Xiaomi has officially released its financial results for the first quarter of 2025.
Key Highlights:
- Record-breaking Performance:
Total revenue reached RMB 111.3 billion (15.47 billion USD, +47.4% YoY), with net profit hitting RMB 10.9 billion (1.51 billion USD) and adjusted net profit at RMB 10.7 billion (1.49 billion USD), all setting new historical highs. - Automotive & Innovation Drive Growth:
The smart electric vehicle (EV) and AI innovation segment generated RMB 18.6 billion (2.58 billion USD) in revenue (16.7% of total), emerging as the core growth engine.
Automotive Business Breakdown:
1. SU7 Series Dominance:
- Smart EV revenue surged to RMB 18.1 billion (2.58 billion USD, +YoY), driven by the SU7 series.
- Q1 deliveries: 75,869 units, outperforming luxury rivals Audi A6L (45,148) and Mercedes E-Class (33,302) in the mid-to-large sedan category.
- Cumulative deliveries: 258,000+ units (as of Q1-end), with 150,000 pending orders and delivery wait times up to 49 weeks.
2. Margin Expansion vs. Losses:
- Automotive gross margin: 23.2%.
- Operating loss: RMB 500 million (69.47 million USD), attributed to R&D investments and factory setup costs.
3. Growth Catalysts:
- Capacity Scaling: Beijing Yizhuang factory (annual capacity: ~400,000 units) to ease supply constraints.
- Product Expansion: YU7 SUV launch (June-July 2025) to broaden market reach.
Outlook & Analyst Projections:
1. Deutsche Bank Forecast:
- 2025 deliveries: 350,000 units.
- Losses to narrow below RMB 1.5 billion (208.5 million USD) in 2025, with quarterly profitability expected by H1 2026.
2. Strategic Advantages:
- Xiaomi’s SU7 leverages 800V high-voltage architecture and CTB (Cell-to-Body) battery tech, positioning it as a disruptor in the booming global NEV market (+39% YoY). Critical next steps include ramping production, expanding its EV lineup, and optimizing supply chain costs to achieve profitability.
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