BEIJING, November 18, 2025 — Chinese consumer tech giant Xiaomi announced on Tuesday that its smart electric vehicle (EV), artificial intelligence (AI), and new initiatives division has achieved a quarterly operating profit for the first time, marking a major milestone in the company’s diversification strategy.
According to Xiaomi President Lu Weibing, the segment posted an operating profit of 700 million yuan ($98 million) in the third quarter of 2025. The company credited strong demand for its EV lineup—launched just last year—and growing traction for its in-house generative AI model unveiled in April.
Revenue from the EV and AI division reached a record high, helping lift the company’s total quarterly revenue to 113.1 billion yuan, a year-on-year increase of 22 percent. Xiaomi also reported an 81 percent rise in adjusted net profit, reaching 11.3 billion yuan for the July–September period.
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However, despite strong financial performance, Xiaomi’s share price has slipped more than 20 percent over the past six months. Analysts attribute the decline to industry-wide pressures, including soaring memory chip prices driven by escalating demand for AI technologies.
Lu warned that rising chip prices will squeeze the smartphone market in 2026, hinting that consumers should expect higher retail prices across product categories.
“I believe the pressure will be far greater than this year,” he said. “Everyone will likely observe that retail prices for products will see a significant increase.”
Xiaomi faces additional hurdles, including intense price wars in China’s consumer electronics market and persistent weakness in domestic spending. China continues to grapple with sluggish post-pandemic demand and a prolonged property sector crisis that has dampened consumer confidence.
