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XIAOMI CORPORATION

小米集团

(A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability)

Stock Codes: 1810 (HKD counter) and 81810 (RMB counter)

RESULTS ANNOUNCEMENT FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

The board (the "Board") of directors (the "Directors") of Xiaomi Corporation 小米集团 (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the three and nine months ended September 30, 2025. These interim results have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", and reviewed by PricewaterhouseCoopers, the independent auditor of the Company, in accordance with International Standard on Review Engagements 2410, "Review of interim financial information performed by the independent auditor of the entity", issued by the International Auditing and Assurance Standards Board. The interim results have also been reviewed by the audit committee of the Company (the "Audit Committee").

In this announcement, "we", "us", and "our" refer to the Company and where the context otherwise requires, the Group.

KEY HIGHLIGHTS

	Unaudited Three months ended
	September 30, 2025	September 30, 2024	Year-over-year change	June 30, 2025	Quarter-over-quarter change
Revenue	113,120.7	92,506.5	22.3%	115,956.1	-2.4%
Gross profit	25,936.2	18,881.4	37.4%	26,101.0	-0.6%
Operating profit	15,110.1	6,041.3	150.1%	13,436.7	12.5%
Profit before income tax	14,955.6	6,817.2	119.4%	14,402.8	3.8%
Profit for the period	12,256.7	5,340.3	129.5%	11,873.2	3.2%
Non-IFRS Measure: Adjusted Net Profit1	11,310.9	6,252.0	80.9%	10,830.7	4.4%

1 See the section entitled "Non-IFRS Measure: Adjusted Net Profit" for more information about the non-IFRS measure.

	Unaudited Nine months ended
	September 30, 2025	September 30, 2024	Year-over-year change
	(RMB in millions, unless specified)
Revenue	340,370.2	256,901.2	32.5%
Gross profit	77,443.0	54,105.3	43.1%
Operating profit	41,672.3	15,613.0	166.9%
Profit before income tax	42,526.4	18,719.0	127.2%
Profit for the period	35,022.7	14,583.2	140.2%
Non-IFRS Measure: Adjusted Net Profit	32,817.2	18,918.3	73.5%

BUSINESS REVIEW AND OUTLOOK

1. Overall Performance

In the third quarter of 2025, we continued to efficiently execute our operating strategy of "steadfastly forging ahead," and maintained resilience across all business segments. Total revenue for the third quarter of 2025 reached RMB113.1 billion, representing an increase of 22.3% year-over-year. Segment-wise, in the third quarter of 2025, revenue of our smartphone × AIoT segment reached RMB84.1 billion, up 1.6% year-over-year; revenue of our smart electric vehicle ("EV"), AI and other new initiatives segment reached a record high of RMB29.0 billion, up 199.2% year-over-year. In this quarter, our adjusted net profit hit a record high of RMB11.3 billion, up 80.9% year-over-year.

We continued to advance our "Human × Car × Home" corporate strategy. In the third quarter of 2025, our smartphone shipments reached 43.3 million units, up 0.5% year-over-year, and achieved year-over-year growth for 9 consecutive quarters. According to Omdia², in the third quarter of 2025, we maintained top 3 global smartphone shipment ranking for the 21st consecutive quarter, with a market share of 13.6%. Meanwhile, we continued to expand our user ecosystem. In September 2025, our global monthly active users ("MAU")³ reached another record high of 741.7 million, up 8.2% year-over-year. As of September 30, 2025, the number of connected IoT devices on our AIoT platform (excluding smartphones, tablets and laptops) exceeded 1.0 billion for the first time, reaching 1,035.5 million, up 20.2% year-over-year. In the third quarter of 2025, we achieved total deliveries of 108,796 vehicles, reaching a record high.

2 Formerly known as Canalys.
3 Including smartphones and tablets.

We continued to execute our 2020–2030 goal to invest in foundational core technologies and to become a global leader in the evolving realm of cutting-edge technologies. In the third quarter of 2025, our research and development (“R&D”) expenses increased by 52.1% year-over-year to RMB9.1 billion. During the first three quarters of 2025, our cumulative R&D expenses reached RMB23.5 billion. As of September 30, 2025, our research and development personnel reached a record high of 24,871.

We continued to advance our artificial intelligence capabilities. In September 2025, we unveiled Xiaomi-MiMo-Audio, our open-source large audio model, marking the first model in the speech domain to achieve few-shot generalization through In-Context Learning (ICL). During pre-training, the model demonstrated significant emergent behavior. Subsequent training further unlocked its cross-modal alignment capabilities across intelligence, emotional perception, expressiveness and safety, leading to a high level of naturalness, emotional expression and adaptability in voice interaction. The debut of Xiaomi-MiMo-Audio completes our foundation model matrix across language, multimodal (VL) and audio models, establishing our holistic strategic ecosystem spanning the core modalities of foundation models. In November 2025, we unveiled our futuristic smart home solutions, Xiaomi Miloco (Xiaomi Local Copilot), marking an industry-first effort to explore smart home living powered by large-model technologies. Users can interact with the smart home system through natural dialogues, while the underlying large-model reasoning engine automatically orchestrates and executes a wide range of household scenarios and tasks. The solutions use our on-device vision large model, Xiaomi MiMo-VL-Miloco, which endows the smart home ecosystem with advanced “perception, understanding and execution” capabilities, enabling scenario-based intelligent automation.

In August 2025, we officially launched Xiaomi HyperOS 3, our next-generation operating system, featuring comprehensive upgrades across fundamental experience, functionality and AI capabilities. While delivering smoother system performance and faster response time, it also introduced Xiaomi HyperIsland, a dynamic hub that presents key information for users. Xiaomi Hyper XiaoAi provides faster access and smarter, context-aware assistance, offering users a variety of AI features such as screen content recognition. Meanwhile, Xiaomi HyperOS 3 further strengthened privacy and security safeguards, adding new features such as new secure access controls, dual-factor authentication and power-off device locator.

We achieved significant breakthroughs in our premiumization strategy. According to third-party data, in the third quarter of 2025, our premium smartphone⁴ units sold accounted for 24.1% of our total smartphone units sold in the Chinese Mainland, representing an increase of 4.1 percentage points year-over-year. Our smartphone units sold in the RMB4,000–6,000 segment in the Chinese Mainland garnered a market share of 18.9%, up 5.6 percentage points year-over-year. To meet the high aesthetic and personalized demands of Xiaomi EV customers, we launched the Xiaomi EV Customization Service⁵, offering a variety of customized options for paint, interiors, wheels, and other diverse, meticulously detailed customizations. We also established our Xiaomi Customization Service Center at our Beijing Xiaomi EV Factory Store, where users can explore and experience these bespoke configurations firsthand.

4 Premium smartphones in the Chinese Mainland are models with retail prices at or above RMB3,000.
5 Customization service is available for Xiaomi YU7 Max and Xiaomi SU7 Ultra.

We continued to advance our new retail strategy. In the third quarter of 2025, the total number of our Xiaomi stores exceeded 18,000 in the Chinese Mainland. Among these, the number of our large stores over 500 square meters reached approximately 210. At the same time, we are steadily expanding our new retail model globally, with the total number of our new retail stores in overseas regions reaching approximately 300, covering Southeast Asia, Europe, East Asia and Latin America.

During the 2025 Double 11 shopping festival in the Chinese Mainland, our omni-channel cumulative gross merchandise value ("GMV") exceeded RMB29.0 billion. Our smartphones ranked No. 1 among domestic brands in sales volume across major platforms, while the Xiaomi 17 Pro Max achieved the No. 1 position in both sales volume and sales value among domestic smartphones priced at or above RMB6,000 on these platforms.⁶

During the first three quarters of 2025, our cumulative capital expenditures reached approximately RMB13.0 billion, up 86.7% year-over-year. At the same time, we have been actively repurchasing our shares in the open market. Since the beginning of this year⁷, we have repurchased nearly 34.1 million shares in the amount of nearly HKD1.54 billion.

2. Smartphone × AIoT

In the third quarter of 2025, revenue from our smartphone × AIoT segment reached RMB84.1 billion, up 1.6% year-over-year, and achieved year-over-year growth for 9 consecutive quarters. The gross profit margin of our smartphone × AIoT segment was 22.1%, up 1.3 percentage points year-over-year.

Smartphones

In the third quarter of 2025, our smartphone revenue reached RMB46.0 billion. Our global smartphone shipments reached 43.3 million units, up 0.5% year-over-year. According to third party data, in the third quarter of 2025, we ranked No. 2 in terms of smartphone units sold in the Chinese Mainland with a market share of 16.7%, ranking among the top two for 6 consecutive quarters. According to Omdia, in the third quarter of 2025, we maintained our top 3 global smartphone shipment ranking, with a market share of 13.6%. Our smartphone shipments ranked No. 2 in Latin America and the Middle East, with market shares reaching 17.9% and 16.9%, up by 1.5 and 0.5 percentage points year-over-year, respectively. We ranked No. 3 in Europe, Southeast Asia, and Africa, with market shares rising by 0.5, 1.2, and 0.9 percentage points year-over-year to 20.9%, 16.7%, and 12.6%, respectively. In the third quarter of 2025, our smartphone shipments ranked among the top three across 57 countries and regions globally, and ranked among the top five across 68 countries and regions globally.

