased by 9.9% from RMB99.1 billion in the first quarter of 2026 to RMB108.9 billion in the second quarter of 2026. The following table sets forth our revenue by segment in the second quarter of 2026 and the first quarter of 2026: Unaudited Three months ended June 30, 2026 March 31, 2026 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT 84,025.8 77.1% 79,277.2 80.0% Smart EV, AI and other new initiatives 24,895.8 22.9% 19,864.4 20.0% Total revenue 108,921.6 100.0% 99,141.6 100.0% Smartphone × AIoT Revenue from our smartphone × AIoT segment increased by 6.0% from RMB79.3 billion in the first quarter of 2026 to RMB84.0 billion in the second quarter of 2026. The following table sets forth our revenue by line of our smartphone × AIoT segment in the second quarter of 2026 and the first quarter of 2026: Unaudited Three months ended June 30, 2026 March 31, 2026 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT Smartphones 42,118.7 38.7% 44,273.3 44.7% IoT and lifestyle products 31,278.0 28.7% 24,681.2 24.9% Internet services 9,043.7 8.3% 9,468.3 9.6% Other related businesses 1,585.4 1.4% 854.4 0.8% Total revenue of smartphone × AIoT segment 84,025.8 77.1% 79,277.2 80.0%
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18 (i) Smartphones Revenue from our smartphones decreased by 4.9% from RMB44.3 billion in the first quarter of 2026 to RMB42.1 billion in the second quarter of 2026, primarily due to the decrease in our smartphone shipments, partially offset by the increase in our smartphone ASP. Our smartphone shipments decreased by 7.7% from 33.8 million units in the first quarter of 2026 to 31.2 million units in the second quarter of 2026, primarily due to the weakened global demand driven by the continued increase in price of key components. The ASP of our smartphones increased by 3.1% from RMB1,310.1 per unit in the first quarter of 2026 to RMB1,351.0 per unit in the second quarter of 2026, primarily due to the higher contribution from our premium smartphone shipments in the overseas markets, driven by the successful launch of Xiaomi 17T Series in May 2026. (ii) IoT and lifestyle products Revenue from our IoT and lifestyle products increased by 26.7% from RMB24.7 billion in the first quarter of 2026 to RMB31.3 billion in the second quarter of 2026, primarily due to the seasonal increase in revenue from air conditioners, as well as the increased revenue from certain lifestyle products in the Chinese Mainland driven by the enhanced promotional efforts during the 618 e-Commerce Shopping Festival. (iii) Internet services Revenue from our internet services decreased by 4.5% from RMB9.5 billion in the first quarter of 2026 to RMB9.0 billion in the second quarter of 2026, primarily due to the decreased revenue from our gaming business, partially offset by the increased revenue from our advertising business in the Chinese Mainland. (iv) Other related businesses Revenue from our other related businesses increased by 85.6% from RMB0.9 billion in the first quarter of 2026 to RMB1.6 billion in the second quarter of 2026, primarily due to the increased revenue from installation services provided for air conditioners and sales of materials. Smart EV, AI and Other New Initiatives Revenue from our smart EV, AI and other new initiatives segment increased by 25.3% from RMB19.9 billion in the first quarter of 2026 to RMB24.9 billion in the second quarter of 2026. Revenue from our smart EV increased by 25.7% from RMB19.0 billion in the first quarter of 2026 to RMB23.9 billion in the second quarter of 2026, primarily due to the increase in our vehicle deliveries, partially offset by the decrease in our vehicle ASP. Our vehicle deliveries increased by 28.9% from 80,856 units in the first quarter of 2026 to 104,199 units in the second quarter of 2026, primarily due to the increased deliveries of the New-Generation Xiaomi SU7 Series. The ASP of our smart EV decreased by 2.5% from RMB235,116 per unit in the first quarter of 2026 to RMB229,312 per unit in the second quarter of 2026, primarily due to the higher contribution from deliveries of the New-Generation Xiaomi SU7 Series . Revenue from our other related businesses increased by 17.3% from RMB0.9 billion in the first quarter of 2026 to RMB1.0 billion in the second quarter of 2026, primarily due to the increased revenue from after-sales services and sales of accessories related to our smart EV business, as well as the increased revenue from our AI business related to Xiaomi MiMo large language model series.
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19 Cost of Sales Our cost of sales increased by 12.9% from RMB77.3 billion in the first quarter of 2026 to RMB87.3 billion in the second quarter of 2026. The following table sets forth our cost of sales by segment in the second quarter of 2026 and the first quarter of 2026: Unaudited Three months ended June 30, 2026 March 31, 2026 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT 67,208.8 61.7% 61,461.0 62.0% Smart EV, AI and other new initiatives 20,103.9 18.5% 15,870.5 16.0% Total cost of sales 87,312.7 80.2% 77,331.5 78.0% Smartphone × AIoT Cost of sales related to our smartphone × AIoT segment increased by 9.4% from RMB61.5 billion in the first quarter of 2026 to RMB67.2 billion in the second quarter of 2026. The following table sets forth our cost of sales by line of our smartphone × AIoT segment in the second quarter of 2026 and the first quarter of 2026: Unaudited Three months ended June 30, 2026 March 31, 2026 Amount % of total revenue Amount % of total revenue (RMB in millions, unless specified) Smartphone × AIoT Smartphones 38,519.5 35.4% 39,796.7 40.1% IoT and lifestyle products 25,005.9 23.0% 18,465.5 18.6% Internet services 2,101.5 1.9% 2,262.2 2.3% Other related businesses 1,581.9 1.4% 936.6 1.0% Total cost of sales of smartphone × AIoT segment 67,208.8 61.7% 61,461.0 62.0%
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20 (i) Smartphones Cost of sales related to our smartphones decreased by 3.2% from RMB39.8 billion in the first quarter of 2026 to RMB38.5 billion in the second quarter of 2026, primarily due to the decreased sales of our smartphones, partially offset by the increased price of key components. (ii) IoT and lifestyle products Cost of sales related to our IoT and lifestyle products increased by 35.4% from RMB18.5 billion in the first quarter of 2026 to RMB25.0 billion in the second quarter of 2026, primarily due to the increased sales of our IoT and lifestyle products. (iii) Internet services Cost of sales related to our internet services decreased by 7.1% from RMB2.3 billion in the first quarter of 2026 to RMB2.1 billion in the second quarter of 2026, primarily due to the decreased cost of our advertising business. (iv) Other related businesses Cost of sales related to our other related businesses increased by 68.9% from RMB0.9 billion in the first quarter of 2026 to RMB1.6 billion in the second quarter of 2026, primarily due to the increased sales from installation services provided for air conditioners and sales of materials. Smart EV, AI and Other New Initiatives Cost of sales related to our smart EV, AI and other new initiatives segment increased by 26.7% from RMB15.9 billion in the first quarter of 2026 to RMB20.1 billion in the second quarter of 2026, primarily due to the increased sales of our smart EV and AI business. Gross Profit and Margin As a result of the foregoing, our gross profit decreased by 0.9% from RMB21.8 billion in the first quarter of 2026 to RMB21.6 billion in the second quarter of 2026. Our gross profit margin decreased from 22.0% in the first quarter of 2026 to 19.8% in the second quarter of 2026. The following table sets forth our gross profit and margin by segment in the second quarter of 2026 and the first quarter of 2026: Unaudited Three months ended June 30, 2026 March 31, 2026 Gross profit Gross margin % Gross profit Gross margin % (RMB in millions, unless specified) Smartphone × AIoT 16,817.0 20.0% 17,816.2 22.5% Smart EV, AI and other new initiatives 4,791.9 19.2% 3,993.9 20.1% Total gross profit and margin 21,608.9 19.8% 21,810.1 22.0%
