## Xiaomi Auto's First 100 Billion Revenue Yet Faces 100 Billion Market Cap Evaporation: Can 60 Billion in AI Spending Over Three Years Sustain the Second Curve?
Xiaomi Group released its 2025 full-year financial report on March 19, 2026, showing total revenue of 457.3 billion yuan, a 25% year-over-year increase; adjusted net profit of 39.2 billion yuan, up 43.8% year-over-year. Among them, the smart electric vehicle and AI innovation business (hereinafter referred to as the auto business) revenue exceeded 100 billion for the first time, reaching 106.1 billion yuan, and achieved positive annual operating income with 900 million yuan in operating profit. This means Xiaomi Auto, on the basis of delivering 410,000 vehicles, achieved full-year profitability in its third year of establishment, setting a new record for profitability speed among new energy vehicle manufacturers.

However, behind the impressive financial data, the capital market's response was quite different. Within a week of Xiaomi's financial report release, the company's market cap evaporated by over 100 billion Hong Kong dollars. The core logic triggering the sell-off was not the auto business itself, but growth concerns under multiple pressures: the auto business has thin profits, with per-vehicle operating profit of approximately 6,081 yuan, showing a huge gap compared to the per-vehicle gross profit of approximately 63,000 yuan, with R&D, sales, and administrative expenses heavily eroding profit margins; the smartphone business faces pressure from storage chip prices surging sevenfold, with Q4 2025 revenue declining 13.6% year-over-year; and Xiaomi's disclosure in the conference call of a plan to invest 60 billion yuan in AI business over the next three years further exacerbated market concerns about profit margins.

Specifically, Xiaomi Auto's gross margin in Q4 2025 was only 22.7%, lower than the first three quarters, showing a quarterly decline trend, mainly affected by promotional activities for display vehicles. The full-year operating expenses for the auto and innovation business reached 24.9 billion yuan, an 87.7% year-over-year increase. Xiaomi targets 550,000 vehicle deliveries in 2026, which means production lines, stores, and after-sales networks still require large-scale capital investment, making it difficult to optimize expense ratios in the short term.

In terms of the smartphone business, contract prices for storage chips (DRAM and NAND) have risen approximately sevenfold over the past 12 months. Xiaomi has removed the 256GB version from its new flagship models, doubled storage capacity, and raised prices by approximately $70. Lu Weiming candidly stated that the magnitude and duration of storage cost increases far exceeded the company's forecasts, hinting that Xiaomi would also follow suit with price increases.

IoT and lifestyle consumer products achieved full-year revenue of 123.2 billion yuan, an 18.3% year-over-year increase, making it an important pillar of Xiaomi's profits. As of the end of 2025, the AIoT platform connected over 1 billion devices. However, in Q4 2025, IoT revenue declined approximately 20% year-over-year, with smart home appliance sales falling significantly after national subsidies tapered off, exposing growth weakness after policy stimulus faded. In large appliances such as air conditioners, Xiaomi still lags behind traditional giants like Gree, Midea, and Haier.

The AI business is another core narrative of this financial report. Xiaomi released Xiaomi MiMo-V2-Flash and made it open source in December 2025; in March 2026, it released MiMo-V2-Pro with a total parameter count exceeding 100 billion, supporting 1 million ultra-long context. On the Artificial Analysis LLM Intelligence Index, MiMo-V2-Pro ranks fifth globally by brand; on the PinchBench Agent Leaderboard, it ranks third globally; on the OpenRouter platform, it ranks first in model API calls. Xiaomi also released the full-modal foundational model MiMo-V2-Omni, natively equipped with multimodal perception, tool calling, and GUI operation capabilities. The mobile Agent product Xiaomi miclaw has started small-scale closed testing. Management revealed that AI investment in 2026 will reach 16 billion yuan, with cumulative investment exceeding 60 billion yuan over the next three years.

Market evaluation of Xiaomi's AI strategy presents polarized views. Supporters believe Xiaomi has a full-scenario ecosystem of smartphones, automobiles, IoT, and wearable devices, making it the most complete hardware platform for AI implementation; critics argue Xiaomi is a latecomer in AI large models, and whether the 60 billion yuan investment can generate corresponding competitive barriers remains an unknown. From Tencent and Alibaba to Xiaomi, bearing pressure on current profits to invest in future growth has almost become a common narrative for Chinese tech giants, but the huge differences in each company's core business conditions determine the varying odds of success in this high-stakes gamble.
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- **Source**: 小米集团
- **Sector**: The Vault
- **Tags**: 小米集团, 小米, 财报, AI, 汽车, 手机, IoT, 大模型, 生态
- **Credibility**: unverified
- **Published**: 2026-04-05 08:23:42
- **ID**: 50438
- **URL**: https://whisperx.ai/en/intel/50438