⁶ Our omni-channel includes Xiaomi’s official e-commerce platform, Xiaomi Stores, Xiaomi Youpin, authorized e-commerce platforms and authorized retailers; Data sources: Xiaomi Data Center, TMALL Business Intelligence “Shengyi Canmou”, JD Business Intelligence “Shangzhi” and JD Leaderboard, JD Xiaomi Shop Backend, Douyin E-commerce Compass, PDD Data Center, Kuaishou Data Center, in no particular order; Data collected from 00:00:00 October 13, 2025 to 23:59:59 November 11, 2025, including some categories sales data collected from 00:00:00 October 1, 2025 to 23:59:59 October 12, 2025.

⁷ From January 1, 2025 to October 17, 2025.

In September 2025, we unveiled the Xiaomi 17 Series, our next-generation flagship smartphones. Debuting the Snapdragon 8 Elite Gen 5 Mobile Platform, the Xiaomi 17 Series runs on Xiaomi HyperOS 3, delivering a leap in performance and a smoother user experience. For the first time, the Xiaomi 17 Pro Series upgraded to two models, Xiaomi 17 Pro and Xiaomi 17 Pro Max, debuting the tailored Dynamic Back Display, which introduces new back display features such as the ability to take selfies directly using the main cameras, AI wallpapers, dynamic information notifications. In the first month of sales⁸, total sales of the Xiaomi 17 Series increased by nearly 30% year-over-year compared with the Xiaomi 15 Series, with the Xiaomi 17 Pro and Xiaomi 17 Pro Max accounting for over 80% of total sales, reflecting our optimized product mix.

In October 2025, we unveiled the REDMI K90 Series, comprising the REDMI K90 and REDMI K90 Pro Max. The REDMI K90 Pro Max comes equipped with a 2.1 stereo triple-speaker system featuring symmetrical dual speakers and a large independent subwoofer. Developed in collaboration with Bose, and drawing on its years of acoustic expertise and Sound by Bose technology, the REDMI K90 Series delivers meticulously refined sound quality and comprehensively enhances the audio experience for smartphone users.

IoT and lifestyle products

In the third quarter of 2025, revenue from our IoT and lifestyle products reached RMB27.6 billion, up 5.6% year-over-year, and gross profit margin reached 23.9%, up 3.2 percentage points year-over-year.

As of September 30, 2025, the number of connected IoT devices (excluding smartphones, tablets and laptops) on our AIoT platform exceeded 1.0 billion for the first time, reaching 1,035.5 million, up 20.2% year-over-year; the number of users with five or more devices connected to our AIoT platform (excluding smartphones, tablets and laptops) reached 21.6 million, up 26.1% year-over-year. In September 2025, the MAU of our Xiaomi Home App grew to 114.6 million, up 14.4% year-over-year. The MAU of our AI Assistant ("小爱同學") grew to 153.4 million, up 13.7% year-over-year.

We continued to introduce innovative smart home appliances. In September 2025, we launched two new products: the Mijia Tri-drum Washing Machine Pro, and the Mijia Refrigerator Pro. In October 2025, the Xiaomi Smart Home Appliance Factory officially commenced operation. This is our third large-scale smart factory, following the Xiaomi Smart Factory and the Xiaomi EV Factory, and represents a significant milestone for our large home appliances business. It signifies our establishment of a complete industry chain covering design, R&D, manufacturing, and verification. Phase I of the Xiaomi Smart Home Appliance Factory involves a total planned investment exceeding RMB2.5 billion and is designed for a peak annual production capacity of 7 million air conditioners.

We continued to expand our tablet portfolio. According to Omdia, in the third quarter of 2025, our global tablet shipments continued to rank among the top five globally and among the top three in the Chinese Mainland. In September 2025, we officially unveiled the Xiaomi Pad 8 Series, which features a 9,200mAh battery within an ultra-slim, lightweight body, weighing just

The first month sales period of the Xiaomi 17 Series: September 25, 2025, 19:00:00–October 26, 2025, 23:59:59. The first month sales period of the Xiaomi 15 Series: October 29, 2024, 19:00:00–November 30, 2024, 23:59:59.

485g. Equipped with an 11.2-inch 3.2K high-definition eye-protection display, the Xiaomi Pad 8 Series also benefits from the customized Xiaomi HyperOS 3, which offers refined features such as multi-task windows, enhanced adaptation for frequently used apps, and optimized split-screen ratios.

According to Omdia, in the third quarter of 2025, our TWS earbud shipments ranked No. 2 globally and No. 1 in the Chinese Mainland. Our wearable bands⁹ shipments ranked No. 1 globally and No. 2 in the Chinese Mainland.

Internet services

In the third quarter of 2025, our internet services revenue reached a record high of RMB9.4 billion, up 10.8% year-over-year.

Our internet user base continued to expand. The MAU globally and in the Chinese Mainland both hit record highs. In September 2025, our global MAU reached 741.7 million, up 8.2% year-over-year, and our MAU in the Chinese Mainland reached 187.3 million, up 11.6% year-over-year. In September 2025, the global MAU of our smart TV¹⁰ reached 74.7 million, up 8.0% year-over-year.

In the third quarter of 2025, our advertising revenue reached a record high of RMB7.2 billion, up 17.4% year-over-year.

In the third quarter of 2025, our overseas internet services revenue reached a record high of RMB3.3 billion, up 19.1% year-over-year. Overseas internet services revenue accounted for 34.9% of our total internet services revenue, reaching a record high.

3. Smart EV, AI and Other New Initiatives

In the third quarter of 2025, revenue from our smart EV, AI and other new initiatives segment reached a record high of RMB29.0 billion, which consisted of RMB28.3 billion from smart EV and RMB0.7 billion from other related businesses. In the third quarter of 2025, our smart EV, AI and other new initiatives segment achieved positive income from operations¹¹ in a single quarter for the first time, of RMB0.7 billion.

In the third quarter of 2025, our total deliveries achieved a record high of 108,796 vehicles. Since the official launch of the Xiaomi YU7 Series in June 2025, the products have been well received by the market. In October 2025, the Xiaomi YU7 Series ranked No. 1 in SUV sales in the Chinese Mainland.¹²

We continued to expand our sales and service network. As of September 30, 2025, in the Chinese Mainland, we opened 402 smart EV sales centers¹³ across 119 cities and operated 209 service centers across 125 cities.

9 Including basic bands, basic watches and smart watches.
10 Including Xiaomi Box and Xiaomi TV Stick.
11 Defined as gross profit minus operating expenses.
12 Source: Autohome.
13 The sales centers of Xiaomi EV include Xiaomi EV delivery centers, Xiaomi EV sales and service centers and Xiaomi stores.

Corporate Social Responsibility (CSR)

We actively fulfill our corporate social responsibility, and our efforts have been widely recognized. In October 2025, our MSCI ESG rating was upgraded from BBB to A, representing three consecutive years of rating improvements since 2022. In September 2025, at the S&P Global Corporate Sustainability Assessment (S&P CSA), we achieved a record-high score of 63, compared with an industry average of 38¹⁴, marking the second consecutive year of significant improvement in our sustainability score.

In September 2025, we were included in the Forbes 2025 China ESG 50 list. In October 2025, we were named one of the World’s Best Employers 2025 by Forbes, marking our third inclusion on this globally recognized list.

As of October 31, 2025.

MANAGEMENT DISCUSSION AND ANALYSIS

Third Quarter of 2025 Compared to Third Quarter of 2024

The following table sets forth the comparative figures for the third quarter of 2025 and the third quarter of 2024:

| | Unaudited
Three months ended | |
| --- | --- | --- |
| | September 30,
2025 | September 30,
2024 |
| | (RMB in millions) | |
| Revenue | 113,120.7 | 92,506.5 |
| Cost of sales | (87,184.5) | (73,625.1) |
| Gross profit | 25,936.2 | 18,881.4 |
| Research and development expenses | (9,059.4) | (5,956.8) |
| Selling and marketing expenses | (8,309.7) | (6,280.0) |
| Administrative expenses | (1,848.2) | (1,415.4) |
| Fair value changes on financial instruments measured
at fair value through profit or loss | 5,483.2 | 548.5 |
| Share of net profits of investments accounted
for using the equity method | 25.1 | 37.7 |
| Other income | 1,686.6 | 275.9 |
| Other gains/(losses), net | 1,196.3 | (50.0) |
| Operating profit | 15,110.1 | 6,041.3 |
| Finance (costs)/income, net | (154.5) | 775.9 |
| Profit before income tax | 14,955.6 | 6,817.2 |
| Income tax expenses | (2,698.9) | (1,476.9) |
| Profit for the period | 12,256.7 | 5,340.3 |
| Non-IFRS Measure: Adjusted Net Profit | 11,310.9 | 6,252.0 |

Revenue

Revenue increased by 22.3% from RMB92.5 billion in the third quarter of 2024 to RMB113.1 billion in the third quarter of 2025. The following table sets forth our revenue by segment in the third quarter of 2025 and the third quarter of 2024:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | September 30, 2024 | |
| | Amount | % of total revenue | Amount | % of total revenue |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | 84,110.6 | 74.4% | 82,809.4 | 89.5% |
| Smart EV, AI and other new initiatives | 29,010.1 | 25.6% | 9,697.1 | 10.5% |
| Total revenue | 113,120.7 | 100.0% | 92,506.5 | 100.0% |

Smartphone × AIoT

Revenue from our smartphone × AIoT segment increased by 1.6% from RMB82.8 billion in the third quarter of 2024 to RMB84.1 billion in the third quarter of 2025. The following table sets forth our revenue by line of our smartphone × AIoT segment in the third quarter of 2025 and the third quarter of 2024:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | September 30, 2024 | |
| | Amount | % of total revenue | Amount | % of total revenue |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | | | | |
| Smartphones | 45,969.0 | 40.6% | 47,452.3 | 51.3% |
| IoT and lifestyle products | 27,552.1 | 24.4% | 26,102.2 | 28.2% |
| Internet services | 9,380.5 | 8.3% | 8,462.8 | 9.1% |
| Other related businesses | 1,209.0 | 1.1% | 792.1 | 0.9% |
| Total revenue of smartphone × AIoT segment | 84,110.6 | 74.4% | 82,809.4 | 89.5% |

(i) Smartphones

Revenue from our smartphones decreased by 3.1% from RMB47.5 billion in the third quarter of 2024 to RMB46.0 billion in the third quarter of 2025, primarily due to the decrease in our smartphone average selling price (“ASP”), partially offset by the increase in our smartphone shipments. The ASP of our smartphones decreased by 3.6% from RMB1,102.2 per unit in the third quarter of 2024 to RMB1,062.8 per unit in the third quarter of 2025, primarily due to the decreased ASP in the overseas markets, partially offset by the increased ASP in the Chinese Mainland attributable to the higher contribution from our premium smartphone shipments, especially driven by the successful launch of Xiaomi 17 Series in September 2025. Our smartphone shipments increased by 0.5% from 43.1 million units in the third quarter of 2024 to 43.3 million units in the third quarter of 2025, primarily due to the increased shipments in the overseas markets.

