• Total Revenue: RMB111.3 billion, up 47% year-on-year.

• Adjusted Net Profit: RMB10.7 billion, up 64% year-on-year.

• Gross Margin: 22.8%, up 0.5 percentage points year-on-year.

• Smartphone Revenue: RMB50.6 billion, with global shipments of 41.8 million units.

• Smartphone ASP: RMB1,211, up 5.8% year-on-year.

• AIoT Revenue: RMB32.3 billion, up 59% year-on-year.

• Internet Service Revenue: RMB9.1 billion, up 12.8% year-on-year.

• Smart EV and AI Innovative Business Revenue: RMB18.6 billion.

• R&D Expenses: RMB6.7 billion, up 30% year-on-year.

• Operating Expenses: RMB15.4 billion, with core business operating expenses at RMB10.6 billion.

• Smartphone Market Share in Mainland China: 18.8%, with a 40% year-on-year growth in shipments.

• Global MAU: 719 million, up 9.2% year-on-year.

• Smart EV Deliveries: 76,000 units in Q1.

• Warning! GuruFocus has detected 6 Warning Signs with XIACF.

Release Date: May 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Xiaomi Corp (XIACF) achieved record high total revenue of RMB111.3 billion in Q1 2025, marking a 47% year-on-year increase.

• The company returned to the number one position in smartphone shipments in Mainland China, with a market share increase to 18.8%.

• Xiaomi's AIoT revenue reached RMB32.3 billion, with a strong year-on-year growth of 59%, driven by advancements in technology and favorable national policies.

• The company's R&D investment is set to reach RMB30 billion in 2025, with a focus on core technologies like AI and chips.

• Xiaomi's gross margin reached a historical high of 22.8%, with a significant improvement in AIoT business gross margin to 25.2%.

Negative Points

• Despite strong performance, Xiaomi faces intense competition in the AIoT sector, with peers formulating strategies to target the company.

• Concerns were raised about potential price reductions in the EV segment to maintain sales momentum, which could impact profitability.

• The smartphone market in some regions, such as India, experienced a decline, affecting Xiaomi's market share.

• The company faces challenges in scaling its large home appliance business, with ongoing discussions about building new factories.

• Xiaomi's new business segment, including Smart EV and AI, reported an operating loss of RMB500 million, indicating ongoing financial challenges.

Q & A Highlights

Q: What strategies will Xiaomi implement to address the competitive landscape in the AIoT sector, and how will these differ between China and overseas markets? A: Lu Weibing, Partner and President, stated that Xiaomi is in a high growth stage with many products out of stock, indicating minimal impact from competitors. The company aims to be a value creator and promoter of industry improvement. For overseas markets, strategies will not differ significantly from those in China, although the competitive landscape may vary.