Hang Seng Index · Smartphones/AIoT/EV · 'Human×Car×Home' ecosystem
Xiaomi
Xiaomi runs an ecosystem flywheel — selling smartphones and AIoT hardware at thin margins to acquire users, then monetizing them through high-margin internet services (76.5% GPM) — now bolted to a new growth engine in EVs (SU7, YU7). The real news in FY2025's +25% revenue (RMB457.3bn) is not scale but that EVs turned — 411k deliveries (+200%) and the segment's first operating profit — shifting the auto bet from a loss-making venture into a re-rating axis that rewrites the group's valuation. Smartphones shed volume (-2%) yet push premiumization and vertical integration via the in-house 3nm XRING chip that cuts Qualcomm dependence, while Lei Jun's ~90% voting control (weighted voting rights) keeps long-gestation bets in chips, EVs and AI coherent.
1810.HK Updated Jul 12, 2026 5 AI consumers· 2 recurring
Per the valuechain.wiki graph, Xiaomi is directly linked to 7 companies (7 supply, 0 revenue relationships) and reaches 17 companies within two hops; the links are backed by 11 dated sources, 1 of them primary filings (as of 2026-07-12).
Financials & Segments
- Total revenue · RMB457,286.7m (FY2025 consolidated, +25.0%, record)
- Segments · Smartphones · IoT & lifestyle · Internet services · Smart EV / AI & new initiatives
Revenue from
- Internet services (ads/subscriptions, undisclosed) High confidence
Internet services is small in scale (RMB37.4bn) but, at 76.5% GPM, the real source of group profit — the flywheel's settlement point that monetizes 754m MAU via ads, gaming and fintech. Rising overseas share (33.8%) makes ex-China monetization the next lever.Confirms EN Xiaomi Corporation Published Apr 28, 2026: Xiaomi Corporation — Annual Report 2025 (HKEX) - Smartphone end market (global consumers/carriers, undisclosed) High confidence
The end market is global consumers, but this line's strategic role is the ecosystem's entry point, not profit — a thin-margin (10.9% GPM) user-acquisition engine feeding high-margin internet services. Shipments fell 2% on India weakness, yet it defends its No.3 position (13.3% share) and protects ASP via premiumization and a rising China mix.Confirms EN Xiaomi Corporation Published Apr 28, 2026: Xiaomi Corporation — Annual Report 2025 (HKEX)Confirms KO Nate News Published Mar 25, 2026: Xiaomi posts record FY2025; auto revenue tops RMB100bn - IoT & lifestyle consumers (undisclosed) High confidence
IoT & lifestyle matters beyond its revenue (+18.3%) as the ecosystem's expansion vector — tablets, large appliances and wearables grew on Chinese subsidies and premiumization, lifting connected devices to 1,079m, and that device base widens the foundation for internet-services monetization.Confirms EN Xiaomi Corporation Published Apr 28, 2026: Xiaomi Corporation — Annual Report 2025 (HKEX) - EV buyers (SU7/YU7, undisclosed) High confidence
EV buyers (SU7/YU7) are the group's new growth engine — 411k deliveries (+200%) and the segment's first operating profit (24.3% GPM) shed the loss-making-venture label. SU7 as the No.1 sedan above RMB200k and YU7 as the No.1 mid-large SUV prove premium positioning, making this the core axis of the group's re-rating.Confirms EN Xiaomi Corporation Published Apr 28, 2026: Xiaomi Corporation — Annual Report 2025 (HKEX)Mentions EN Goldman Sachs Published Apr 1, 2026: Goldman Sachs keeps Buy on Xiaomi, TP HK$40 (44-analyst Buy consensus)Confirms KO Nate News Published Mar 25, 2026: Xiaomi posts record FY2025; auto revenue tops RMB100bn
Pays to
- Sunny Optical High confidence
Sources smartphone camera lenses and modules from Sunny Optical (global No.1 in both) — with the camera a key differentiator in premium phones, securing high-end optics ties directly to the competitiveness of Xiaomi's flagships.Confirms EN South China Morning Post Published Aug 1, 2025: Sunny Optical supplies cameras to major smartphone brands incl. Xiaomi - BYD Electronics High confidence
Outsources part of smartphone assembly and components to BYD Electronics (China's No.2 EMS after Foxconn) — one leg of assembly-partner diversification in a fabless-manufacturing model.Confirms KO ZDNet Korea Published Sep 16, 2020: China's BYD makes Apple iPads; also assembles for Huawei, Xiaomi, Samsung - CATL High confidence
Supplies ternary (NMC) batteries for SU7 upper trims and YU7 Max, the high-performance tier — Xiaomi dual-sources from CATL and BYD to spread dependence, price and volume risk. As the battery is the largest EV cost item, this dual-sourcing is central to margin and supply stability. - BYD (핀드림스 배터리) High confidence
Supplies LFP batteries (BYD's FinDreams) for SU7 Standard and single-motor YU7 — the value/entry tier, dual-sourced against CATL's ternary cells. Splitting battery suppliers by trim optimizes cost, safety and supply. - Qualcomm High confidence