(ii) IoT and lifestyle products

Revenue from our IoT and lifestyle products increased by 5.6% from RMB26.1 billion in the third quarter of 2024 to RMB27.6 billion in the third quarter of 2025, primarily due to the increased revenue from certain lifestyle products and wearables in the global market, partially offset by the decreased revenue from smart large home appliances in the Chinese Mainland. In this quarter, revenue from our IoT and lifestyle products maintained year-over-year growth in the Chinese Mainland, despite the reduction in national subsidies.

Revenue from our certain lifestyle products increased by 20.4% year-over-year, primarily due to the increased sales of robot vacuums and power banks in the global market as well as electric scooters in the overseas markets.

Revenue from our wearables increased by 22.5% year-over-year, primarily due to the increased shipments of our smart bands and smart watches.

Revenue from our smart large home appliances decreased by 15.7% year-over-year, primarily due to the decreased shipments in the Chinese Mainland resulting from the reduction in national subsidies and the increased competition, partially offset by the increased ASP driven by our premiumization strategy.

(iii) Internet services

Revenue from our internet services increased by 10.8% from RMB8.5 billion in the third quarter of 2024 to RMB9.4 billion in the third quarter of 2025, primarily due to the increased revenue from our advertising business.

(iv) Other related businesses

Revenue from our other related businesses increased by 52.6% from RMB0.8 billion in the third quarter of 2024 to RMB1.2 billion in the third quarter of 2025, primarily due to the increased revenue from installation services provided for air conditioners.

Smart EV, AI and Other New Initiatives

Revenue from our smart EV, AI and other new initiatives segment increased by 199.2% from RMB9.7 billion in the third quarter of 2024 to RMB29.0 billion in the third quarter of 2025.

Revenue from our smart EV increased by 197.9% from RMB9.5 billion in the third quarter of 2024 to RMB28.3 billion in the third quarter of 2025, primarily due to the increase in both our vehicle deliveries and ASP. Our vehicle deliveries increased by 173.4% from 39,790 units in the third quarter of 2024 to 108,796 units in the third quarter of 2025. The ASP of our smart EV increased by 9.0% from RMB238,650 per unit in the third quarter of 2024 to RMB260,053 per unit in the third quarter of 2025, primarily due to the deliveries of Xiaomi SU7 Ultra and Xiaomi YU7 Series with higher ASP.

Revenue from our other related businesses increased by 256.5% from RMB0.2 billion in the third quarter of 2024 to RMB0.7 billion in the third quarter of 2025, primarily due to the increased revenue from after-sales services and auto financing services.

Cost of Sales

Our cost of sales increased by 18.4% from RMB73.6 billion in the third quarter of 2024 to RMB87.2 billion in the third quarter of 2025. The following table sets forth our cost of sales by segment in the third quarter of 2025 and the third quarter of 2024:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | September 30, 2024 | |
| | % of total revenue | | % of total revenue | |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | 65,558.4 | 58.0% | 65,588.4 | 70.9% |
| Smart EV, AI and other new initiatives | 21,626.1 | 19.1% | 8,036.7 | 8.7% |
| Total cost of sales | 87,184.5 | 77.1% | 73,625.1 | 79.6% |

Smartphone × AIoT

Cost of sales related to our smartphone × AIoT segment remained stable at RMB65.6 billion in the third quarter of 2025 compared to the third quarter of 2024. The following table sets forth our cost of sales by line of our smartphone × AIoT segment in the third quarter of 2025 and the third quarter of 2024:

	Unaudited
	Three months ended
	September 30, 2025		September 30, 2024
	% of total		% of total
	Amount	revenue	Amount	revenue
	(RMB in millions, unless specified)
Smartphone × AIoT
Smartphones	40,873.5	36.1%	41,904.7	45.3%
IoT and lifestyle products	20,957.0	18.5%	20,684.1	22.4%
Internet services	2,169.8	1.9%	1,908.2	2.1%
Other related businesses	1,558.1	1.5%	1,091.4	1.1%
Total cost of sales of smartphone × AIoT segment	65,558.4	58.0%	65,588.4	70.9%

(i) Smartphones

Cost of sales related to our smartphones decreased by 2.5% from RMB41.9 billion in the third quarter of 2024 to RMB40.9 billion in the third quarter of 2025, primarily due to the decreased sales of our smartphones.

(ii) IoT and lifestyle products

Cost of sales related to our IoT and lifestyle products increased by 1.3% from RMB20.7 billion in the third quarter of 2024 to RMB21.0 billion in the third quarter of 2025, primarily due to the increased sales of our IoT and lifestyle products.

(iii) Internet services

Cost of sales related to our internet services increased by 13.7% from RMB1.9 billion in the third quarter of 2024 to RMB2.2 billion in the third quarter of 2025, primarily due to the increased cost of our advertising business.

(iv) Other related businesses

Cost of sales related to our other related businesses increased by 42.8% from RMB1.1 billion in the third quarter of 2024 to RMB1.6 billion in the third quarter of 2025, primarily due to the increased cost from sales of materials, as well as the increased sales from installation services provided for air conditioners.

Smart EV, AI and Other New Initiatives

Cost of sales related to our smart EV, AI and other new initiatives segment increased by 169.1% from RMB8.0 billion in the third quarter of 2024 to RMB21.6 billion in the third quarter of 2025, primarily due to the increased sales of our smart EV.

Gross Profit and Margin

As a result of the foregoing, our gross profit increased by 37.4% from RMB18.9 billion in the third quarter of 2024 to RMB25.9 billion in the third quarter of 2025. Our gross profit margin increased from 20.4% in the third quarter of 2024 to 22.9% in the third quarter of 2025.

The following table sets forth our gross profit and margin by segment in the third quarter of 2025 and the third quarter of 2024:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | September 30, 2024 | |
| | Gross profit | Gross margin % | Gross profit | Gross margin % |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | 18,552.2 | 22.1% | 17,221.0 | 20.8% |
| Smart EV, AI and other new initiatives | 7,384.0 | 25.5% | 1,660.4 | 17.1% |
| Total gross profit and gross margin | 25,936.2 | 22.9% | 18,881.4 | 20.4% |

Smartphone × AIoT

The gross profit margin from our smartphone × AIoT segment increased from 20.8% in the third quarter of 2024 to 22.1% in the third quarter of 2025. The following table sets forth our gross profit and margin by line of our smartphone × AIoT segment in the third quarter of 2025 and the third quarter of 2024:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | September 30, 2024 | |
| | Gross | Gross | Gross | Gross |
| | profit | margin % | profit | margin % |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | | | | |
| Smartphones | 5,095.5 | 11.1% | 5,547.6 | 11.7% |
| IoT and lifestyle products | 6,595.1 | 23.9% | 5,418.1 | 20.8% |
| Internet services | 7,210.7 | 76.9% | 6,554.6 | 77.5% |
| Other related businesses | (349.1) | (28.9%) | (299.3) | (37.8%) |
| Total gross profit and margin of smartphone × AIoT segment | 18,552.2 | 22.1% | 17,221.0 | 20.8% |

The gross profit margin from our smartphones decreased from 11.7% in the third quarter of 2024 to 11.1% in the third quarter of 2025, mainly due to the increased competition in the Chinese Mainland.

The gross profit margin from our IoT and lifestyle products increased from 20.8% in the third quarter of 2024 to 23.9% in the third quarter of 2025, mainly due to the increased gross profit margin and higher revenue contribution of products with higher gross profit margin, such as wearables and certain lifestyle products.

The gross profit margin from our internet services decreased from 77.5% in the third quarter of 2024 to 76.9% in the third quarter of 2025, mainly due to the decreased gross profit margin of our gaming business and other value-added services, partially offset by the higher revenue contribution of our advertising business.

Smart EV, AI and Other New Initiatives

The gross profit margin from our smart EV, AI and other new initiatives segment increased from 17.1% in the third quarter of 2024 to 25.5% in the third quarter of 2025, primarily due to the decrease in cost of key components, lower manufacturing cost per unit, the deliveries of Xiaomi SU7 Ultra commencing March 2025, as well as the increased gross profit margin of other related businesses.

