Xiaomi's first-quarter net profit dropped 43%, with mobile phones and cars both falling short of expectations

**　　[Caixin]** Storage costs soaring, vehicle shipments below expectations, and increased AI investments are intensifying market disagreements over Xiaomi. Xiaomi Group reported revenue of 99.14B yuan in the first quarter, a year-on-year decrease of 10.9%; during the same period, adjusted net profit was 6.07B yuan, down 43.1% year-on-year.
On the evening of May 26, Xiaomi Group (01810.HK) released its first-quarter financial report revealing these figures. The company's revenue and profit performance both fell short of market expectations, with LSEG analysts previously forecasting an average first-quarter revenue of 103.4 billion yuan and an average adjusted net profit of 6.4 billion yuan.

Market pessimism has already been reflected in the stock price. On May 26, Xiaomi's stock price fell 0.80%, closing at HKD 29.76 per share. Since reaching a high point in the range at the product launch event in late September last year, Xiaomi's stock price has fallen from nearly HKD 60 per share, now nearly halved, with a market value evaporating over HKD 800 billion. JPMorgan Chase suggested that the company's stock price is close to the bottom, but without stable memory prices or progress in overseas electric vehicle business, it is difficult to find catalysts to drive the stock price higher.