Xiaomi (01810.HK) Core business reached a new record high June 25, 2025 16

PSR Recommendation: ACCUMULATE Status: Initiation
Target Price: HKD60

Financial summary
In the first quarter of 2025, the company achieved total revenue of 111.3 billion yuan (RMB,
same below), representing a 47.4% year-on-year increase; in terms of profitability, operating
profit reached 13.1 billion yuan, up 256.4% year-on-year, while adjusted net profit hit 10.7
billion yuan, reaching a historic high with a 64.5% year-on-year growth. For segment
revenue, 1Q25 smartphone × AIoT revenue amounted to 92.7 billion yuan, growing 22.8%
year-on-year, primarily driven by increased smartphone shipments; innovative businesses
including smart electric vehicles generated revenue of 18.6 billion yuan, with a gross margin
of 23.2%.
Financial performance
Smartphone × AIoT
In the first quarter of 2025, smartphone revenue reached RMB 50.6 billion, up 8.9% year-onyear, primarily driven by increased shipments of higher ASP models, pushing the overall ASP
to a historic high. According to Canalys data, global smartphone shipments reached 42
million units in Q1 2025, growing 3.0% year-on-year, ranking among the top three globally
with a market share of 14.1% (up 0.3 percentage points year-on-year) for the 19th
consecutive quarter. Regionally, the company reclaimed the top position in smartphone
shipments in the Chinese mainland, with market share rising 4.7 percentage points year-onyear to 18.8%. In May 2025, the company launched its flagship Xiaomi 15S Pro, equipped
with its first self-developed flagship processor, the Xuanjie O1.
In Q1 2025, IoT and lifestyle products revenue reached RMB 32.3 billion, surging 58.7% yearon-year, with gross margin hitting 25.2%, both setting new historical highs. This growth was
primarily fueled by enhanced industrial capabilities, elevated brand influence, expanded
retail channels, and government subsidies in the Chinese mainland. Meanwhile, the user
ecosystem continued to expand. As of March 31, 2025, the number of connected IoT devices
(excluding smartphones, tablets, and laptops) on the AIoT platform grew to 944 million, up
20.1% year-on-year.
Internet services revenue reached RMB 9.1 billion in Q1 2025, rising 12.8% year-on-year,
mainly driven by increased advertising revenue, with gross margin reaching 76.9% (up 2.7
percentage points year-on-year). The internet user base continued to grow, with global
monthly active users reaching 719 million in March 2025, a 9.2% year-on-year increase,
setting another historic high.

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About the author

Profile photo of Megan Tao

Megan Tao
Analyst
Research

She graduated from the University of New South Wales with a bachelor's degree in accounting and finance and from the University of Hong Kong with a master's degree in finance. He is currently a licensed analyst at Phillip Securities, mainly responsible for research in the TMT and semiconductor sectors, and has worked in securities companies and family offices.

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