Operating Expenses

Our operating expenses comprised our research and development expenses, selling and marketing expenses and administrative expenses. Our operating expenses related to our smart EV, AI and other new initiatives segment was RMB6.7 billion in the third quarter of 2025¹⁵.

Research and Development Expenses

Our research and development expenses increased by 52.1% from RMB6.0 billion in the third quarter of 2024 to RMB9.1 billion in the third quarter of 2025, primarily due to the higher research and development expenses related to our smart EV, AI and other new initiatives, as well as the increase in compensation for research and development personnel.

Selling and Marketing Expenses

Our selling and marketing expenses increased by 32.3% from RMB6.3 billion in the third quarter of 2024 to RMB8.3 billion in the third quarter of 2025, primarily due to the increased expenses related to our expansion of Xiaomi stores and smart EV sales centers, as well as the increased promotion and advertising expenses and logistic expenses.

Promotion and advertising expenses increased by 21.6% from RMB1.8 billion in the third quarter of 2024 to RMB2.2 billion in the third quarter of 2025, primarily due to the increased promotion and advertising expenses related to our smart EV, AI and other new initiatives.

Administrative Expenses

Our administrative expenses increased by 30.6% from RMB1.4 billion in the third quarter of 2024 to RMB1.8 billion in the third quarter of 2025, primarily due to the increase in compensation for administrative personnel.

Fair Value Changes on Financial Instruments Measured at Fair Value Through Profit or Loss

Our fair value changes on financial instruments measured at fair value through profit or loss increased from a gain of RMB0.5 billion in the third quarter of 2024 to a gain of RMB5.5 billion in the third quarter of 2025, primarily due to the higher fair value gains of listed equity investments, and the fair value gains of unlisted preferred shares investments in the third quarter of 2025, compared to fair value losses of unlisted preferred shares investments in the third quarter of 2024.

Share of Net Profits of Investments Accounted for Using the Equity Method

Our share of net profits of investments accounted for using the equity method decreased by 33.4% from RMB37.7 million in the third quarter of 2024 to RMB25.1 million in the third quarter of 2025.

¹⁵ Including share-based compensation expenses of RMB0.4 billion related to our smart EV, AI and other new initiatives segment for the quarter.

Other Income

Our other income increased from RMB0.3 billion in the third quarter of 2024 to RMB1.7 billion in the third quarter of 2025, primarily due to the increase of government grants.

Other Gains/(Losses), Net

Our net other gains/(losses) changed from a net loss of RMB50.0 million in the third quarter of 2024 to a net gain of RMB1.2 billion in the third quarter of 2025, mainly due to the increase of deemed disposal gains of investments accounted for using the equity method.

Finance (Costs)/Income, Net

Our net finance (costs)/income changed from a net income of RMB0.8 billion in the third quarter of 2024 to a net cost of RMB0.2 billion in the third quarter of 2025, primarily due to the change of value of financial liabilities payable to fund investors, partially offset by the increase of interest income.

Income Tax Expenses

Our income tax expenses increased by 82.7% from RMB1.5 billion in the third quarter of 2024 to RMB2.7 billion in the third quarter of 2025, primarily due to the increase of taxable profit in the third quarter of 2025.

Profit for the Period

As a result of the foregoing, our profit for the period increased by 129.5% from RMB5.3 billion in the third quarter of 2024 to RMB12.3 billion in the third quarter of 2025.

Adjusted Net Profit

Our adjusted net profit increased by 80.9% from RMB6.3 billion in the third quarter of 2024 to RMB11.3 billion in the third quarter of 2025.

Third Quarter of 2025 Compared to Second Quarter of 2025

The following table sets forth the comparative figures for the third quarter of 2025 and the second quarter of 2025:

| | Unaudited
Three months ended | |
| --- | --- | --- |
| | September 30,
2025 | June 30,
2025 |
| | (RMB in millions) | |
| Revenue | 113,120.7 | 115,956.1 |
| Cost of sales | (87,184.5) | (89,855.1) |
| Gross profit | 25,936.2 | 26,101.0 |
| Research and development expenses | (9,059.4) | (7,763.4) |
| Selling and marketing expenses | (8,309.7) | (7,778.0) |
| Administrative expenses | (1,848.2) | (1,627.1) |
| Fair value changes on financial instruments measured
at fair value through profit or loss | 5,483.2 | 3,363.5 |
| Share of net profits of investments accounted
for using the equity method | 25.1 | 86.9 |
| Other income | 1,686.6 | 299.4 |
| Other gains, net | 1,196.3 | 754.4 |
| Operating profit | 15,110.1 | 13,436.7 |
| Finance (costs)/income, net | (154.5) | 966.1 |
| Profit before income tax | 14,955.6 | 14,402.8 |
| Income tax expenses | (2,698.9) | (2,529.6) |
| Profit for the period | 12,256.7 | 11,873.2 |
| Non-IFRS Measure: Adjusted Net Profit | 11,310.9 | 10,830.7 |

Revenue

Revenue decreased by 2.4% from RMB116.0 billion in the second quarter of 2025 to RMB113.1 billion in the third quarter of 2025. The following table sets forth our revenue by segment in the third quarter of 2025 and the second quarter of 2025:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | June 30, 2025 | |
| | Amount | % of total revenue | Amount | % of total revenue |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | 84,110.6 | 74.4% | 94,692.8 | 81.7% |
| Smart EV, AI and other new initiatives | 29,010.1 | 25.6% | 21,263.3 | 18.3% |
| Total revenue | 113,120.7 | 100.0% | 115,956.1 | 100.0% |

Smartphone × AIoT

Revenue from our smartphone × AIoT segment decreased by 11.2% from RMB94.7 billion in the second quarter of 2025 to RMB84.1 billion in the third quarter of 2025. The following table sets forth our revenue by line of our smartphone × AIoT segment in the third quarter of 2025 and the second quarter of 2025:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | June 30, 2025 | |
| | Amount | % of total revenue | Amount | % of total revenue |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | | | | |
| Smartphones | 45,969.0 | 40.6% | 45,520.0 | 39.3% |
| IoT and lifestyle products | 27,552.1 | 24.4% | 38,712.2 | 33.4% |
| Internet services | 9,380.5 | 8.3% | 9,097.7 | 7.8% |
| Other related businesses | 1,209.0 | 1.1% | 1,362.9 | 1.2% |
| Total revenue of smartphone × AIoT segment | 84,110.6 | 74.4% | 94,692.8 | 81.7% |

(i) Smartphones

Revenue from our smartphones increased by 1.0% from RMB45.5 billion in the second quarter of 2025 to RMB46.0 billion in the third quarter of 2025, primarily due to the increase in our smartphone shipments, partially offset by the decrease in our smartphone ASP. Our smartphone shipments increased by 2.0% from 42.4 million units in the second quarter of 2025 to 43.3 million units in the third quarter of 2025, primarily due to the increased shipments in India due to the Diwali Festival. The ASP of our smartphones decreased by 1.0% from RMB1,073.2 per unit in the second quarter of 2025 to RMB1,062.8 per unit in the third quarter of 2025, primarily due to the decreased ASP in the Chinese Mainland driven by the successful launch of REDMI K80 Ultra in June 2025 and REDMI Note 15 Series in August 2025, partially offset by the increased ASP in the overseas markets attributable to the higher contribution from our premium smartphone shipments.

(ii) IoT and lifestyle products

Revenue from our IoT and lifestyle products decreased by 28.8% from RMB38.7 billion in the second quarter of 2025 to RMB27.6 billion in the third quarter of 2025, primarily due to the decreased revenue from smart large home appliances and certain lifestyles products in the Chinese Mainland, partially offset by the increased revenue in the overseas markets.

Revenue from our smart large home appliances decreased by 64.8% quarter-over-quarter, primarily due to the seasonal decrease of air conditioner shipments, reduction in national subsidies and increased competition in the Chinese Mainland.

(iii) Internet services

Revenue from our internet services increased by 3.1% from RMB9.1 billion in the second quarter of 2025 to RMB9.4 billion in the third quarter of 2025, primarily due to the increased revenue from our advertising business.

(iv) Other related businesses

Revenue from our other related businesses decreased by 11.3% from RMB1.4 billion in the second quarter of 2025 to RMB1.2 billion in the third quarter of 2025, primarily due to the decreased revenue from installation services provided for air conditioners.

Smart EV, AI and Other New Initiatives

Revenue from our smart EV, AI and other new initiatives segment increased by 36.4% from RMB21.3 billion in the second quarter of 2025 to RMB29.0 billion in the third quarter of 2025.

Revenue from our smart EV increased by 37.2% from RMB20.6 billion in the second quarter of 2025 to RMB28.3 billion in the third quarter of 2025, primarily due to the increase in both our vehicle deliveries and ASP. Our vehicle deliveries increased by 33.8% from 81,302 units in the second quarter of 2025 to 108,796 units in the third quarter of 2025. The ASP of our smart EV increased by 2.5% from RMB253,662 per unit in the second quarter of 2025 to RMB260,053 per unit in the third quarter of 2025, primarily due to the increased deliveries of Xiaomi YU7 Series with higher ASP.

Revenue from our other related businesses increased by 12.1% from RMB0.6 billion in the second quarter of 2025 to RMB0.7 billion in the third quarter of 2025, primarily due to the increased revenue from after-sales services and auto financing services.