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21 Smartphone × AIoT The gross profit margin from our smartphone × AIoT segment decreased from 22.5% in the first quarter of 2026 to 20.0% in the second quarter of 2026. The following table sets forth our gross profit and margin by line of our smartphone × AIoT segment in the second quarter of 2026 and the first quarter of 2026: Unaudited Three months ended June 30, 2026 March 31, 2026 Gross profit Gross margin % Gross profit Gross margin % (RMB in millions, unless specified) Smartphone × AIoT Smartphones 3,599.2 8.5% 4,476.6 10.1% IoT and lifestyle products 6,272.1 20.1% 6,215.7 25.2% Internet services 6,942.2 76.8% 7,206.1 76.1% Other related businesses 3.5 0.2% (82.2) (9.6%) Total gross profit and margin of smartphone × AIoT segment 16,817.0 20.0% 17,816.2 22.5% The gross profit margin from our smartphones decreased from 10.1% in the first quarter of 2026 to 8.5% in the second quarter of 2026, mainly due to the increased price of key components. The gross profit margin from our IoT and lifestyle products decreased from 25.2% in the first quarter of 2026 to 20.1% in the second quarter of 2026, mainly due to the decrease in gross profit margin of certain lifestyle products, tablets and smart TVs, resulting from the increased price of key components and the enhanced promotional efforts during the 618 e-Commerce Shopping Festival in the Chinese Mainland. The gross profit margin from our internet services increased from 76.1% in the first quarter of 2026 to 76.8% in the second quarter of 2026, mainly due to the increased gross profit margin and higher revenue contribution of our advertising business. Smart EV, AI and Other New Initiatives The gross profit margin from our smart EV, AI and other new initiatives segment decreased from 20.1% in the first quarter of 2026 to 19.2% in the second quarter of 2026, primarily due to the increased price of key components, as well as the increased cost related to our AI business.
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22 Operating Expenses Our operating expenses increased by 2.7% from RMB18.9 billion in the first quarter of 2026 to RMB19.4 billion in the second quarter of 2026. Our operating expenses related to our smart EV, AI and other new initiatives segment increased by 4.5% from RMB7.1 billion in the first quarter of 2026 to RMB7.4 billion in the second quarter of 2026. Research and Development Expenses Our research and development expenses increased by 3.1% from RMB9.0 billion in the first quarter of 2026 to RMB9.2 billion in the second quarter of 2026, primarily due to the pace of our research projects related to smartphone × AIoT, as well as the higher investments in our AI infrastructure. Selling and Marketing Expenses Our selling and marketing expenses increased by 4.5% from RMB8.3 billion in the first quarter of 2026 to RMB8.6 billion in the second quarter of 2026, primarily due to the increase in selling and marketing expenses related to our smart EV business, as well as higher logistic expenses and e-commerce commission driven by the seasonal increase in sales of our smart large home appliances during the 618 e-Commerce Shopping Festival. Administrative Expenses Our administrative expenses decreased by 9.1% from RMB1.6 billion in the first quarter of 2026 to RMB1.5 billion in the second quarter of 2026, primarily due to the decrease in compensation for administrative personnel. Fair Value Changes on Financial Instruments Measured at Fair Value Through Profit or Loss Our fair value changes on financial instruments measured at fair value through profit or loss increased from a gain of RMB0.8 billion in the first quarter of 2026 to a gain of RMB6.5 billion in the second quarter of 2026, primarily due to the fair value gains of listed equity investments in the second quarter of 2026, compared to the fair value losses of listed equity investments in the first quarter of 2026, and the higher fair value gains of unlisted preferred shares investments in the second quarter of 2026. Share of Net Profits of Investments Accounted for Using the Equity Method Our share of net profits of investments accounted for using the equity method decreased from RMB43.8 million in the first quarter of 2026 to RMB42.4 million in the second quarter of 2026. Other Income Our other income increased from RMB1.1 billion in the first quarter of 2026 to RMB2.2 billion in the second quarter of 2026, primarily due to the increase in subsidy income, partially offset by the decrease in value-added tax preferences.
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23 Other (Losses)/Gains, Net Our net other (losses)/gains changed from a net gain of RMB386.1 million in the first quarter of 2026 to a net loss of RMB36.9 million in the second quarter of 2026. Finance Income, Net Our net finance income increased from RMB0.4 billion in the first quarter of 2026 to RMB0.7 billion in the second quarter of 2026, primarily due to the change of value of financial liabilities payable to fund investors. Income Tax Expenses Our income tax expenses increased from RMB1.0 billion in the first quarter of 2026 to RMB2.1 billion in the second quarter of 2026, primarily due to the increase of taxable profit in the second quarter of 2026. Profit for the Period As a result of the foregoing, our profit for the period increased by 99.9% from RMB4.7 billion in the first quarter of 2026 to RMB9.5 billion in the second quarter of 2026. Adjusted Net Profit Our adjusted net profit increased by 2.4% from RMB6.1 billion in the first quarter of 2026 to RMB6.2 billion in the second quarter of 2026. Non-IFRS Measure: Adjusted Net Profit To supplement our consolidated results which are prepared and presented in accordance with all applicable IFRS Accounting Standards issued by the International Accounting Standards Board (“IFRS Accounting Standards ”), we utilize non-IFRS adjusted net profit (“ Adjusted Net Profit ”) as an additional financial measure. We define Adjusted Net Profit as profit for the period, as adjusted by taking out (i) share-based compensation, (ii) net fair value changes on investments, (iii) amortization of intangible assets resulting from acquisitions, (iv) changes of value of financial liabilities to investors, and (v) income tax effects of non-IFRS adjustments. Adjusted Net Profit is not required by, or presented in accordance with, IFRS Accounting Standards. We believe that the presentation of non-IFRS measures when shown in conjunction with the corresponding IFRS Accounting Standards measures provides useful information to investors and management regarding financial and business trends in relation to our financial condition and results of operations, by eliminating any potential impact of items that our management does not consider to be indicative of our operating performance such as certain non-cash items and the impact of certain investment transactions. We also believe that the non-IFRS measures are appropriate for evaluating the Group’s operating performance. However, the use of this particular non-IFRS measure has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for analysis of, our results of operations or financial conditions as reported under IFRS Accounting Standards. In addition, this non-IFRS financial measure may be defined differently from similar terms used by other companies and therefore may not be comparable to similar measures used by other companies.
