Xiaomi reports significant profits during Q1, buoyed by strategic expansion into electric vehicles and semiconductors
Xiaomi Reports Record-Breaking Q1 Revenue Amidst Investment in EVs and AI
In a remarkable financial performance, Chinese tech giant Xiaomi has announced a 47.4% year-on-year increase in its first-quarter revenue, reaching 111.2 billion yuan ($16.46 billion). This growth comes as the company forges ahead with new initiatives, including electric vehicles (EVs) and semiconductors.
The figures, disclosed on Tuesday, also reveal an adjusted net profit of 10.68 billion yuan, up 64.5% from the previous year. According to analysts' expectations, the revenue was slightly above the projected 109 billion yuan, as per data from Bloomberg.
Xiaomi's smartphone and smart devices segment contributed 94.7 billion yuan to the quarterly revenue, registering a 22.8% year-on-year growth. The company's new initiatives, predominantly electric vehicles, generated 18.6 billion yuan in revenue during the first quarter, with 97% coming from EVs. However, these new ventures incurred a loss of 500 million yuan in Q1, as per the company's report.
Partner and President Lu Weibing narrated these impressive results during an earnings call on Tuesday, claiming they represent the strongest-ever quarterly results for Xiaomi. The growth was achieved amidst increased research and development (R&D) spending, with the company planning to invest around 30 billion yuan on R&D this year. Approximately a quarter of this investment will be dedicated to artificial intelligence (AI).
Xiaomi's open-source AI model, MiMo, launched in April 2025, has been a significant strategic move for the company, marking its entry into China's AI sector. MiMo, a large language reasoning model, outperforms competitors like OpenAI's o1-mini and Alibaba's Qwen in reasoning tasks. The model, designed to be open-source, aims to attract third-party developers and enhance its scalability across various platforms. It operates with 7 billion parameters, demonstrating superior performance in mathematical logic and coding compared to some competitors. Integrated into Xiaomi's IoT and smart home platforms, MiMo enhances user experiences with AI-powered features beyond consumer electronics, supporting autonomous driving in electric vehicles and improving smart device control.
The extraordinary financial growth seen at Xiaomi, reported during Q1, was fueled by their business diversification into electric vehicles and semiconductors, in addition to their traditional finance-generating segments like smartphones and smart devices. In line with their ambitious plans, Xiaomi will invest around 30 billion yuan this year, with a significant portion allocated towards artificial intelligence (AI), including the development of their open-source AI model, MiMo, which showcases impressive performance in areas such as mathematical logic and coding.