Cost of Sales

Our cost of sales decreased by 3.0% from RMB89.9 billion in the second quarter of 2025 to RMB87.2 billion in the third quarter of 2025. The following table sets forth our cost of sales by segment in the third quarter of 2025 and the second quarter of 2025:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | June 30, 2025 | |
| | Amount | % of total revenue | Amount | % of total revenue |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | 65,558.4 | 58.0% | 74,212.7 | 64.0% |
| Smart EV, AI and other new initiatives | 21,626.1 | 19.1% | 15,642.4 | 13.5% |
| Total cost of sales | 87,184.5 | 77.1% | 89,855.1 | 77.5% |

Smartphone × AIoT

Cost of sales related to our smartphone × AIoT segment decreased by 11.7% from RMB74.2 billion in the second quarter of 2025 to RMB65.6 billion in the third quarter of 2025. The following table sets forth our cost of sales by line of our smartphone × AIoT segment in the third quarter of 2025 and the second quarter of 2025:

	Unaudited
	Three months ended
	September 30, 2025		June 30, 2025
	% of total		% of total
	Amount	revenue	Amount	revenue
	(RMB in millions, unless specified)
Smartphone × AIoT
Smartphones	40,873.5	36.1%	40,299.7	34.8%
IoT and lifestyle products	20,957.0	18.5%	29,990.6	25.9%
Internet services	2,169.8	1.9%	2,242.0	1.9%
Other related businesses	1,558.1	1.5%	1,680.4	1.4%
Total cost of sales of smartphone × AIoT segment	65,558.4	58.0%	74,212.7	64.0%

(i) Smartphones

Cost of sales related to our smartphones increased by 1.4% from RMB40.3 billion in the second quarter of 2025 to RMB40.9 billion in the third quarter of 2025, primarily due to the increased sales of our smartphones and the increased price of key components.

(ii) IoT and lifestyle products

Cost of sales related to our IoT and lifestyle products decreased by 30.1% from RMB30.0 billion in the second quarter of 2025 to RMB21.0 billion in the third quarter of 2025, primarily due to the decreased sales of our IoT and lifestyle products.

(iii) Internet services

Cost of sales related to our internet services remained stable at RMB2.2 billion in the third quarter of 2025 compared to the second quarter of 2025.

(iv) Other related businesses

Cost of sales related to our other related businesses decreased by 7.3% from RMB1.7 billion in the second quarter of 2025 to RMB1.6 billion in the third quarter of 2025, primarily due to the decreased sales from installation services provided for air conditioners.

Smart EV, AI and Other New Initiatives

Cost of sales related to our smart EV, AI and other new initiatives segment increased by 38.3% from RMB15.6 billion in the second quarter of 2025 to RMB21.6 billion in the third quarter of 2025, primarily due to the increased sales of our smart EV.

Gross Profit and Margin

As a result of the foregoing, our gross profit decreased by 0.6% from RMB26.1 billion in the second quarter of 2025 to RMB25.9 billion in the third quarter of 2025. Our gross profit margin increased from 22.5% in the second quarter of 2025 to 22.9% in the third quarter of 2025.

The following table sets forth our gross profit and margin by segment in the third quarter of 2025 and the second quarter of 2025:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | June 30, 2025 | |
| | Gross profit | Gross margin % | Gross profit | Gross margin % |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | 18,552.2 | 22.1% | 20,480.1 | 21.6% |
| Smart EV, AI and other new initiatives | 7,384.0 | 25.5% | 5,620.9 | 26.4% |
| Total gross profit and gross margin | 25,936.2 | 22.9% | 26,101.0 | 22.5% |

Smartphone × AIoT

The gross profit margin from our smartphone × AIoT segment increased from 21.6% in the second quarter of 2025 to 22.1% in the third quarter of 2025. The following table sets forth our gross profit and margin by line of our smartphone × AIoT segment in the third quarter of 2025 and the second quarter of 2025:

| | Unaudited
Three months ended | | | |
| --- | --- | --- | --- | --- |
| | September 30, 2025 | | June 30, 2025 | |
| | Gross | Gross | Gross | Gross |
| | profit | margin % | profit | margin % |
| | (RMB in millions, unless specified) | | | |
| Smartphone × AIoT | | | | |
| Smartphones | 5,095.5 | 11.1% | 5,220.3 | 11.5% |
| IoT and lifestyle products | 6,595.1 | 23.9% | 8,721.6 | 22.5% |
| Internet services | 7,210.7 | 76.9% | 6,855.7 | 75.4% |
| Other related businesses | (349.1) | (28.9%) | (317.5) | (23.3%) |
| Total gross profit and margin of smartphone × AIoT segment | 18,552.2 | 22.1% | 20,480.1 | 21.6% |

The gross profit margin from our smartphones decreased from 11.5% in the second quarter of 2025 to 11.1% in the third quarter of 2025, mainly due to the increased price of key components.

The gross profit margin from our IoT and lifestyle products increased from 22.5% in the second quarter of 2025 to 23.9% in the third quarter of 2025, mainly due to the increased gross profit margin and higher revenue contribution of certain lifestyle products with higher gross profit margin, as well as the higher revenue contribution from overseas markets which carry higher gross profit margin.

The gross profit margin from our internet services increased from 75.4% in the second quarter of 2025 to 76.9% in the third quarter of 2025, mainly due to the increased gross profit margin and higher revenue contribution of our advertising business, partially offset by the decreased gross profit margin of our gaming business and other value-added services.

Smart EV, AI and Other New Initiatives

The gross profit margin from our smart EV, AI and other new initiatives segment decreased from 26.4% in the second quarter of 2025 to 25.5% in the third quarter of 2025, primarily due to the increase in cost of key components, as well as the lower contribution from deliveries of Xiaomi SU7 Ultra.

Operating Expenses

Research and Development Expenses

Our research and development expenses increased by 16.7% from RMB7.8 billion in the second quarter of 2025 to RMB9.1 billion in the third quarter of 2025, primarily due to the pace of our research projects related to our smart EV, AI and other new initiatives and smartphone × AIoT, as well as the increase in compensation for research and development personnel.

Selling and Marketing Expenses

Our selling and marketing expenses increased by 6.8% from RMB7.8 billion in the second quarter of 2025 to RMB8.3 billion in the third quarter of 2025, primarily due to the increase in promotion and advertising expenses, partially offset by the decrease in logistic expenses.

Promotion and advertising expenses increased by 16.6% from RMB1.9 billion in the second quarter of 2025 to RMB2.2 billion in the third quarter of 2025, primarily due to the increased promotion and advertising expenses related to our smart EV, AI and other new initiatives and increased expenses of our products and brand marketing in the overseas markets.

Administrative Expenses

Our administrative expenses increased by 13.6% from RMB1.6 billion in the second quarter of 2025 to RMB1.8 billion in the third quarter of 2025, primarily due to the increase in compensation for administrative personnel.

Fair Value Changes on Financial Instruments Measured at Fair Value Through Profit or Loss

Our fair value changes on financial instruments measured at fair value through profit or loss increased by 63.0% from a gain of RMB3.4 billion in the second quarter of 2025 to a gain of RMB5.5 billion in the third quarter of 2025, primarily due to the higher fair value gains of listed equity investments, partially offset by the lower fair value gains of unlisted preferred shares investments in the third quarter of 2025.

Share of Net Profits of Investments Accounted for Using the Equity Method

Our share of net profits of investments accounted for using the equity method decreased by 71.1% from RMB86.9 million in the second quarter of 2025 to RMB25.1 million in the third quarter of 2025.

¹⁶ Including share-based compensation expenses of RMB0.4 billion related to our smart EV, AI and other new initiatives segment for the quarter.

Other Income

Our other income increased from RMB0.3 billion in the second quarter of 2025 to RMB1.7 billion in the third quarter of 2025, primarily due to the increase of government grants.

Other Gains, Net

Our net other gains increased from RMB0.8 billion in the second quarter of 2025 to RMB1.2 billion in the third quarter of 2025, mainly due to the increase of deemed disposal gains of investments accounted for using the equity method.

Finance (Costs)/Income, Net

Our net finance (costs)/income changed from a net income of RMB1.0 billion in the second quarter of 2025 to a net cost of RMB0.2 billion in the third quarter of 2025, primarily due to the change of value of financial liabilities payable to fund investors.

Income Tax Expenses

Our income tax expenses increased by 6.7% from RMB2.5 billion in the second quarter of 2025 to RMB2.7 billion in the third quarter of 2025, primarily due to the increase of taxable profit in the third quarter of 2025.

Profit for the Period

As a result of the foregoing, our profit for the period increased by 3.2% from RMB11.9 billion in the second quarter of 2025 to RMB12.3 billion in the third quarter of 2025.

Adjusted Net Profit

Our adjusted net profit increased by 4.4% from RMB10.8 billion in the second quarter of 2025 to RMB11.3 billion in the third quarter of 2025.

Non-IFRS Measure: Adjusted Net Profit

To supplement our consolidated results which are prepared and presented in accordance with all applicable IFRS Accounting Standards issued by the International Accounting Standards Board ("IFRS Accounting Standards"), we utilize non-IFRS adjusted net profit ("Adjusted Net Profit") as an additional financial measure. We define Adjusted Net Profit as profit for the period, as adjusted by adding back (i) share-based compensation, (ii) net fair value changes on investments, (iii) amortization of intangible assets resulting from acquisitions, (iv) changes of value of financial liabilities to investors, and (v) income tax effects of non-IFRS adjustments.

