Xiaomi Group’s share price fell below HK$40, down more than 30% from its highest point in June

This morning, the share price of Xiaomi Group in Hong Kong continued to weaken, hitting an intraday low of HK$38.22. As of press time, the stock price fell by more than 3%, officially falling below the HK$40 mark. This trend continues Xiaomi’s downward trend since the second half of the year. Since the stock price reached a high of HK$61.45 during the year on June 27,Xiaomi’s stock price has fallen by more than 30%.The market value subsequently shrank significantly. It is worth noting that the stock price weakened this time on the day after the release of its outstanding third-quarter earnings report-even though the core data of the earnings report were strong, it still failed to reverse the market selling sentiment.

Xiaomi’s Q3 financial report hits multiple data highs

On November 18, Xiaomi Group’s financial report for the third quarter of 2025 was overall positive. Data show that the group’s total revenue for the current period was 113.12 billion yuan.A year-on-year increase of 22.3%,Exceeded the market estimate of 112.5 billion yuan; adjusted net profit was 11.31 billion yuan,A year-on-year increase of 80.9%, setting a record high.Both core indicators performed well.

Looking at business segments,In the third quarter of 2025, Xiaomi Group’s mobile phone × AIoT segment revenue was RMB 84.1 billion, a year-on-year increase of 1.6%.

Innovative businesses such as smart electric vehicles and AIBecome the biggest highlight,Revenue in a single quarter reached 29 billion yuan, a year-on-year increase of 199.2%, a record high.And for the first time, it achieved operating profit in a single quarter, with operating income of 700 million yuan.

In terms of profitability,Xiaomi Group's gross profit in the third quarter increased by 37.4% to 25.9 billion yuan from 18.9 billion yuan in the same period of 2024, and its gross profit margin also increased from 20.4% in the third quarter of 2024 to 22.9%. The quality of profitability has steadily improved.

Lu Weibing: We will face many challenges in 2026

Xiaomi Group partner and group president Lu Weibing bluntly stated during the third quarterly report conference call on the 18th that 2026 will face many challenges.

"First, the purchase tax subsidy is halved; second, there are currently many players in the automobile industry, and it will definitely take a period of fierce competition to converge." Lu Weibing said that compared with this year,Xiaomi Auto's gross profit margin may decline somewhat.