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24 The following tables set forth reconciliations of the Group’s non-IFRS measures for the second quarter of 2026, the first quarter of 2026, the second quarter of 2025 and the first half of 2026 and 2025 to the nearest measures prepared in accordance with IFRS Accounting Standards. Unaudited Three Months Ended June 30, 2026 Adjustments As reported Share-based compensation (1) Net fair value changes on investments (2) Amortization of intangible assets resulting from acquisitions (3) Changes of value of financial liabilities to investors (4) Income tax effects (5) Non-IFRS (RMB in thousand, unless specified) Profit for the period 9,463,376 910,359 (5,534,283) 36,002 546,066 797,553 6,219,073 Net margin 8.7% 5.7% Unaudited Three Months Ended March 31, 2026 Adjustments As reported Share-based compensation (1) Net fair value changes on investments (2) Amortization of intangible assets resulting from acquisitions (3) Changes of value of financial liabilities to investors (4) Income tax effects (5) Non-IFRS (RMB in thousand, unless specified) Profit for the period 4,734,577 1,410,743 (425,406) 36,002 610,649 (294,430) 6,072,135 Net margin 4.8% 6.1% Unaudited Three Months Ended June 30, 2025 Adjustments As reported Share-based compensation (1) Net fair value changes on investments (2) Amortization of intangible assets resulting from acquisitions (3) Changes of value of financial liabilities to investors (4) Income tax effects (5) Non-IFRS (RMB in thousand, unless specified) Profit for the period 11,873,163 1,269,615 (2,870,108) 36,002 253,578 268,417 10,830,667 Net margin 10.2% 9.3%
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25 Unaudited Six Months Ended June 30, 2026 Adjustments As reported Share-based compensation (1) Net fair value changes on investments (2) Amortization of intangible assets resulting from acquisitions (3) Changes of value of financial liabilities to investors (4) Income tax effects (5) Non-IFRS (RMB in thousand, unless specified) Profit for the period 14,197,953 2,321,102 (5,959,689) 72,004 1,156,715 503,123 12,291,208 Net margin 6.8% 5.9% Unaudited Six Months Ended June 30, 2025 Adjustments As reported Share-based compensation (1) Net fair value changes on investments (2) Amortization of intangible assets resulting from acquisitions (3) Changes of value of financial liabilities to investors (4) Income tax effects (5) Non-IFRS (RMB in thousand, unless specified) Profit for the period 22,765,909 2,363,735 (4,872,245) 72,004 820,911 355,978 21,506,292 Net margin 10.0% 9.5% Notes: (1) Represents the expenses related to share-based payments. (2) Primarily includes fair value changes on equity investments and preferred shares investments deducting the accumulative fair value changes for investments (including the financial assets measured at fair value through profit or loss (“ FAFVPL”) and the investments using the equity method transferred from FAFVPL) disposed in the current period, net gains/(losses) on deemed disposals of subsidiaries and investee companies, the impairment provision for investments, re-measurement impact on loss of significant influence in associates, and re-measurement impact on investments transferring from FAFVPL to investments using the equity method. (3) Represents amortization of intangible assets resulting from acquisitions. (4) Represent the change of value of the financial liabilities payable to the investors. (5) Income tax effects of non-IFRS adjustments. Liquidity and Financial Resources On December 4, 2020, the Company completed a placing of a total of 1,000,000,000 placing shares at HK$23.70 for each placing share owned by Smart Mobile Holdings Limited to not less than six independent placees and, on December 9, 2020, the Company allotted and issued 1,000,000,000 subscription shares at HK$23.70 per subscription share under the general mandate to Smart Mobile Holdings Limited (the “ 2020 Placing and Subscription ”). For further details, please refer to the announcements of the Company dated December 2, 2020, December 3, 2020 and December 9, 2020.
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26 On March 27, 2025, the Company completed a placing of a total of 800,000,000 placing shares at HK$53.25 for each placing share owned by Smart Mobile Holdings Limited to not less than six independent placees and, on March 31, 2025, the Company allotted and issued 800,000,000 subscription shares at HK$53.25 per subscription share under the general mandate to Smart Mobile Holdings Limited (the “ 2025 Placing and Subscription ”). For further details, please refer to the announcements of the Company dated March 25, 2025 and March 31, 2025. Other than the funds raised through our Global Offering in July 2018, the 2020 Placing and Subscription, the 2025 Placing and Subscription and the issuance of debt securities as described in “Issuance of Debt Securities” below, we have historically funded our cash requirements principally from cash generated from our operations and bank borrowings. We had cash and cash equivalents of RMB37.3 billion and cash resources 17 of RMB219.3 billion as of June 30, 2026. Issuance of Debt Securities On April 29, 2020, Xiaomi Best Time International Limited, a wholly-owned subsidiary of the Company, issued US$600 million 3.375% senior notes due 2030 unconditionally and irrevocably guaranteed by the Company (the “ 2030 Notes ”). For further details, please refer to the announcements of the Company dated April 20, 2020, April 23, 2020 and May 3, 2020. On December 17, 2020, Xiaomi Best Time International Limited issued zero coupon guaranteed convertible bonds due 2027 guaranteed by the Company in the aggregate principal amount of US$855 million at an initial conversion price of HK$36.74 per conversion share (subject to adjustments) (the “2027 Bonds”). The 2027 Bonds are listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”). For further details, please refer to the announcements of the Company dated December 2, 2020, December 3, 2020, December 17, 2020 and December 18, 2020. As of June 30, 2026, 12,112,587 class B ordinary shares of the Company (the “ Class B Shares ”) were issued pursuant to conversion of the 2027 Bonds. On July 14, 2021, Xiaomi Best Time International Limited issued US$800 million 2.875% senior bonds due 2031 (the “ 2031 Bonds ”) and US$400 million 4.100% senior green bonds due 2051 (the “ Green Bonds ”), both of which were unconditionally and irrevocably guaranteed by the Company. For further details of the 2031 Bonds and Green Bonds, please refer to the announcements of the Company dated July 6, 2021, July 8, 2021, July 14, 2021 and July 15, 2021. 17 Including (i) cash and cash equivalents, (ii) restricted cash, (iii) term bank deposits, (iv) short-term investments measured at fair value through profit or loss, (v) short-term investments measured at amortized cost, (vi) long-term investments measured at amortized cost, and (vii) treasury investments included in long-term investments measured at fair value through profit or loss.