Adjusted Net Profit is not required by, or presented in accordance with, IFRS Accounting Standards. We believe that the presentation of non-IFRS measures when shown in conjunction with the corresponding IFRS Accounting Standards measures provides useful information to investors and management regarding financial and business trends in relation to our financial condition and results of operations, by eliminating any potential impact of items that our management does not consider to be indicative of our operating performance such as certain non-cash items and the impact of certain investment transactions. We also believe that the non-IFRS measures are appropriate for evaluating the Group's operating performance. However, the use of this particular non-IFRS measure has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for analysis of, our results of operations or financial conditions as reported under IFRS Accounting Standards. In addition, this non-IFRS financial measure may be defined differently from similar terms used by other companies and therefore may not be comparable to similar measures used by other companies.

The following tables set forth reconciliations of the Group's non-IFRS measures for the third quarter of 2025, the second quarter of 2025, the third quarter of 2024, and the first nine months of 2025 and 2024, respectively, to the nearest measures prepared in accordance with IFRS Accounting Standards.

| | Unaudited
Three Months Ended September 30, 2025
Adjustments | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | As reported | Share-based compensation(1) | Net fair value changes on investments(2) | Amortization of intangible assets resulting from acquisitions(3) | Changes of value of financial liabilities to investors(4) | Income tax effects(5) | Non-IFRS |
| Profit for the period | 12,256,741 | 1,571,585 | (4,900,532) | 36,002 | 1,591,846 | 755,299 | 11,310,941 |
| Net margin | 10.8% | | | | | | 10.0% |
| | Unaudited
Three Months Ended June 30, 2025
Adjustments | | | | | | |
| | As reported | Share-based compensation(1) | Net fair value changes on investments(2) | Amortization of intangible assets resulting from acquisitions(3) | Changes of value of financial liabilities to investors(4) | Income tax effects(5) | Non-IFRS |
| Profit for the period | 11,873,163 | 1,269,615 | (2,870,108) | 36,002 | 253,578 | 268,417 | 10,830,667 |
| Net margin | 10.2% | | | | | | 9.3% |

	Unaudited Three Months Ended September 30, 2024
	As reported	Share-based compensation(1)	Net fair value changes on investments(2)	Adjustments Amortization of intangible assets resulting from acquisitions(3)	Changes of value of financial liabilities to investors(4)	Income tax effects(5)	Non-IFRS
Profit for the period	5,340,292	866,909	166,903	36,002	(218,605)	60,464	6,251,965
Net margin	5.8%						6.8%
	Unaudited Nine Months Ended September 30, 2025
	As reported	Share-based compensation(1)	Net fair value changes on investments(2)	Adjustments Amortization of intangible assets resulting from acquisitions(3)	Changes of value of financial liabilities to investors(4)	Income tax effects(5)	Non-IFRS
Profit for the period	35,022,650	3,935,320	(9,772,777)	108,006	2,412,757	1,111,277	32,817,233
Net margin	10.3%						9.6%
	Unaudited Nine Months Ended September 30, 2024
	As reported	Share-based compensation(1)	Net fair value changes on investments(2)	Adjustments Amortization of intangible assets resulting from acquisitions(3)	Changes of value of financial liabilities to investors(4)	Income tax effects(5)	Non-IFRS
Profit for the period	14,583,173	2,726,179	3,020,052	108,006	(1,263,606)	(255,484)	18,918,320
Net margin	5.7%						7.4%

Notes:

(1) Represents the expenses related to share-based payments.
(2) Primarily includes fair value changes on equity investments and preferred shares investments deducting the accumulative fair value changes for investments (including the financial assets measured at fair value through profit or loss ("FAFVPL") and the investments using the equity method transferred from FAFVPL) disposed in the current period, net gains/(losses) on deemed disposals of subsidiaries and investee companies, the impairment provision for investments, re-measurement impact on loss of significant influence in associates and re-measurement of investments transferring from FAFVPL to investments using the equity method.
(3) Represents amortization of intangible assets resulting from acquisitions.
(4) Represent the change of value of the financial liabilities payable to investors.
(5) Income tax effects of non-IFRS adjustments.

Liquidity and Financial Resources

On December 4, 2020, the Company completed a placing of a total of 1,000,000,000 placing shares at HK$23.70 for each placing share owned by Smart Mobile Holdings Limited to not less than six independent places and, on December 9, 2020, the Company allotted and issued 1,000,000,000 subscription shares at HK$23.70 per subscription share under the general mandate to Smart Mobile Holdings Limited (the “2020 Placing and Subscription”). For further details, please refer to the announcements of the Company dated December 2, 2020, December 3, 2020 and December 9, 2020.

On March 27, 2025, the Company completed a placing of a total of 800,000,000 placing shares at HK$53.25 for each placing share owned by Smart Mobile Holdings Limited to not less than six independent places and, on March 31, 2025, the Company allotted and issued 800,000,000 subscription shares at HK$53.25 per subscription share under the general mandate to Smart Mobile Holdings Limited (the “2025 Placing and Subscription”). For further details, please refer to the announcements of the Company dated March 25, 2025 and March 31, 2025.

Other than the funds raised through our Global Offering in July 2018, the 2020 Placing and Subscription, the 2025 Placing and Subscription and the issuance of debt securities as described in “Issuance of Debt Securities” below, we have historically funded our cash requirements principally from cash generated from our operations and bank borrowings. We had cash and cash equivalents of RMB35.5 billion and cash resources¹⁷ of RMB236.7 billion as of September 30, 2025.

Issuance of Debt Securities

On April 29, 2020, Xiaomi Best Time International Limited, a wholly-owned subsidiary of the Company, issued US$600 million 3.375% senior notes due 2030 unconditionally and irrevocably guaranteed by the Company (the “2030 Notes”). For further details, please refer to the announcements of the Company dated April 20, 2020, April 23, 2020 and May 3, 2020.

On December 17, 2020, Xiaomi Best Time International Limited issued zero coupon guaranteed convertible bonds due 2027 guaranteed by the Company in the aggregate principal amount of US$855 million at an initial conversion price of HK$36.74 per conversion share (subject to adjustments) (the “2027 Bonds”). The 2027 Bonds are listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). For further details, please refer to the announcements of the Company dated December 2, 2020, December 3, 2020, December 17, 2020 and December 18, 2020.

As of September 30, 2025, 12,112,587 Class B ordinary shares of the Company (the “Class B Shares”) were issued pursuant to conversion of the 2027 Bonds.

¹⁷ Including (i) cash and cash equivalents, (ii) restricted cash, (iii) term bank deposits, (iv) short-term investments measured at fair value through profit or loss, (v) long-term investments measured at amortized cost, and (vi) treasury investments included in long-term investments measured at fair value through profit or loss.

On July 14, 2021, Xiaomi Best Time International Limited issued US$800 million 2.875% senior bonds due 2031 (the “2031 Bonds”) and US$400 million 4.100% senior green bonds due 2051 (the “Green Bonds”), both of which were unconditionally and irrevocably guaranteed by the Company. For further details of the 2031 Bonds and Green Bonds, please refer to the announcements of the Company dated July 6, 2021, July 8, 2021, July 14, 2021 and July 15, 2021.

Consolidated Statement of Cash Flows

| | Unaudited
Three months ended | |
| --- | --- | --- |
| | September 30,
2025 | June 30,
2025 |
| | (RMB in millions) | |
| Net cash generated from operating activities(1) | 5,473.6 | 23,545.2 |
| Net cash used in investing activities | (2,092.5) | (70,049.4) |
| Net cash used in financing activities(1) | (3,916.2) | (3,643.1) |
| Net decrease in cash and cash equivalents | (535.1) | (50,147.3) |
| Cash and cash equivalents at the beginning of the period | 36,008.0 | 86,171.9 |
| Effects of exchange rate changes on cash and cash equivalents | 75.1 | (16.6) |
| Cash and cash equivalents at the end of the period | 35,548.0 | 36,008.0 |

(1) Excluding (1) the change of trade payables related to the finance factoring business; (2) the change of loan and interest receivables and impairment provision for loan receivables mainly resulting from the fintech business; (3) the change of restricted cash resulting from the fintech business; and (4) the change of deposits from customers resulting from the Airstar bank, the net cash generated from operating activities was RMB2.2 billion and RMB23.7 billion in the third quarter of 2025 and the second quarter of 2025, respectively. Excluding the change of borrowings for the finance factoring business, the net cash used in financing activities was RMB3.3 billion in the third quarter of 2025 and the second quarter of 2025. The information in this footnote is based on the management accounts of the Group, which have not been audited or reviewed by the Group's auditor. The accounting policies applied in the preparation of the management accounts are consistent with those used for other figures in this announcement.

Net Cash Generated from Operating Activities

Net cash generated from our operating activities represents the cash generated from our operations minus the income tax paid. Cash generated from our operations primarily comprises our profit before income tax adjusted by non-cash items and changes in working capital.

For the third quarter of 2025, net cash generated from our operating activities amounted to RMB5.5 billion, representing cash generated from operations of RMB6.2 billion minus income tax paid of RMB0.7 billion. Cash generated from operations was primarily attributable to our profit before income tax of RMB15.0 billion, mainly adjusted by an increase in inventories of RMB9.9 billion.

Net Cash Used in Investing Activities

For the third quarter of 2025, our net cash used in investing activities was RMB2.1 billion, which was primarily attributed to the purchase of property, plant and equipment of RMB3.1 billion, the net increase of short-term investments measured at fair value through profit or loss of RMB1.8 billion, partially offset by the net decrease of term bank deposits of RMB2.9 billion.

