This takes the stereo audio from a headphone socket, and splits it into right & left mono channels. I used it in conjunction with two X-Mi Mini Speakers, so that each speaker would output one channel only, but together I was getting true stereo. For this purpose it totally fits the bill, and I didn't notice any loss in sound quality.
Please note that, in violation of the worldwide convention that 'red' is the right channel, and 'white' is the left channel, this cable has 'white' as the right channel, and 'red' as the left one. No problem... I just switched the position of the speakers around.