Primary flagship AP source (Snapdragon) — but Xiaomi runs its in-house 3nm XRING alongside it to reduce sole dependence on Qualcomm. As the AP drives smartphone cost and performance, scaling its own silicon is what will shape long-term procurement leverage and differentiation. - TSMC (XRING 파운드리) High confidence
Fabs its XRING O1 — the first Chinese-designed 3nm flagship SoC — at TSMC N3E; as the RMB50bn chip-R&D commitment signals, Xiaomi internalizes design but still depends on TSMC for leading-edge fabrication. The in-house chip is a long-term bet on easing Qualcomm dependence and differentiating hardware, with 1M+ units shipped proving viability.Confirms EN Xiaomi Corporation Published Apr 28, 2026: Xiaomi Corporation — Annual Report 2025 (HKEX) - Will Semiconductor Medium confidence
Sources high-resolution CMOS image sensors (OV50 family) from Will Semiconductor (OmniVision) for phone cameras — with the camera a key premium differentiator, securing high-pixel sensors ties directly to flagship competitiveness. It runs a multi-sensor supply base to spread single-supplier dependence.Confirms KO Korea Economic Daily Published Jul 13, 2025: Samsung supplies nanoprism sensor to China; OmniVision share rises to 11.9% in 2024
Investors
- Lei Jun / Smart Mobile Holdings (controlling shareholder, 90.06% votes) High confidence
Founder Lei Jun holds 90.06% of votes via Smart Mobile Holdings and ARK Trust under weighted voting rights — the basis for pushing long-gestation, capital-heavy bets (XRING chips, EVs, AI) consistently, insulated from market pressure. A Cayman entity; institutions such as BlackRock hold Class B shares.Confirms EN Xiaomi Corporation Published Apr 28, 2026: Xiaomi Corporation — Annual Report 2025 (HKEX)
Investments
- Xiaomi ecosystem & supply-chain investment portfolio (~410 companies) High confidence
The ~RMB89.0bn portfolio (RMB87.1bn book) across ~410 companies is strategic, not merely financial — locking in the IoT ecosystem, components and EV supply chain. Individual stakes are mostly <5%, but tying ecosystem firms with capital broadens the supply and content base of the hardware flywheel (RMB3.1bn after-tax disposal gain in 2025).Confirms EN Xiaomi Corporation Published Apr 28, 2026: Xiaomi Corporation — Annual Report 2025 (HKEX)
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Xiaomi | node | -43.9 | -21.1 | -4.6 | +209.7 | -6.9 | -27.2 |
| Qualcomm | benef1 | +22.3 | -38.6 | +35.1 | +8.3 | +13.8 | +11.7 |
| CATL | benef1 | +67.4 | -21.4 | -40.6 | +74.5 | +39.4 | +1.2 |
| Sunny Optical | benef1 | -1.5 | -46.8 | -54.4 | +46 | -8.9 | -9.4 |
| Will Semiconductor | benef1 | -12.1 | -49.7 | -8.3 | +22.8 | +15.5 | -14.8 |
| BYD Electronics | benef1 | -56.1 | +16 | -0.4 | +60.6 | -19.4 | -34.4 |
| Soitec | benef2 | -3.7 | -13.4 | -2.3 | -37.4 | -68.9 | +271.9 |
| United Microelectronics (UMC) | benef2 | +43.2 | -40.3 | +39.2 | -19 | +28.8 | +215.1 |
| JCET (Jiangsu Changjiang Electronics) | benef2 | -34 | +0.2 | -15.2 | +73.3 | +28 | +104.6 |
| Samsung Electronics | benef2 | -9 | -14.2 | +20.9 | -26.4 | +212.9 | +77.9 |
| TSMC | benef2 | +12.1 | -36.7 | +42.3 | +92.6 | +55.9 | +43.6 |
| SMIC | benef2 | -29.6 | -7.4 | -18.3 | +169.9 | +98.4 | +5.6 |
| King Yuan Electronics (KYEC) | benef2 | +26.7 | -7.7 | +132.4 | +38.6 | +171 | +4.2 |
| BYD | benef2 | -6.5 | +10.5 | -28.5 | +58.9 | +8.7 | -12.7 |
| Ronbay Technology | benef2 | +96.6 | -39.1 | -63.6 | +12.3 | +47.7 | -12.9 |
| Leeno Industrial | benef2 | +21 | -5.3 | +18.3 | +9.5 | +150.1 | -30.3 |
| Chunbo | benef2 | +40.4 | -7.3 | -65 | -55.6 | +59.1 | -37.6 |
| Enchem | benef2 | · | -37.4 | +173.9 | -20.5 | -26.1 | -76.7 |
YTD as of 2026-07-10 · source: Yahoo Finance
Xiaomi's thesis is an ecosystem flywheel — selling smartphones and AIoT as low-margin hardware to acquire users and monetizing through high-margin internet services (GPM 76.5%) — with EVs bolted on as a new growth engine. The real news in FY2025 revenue up +25% (RMB 457.3bn) is not scale but that EVs turned to 410k deliveries (+200%) and the segment's first operating profit (GPM 24.3%), becoming a re-rating axis that rewrites group valuation from a 'loss-making new business.' Smartphones, even with volume down -2%, serve as the ecosystem entry point, and its own 3nm XRING chip (fabbed at TSMC N3E) reduces Qualcomm dependence and pushes premiumization and vertical integration. Internet services, small in scale (RMB 37.4bn) but at GPM 76.5%, are the settlement point of profit that monetizes the 750M MAU hardware acquired, with 33.8% overseas the next lever. Re-rating triggers are expanding EV profit and the YU7 ramp, in-house chips and overseas monetization, and execution of long-gestation bets backed by Lei Jun's 90% voting control.
Analysis generated from returns as of 2026-07-10