Net Cash Used in Financing Activities

For the third quarter of 2025, our net cash used in financing activities was RMB3.9 billion, which was primarily attributed to the distribution to fund investors of RMB1.0 billion, the payments of lease liabilities of RMB0.9 billion, the net decrease of borrowings of RMB0.9 billion and the payments of deferred consideration for acquisition of intangible assets of RMB0.6 billion.

Borrowings

As of September 30, 2025, we had total borrowings of RMB27.6 billion.

Capital Expenditures

| | Unaudited
Three months ended | |
| --- | --- | --- |
| | September 30,
2025 | June 30,
2025 |
| | (RMB in millions) | |
| Capital expenditures | | |
| Smartphone × AIoT | 1,550.5 | 1,670.1 |
| Smart EV, AI and other new initiatives | 3,830.7 | 3,198.4 |
| Total | 5,381.2 | 4,868.5 |

Off-Balance Sheet Commitments and Arrangements

As of September 30, 2025, we had not entered into any significant off-balance sheet commitments or arrangements.

Investments Held

As of September 30, 2025, we had invested in about 420 companies with an aggregate book value of RMB86.2 billion. In the third quarter of 2025, we recorded a net gain on disposal of investments (after tax) of RMB1.8 billion. The total amount of our investments (including (i) fair value of our stakes in listed investee companies accounted for using the equity method based on the stock price on September 30, 2025 (ii) book value of our stakes in unlisted investee companies accounted for using the equity method and (iii) book value of long-term investments measured at fair value through profit or loss) reached RMB89.8 billion as of September 30, 2025.

The Group did not make or hold any significant investments (including any investment in an investee company with a value of 5% or more of the Group’s total assets as of September 30, 2025) during the nine months ended September 30, 2025.

Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures

In the third quarter of 2025, we did not conduct any material acquisitions or disposals of subsidiaries, associates or joint ventures.

Employee and Remuneration Policy

As of September 30, 2025, we had 56,231 full-time employees, 53,662 of whom were based in the Chinese Mainland, primarily at our headquarters in Beijing. As of September 30, 2025, our research and development personnel, totaling 24,871 employees, were staffed across our various departments.

Our success depends on our ability to attract, retain and motivate qualified personnel. As part of our human resources strategy, we offer employees competitive compensation packages. As of September 30, 2025, 15,451 employees held share-based awards. The total remuneration expenses, including share-based compensation expense, in the third quarter of 2025 were RMB7.9 billion.

Foreign Exchange Risk

The transactions of our Company are denominated and settled in our functional currency, the United States Dollar. Our Group’s subsidiaries primarily operate in the People’s Republic of China (the “PRC”) and other regions such as India, and are exposed to foreign exchange risk arising from the exposure to various currencies, primarily with respect to the United States Dollar. Therefore, foreign exchange risk primarily arises from the recognized assets and liabilities in our subsidiaries when receiving or expecting to receive foreign currencies from, or paying or expecting to pay foreign currencies to overseas business partners.

We will continue to monitor changes in currency exchange rates and will take necessary measures to mitigate any impacts caused by exchange rate fluctuations.

Pledge of Assets

As of September 30, 2025, our total restricted bank deposits amounted to RMB5.0 billion. We also had pledged certain buildings and land use right for borrowings.

Contingent Liabilities

We did not have any material contingent liabilities as of September 30, 2025. Further details of the contingencies are set out in Note 12 to the financial information.

FINANCIAL INFORMATION

For the three months and nine months ended September 30, 2025

(Expressed in RMB)

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS

| | Note | Unaudited
Three months ended
September 30, | | Unaudited
Nine months ended
September 30, | |
| --- | --- | --- | --- | --- | --- |
| | | 2025
RMB’000 | 2024
RMB’000 | 2025
RMB’000 | 2024
RMB’000 |
| Revenue | 2 | 113,120,734 | 92,506,541 | 340,370,162 | 256,901,191 |
| Cost of sales | 2, 3 | (87,184,568) | (73,625,131) | (262,927,128) | (202,795,887) |
| Gross profit | | 25,936,166 | 18,881,410 | 77,443,034 | 54,105,304 |
| Research and development expenses | 3 | (9,059,373) | (5,956,784) | (23,534,458) | (16,613,900) |
| Selling and marketing expenses | 3 | (8,309,653) | (6,280,146) | (23,287,441) | (17,660,245) |
| Administrative expenses | 3 | (1,848,197) | (1,415,369) | (5,005,435) | (4,120,900) |
| Fair value changes on financial instruments
measured at fair value through profit or loss | | 5,483,157 | 548,514 | 11,673,676 | (1,527,388) |
| Share of net profits of investments accounted
for using the equity method | | 25,144 | 37,739 | 175,539 | 279,515 |
| Other income | | 1,686,642 | 275,902 | 2,147,854 | 720,555 |
| Other gains/(losses), net | | 1,196,243 | (50,003) | 2,059,486 | 430,081 |
| Operating profit | | 15,110,129 | 6,041,263 | 41,672,255 | 15,613,022 |
| Finance income | | 1,489,776 | 933,119 | 3,972,267 | 2,829,429 |
| Finance costs | | (1,644,260) | (157,188) | (3,118,126) | 276,506 |
| Profit before income tax | | 14,955,645 | 6,817,194 | 42,526,396 | 18,718,957 |
| Income tax expenses | 4 | (2,698,904) | (1,476,902) | (7,503,746) | (4,135,784) |
| Profit for the period | | 12,256,741 | 5,340,292 | 35,022,650 | 14,583,173 |
| Attributable to: | | | | | |
| — Owners of the Company | | 12,270,874 | 5,352,404 | 35,099,600 | 14,632,467 |
| — Non-controlling interests | | (14,133) | (12,112) | (76,950) | (49,294) |
| | | 12,256,741 | 5,340,292 | 35,022,650 | 14,583,173 |
| Earnings per share
(expressed in RMB per share): | 5 | | | | |
| Basic | | 0.47 | 0.22 | 1.37 | 0.59 |
| Diluted | | 0.46 | 0.21 | 1.33 | 0.57 |

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three months and nine months ended September 30, 2025
(Expressed in RMB)

| | Unaudited
Three months ended
September 30, | | Unaudited
Nine months ended
September 30, | |
| --- | --- | --- | --- | --- |
| | 2025
RMB’000 | 2024
RMB’000 | 2025
RMB’000 | 2024
RMB’000 |
| Profit for the period | 12,256,741 | 5,340,292 | 35,022,650 | 14,583,173 |
| Other comprehensive loss: | | | | |
| Items that may be reclassified subsequently to profit or loss | | | | |
| Share of other comprehensive income/(loss) of investments accounted for using the equity method | 5,982 | (5,513) | 19,377 | (18,021) |
| Transfer from other comprehensive (income)/loss to profit or loss upon disposal and deemed disposal of investments accounted for using the equity method | (5,007) | — | (7,263) | 2,876 |
| Net gains/(losses) from changes in fair value of financial assets at fair value through other comprehensive income | 84,523 | (30,265) | 140,801 | (46,627) |
| Currency translation differences | (572,004) | (357,566) | (642,290) | (215,389) |
| Item that will not be reclassified subsequently to profit or loss | | | | |
| Currency translation differences | (556,542) | (640,313) | (819,935) | (386,647) |
| Other comprehensive loss for the period, net of tax | (1,043,048) | (1,033,657) | (1,309,310) | (663,808) |
| Total comprehensive income for the period | 11,213,693 | 4,306,635 | 33,713,340 | 13,919,365 |
| Attributable to: | | | | |
| — Owners of the Company | 11,226,314 | 4,326,956 | 33,806,314 | 13,981,969 |
| — Non-controlling interests | (12,621) | (20,321) | (92,974) | (62,604) |
| | 11,213,693 | 4,306,635 | 33,713,340 | 13,919,365 |

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

As of September 30, 2025

(Expressed in RMB)

| | Note | Unaudited
As of
September 30,
2025
RMB’000 | Audited
As of
December 31,
2024
RMB’000 |
| --- | --- | --- | --- |
| Assets | | | |
| Non-current assets | | | |
| Property, plant and equipment | | 25,069,729 | 18,087,583 |
| Intangible assets | | 8,236,914 | 8,152,721 |
| Investments accounted for using the equity method | | 5,570,532 | 6,151,055 |
| Long-term investments measured
at fair value through profit or loss | 6 | 80,672,583 | 62,112,188 |
| Deferred income tax assets | | 2,729,110 | 2,781,982 |
| Term bank deposits | | 93,239,483 | 58,520,305 |
| Long-term investments measured at amortized cost | 6 | 11,190,926 | 3,219,462 |
| Other non-current assets | | 20,292,177 | 18,421,227 |
| | | 247,001,454 | 177,446,523 |
| Current assets | | | |
| Inventories | 8 | 73,995,731 | 62,509,682 |
| Trade and notes receivables | 7 | 22,637,428 | 14,588,579 |
| Loan receivables | | 8,214,730 | 12,261,490 |
| Prepayments and other receivables | | 35,444,933 | 29,100,116 |
| Bills receivables measured at fair value through
other comprehensive income | | 356,024 | 1,255,767 |
| Short-term investments measured at fair value
through other comprehensive income | 6 | — | 1,681,062 |
| Short-term investments measured at amortized cost | 6 | — | 700,163 |
| Short-term investments measured at fair value
through profit or loss | 6 | 19,383,757 | 28,123,777 |
| Term bank deposits | | 55,218,606 | 36,350,271 |
| Restricted cash | | 4,965,884 | 5,476,417 |
| Cash and cash equivalents | | 35,547,957 | 33,661,442 |
| | | 255,765,050 | 225,708,766 |
| Total assets | | 502,766,504 | 403,155,289 |