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27 Consolidated Statement of Cash Flows Unaudited Three months ended June 30, 2026 March 31, 2026 (RMB in millions) Net cash generated from/(used in) operating activities (1) 3,842.2 (1,792.0) Net cash generated from investing activities 9,895.8 8,326.9 Net cash used in financing activities (1) (2,645.2) (7,059.3) Net increase/(decrease) in cash and cash equivalents 11,092.8 (524.4) Cash and cash equivalents at the beginning of the period 26,334.5 26,914.4 Effects of exchange rate changes on cash and cash equivalents (174.9) (55.5) Cash and cash equivalents at the end of the period 37,252.4 26,334.5 Note: (1) Excluding (1) the change of trade payables related to the finance factoring business; (2) the change of loan and interest receivables and impairment provision for loan receivables mainly resulting from the fintech business; and (3) the change of restricted cash resulting from the fintech business, the net cash generated from operating activities was RMB11.2 billion in the second quarter of 2026 and the net cash used in operating activities was RMB5.2 billion in the first quarter of 2026. Excluding the change of borrowings for the finance factoring business, the net cash used in financing activities was RMB5.8 billion and RMB6.3 billion in the second quarter of 2026 and in the first quarter of 2026, respectively. The information in this footnote is based on the management accounts of the Group, which have not been audited or reviewed by the Group’s auditor. The accounting policies applied in the preparation of the management accounts are consistent with those used for other figures in this announcement. Net Cash Generated from Operating Activities Net cash generated from our operating activities represents the cash generated from our operations minus the income tax paid. Cash generated from our operations primarily comprises our profit before income tax adjusted by non-cash items and changes in working capital. In the second quarter of 2026, our net cash generated from operating activities was RMB3.8 billion, representing cash generated from operations of RMB6.5 billion minus income tax paid of RMB2.7 billion. Cash generated from operations was primarily attributed to our profit before income tax of RMB11.6 billion, mainly adjusted by a fair value gain on financial instruments measured at fair value through profit or loss of RMB6.5 billion, an increase in inventories of RMB9.5 billion and an increase in prepayments and other receivables of RMB4.1 billion, partially offset by an increase in trade payables of RMB16.2 billion.
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28 Net Cash Generated from Investing Activities In the second quarter of 2026, our net cash generated from investing activities was RMB9.9 billion, which was primarily attributed to the net decrease of term bank deposits of RMB12.8 billion, partially offset by the purchase of property, plant and equipment of RMB1.5 billion and the net increase of long-term investments measured at fair value through profit or loss of RMB1.5 billion. Net Cash Used in Financing Activities In the second quarter of 2026, our net cash used in financing activities was RMB2.6 billion, which was primarily attributed to the payments for shares repurchase of RMB5.0 billion, the payments of deferred consideration for acquisition of intangible assets of RMB0.7 billion and the payments of lease liabilities of RMB0.7 billion, partially offset by the net increase of borrowings of RMB4.1 billion. Borrowings As of June 30, 2026, we had total borrowings of RMB39.3 billion. Capital Expenditure Unaudited Three months ended June 30, 2026 March 31, 2026 (RMB in millions) Capital expenditures Smartphone × AIoT 1,237.9 1,780.0 Smart EV, AI and other new initiatives 2,382.6 1,494.1 Total 3,620.5 3,274.1 Off-Balance Sheet Commitments and Arrangements As of June 30, 2026, we had not entered into any significant off-balance sheet commitments or arrangements. Investments Held As of June 30, 2026, we had invested in about 410 companies with an aggregate book value of RMB92.0 billion. In the second quarter of 2026, we recorded a net gain on disposal of investments (after tax) of RMB0.8 billion.
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29 The Group did not make or hold any significant investments (including any investment in an investee company with a value of 5% or more of the Group’s total assets as of June 30, 2026) during the six months ended June 30, 2026. Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures In the second quarter of 2026, we did not conduct any material acquisitions or disposals of subsidiaries, associates or joint ventures. Employee and Remuneration Policy As of June 30, 2026, we had 52,876 full-time employees, 50,118 of whom were based in the Chinese Mainland, primarily at our headquarters in Beijing. As of June 30, 2026, our research and development personnel, totaling 24,961 employees, were staffed across our various departments. Our success depends on our ability to attract, retain and motivate qualified personnel. As part of our human resources strategy, we offer employees competitive compensation packages. As of June 30, 2026, 15,842 employees held share-based awards. The total remuneration expenses, including share-based compensation expenses, in the second quarter of 2026 were RMB7.8 billion. Foreign Exchange Risk The transactions of our Company are denominated and settled in our functional currency, the United States Dollar. Our Group’s subsidiaries primarily operate in the People’s Republic of China (the “PRC”) and other regions such as India, and are exposed to foreign exchange risk arising from the exposure to various currencies, primarily with respect to the United States Dollar. Therefore, foreign exchange risk primarily arises from the recognized assets and liabilities in our subsidiaries when receiving or expecting to receive foreign currencies from, or paying or expecting to pay foreign currencies to overseas business partners. We will continue to monitor changes in currency exchange rates and will take necessary measures to mitigate any impacts caused by exchange rate fluctuations. Pledge of Assets As of June 30, 2026, our total restricted bank deposits amounted to RMB4.1 billion. We also had pledged certain buildings and land use right for borrowings. Contingent Liabilities We did not have any material contingent liabilities as of June 30, 2026. Further details of the contingencies are set out in Note 12 to the financial information.
