Record Annual Revenue
Total group revenue reached RMB 457.3 billion in FY2025, surpassing RMB 400 billion for the first time and increasing 25% year‑on‑year (new company record).
Xiaomi
· XIACF
March 24th, 2026
Summary
- Earnings Call Date:
- 2026-03-24
- Change Since:
- -28.43%
- Next Earnings Date:
- 2026-08-26
Earnings Call Sentiment
PositiveThe call conveyed strong financial and operational momentum: record revenue and adjusted net profit, robust IoT and EV growth, improving margins across segments, rapid R&D and AI progress, and clear premiumization and international expansion wins. Against this, management was candid about meaningful near‑term headwinds — notably elevated memory prices, increased short‑term cost burden from heavy R&D/CapEx and early‑stage commercialization risks for AI initiatives — and flagged execution/market pressures in the latter half of 2025 and into 2026. Overall, the positives (record results, segment profitability, scale in EVs, AI foundational progress and clear investment roadmap) outweigh the near‑term challenges, but the company faces execution and cost risks that require monitoring.
Company Guidance
Xiaomi’s forward guidance emphasized heavy investment and clear operational targets: R&D is planned to exceed RMB 40 billion in 2026 (R&D was RMB 33.1 billion in 2025) with more than RMB 16 billion allocated to AI, embodied intelligence and related innovation, a commitment to invest RMB 60 billion in AI over the next three years, and an estimate that cumulative R&D spending over the next five years will exceed $200 billion; CapEx in 2025 was RMB 18.2 billion (up 73% YoY) with >66% toward Smart EV and AI/innovation. On product and delivery goals, Xiaomi is “fully committed” to 550,000 vehicle deliveries in 2026 after delivering 411,082 cars in 2025 and surpassing 600,000 cumulative deliveries by Feb‑13‑2026 (SU7 locked orders: >15,000 in 34 minutes, >30,000 in 3 days). The company also signaled continued capital returns (share repurchases ~HKD 6.3 billion in 2025, ~HKD 4.7 billion since early 2026 and an automatic repurchase plan capped at HKD 2.5 billion) while citing underlying scale metrics—2025 revenue RMB 457.3 billion (up 25%), adjusted net profit RMB 39.2 billion (up ~44%), smartphone shipments 165 million, IoT revenue RMB 123.2 billion (up 18.3%), Internet MAU 750 million (Dec‑2025), and flagship AI/model milestones (MiMo‑V2‑Pro >1 trillion parameters / 1M token context window).
Record Adjusted Net Profit
Adjusted net profit rose to RMB 39.2 billion, up ~44% year‑on‑year (reported as 43.8% in CFO remarks), a company record.
Strong Overall and Segment Margins
Overall gross profit margin reached 22.3% (up 1.3 percentage points YoY). The Smartphone x AIoT segment gross margin hit a record 21.7% (up 0.5pp YoY). IoT gross margin reached a record 23.1% (up 2.8pp YoY).
Smartphone Market Position and Premiumization
Global smartphone shipments were 165 million units with a 13.3% market share, maintaining top‑3 globally. In Mainland China premium models accounted for 27.1% of smartphone sales (up 3.8 percentage points). Market share in RMB 4,000–6,000 rose to 17.3% (up 0.5pp); RMB 6,000–10,000 segment market share nearly doubled to 4.5% YoY. Smartphone revenue was RMB 186.4 billion (40.8% of total).
IoT and Consumer Device Growth
IoT revenue surpassed RMB 120 billion for the first time at RMB 123.2 billion, up 18.3% YoY. Large smart home appliances revenue grew ~23.1% YoY; tablet shipments rose 25.2% YoY (ranked fifth globally); wearables ranked #1 globally and TWS earphones #2. AI glasses ranked #3 globally and #1 in China.
Rapid EV Scale-Up and Profitability Progress
EV & AI/innovation segment revenue reached RMB 106.1 billion (over 200% YoY growth), accounting for 23.2% of group revenue. Smart EV sales revenue was RMB 103.3 billion. The segment achieved positive annual operating profit for the first time at RMB 0.9 billion and a gross margin of 24.3% (up 5.8pp YoY). Delivered 411,082 vehicles in 2025 and cumulative deliveries surpassed 600,000 by Feb 13, 2026.
Successful New Model Launch and Demand Signals
New SU7 generation launch saw locked orders exceed 15,000 within 34 minutes and over 30,000 locked orders after 3 days, with prompt manufacturing/delivery readiness and high paid‑option take rates (~60%).
AI & R&D Momentum
2025 R&D expense exceeded RMB 33 billion; cumulative R&D over past 5 years RMB 105.5 billion (up 37.8%). Xiaomi released foundation models (MiMo‑V2 series), with MiMo‑V2‑Pro >1 trillion parameters and leading placements on open‑source indexes and platforms. Company plans RMB 60 billion AI investment over next 3 years and >RMB 40 billion R&D planned for 2026 (with >RMB 16 billion for AI and embodied intelligence).
Internet Services User & Revenue Growth
Global MAU reached 750 million (up 7.4% YoY); Mainland China MAU 190 million (up 10.1%). Internet service revenue hit a record RMB 37.4 billion, up 9.7% YoY, with advertising revenue a record RMB 28.5 billion and overseas Internet revenue up 15.2% to RMB 12.6 billion.
Capital Allocation and ESG Progress
CapEx in 2025 was RMB 18.2 billion (up 73% YoY), with ~66% allocated to Smart EV and AI innovation. Share repurchases: ~HKD 6.3 billion in 2025 and ~HKD 4.7 billion since early 2026; announced an automatic repurchase plan capped at HKD 2.5 billion. Sustainability: purchased >40 million kWh green electricity (>10x prior year), PV usage >13 million kWh reducing ~10,000 tonnes CO2; EcoVadis score 81 (gold).
Operator
Greetings. Welcome to Xiaomi's 2025 Annual Results Announcement Investor Conference Call and Audio Webcast. Today's conference will be recorded. If you have any questions or objections you may disconnect at this time. [Operator Instructions] Now we will have Mr. Xu Ran, General Manager of Group Investor Relations and Capital Markets Department to start.
Ran Xu
Welcome, everyone. Welcome to the investor conference call and audio webcast for the company's 2025 annual results. Before we start the call, we would like to remind you that this call may include forward-looking statements, which are underlined by a number of risks and uncertainties and may not be realized in the future for various reasons. Information about general market conditions comes from a variety of sources outside of Xiaomi. This presentation also contains some unaudited non-IFRS financial measures, which should be considered in addition to, but not as a substitute for the company's financials prepared in accordance with IFRS. We have William Lu, Partner and President of Xiaomi Corporation; and Mr. Alain Lam, Vice President and CFO of the Corporation to talk to us. Mr.
Lu will share recent strategic and business update. Thereafter, Mr. Lam will review the company's financial performance of 2025. And then after that, we will have the Q&A. Mr. Lu, please.
Weibing Lu
Good evening. Thank you very much for coming to the 2025 full year call. Now this evening, I'll be talking about 3 points. First of all, review our main achievements in 2025. Second, share of breakthroughs in hard-core tech, in particular, in AI and embodied intellig...
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