XIAOMI(HK:01810) Xin Lang Cai Jing·2025-11-19 03:01Core Insights - Despite a strong Q3 2025 financial report, Xiaomi Group's stock price continues to face pressure, dropping over 30% since its peak in June 2025 [1] Financial Performance - Xiaomi reported Q3 revenue of 113.1 billion RMB, a year-on-year increase of 22.3%, marking the fourth consecutive quarter exceeding 100 billion RMB [4] - Adjusted net profit reached 11.3 billion RMB, a significant year-on-year increase of 80.9%, setting a historical high [4] - As of September 30, 2025, cash and cash equivalents stood at 35.5 billion RMB, with total cash reserves at 236.7 billion RMB [4] Business Highlights - The automotive and AI sectors emerged as key growth areas, with revenue from these segments reaching 29 billion RMB, a year-on-year increase of over 199%, including 28.3 billion RMB from automotive sales [4] - Xiaomi delivered a record 108,796 new vehicles in Q3, with an annual delivery target of 350,000 vehicles expected to be met [4] Challenges and Outlook - The company anticipates challenges in 2026, particularly regarding automotive gross margins, which may decline due to reduced purchase tax subsidies and increased competition in the automotive sector [6] - The gross margin for Xiaomi's smart electric vehicles and AI innovation business was reported at 25.5% for Q3 [6] - In the smartphone segment, revenue was 46 billion RMB, with global shipments reaching 43.3 million units, reflecting a year-on-year growth of 0.5% [6] - The company is addressing rising memory prices, attributed to increased demand from AI, by securing supply agreements for 2026 and considering price adjustments and product upgrades to manage cost pressures [6]