Chinese tech company Xiaomi recently released its financial report for Q1 2025. Once again, Xiaomi broke its own record with 111.3 billion RMB (15.45 billion USD) of revenue, a 47.4% year-on-year (YoY) increase. Net profit was 10.9 billion RMB (1.51 billion USD), up a whopping 161% YoY. Even the adjusted net profit was up 64.5% YoY at 10.7 billion RMB (1.49 billion USD).
The revenue growth surpassed expectations, and it was mostly driven by the strong Internet of Things (IoT) business from Xiaomi. IoT generated 32.3 billion RMB (4.48 billion USD) in Q1, marking the second consecutive quarter with YoY growth exceeding 50%. The IoT business was, in turn, boosted by the governmental subsidy for consumers in the electrical appliances market. The gross profit margin of the IoT and Xiaomi Auto businesses reached 25% and 23%, respectively.
Speaking of Xiaomi’s auto wing, despite recent setbacks and controversies, Xiaomi is still looking optimistic. In Q1, Xiaomi’s innovative businesses, such as Auto and AI, earned 18.6 billion RMB (2.58 billion USD), with 18.1 billion RMB (2.51 billion USD) from EVs. SU7 sold 75,869 units in Q1, making the total over 258,000. With the high 23% gross profit margin, the loss in the auto department was lowered to 500 million RMB (69.40 million USD).
Xiaomi Group Partner and President William Lu (卢伟冰) jokingly said that the Xiaomi SU7 hasn’t met a serious competitor yet and that the newly announced YU7 SUV would be more popular for the EV maker. With the YU7 lined up for its first expo appearance at the Guangdong-Hong Kong-Macao Greater Bay Area International Auto Show later this month and Xiaomi’s AI and AIoT ready to take off, the company seems to have somewhat weathered the storm.