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30 FINANCIAL INFORMATION INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS For the three months and six months ended June 30, 2026 (Expressed in Renminbi (“ RMB”)) Unaudited Unaudited Three months ended June 30, Six months ended June 30, Note 2026 2025 2026 2025 RMB’000 RMB’000 RMB’000 RMB’000 Revenue 2 108,921,609 115,956,091 208,063,227 227,249,428 Cost of sales 2, 3 (87,312,691) (89,855,133) (164,644,189) (175,742,560) Gross profit 21,608,918 26,100,958 43,419,038 51,506,868 Research and development expenses 3 (9,231,284) (7,763,377) (18,185,665) (14,475,085) Selling and marketing expenses 3 (8,648,495) (7,777,971) (16,924,978) (14,977,788) Administrative expenses 3 (1,481,686) (1,627,144) (3,112,071) (3,157,238) Fair value changes on financial instruments measured at fair value through profit or loss 6,457,659 3,363,497 7,306,176 6,190,519 Share of net profits of investments accounted for using the equity method 42,431 86,864 86,198 150,395 Other income 2,159,635 299,446 3,245,020 461,212 Other (losses)/gains, net (37,010) 754,446 349,095 863,243 Operating profit 10,870,168 13,436,719 16,182,813 26,562,126 Finance income 1,288,098 1,478,526 2,566,152 2,482,491 Finance costs (592,935) (512,462) (1,454,927) (1,473,866) Profit before income tax 11,565,331 14,402,783 17,294,038 27,570,751 Income tax expenses 4 (2,101,955) (2,529,620) (3,096,085) (4,804,842) Profit for the period 9,463,376 11,873,163 14,197,953 22,765,909 Attributable to: — Owners of the Company 9,462,405 11,904,405 14,185,525 22,828,726 — Non-controlling interests 971 (31,242) 12,428 (62,817) 9,463,376 11,873,163 14,197,953 22,765,909 Earnings per share (expressed in RMB per share): 5 Basic 0.37 0.46 0.55 0.90 Diluted 0.36 0.45 0.53 0.87
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31 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three months and six months ended June 30, 2026 (Expressed in RMB) Unaudited Unaudited Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 RMB’000 RMB’000 RMB’000 RMB’000 Profit for the period 9,463,376 11,873,163 14,197,953 22,765,909 Other comprehensive loss: Items that may be reclassified subsequently to profit or loss Share of other comprehensive (loss)/income of investments accounted for using the equity method (38,314) 4,666 (23,123) 13,395 Transfer from other comprehensive income to profit or loss upon disposal of investments accounted for using the equity method — (2,256) — (2,256) Net gains from changes in fair value of financial assets at fair value through other comprehensive income — 23,776 — 56,278 Currency translation differences (614,009) (112,140) (1,383,226) (70,286) Item that will not be reclassified subsequently to profit or loss Currency translation differences (961,733) (199,805) (2,018,547) (263,393) Other comprehensive loss for the period, net of tax (1,614,056) (285,759) (3,424,896) (266,262) Total comprehensive income for the period 7,849,320 11,587,404 10,773,057 22,499,647 Attributable to: — Owners of the Company 7,848,349 11,633,637 10,760,629 22,580,000 — Non-controlling interests 971 (46,233) 12,428 (80,353) 7,849,320 11,587,404 10,773,057 22,499,647
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32 INTERIM CONDENSED CONSOLIDATED BALANCE SHEET As of June 30, 2026 (Expressed in RMB) Unaudited Audited Note As of June 30, 2026 As of December 31, 2025 RMB’000 RMB’000 Assets Non-current assets Property, plant and equipment 29,077,133 27,950,293 Intangible assets 10,863,229 8,319,373 Investments accounted for using the equity method 6,614,910 6,268,209 Long-term investments measured at fair value through profit or loss 6 85,343,013 80,881,337 Deferred income tax assets 4,016,785 3,636,008 Term bank deposits 65,710,773 92,045,627 Long-term investments measured at amortized cost 6 16,008,606 13,405,600 Other non-current assets 20,631,893 20,778,731 238,266,342 253,285,178 Current assets Inventories 8 84,882,115 80,989,452 Trade and notes receivables 7 19,773,065 15,239,877 Loan receivables 13,089,949 12,580,269 Prepayments and other receivables 34,167,707 33,725,967 Short-term investments measured at amortized cost 6 500,000 200,000 Short-term investments measured at fair value through profit or loss 6 21,505,612 29,273,546 Term bank deposits 62,465,572 51,308,666 Restricted cash 4,138,063 4,578,635 Cash and cash equivalents 37,252,369 26,914,377 277,774,452 254,810,789 Total assets 516,040,794 508,095,967
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33 INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED) As of June 30, 2026 (Expressed in RMB) Unaudited Audited Note As of June 30, 2026 As of December 31, 2025 RMB’000 RMB’000 Equity and liabilities Equity attributable to owners of the Company Share capital 422 426 Reserves 269,699,490 266,218,235 269,699,912 266,218,661 Non-controlling interests 119,490 104,608 Total equity 269,819,402 266,323,269 Liabilities Non-current liabilities Borrowings 9 29,570,360 22,921,433 Deferred income tax liabilities 2,822,040 2,400,758 Provisions 3,443,191 3,652,246 Other non-current liabilities 24,146,991 20,392,784 59,982,582 49,367,221 Current liabilities Trade payables 10 118,328,052 110,699,472 Other payables and accruals 27,866,977 35,351,923 Advance from customers 18,563,761 19,272,778 Borrowings 9 9,706,402 13,202,226 Income tax liabilities 3,531,512 6,649,117 Provisions 8,242,106 7,229,961 186,238,810 192,405,477 Total liabilities 246,221,392 241,772,698 Total equity and liabilities 516,040,794 508,095,967
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34 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended June 30, 2026 (Expressed in RMB) Unaudited Six months ended June 30, 2026 2025 RMB’000 RMB’000 Net cash generated from operating activities 2,050,234 28,054,740 Net cash generated from/(used in) investing activities 18,222,664 (60,128,639) Net cash (used in)/generated from financing activities (9,704,493) 34,434,304 Net increase in cash and cash equivalents 10,568,405 2,360,405 Cash and cash equivalents at the beginning of the period 26,914,377 33,661,442 Effects of exchange rate changes on cash and cash equivalents (230,413) (13,817) Cash and cash equivalents at the end of the period 37,252,369 36,008,030
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35 1 Basis of preparation The condensed consolidated interim financial information comprises the interim condensed consolidated balance sheet as of June 30, 2026, the interim condensed consolidated income statements and the interim condensed consolidated statements of comprehensive income for the three-month and six-month periods then ended, the interim condensed consolidated statement of changes in equity and the interim condensed consolidated statement of cash flows for the six-month period then ended, and selected explanatory notes (the “ Interim Financial Information ”). The Interim Financial Information is presented in RMB, unless otherwise stated. The Interim Financial Information has been prepared in accordance with International Accounting Standard (“ IAS”) 34, “Interim Financial Reporting”, issued by the International Accounting Standards Board (“ IASB”). The Interim Financial Information does not include all the notes of the type normally included in annual financial statements. The Interim Financial Information should be read in conjunction with the annual audited consolidated financial statements of the Group for the year ended December 31, 2025 which have been prepared in accordance with all applicable IFRS Accounting Standards issued by the IASB (“ IFRS Accounting Standards ”) as set out in the 2025 annual report of the Company dated March 24, 2026 (the “ 2025 Financial Statements ”), and any public announcement made by the Company during the six months ended June 30, 2026 (the “ Interim Report Period ”) and up to date of approval of this unaudited Interim Financial Information. The accounting policies and methods of computations used in the preparation of the Interim Financial Information are consistent with those used in the preparation of the 2025 Financial Statements, except for the adoption of certain new and amended standards which has had no significant impact on the Group’s results for the Interim Report Period and the Group’s financial position as of June 30, 2026. 2 Segment information and revenue The Group’s business activities, for which discrete financial statements are available, are regularly reviewed and evaluated by the Chief Operating Decision Maker (“ CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer of the Company. The Group determined that it has the following reportable segments, which is consistent with the way the Group was reviewed by the CODM: • Smartphone × AIoT — Smartphones — IoT and lifestyle products — Internet services — Other related businesses • Smart EV, AI and other new initiatives The CODM assesses the performance of the operating segments mainly based on segment revenue and gross profit of each operating segment. There were no material inter-segment sales during the three months and six months ended June 30, 2026 and 2025. The revenues from external customers reported to the CODM are measured in a manner consistent with that applied in the interim condensed consolidated income statements.
