Xiaomi (1810) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of RMB111.3 billion, up 47.4% year-on-year, with adjusted net profit reaching RMB10.7 billion, up 64.5% year-on-year, and gross margin at a record 22.8%.

• Smartphone shipments ranked top 3 globally for 19 consecutive quarters and returned to No.1 in mainland China with 18.8% market share.

• IoT and lifestyle products revenue surged 58.7% year-on-year to RMB32.3 billion, with smart large home appliances revenue more than doubling.

• Smart EV, AI, and new initiatives revenue reached RMB18.6 billion, with 75,869 EVs delivered and gross margin improving to 23.2%.

• Marked the 15th anniversary and launched new flagship smartphones, tablets, and the Xiaomi U7/YU7 luxury SUV, powered by self-developed processors.

Financial highlights

• Group gross profit margin reached 22.8%, up 0.5 percentage points year-on-year.

• Smartphone revenue was RMB50.6 billion, up 8.9% year-on-year; ASP hit a record RMB1,211.

• Internet services revenue grew 12.8% year-on-year to RMB9.1 billion, with advertising revenue up 19.7%.

• Operating expenses ratio for core business declined by 1.4ppt year-on-year to 11.4%.

• Operating profit reached RMB13.1 billion, up 256.4% year-on-year.

Outlook and guidance

• R&D investment for 2025 targeted at RMB30 billion, with a new five-year plan (2026-2030) aiming for over RMB200 billion.

• Focus on premiumization, global expansion, and deepening AI integration across products.

• Plans to expand offline retail stores in China to ~20,000 by end-2025 and add 10,000 new Mi Home stores overseas in five years.

• Smartphone shipment guidance for 2025 is around 180 million units, with emphasis on improving product structure.