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Xiaomi Corporation Q1 2025 Earnings: Strong Growth in Smartphones and EVs
May 27, 2025 3:00 PM - Rayan Ahmad
Image credit: Google Images
Xiaomi Corporation Q1 2025 Earnings Report Highlights
Xiaomi reported a diluted earnings per share (EPS) of RMB 0.42 (approximately $0.06, based on an exchange rate of ~RMB 7.3 to $1), surpassing the consensus estimate of $0.04, delivering a positive earnings surprise. The adjusted net income, excluding non-recurring items like fair value changes, reached RMB 10.89 billion ($1.49 billion), a 161.2% increase from RMB 4.17 billion in Q1 2024. This significant profit growth reflects Xiaomi's strong operational execution in smartphones and its expanding EV division.
First-quarter revenue totaled RMB 111.29 billion ($15.24 billion), up 47.4% from RMB 75.51 billion in Q1 2024, driven by robust smartphone sales and initial contributions from the EV segment. However, revenue fell slightly short of analyst expectations of $15.8 billion, reflecting competitive pressures in the smartphone and EV markets. Smartphone shipments grew 33% to 40.7 million units, maintaining Xiaomi's position as the third-largest global smartphone vendor with a 13.8% market share.
Xiaomi's entry into the EV market has been a key growth driver. In March 2024, the company launched its SU7 sedan, priced between RMB 215,900 and RMB 299,900 ($29,600-$41,100), competing with Tesla's Model 3 and BYD's Han EV. The SU7, offering a driving range of up to 800 kilometers and integration with Xiaomi's smart device ecosystem, delivered 27,000 units in Q1 2025, exceeding initial targets. Xiaomi aims to deliver 60,000 SU7 units for the full year, signaling strong demand and production ramp-up.
Xiaomi's financial health remains solid, with a price-to-earnings (P/E) ratio of approximately 22.8, reflecting a reasonable valuation for its earnings growth. The price-to-sales (P/S) ratio is around 1.5, indicating a balanced market valuation relative to revenue. The enterprise value-to-sales (EV/S) ratio stands at approximately 1.3, aligning with Xiaomi's growth trajectory. The company maintains a low debt-to-equity ratio of 0.18, highlighting minimal debt reliance, and a current ratio of 1.65, ensuring strong liquidity to cover short-term liabilities. As of March 31, 2025, Xiaomi held RMB 128.5 billion ($17.6 billion) in cash and equivalents, supporting its investment in R&D and EV expansion.
Xiaomi's stock rose approximately 3% in after-hours trading, buoyed by the strong net profit growth and SU7 delivery success, despite the revenue shortfall. The company's diversified portfolio and strategic focus on EVs and smart devices position it well against competitors like Tesla, BYD, and Apple, though rising costs and market competition remain challenges.
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