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36 The segment results and revenue information for the three months and six months ended June 30, 2026 and 2025 are as follows: Three months ended June 30, 2026 Smartphone × AIoT Smart EV, AI and other new initiativesSmartphones IoT and lifestyle products Internet services Other related businesses Subtotal Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) Segment revenues 42,118,683 31,278,003 9,043,663 1,585,424 84,025,773 24,895,836 108,921,609 Cost of sales (38,519,459) (25,005,885) (2,101,452) (1,582,037) (67,208,833) (20,103,858) (87,312,691) Gross profit 3,599,224 6,272,118 6,942,211 3,387 16,816,940 4,791,978 21,608,918 Three months ended June 30, 2025 Smartphone × AIoT Smart EV, AI and other new initiativesSmartphones IoT and lifestyle products Internet services Other related businesses Subtotal Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) Segment revenues 45,520,009 38,712,153 9,097,747 1,362,918 94,692,827 21,263,264 115,956,091 Cost of sales (40,299,755) (29,990,611) (2,241,978) (1,680,364) (74,212,708) (15,642,425) (89,855,133) Gross profit/(loss) 5,220,254 8,721,542 6,855,769 (317,446) 20,480,119 5,620,839 26,100,958 Six months ended June 30, 2026 Smartphone × AIoT Smart EV, AI and other new initiativesSmartphones IoT and lifestyle products Internet services Other related businesses Subtotal Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) Segment revenues 86,392,014 55,959,160 18,512,009 2,439,791 163,302,974 44,760,253 208,063,227 Cost of sales (78,316,143) (43,471,306) (4,363,694) (2,518,646) (128,669,789) (35,974,400) (164,644,189) Gross profit/(loss) 8,075,871 12,487,854 14,148,315 (78,855) 34,633,185 8,785,853 43,419,038 Six months ended June 30, 2025 Smartphone × AIoT Smart EV, AI and other new initiativesSmartphones IoT and lifestyle products Internet services Other related businesses Subtotal Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) Segment revenues 96,131,961 71,051,387 18,173,844 2,048,907 187,406,099 39,843,329 227,249,428 Cost of sales (84,629,056) (54,174,977) (4,336,235) (2,685,135) (145,825,403) (29,917,157) (175,742,560) Gross profit/(loss) 11,502,905 16,876,410 13,837,609 (636,228) 41,580,696 9,926,172 51,506,868
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37 For the three months and six months ended June 30, 2026 and 2025, the geographical information on the total revenues is as follows: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 RMB’000 % RMB’000 % RMB’000 % RMB’000 % (Unaudited) (Unaudited) (Unaudited) (Unaudited) Chinese Mainland 69,667,799 64.0 79,265,167 68.4 129,238,750 62.1 152,333,838 67.0 Rest of the world (Note (a)) 39,253,810 36.0 36,690,924 31.6 78,824,477 37.9 74,915,590 33.0 108,921,609 115,956,091 208,063,227 227,249,428 Note: (a) Revenues outside the Chinese Mainland are mainly from Europe and India. The following table shows inventory information by reportable segment as of June 30, 2026 and December 31, 2025. As of June 30, As of December 31, 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Smartphone × AIoT 77,997,639 74,758,465 Smart EV, AI and other new initiatives 6,884,476 6,230,987 84,882,115 80,989,452 3 Expenses by nature Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Changes in inventories of finished goods and work in progress 9,142,326 (932,509) 17,460,712 (427,281) Raw materials and consumables used and royalty fees 69,108,293 83,690,702 129,653,309 162,904,542 Provision for impairment of inventories 2,404,208 1,838,328 4,461,617 3,168,300 Employee benefit expenses 7,806,060 7,235,802 15,998,783 13,765,515 Depreciation of property, plant and equipment, right-of-use assets and investment properties 1,699,029 1,222,019 3,156,404 2,281,939 Amortization of intangible assets 875,773 787,574 1,829,497 1,510,516 Promotion and advertising expenses 2,038,484 1,898,896 4,304,249 3,898,768 Warranty expenses 1,004,345 1,220,430 2,291,469 2,656,870
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38 4 Income tax expenses The income tax expenses of the Group during the three months and six months ended June 30, 2026 and 2025 are analyzed as follows: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Current income tax 1,838,167 1,883,675 3,079,056 4,052,189 Deferred income tax 263,788 645,945 17,029 752,653 Income tax expenses 2,101,955 2,529,620 3,096,085 4,804,842 5 Earnings per share (a) Basic Basic earnings per share for the three months and six months ended June 30, 2026 and 2025 are calculated by dividing the profit attributable to the Company’s owners by the weighted average number of ordinary shares that are outstanding during the periods. Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net profit attributable to the owners of the Company (RMB’000) 9,462,405 11,904,405 14,185,525 22,828,726 Weighted average number of outstanding ordinary shares (thousand shares) 25,723,924 25,843,221 25,748,943 25,405,288 Basic earnings per share (expressed in RMB per share) 0.37 0.46 0.55 0.90
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39 (b) Diluted Diluted earnings per share is calculated by adjusting the weighted average number of outstanding ordinary shares to assume conversion of all dilutive potential ordinary shares. In addition, profit attributable to the owners of the Company (numerator) has been adjusted by all the dilutive effects. Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Net profit attributable to the owners of the Company (RMB’000) 9,462,405 11,904,405 14,185,525 22,828,726 Add: Interest expenses on convertible bonds (RMB’000) 58,684 63,015 — 125,226 Less: Dilution effect arising from share-based awards granted by a subsidiary (RMB’000) (33,700) — (77,900) — Net profit attributable to the owners of the Company for calculation of diluted earnings per share (RMB’000) 9,487,389 11,967,420 14,107,625 22,953,952 Weighted average number of outstanding ordinary shares (thousand shares) 25,723,924 25,843,221 25,748,943 25,405,288 Adjustments for dilutive restricted shares units and share options (thousand shares) 616,543 767,760 702,936 821,773 Adjustments for dilutive convertible bonds (thousand shares) 168,310 180,389 — 180,418 Weighted average number of ordinary shares for calculation of diluted earnings per share (thousand shares) 26,508,777 26,791,370 26,451,879 26,407,479 Diluted earnings per share (expressed in RMB per share) 0.36 0.45 0.53 0.87
