Xiaomi Group's 2025 revenue surpasses 400 billion yuan for the first time, with adjusted net profit increasing by 44% to a new high, and automotive business achieves its first full-year profit | Financial Report Highlights

How will Xiaomi’s automotive business achieve a turnaround to profitability for the entire year?

Xiaomi Group has delivered a report that can be described as a “historic breakthrough.”

On March 24, the company announced its financial report showing that total revenue for the year 2025 reached 457.3 billion yuan, a year-on-year increase of 25.0%, and adjusted net profit was 39.2 billion yuan, a year-on-year increase of 43.8%, both reaching historic highs. Against the backdrop of cost and competitive pressures in the core smartphone business, Xiaomi successfully built a new growth engine of “people, cars, and home all-ecosystem” through explosive growth in its automotive business and steady performance in its AIoT business.

Key highlights from the core financial report include:

• Total revenue for 2025 reached 457.3 billion yuan, a year-on-year increase of 25.0%, breaking the 450 billion yuan mark for the first time;
• Gross profit was 101.8 billion yuan, a year-on-year increase of 33.0%, with gross margin rising from 20.9% to 22.3%;
• Operating profit was 47.9 billion yuan, a substantial year-on-year increase of 95.5%. Annual profit was 41.6 billion yuan, a year-on-year increase of 76.3%;
• Adjusted net profit was 39.2 billion yuan, a year-on-year increase of 43.8%, with a net profit margin of 8.6%;
• In the fourth quarter, Xiaomi achieved revenue of 116.9 billion yuan, a year-on-year increase of 7.3%, maintaining over 100 billion yuan for the fifth consecutive quarter;
• Gross profit was 24.4 billion yuan, a year-on-year increase of 8.5%, with a gross margin of 20.8%;
• Operating profit for the fourth quarter was 6.2 billion yuan, a year-on-year decrease of 29.9%;
• Profit for the period was 6.5 billion yuan, a year-on-year decrease of 27.3%;
• Adjusted net profit was 6.3 billion yuan, a year-on-year decrease of 23.7%.

Most notably, the intelligent electric vehicle and AI innovation businesses achieved positive operating profit for the full year for the first time, with operating income reaching 900 million yuan. This segment’s annual revenue surged past the 100 billion yuan mark, reaching 106.1 billion yuan, a year-on-year increase of 223.8%, with gross margin rising from 18.5% in 2024 to 24.3%. Annual vehicle delivery reached 411,000 units, a year-on-year increase of 200.4%, making the SU7 series the best-selling pure electric vehicle priced over 200,000 yuan in mainland China.

Despite facing headwinds such as rising core component costs and intensified industry competition in the fourth quarter, Xiaomi still demonstrated strong resilience. Fourth-quarter total revenue of 116.9 billion yuan marked a year-on-year increase of 7.3%, maintaining over 100 billion yuan for the fifth consecutive quarter.

From an annual perspective, Xiaomi’s “smartphone × AIoT” foundation remains solid. This segment’s annual revenue was 351.2 billion yuan, a year-on-year increase of 5.4%, with gross margin reaching a historic high of 21.7%. The high-end strategy continues to yield results, with high-end smartphone sales in mainland China rising to 27.1%, and market share in the 4000-6000 yuan price range reaching 17.3%. The global monthly active user base surpassed 754 million, with connected devices on the AIoT platform reaching 1.079 billion, continually strengthening user ecological barriers.

Automotive Business: Transitioning from Investment Phase to Output Phase, Rising Gross Margin and Delivery Volume

The intelligent electric vehicle business is undoubtedly the biggest highlight of the 2025 financial report. Annual revenue from intelligent electric vehicles reached 103.3 billion yuan, a year-on-year increase of 221.8%, with vehicle deliveries skyrocketing from 137,000 units in 2024 to 411,000 units, and ASP (average selling price) increasing from 234,500 yuan to 251,200 yuan. Benefiting from the increased delivery proportion of high-priced models such as the SU7 Ultra and YU7 series, the automotive business achieved an annual gross margin of 24.3%, an increase of 5.8 percentage points from the previous year.

Notably, this segment achieved positive operating profit for the full year for the first time in 2025, reaching 900 million yuan. In the fourth quarter alone, the operating income was 1.1 billion yuan, with a gross margin of 22.7%. By the end of 2025, Xiaomi’s automotive sales stores had covered 138 cities in mainland China with a total of 477 stores. For 2026, the company aims to deliver 550,000 units.

The new generation SU7 series, launched in March 2026, saw over 15,000 orders within 34 minutes of sales, and over 30,000 within three days, demonstrating strong market demand. The new generation SU7 is equipped with laser radar and 700TOPS computing power, featuring an end-to-end large model-assisted driving system, further solidifying Xiaomi’s competitiveness in the field of intelligent driving.

Smartphone × AIoT: Steady Progress in High-End Strategy

The smartphone business generated annual revenue of 186.4 billion yuan, a slight year-on-year decrease of 2.8%, with shipments of 165.2 million units, a year-on-year decrease of 2.0%. Although shipments were impacted by a decline in the Indian market, the mainland China market saw countercyclical growth, with shipments increasing by 4.1% year-on-year, and market share rising to 16.6%, moving up to second place.

The high-end strategy has shown significant results. Market share in the 4000-6000 yuan price range in mainland China reached 17.3%, and market share in the 6000-10000 yuan range increased by 2.3 percentage points year-on-year to 4.5%. After upgrading the collaboration with Leica to a “strategic co-creation model,” high-end models such as the Xiaomi 17 Ultra further enhanced their imaging capabilities, with overseas starting prices reaching up to 1999 euros.

Internet Services: User Base Continues to Expand, Foreign Revenue Proportion Hits New High

Annual revenue from internet services reached 37.4 billion yuan, a year-on-year increase of 9.7%, with gross margin stabilizing at 76.5%. Advertising revenue was 28.5 billion yuan, a year-on-year increase of 15.2%, becoming a major growth engine. In the fourth quarter, internet service revenue was 9.9 billion yuan, with a gross margin of 76.8%, maintaining a high level.

The user ecosystem continues to expand. By December 2025, the global monthly active user count reached 754 million, a year-on-year increase of 7.4%, with mainland China’s monthly active users reaching 190 million, a year-on-year increase of 10.1%. Foreign internet service revenue reached 12.6 billion yuan, a year-on-year increase of 15.2%, accounting for 33.8% of total internet revenue, setting a new annual high. In the fourth quarter, the proportion of foreign internet revenue further increased to 36.9%, indicating a continued enhancement of overseas commercialization capabilities.

R&D Investment and Technological Breakthroughs: 100 Billion R&D over Five Years, Results in AI and Chip Technology

In 2025, Xiaomi’s R&D expenditure reached 33.1 billion yuan, a year-on-year increase of 37.8%, with cumulative R&D investment over the past five years totaling 105.5 billion yuan. The number of R&D personnel increased to 25,457, setting a new historical high. The company estimates that cumulative R&D investment will exceed 200 billion yuan in the next five years starting from 2026.

Technological results have been densely achieved. The self-developed chip “Xuanji OI” project won the highest annual technology award, and the Xiaomi MiMo-V2-Pro base model ranked eighth globally in the Artificial Analysis large model intelligence index, and fifth by brand. The full-modal model Xiaomi MiMo-V2-Omni ranked second globally in completion rates for the PinchBench task. In the field of embodied intelligence, Xiaomi has open-sourced the first-generation robotic VLA large model and achieved continuous autonomous operation for three hours in automotive factories, with a success rate of 90.2%.