Xiaomi Rushes Out a 7,000mAh Flagship and a HK$20B Buyback as Profit Tumbles 43%

Xiaomi is mounting a two-pronged defence against a brutal first quarter. On the same day it unveiled the premium 17T series globally in Vienna, the company snapped up 10.5 million of its own shares for HK$298 million — part of a newly announced HK$20 billion buyback programme that kicks off on 2 June. The twin moves come as the Chinese electronics giant grapples with a 43.1% plunge in adjusted net profit and a share price that has just hit a 52-week low.

First-quarter results published last month laid bare the pressure. Revenue slipped 10.9% year-on-year to 99.1 billion yuan, while adjusted net profit dropped from 10.7 billion yuan to 6.1 billion yuan. The core smartphone business, which shipped 33.8 million units and held onto third place globally with an 11.3% market share according to Omdia, generated smartphone×AIoT revenue of 79.3 billion yuan. But rising memory-chip costs are eating into margins, and the stock has lost 32% since the start of 2026.

The buyback programme, the largest Xiaomi has ever authorised, allows the board to repurchase up to HK$20 billion worth of shares over the next 12 months. The initial HK$298 million tranche was bought at prices between HK$27.94 and HK$28.70 per class-B share. One day later, the stock traded at €3.07 in Europe — a new low for the year and 54% below the June 2025 high. A previous programme, which ran until 26 May, had already retired 399.6 million shares at a cost of HK$14.6 billion.

Should investors sell immediately? Or is it worth buying Xiaomi?

While the capital-markets team works to stabilise the stock, the product side is trying to revive growth. The Xiaomi 17T series, launched in Hong Kong on 28 May and simultaneously across Europe, marks the brand’s first T-series with two distinct sizes. Both models pack a Leica Summilux 5x telephoto lens, a 1.5K AMOLED display with TÜV Rheinland eye-comfort certification, and MediaTek’s latest chips — the Dimensity 8500-Ultra in the standard model and the Dimensity 9500 in the Pro. The 17T Pro stands out with a 7,000mAh silicon-carbon battery, an unusually large capacity even for the premium tier. Hong Kong prices start at HK$3,999 for the 17T (12+256GB) and HK$5,999 for the Pro (12+1TB). In Europe, the base model costs €749, while the Pro ranges from €899 to €1,099 depending on memory configuration.

Smartphones remain the company’s dominant revenue engine, contributing 44.3 billion yuan in Q1 alone. Xiaomi’s share of the European market reached 17.2%, underscoring the importance of the region for the premium push. The 17T launch comes as the company pours heavily into research and development — 9.0 billion yuan in the first quarter, supported by a dedicated R&D workforce of 26,048 employees. The Vienna event also showcased new wearables, smart-home products and TVs, highlighting the breadth of Xiaomi’s ecosystem.

But the spotlight is also on the electric-vehicle division, which reported mixed signals. Revenue from the smart EV, AI and other new initiatives segment rose 6.9% to 19.9 billion yuan, with EV revenue alone up 5.1% to 19.0 billion yuan. However, gross margin shrank from 23.2% to 20.1% — a squeeze management attributes to lower deliveries of the SU7 Ultra, government purchase-tax subsidies and pricier components. Growth is coming at the expense of profitability.

The HK$20 billion buyback sends a short-term confidence signal, but it does not resolve the structural cost issues in the smartphone business or the margin erosion in EVs. Xiaomi’s next few quarters will test whether a premium smartphone offensive and a record share repurchase can outweigh the operational drag — or merely compensate for the dilution that a struggling core is leaving behind.

Ad

Xiaomi Stock: New Analysis - 29 May

Fresh Xiaomi information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Xiaomi analysis...

en | KYG9830T1067 | XIAOMI | boerse | 69443262 |