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40 6 Investments As of June 30, As of December 31, 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Current assets Short-term investments measured at — Amortized cost 500,000 200,000 — Fair value through profit or loss 21,505,612 29,273,546 22,005,612 29,473,546 Non-current assets Long-term investments measured at amortized cost 16,008,606 13,405,600 Long-term investments measured at fair value through profit or loss — Ordinary shares investments 18,582,791 19,944,672 — Preferred shares investments 38,243,530 35,198,710 — Treasury investments 19,890,149 21,562,313 — Other investments 8,626,543 4,175,642 101,351,619 94,286,937 Amounts recognized in profit or loss of investments measured at fair value through profit or loss: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 RMB’000 RMB’000 RMB’000 RMB’000 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Long-term investments measured at fair value through profit or loss — Ordinary shares investments 1,666,737 1,336,721 (277,094) 3,818,026 — Preferred shares investments 2,832,819 2,027,450 3,237,836 2,009,707 — Treasury and other investments 2,074,279 (51,155) 4,346,947 124,596 Short-term investments measured at fair value through profit or loss 162,341 131,843 327,392 272,003 6,736,176 3,444,859 7,635,081 6,224,332
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41 7 Trade and notes receivables The Group generally allows a credit period within 180 days to its customers. Aging analysis of trade and notes receivables based on invoice date is as follows: As of June 30, As of December 31, 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Up to 3 months 15,742,405 11,963,353 3 to 6 months 2,778,286 1,806,243 6 months to 1 year 854,785 1,117,839 1 to 2 years 516,574 427,200 Over 2 years 213,985 234,403 20,106,035 15,549,038 Less: credit loss allowance (332,970) (309,161) 19,773,065 15,239,877 8 Inventories As of June 30, As of December 31, 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Raw materials 45,260,017 23,974,417 Finished goods 33,165,578 50,094,764 Work in progress 4,126,939 4,658,465 Spare parts 3,725,716 3,999,973 Others 1,436,581 1,264,219 87,714,831 83,991,838 Less: provision for impairment (Note (a)) (2,832,716) (3,002,386) 84,882,115 80,989,452 Note: (a) During the three months and six months ended June 30, 2026, the Group incurred inventory impairment provision approximately RMB2,404,208,000 and RMB4,461,617,000, respectively (2025: RMB1,838,328,000 and RMB3,168,300,000, respectively) and transferred out of such provision upon the sales of inventories approximately RMB2,788,656,000 and RMB4,631,287,000, respectively (2025: RMB2,123,830,000 and RMB3,023,597,000, respectively).
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42 9 Borrowings As of June 30, As of December 31, 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Included in non-current liabilities Secured borrowings 1,717,308 1,754,255 Unsecured borrowings 22,774,895 16,046,323 Convertible bonds 5,078,157 5,120,855 29,570,360 22,921,433 Included in current liabilities Secured borrowings 74,486 73,094 Unsecured borrowings 9,631,916 13,129,132 9,706,402 13,202,226 10 Trade payables Trade payables primarily include payables for inventories. Trade payables and their aging analysis based on invoice date are as follows: As of June 30, As of December 31, 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Up to 3 months 105,094,221 93,538,383 3 to 6 months 8,520,133 11,379,071 6 months to 1 year 2,273,746 3,169,615 1 to 2 years 738,018 978,245 Over 2 years 1,701,934 1,634,158 118,328,052 110,699,472
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43 11 Dividends No dividends have been paid or declared by the Company during the three months and six months ended June 30, 2026 and 2025. 12 Contingencies The Group, in the ordinary course of its business, is involved in various claims, lawsuits, and legal proceedings that arise from time to time. Since December 2021, Xiaomi Technology India Private Limited (“ Xiaomi India ”), a wholly-owned subsidiary of the Group, has been involved in various investigations and notifications initiated by relevant Indian authorities including the Income Tax Department, the Directorate of Revenue Intelligence and the Directorate of Enforcement in relation to compliance of relevant income tax regulations, custom duties regulations as well as foreign exchange regulations, respectively. In this connection, Xiaomi India received orders alleging that it has inappropriately deducted certain costs and expenses, including purchase costs of mobile phones and royalty fees paid to overseas third parties as well as companies within the Group. As a result, certain of its bank accounts have been attached and thereby Indian Rupees (“ INR”) 49,170,230,000 (equivalent to RMB3,535,831,000) has been considered as restrictive as of June 30, 2026 (December 31, 2025: INR48,550,132,000 (equivalent to RMB3,784,968,000)). The cases are currently in the hearing stages and not yet concluded. Management assessed the aforesaid matters related to Xiaomi India, after taking into consideration of opinions from professional advisors, it is concluded that Xiaomi India has valid grounds to respond to the relevant Indian authorities. The Group, hence, has not made any material provision as of June 30, 2026 pertaining to these matters. Conclusions of legal proceedings, investigations and allegations could take a long period of time, and the Group could receive judgments or enter into settlements that may adversely affect its operating results or cash flows. Quantifying the related financial effects is not practical at this stage.
