Chinese electronics manufacturer Xiaomi recorded its highest-ever performance last year, generating revenues exceeding 70 trillion won. The net profit also reached 6 trillion won, achieving a record-breaking outcome. While the large role of smartphones equipped with "cost-effectiveness" is significant, the market is particularly noting that the profitability of electric vehicles launched last year is rapidly improving. This year, Xiaomi plans to achieve sales of 350,000 units—double last year's sales—led by new electric vehicle models, and is accelerating its overseas expansion. Such moves by Xiaomi have resulted in a nearly 70% rise in its stock price this year alone.
Xiaomi announced on the 18th that it recorded revenues of 365.964 billion yuan (approximately 73.4 trillion won) and a net profit of 27.2345 billion yuan (approximately 5.5 trillion won) last year. These figures represent increases of 35.0% and 41.3%, respectively, compared to a year ago, both marking record highs. Notably, the performance in the fourth quarter of last year was remarkable. The company achieved a revenue of 109.052 billion yuan (approximately 21.9 trillion won), marking a 48.8% increase compared to the same period in the previous year, surpassing 100 billion yuan for the first time on a quarterly basis. The net profit for this period also surged to 8.3162 billion yuan (approximately 1.7 trillion won), representing a 69.4% increase year-on-year, also a record high.
The market is paying attention to the fact that Xiaomi set such records in the first year of launching electric vehicles. Xiaomi launched its first electric vehicle, "SU7," last April. Initially, Xiaomi set a sales target of 130,000 units for the year, but it successfully delivered a total of 136,854 units, easily achieving its goal. Lei Jun, Xiaomi's founder, noted earlier this month that "SU7 sold 320,000 units in the 11 months following its launch" and stated, "We have delivered 180,000 units so far, with 140,000 to 150,000 units in waiting." Of course, the electric vehicle sector isn't yet generating revenue, incurring a net loss of 6.2 billion yuan annually. However, looking solely at the fourth quarter, the loss was reduced to 700 million yuan, a 53% decrease from the third quarter. It is common to incur significant losses due to low sales and initial expenses in the first year of launching a new product, and this outcome is considered favorable.
This year, it is projected that Xiaomi's electric vehicle sector will surpass the breakeven point. Previously, Xiaomi mentioned a sales target of 300,000 units for the year until early this month, but it has revised this target to 350,000 units due to strong demand for its new cars. Last month, Xiaomi launched the premium electric vehicle "SU7 Ultra" for 529,900 yuan (approximately 1.06 million won). The annual sales target for this model was set at 10,000 units, but within just three days of its launch, the reservations exceeded 10,000 units. The second model, which is the first sports utility vehicle (SUV), "YU7," is also expected to be released as early as June this year. The Chinese economic media Caixin reported that "Xiaomi's electric vehicle business is already close to revenue status."
Xiaomi's core business, the smartphone sector, is also thriving. The revenue from smartphone and Internet of Things businesses increased by 22.9% year-on-year to 333.15 billion yuan, driving overall performance. When looking at smartphone sales alone, they reached 191.8 billion yuan, marking an increase of 21.8% compared to the previous year. According to the market research firm Canalys, Xiaomi's global smartphone shipment in the fourth quarter last year was 42.7 million units, a 5% increase year-on-year, placing it third in the world. In China, the total was reported at 12.2 million units, a 29% increase. Analysis shows that Xiaomi's smartphones benefited from the Chinese government's consumer stimulus policy called "Igu Hwan Sin" that provides subsidies for exchanging old electronic products for new ones, leveraging its "cost-effectiveness" advantage.
Xiaomi has set a policy to focus more on its overseas business this year. Last year, overseas sales accounted for 41.9% of total sales, amounting to 153.3 billion yuan (approximately 30.7 trillion won), and the company aims to expand this share even further. So far, smartphones have led overall overseas sales, seeing strong performance in Africa (market share 11.3%), Southeast Asia (16.1%), and the Middle East (18.6%), but starting next year, they plan to officially launch electric vehicles abroad. Lu Weibing, President of Xiaomi Group, mentioned during a conference call the previous day, "We have begun preparations for the overseas expansion of Xiaomi cars," adding that "the overseas expansion of the vehicles is more complicated than we anticipated, but 2027 will be the first year for this expansion."
Meanwhile, buoyed by the strong performance of its electric vehicle and smartphone sectors, Xiaomi's stock price is showing an upward trend. On this day, Xiaomi's stock price at one point reached 58.75 Hong Kong dollars (approximately 11,000 won) on the Hong Kong stock market, marking its highest level ever, and represents a 70% increase this year alone. Reuters reported that "Xiaomi's stock price surged 284% over the past 12 months, fueled by investor enthusiasm for electric vehicle plans."