Annual revenue of 457.4 billion! Xiaomi Cars surges toward 2025, while smartphones "stall"

Byline|Gan Jie & Editor|Alice

Two battle lines, one fight for life and death.

On March 24, 2025, Xiaomi Group disclosed its 2025 financial report: RMB 457.3 billion in revenue and RMB 39.2 billion in net profit—an arguably most dazzling set of results in history.

Taking a closer look at the data, Leverage Game also feels Xiaomi’s two-sidedness deeply: on one side, the phone giant currently going through the “midlife crisis”; on the other, the up-and-coming electric-vehicle newcomer that’s being placed great hopes on—an astonishingly tense power handover gradually escalates.

1

First, look at revenue.

As Leverage Game said in the earlier article, Xiaomi Group’s total revenue in 2025 was RMB 457.287 billion, up 25.0% year over year. Although the growth rate was down from 35.04% in 2024, the absolute figure reached a record high—and it was the first time breaking RMB 400 billion!

Xiaomi’s business is divided into two major segments: Phones × AIoT (the core base business) and Intelligent Electric Vehicles and AI and other innovative businesses (the second growth curve). In 2025, it showed a cold-versus-hot split.

Among them, the Phones × AIoT segment’s revenue in 2025 was RMB 351.217 billion, up only 5.4% year over year. Its growth rate was 19.6 percentage points lower than the total revenue, and its share of total revenue fell from 91.0% in 2024 to 76.8%.

Breaking it down separately, Xiaomi’s 2025 smartphone revenue was RMB 186.44 billion, down 2.8% year over year; global shipments were 165.2 million units, down 2.0% year over year; average selling price (ASP) was RMB 1,128.7, down slightly 0.8% year over year; gross margin fell from 12.6% to 10.9%, with volume, price, and profit all declining at the same time.

Although Xiaomi claims that it has broken through in the high-end market: in mainland China, the proportion of high-end phones priced above RMB 3,000 was 27.1%, up 3.8 percentage points year over year, the market share in the RMB 4,000–6,000 price band was 17.3%, and in the RMB 6,000–10,000 band it was 4.5%—progress in high-end positioning is still relatively slow.

At the same time, Xiaomi’s shipments in the Indian market in 2025 fell sharply, becoming a core cause of negative growth in the phone business.

On the AIoT and consumer lifestyle products side, Xiaomi’s 2025 revenue was RMB 123.2 billion, up 18.3% year over year; gross margin was 23.1%, up 2.8 percentage points year over year. Even with various government subsidies supporting it, the growth rate still lagged behind the average.

As for internet services, Xiaomi’s 2025 revenue was RMB 37.44 billion, up 9.7% year over year. This line has gross margin of 76.5% and is an important source of group profits.

Next comes the biggest bright spot of 2025: Xiaomi’s intelligent electric-vehicle and AI innovative business.

The financial report shows that in 2025, revenue for this segment was RMB 106.07 billion, up 223.8% year over year. Not only did it cross the RMB 100 billion mark for the first time, but it was also the first time it achieved operating profit of RMB 900 million.

In 2025, Xiaomi’s intelligent electric-vehicle revenue was RMB 103.3 billion, up 221.8% year over year. Full-year deliveries were 411,100 vehicles, up 200.4% year over year; ASP rose from RMB 234,500 to RMB 251,200. The growth core came from high-priced models such as SU7 Ultra and YU7.

2

Now look at overall profits.

In 2025, Xiaomi’s annual profit was RMB 41.57 billion, up about 76.3% year over year—far exceeding the revenue growth rate of 25.0%. Leverage Game finds that this was mainly driven by a large increase in investment gains.

In 2025, Xiaomi’s “fair value changes of financial instruments measured at fair value through profit or loss” was RMB 13.31 billion, accounting for 26.8% of profit before tax. In 2024, this figure was only RMB 1.05 billion; within one year, it surged more than 10 times.

In 2025, the profit contribution from Xiaomi’s smartphone business was shrinking: from RMB 24.254 billion in 2024 to RMB 20.66 billion in 2025. The decline was 16.4%.

After excluding investment gains, Xiaomi’s 2025 operating profit was RMB 47.9 billion, up 95.5% year over year. This was mainly due to the auto business turning from losses to profits and an improvement in AIoT business gross margin.

It’s also worth noting that in the fourth quarter of 2025, Xiaomi Group’s profit indicators declined: operating profit was RMB 6.229 billion, down 29.9% year over year, and down 58.8% quarter over quarter; non-IFRS adjusted net profit was RMB 6.349 billion, down 23.7% year over year and down 43.9% quarter over quarter—its profitability was nearly cut in half compared with the third quarter.

In the fourth quarter, Xiaomi’s Phones × AIoT business revenue fell by more than 13% year over year, and combined with factors such as R&D, as well as increases in spending on sales and promotion rather than declines, its profit in that quarter shrank significantly.

In the fourth quarter of 2025, Xiaomi’s net cash generated from operating activities also fell sharply to RMB 614 million—down nearly 90% quarter over quarter from RMB 5.47 billion in the third quarter.

However, Xiaomi isn’t short of cash: as of the end of 2025, its cash reserves (including cash and cash equivalents, restricted cash, time deposits, wealth-management investments, etc.) were about RMB 232.6 billion.

3

In summary, in Leverage Game’s view, 2025 was Xiaomi’s most glorious year in history. It proves the foresight of its strategy to build across industries and its strong execution capability. It also shows the world its determination to transition from “marketing-driven” to “technology-driven.”

The story of “the full ecosystem of people, cars, and home” has moved from a vision into a reality that has taken initial shape.

However, Xiaomi is also going through an extremely difficult “coming-of-age ceremony.” It is saying goodbye to that “youth” era of rapid growth powered by value-for-money smartphones, and stepping into an “adult world” that requires managing two core businesses at the same time, responding to global competition, and bearing massive R&D expenditures.

The financial report shows that in 2026, Xiaomi will target deliveries of 550,000 vehicles. Just recently, the new SU7 series has also been launched. If the 550,000 target is achieved, Xiaomi’s auto business revenue contribution is expected to surpass that of its phone business and become the “first engine.”

Of course, there are still considerable uncertainties. Competition in the 2026 new-energy vehicle market will be fiercer, and after all the turmoil Xiaomi experienced in 2025, whether it will remain resilient in 2026 is something that needs to be observed.

As for the phone side, it’s even harder to find potential for a reversal—if it can hold steady, that counts as a win. You can see it from the issues in India. As Xiaomi goes deeper into global markets—especially in the high-end market and technology areas (such as chips and AI)—the international regulatory and geopolitical risks it faces will keep increasing.

Given all this, these two years are extremely critical for Xiaomi. They may determine whether, against the backdrop of weakness in its phone business, Xiaomi can smooth its profit curve through the scale effects of the auto business and the value-added services of its AI ecosystem, and ultimately achieve high-quality growth by “walking on two legs.”

Charts whose sources are not indicated in this article are all from corporate official websites or announcements. We hereby note this and express our thanks

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