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44 OTHER INFORMATION Purchase, Sale or Redemption of the Company’s Listed Securities During the six months ended June 30, 2026 and up to the Latest Practicable Date 18 , the Company repurchased a total of 377,465,400 Class B Shares on the Stock Exchange at an aggregate consideration of approximately HK$11,665,522,937 (the “ Shares Repurchased ”) to enhance the shareholder value in the long run. Particulars of the Shares Repurchased are as follows: Month of Repurchase No. of Shares Repurchased Price Paid per share Aggregate Consideration (approximately)Highest Lowest (HK$) (HK$) (HK$) January 68,751,000 39.32 34.92 2,540,279,326 February 39,376,400 36.78 33.94 1,392,181,061 March 40,503,800 35.18 31.54 1,326,056,687 April 78,918,600 32.44 29.08 2,453,839,435 May 47,844,200 31.58 27.86 1,407,447,346 June 75,925,000 28.70 21.34 1,842,974,058 July 14,998,400 28.88 25.74 403,077,655 August (up to the Latest Practicable Date) 11,148,000 28.00 25.82 299,667,370 Total 377,465,400 11,665,522,937 In respect of the Shares Repurchased, the weighted voting rights (the “ WVR”) beneficiaries of the Company simultaneously reduced their WVR in the Company proportionately by way of converting their class A ordinary shares of the Company (the “ Class A Shares ”) into Class B Shares on a one-to-one ratio pursuant to Rule 8A.21 of the Rules Governing the Listing of Securities on the Stock Exchange (the “ Listing Rules ”), such that the proportion of shares carrying WVR of the Company shall not be increased, pursuant to the requirements under Rules 8A.13 and 8A.15 of the Listing Rules. During the six months ended June 30, 2026 and up to the Latest Practicable Date, the number of Class B Shares in issue (excluding treasury shares) was reduced by 477,519,000 shares as a result of (i) the repurchase of 215,333,400 Class B Shares from November 20, 2025 to February 20, 2026, which were subsequently cancelled on March 19, 2026; (ii) the repurchase of 36,747,800 Class B Shares from February 24, 2026 to March 23, 2026, which were subsequently cancelled on April 14, 2026; (iii) the repurchase of 84,002,600 Class B Shares from March 27, 2026 to April 24, 2026, which were subsequently cancelled on May 19, 2026; (iv) the repurchase of 57,810,200 Class B Shares from April 27, 2026 to May 29, 2026, which were subsequently cancelled on June 25, 2026; and (v) the repurchase of 83,625,000 Class B Shares from June 3, 2026 to July 17, 2026, which were subsequently cancelled on August 11, 2026. 18 The Latest Practicable Date refers to August 13, 2026, being the latest practicable date prior to the publication of this interim results announcement for the purpose of ascertaining certain information contained herein.
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45 A total of 37,155,542 Class A Shares were converted into Class B Shares on a one-to-one ratio on March 19, 2026, of which Mr. Lei Jun, through Smart Mobile Holdings Limited, converted 33,462,639 Class A Shares and Mr. Lin Bin, through Apex Star LLC, converted 3,692,903 Class A Shares. A total of 6,339,850 Class A Shares were converted into Class B Shares on a one-to-one ratio on April 14, 2026, of which Mr. Lei Jun, through Smart Mobile Holdings Limited, converted 5,709,730 Class A Shares and Mr. Lin Bin, through Apex Star LLC, converted 630,120 Class A Shares. A total of 14,478,942 Class A Shares were converted into Class B Shares on a one-to-one ratio on May 19, 2026, of which Mr. Lei Jun, through Smart Mobile Holdings Limited, converted 13,039,875 Class A Shares and Mr. Lin Bin, through Apex Star LLC, converted 1,439,067 Class A Shares. A total of 9,962,677 Class A Shares were converted into Class B Shares on a one-to-one ratio on June 25, 2026, of which Mr. Lei Jun, through Smart Mobile Holdings Limited, converted 8,972,483 Class A Shares and Mr. Lin Bin, through Apex Star LLC, converted 990,194 Class A Shares. A total of 14,379,505 Class A Shares were converted into Class B Shares on a one-to-one ratio on August 11, 2026, of which Mr. Lei Jun, through Smart Mobile Holdings Limited, converted 12,950,321 Class A Shares and Mr. Lin Bin, through Apex Star LLC, converted 1,429,184 Class A Shares. Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s securities listed on the Stock Exchange (including sale of treasury shares) during the six months ended June 30, 2026 and up to the Latest Practicable Date. Compliance with the Corporate Governance Code The Company is committed to maintaining and promoting stringent corporate governance standards. The principles of the Company’s corporate governance are to promote effective internal control measures and to enhance the transparency and accountability of the Board to all shareholders. Save for code provision C.2.1 of the Corporate Governance Code (the “ CG Code ”) contained in Appendix C1 to the Listing Rules, the Company has complied with all the code provisions set out in the CG Code during the six months ended June 30, 2026. Pursuant to code provision C.2.1 of the CG Code, companies listed on the Stock Exchange are expected to comply with, but may choose to deviate from the requirement that the responsibilities between the chairman and the chief executive officer should be segregated and should not be performed by the same individual. The Company does not have a separate chairman and chief executive officer and Mr. Lei Jun currently performs these two roles. The Board believes that vesting the roles of both chairman and chief executive officer in the same person has the benefit of ensuring consistent leadership within the Group and enabling more effective and efficient overall strategic planning for the Group. The Board considers that the balance of power and authority for the present arrangement will not be impaired and this structure will enable the Company to make
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46 and implement decisions promptly and effectively. The Board will continue to review and consider segregating the roles of chairman of the Board and chief executive officer of the Company at an appropriate time, taking into account the circumstances of the Group as a whole. Audit Committee The Audit Committee (comprising one non-executive Director and two independent non-executive Directors, namely, Mr. Liu Qin, Dr. Chen Dongsheng and Mr. Wong Shun Tak) has reviewed the unaudited interim results of the Group for the three and six months ended June 30, 2026. The Audit Committee has also discussed matters with respect to the accounting policies and practices adopted by the Company and internal control with senior management members and the external auditor of the Company, PricewaterhouseCoopers. Material Litigation The Company was not involved in any material litigation or arbitration during the six months ended June 30, 2026, nor were the Directors aware of any material litigation or claims that were pending or threatened against the Company. Interim Dividend The Board has resolved not to declare an interim dividend for the six months ended June 30, 2026. Events after June 30, 2026 Save as disclosed in this announcement, there have been no other significant events that might affect the Group after June 30, 2026 and up to the date of this announcement. Publication of the Interim Results Announcement and Interim Report This interim results announcement has been published on the website of the Stock Exchange at www.hkexnews.hk and the website of the Company at www.mi.com. The interim report of the Company will be published on the aforesaid websites of the Stock Exchange and the Company and will be dispatched to the Company’s shareholders (if requested) in due course. By order of the Board Xiaomi Corporation Lei Jun Chairman Hong Kong, August 18, 2026 As at the date of this announcement, the Board comprises Mr. Lei Jun as chairman and executive Director, Mr. Lin Bin as vice chairman and executive Director, Mr. Liu De as executive Director, Mr. Liu Qin as non-executive Director, and Dr. Chen Dongsheng, Mr. Wong Shun Tak and Ms. Cai Jinqing as independent non-executive Directors.