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)

As of September 30, 2025

(Expressed in RMB)

| | Note | Unaudited
As of
September 30,
2025
RMB’000 | Audited
As of
December 31,
2024
RMB’000 |
| --- | --- | --- | --- |
| Equity and liabilities | | | |
| Equity attributable to owners of the Company | | | |
| Share capital | | 426 | 407 |
| Reserves | | 265,458,334 | 188,737,370 |
| | | 265,458,760 | 188,737,777 |
| Non-controlling interests | | 104,608 | 467,342 |
| Total equity | | 265,563,368 | 189,205,119 |
| Liabilities | | | |
| Non-current liabilities | | | |
| Borrowings | 9 | 18,000,079 | 17,275,721 |
| Deferred income tax liabilities | | 3,604,246 | 1,282,196 |
| Provisions | | 2,532,296 | 1,695,063 |
| Other non-current liabilities | | 18,847,168 | 18,312,200 |
| | | 42,983,789 | 38,565,180 |
| Current liabilities | | | |
| Trade payables | 10 | 116,808,735 | 98,280,585 |
| Other payables and accruals | | 35,489,748 | 36,372,035 |
| Advance from customers | | 20,400,068 | 16,581,252 |
| Borrowings | 9 | 9,588,872 | 13,327,297 |
| Income tax liabilities | | 3,933,305 | 3,822,134 |
| Provisions | | 7,998,619 | 7,001,687 |
| | | 194,219,347 | 175,384,990 |
| Total liabilities | | 237,203,136 | 213,950,170 |
| Total equity and liabilities | | 502,766,504 | 403,155,289 |

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2025

(Expressed in RMB)

| | Unaudited
Nine months ended
September 30, | |
| --- | --- | --- |
| | 2025
RMB’000 | 2024
RMB’000 |
| Net cash generated from operating activities | 33,528,360 | 15,388,685 |
| Net cash used in investing activities | (62,221,104) | (6,319,313) |
| Net cash generated from/(used in) financing activities | 30,518,153 | (3,099,077) |
| Net increase in cash and cash equivalents | 1,825,409 | 5,970,295 |
| Cash and cash equivalents at the beginning of the period | 33,661,442 | 33,631,313 |
| Effects of exchange rate changes on cash and cash equivalents | 61,106 | 53,746 |
| Cash and cash equivalents at the end of the period | 35,547,957 | 39,655,354 |

1 Basis of preparation

The condensed consolidated interim financial information comprises the interim condensed consolidated balance sheet as of September 30, 2025, the interim condensed consolidated income statements and the interim condensed consolidated statements of comprehensive income for the three-month and nine-month periods then ended, the interim condensed consolidated statement of changes in equity and the interim condensed consolidated statement of cash flows for the nine-month period then ended, and selected explanatory notes (the “Interim Financial Information”). The Interim Financial Information is presented in RMB, unless otherwise stated.

The Interim Financial Information has been prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”, issued by the International Accounting Standards Board (“IASB”).

The Interim Financial Information does not include all the notes of the type normally included in annual financial statements. The Interim Financial Information should be read in conjunction with the annual audited consolidated financial statements of the Group for the year ended December 31, 2024 which have been prepared in accordance with all applicable IFRS Accounting Standards issued by the IASB (“IFRS Accounting Standards”) as set out in the 2024 annual report of the Company dated March 18, 2025 (the “2024 Financial Statements”), and any public announcement made by the Company during the nine months ended September 30, 2025 (the “Interim Report Period”) and up to date of approval of this unaudited Interim Financial Information.

The accounting policies and methods of computations used in the preparation of the Interim Financial Information are consistent with those used in the preparation of the 2024 Financial Statements, except for the adoption of certain new and amended standards which has had no significant impact on the Group’s results for the Interim Report Period and the Group’s financial position as of September 30, 2025.

2 Segment information

The Group’s business activities, for which discrete financial statements are available, are regularly reviewed and evaluated by the Chief Operating Decision Maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer of the Company. The Group determined that it has the following reportable segments, which is consistent with the way the Group was reviewed by the CODM:

Smartphone × AIoT
Smartphones
IoT and lifestyle products
Internet services
Other related businesses
Smart EV, AI and other new initiatives

The CODM assesses the performance of the operating segments mainly based on segment revenue and gross profit of each operating segment. There were no material inter-segment sales during the three months and nine months ended September 30, 2025 and 2024. The revenues from external customers reported to the CODM are measured in a manner consistent with that applied in the interim condensed consolidated income statements.

The segment results for the three months and nine months ended September 30, 2025 and 2024 are as follows:

	Three months ended September 30, 2025
	Smartphone × AIoT					Smart
	Smartphones RMB'000	IoT and lifestyle products RMB'000	Internet services RMB'000	Other related businesses RMB'000	Subtotal RMB'000	EV, AI and other new initiatives RMB'000	Total RMB'000
(Unaudited)
Segment revenues	45,969,027	27,552,155	9,380,464	1,209,000	84,110,646	29,010,088	113,120,734
Cost of sales	(40,873,540)	(20,957,026)	(2,169,832)	(1,558,088)	(65,558,486)	(21,626,082)	(87,184,568)
Gross profit/(loss)	5,095,487	6,595,129	7,210,632	(349,088)	18,552,160	7,384,006	25,936,166
	Three months ended September 30, 2024
	Smartphone × AIoT					Smart
	Smartphones RMB'000	IoT and lifestyle products RMB'000	Internet services RMB'000	Other related businesses RMB'000	Subtotal RMB'000	EV, AI and other new initiatives RMB'000	Total RMB'000
(Unaudited)
Segment revenues	47,452,324	26,102,162	8,462,807	792,114	82,809,407	9,697,134	92,506,541
Cost of sales	(41,904,746)	(20,684,052)	(1,908,226)	(1,091,402)	(65,588,426)	(8,036,705)	(73,625,131)
Gross profit/(loss)	5,547,578	5,418,110	6,554,581	(299,288)	17,220,981	1,660,429	18,881,410
	Nine months ended September 30, 2025
	Smartphone × AIoT					Smart
	Smartphones RMB'000	IoT and lifestyle products RMB'000	Internet services RMB'000	Other related businesses RMB'000	Subtotal RMB'000	EV, AI and other new initiatives RMB'000	Total RMB'000
(Unaudited)
Segment revenues	142,100,988	98,603,542	27,554,308	3,257,907	271,516,745	68,853,417	340,370,162
Cost of sales	(125,502,596)	(75,132,003)	(6,506,067)	(4,243,223)	(211,383,889)	(51,543,239)	(262,927,128)
Gross profit/(loss)	16,598,392	23,471,539	21,048,241	(985,316)	60,132,856	17,310,178	77,443,034

Nine months ended September 30, 2024

	Smartphone × AIoT					Smart EV, AI and other new initiatives	Total
	Smartphones RMB’000	IoT and lifestyle products RMB’000	Internet services RMB’000	Other related businesses RMB’000	Subtotal RMB’000
(Unaudited)
Segment revenues	140,448,484	73,235,965	24,776,801	2,347,958	240,809,208	16,091,983	256,901,191
Cost of sales	(122,372,223)	(58,486,821)	(5,774,168)	(2,714,181)	(189,347,393)	(13,448,494)	(202,795,887)
Gross profit/(loss)	18,076,261	14,749,144	19,002,633	(366,223)	51,461,815	2,643,489	54,105,304

For the three months and nine months ended September 30, 2025 and 2024, the geographical information on the total revenues is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	RMB’000 (Unaudited)	%	RMB’000 (Unaudited)	%	RMB’000 (Unaudited)	%	RMB’000 (Unaudited)	%
Chinese Mainland	73,058,359	64.6	52,347,842	56.6	225,392,197	66.2	140,794,583	54.8
Rest of the world (Note (a))	40,062,375	35.4	40,158,699	43.4	114,977,965	33.8	116,106,608	45.2
	113,120,734		92,506,541		340,370,162		256,901,191

Note:
(a) Revenues outside the Chinese Mainland are mainly from Europe and India.

The following table shows inventory information by reportable segment as of September 30, 2025 and December 31, 2024.

	As of September 30, 2025 RMB’000 (Unaudited)	As of December 31, 2024 RMB’000 (Audited)
Smartphone × AIoT	68,479,490	60,905,907
Smart EV, AI and other new initiatives	5,516,241	1,603,775
	73,995,731	62,509,682

3 Expenses by nature

	Three months ended September 30,		Nine months ended September 30,
	2025 RMB’000 (Unaudited)	2024 RMB’000 (Unaudited)	2025 RMB’000 (Unaudited)	2024 RMB’000 (Unaudited)
Cost of inventories sold and royalty fees	80,148,860	68,467,387	242,626,121	187,096,578
Provision for impairment of inventories	1,541,484	1,467,728	4,709,784	4,414,474
Employee benefit expenses	7,863,449	5,699,248	21,628,964	16,248,337
Depreciation of property, plant and equipment, right-of-use assets and investment properties	1,323,542	916,859	3,605,481	2,536,865
Amortization of intangible assets	899,903	780,324	2,410,419	1,966,971
Promotion and advertising expenses	2,213,254	1,819,413	6,112,022	5,616,135
Warranty expenses	1,584,561	676,230	4,241,431	2,853,723

4 Income tax expenses

The income tax expenses of the Group during the three months and nine months ended September 30, 2025 and 2024 presented are analyzed as follows:

	Three months ended September 30,		Nine months ended September 30,
	2025 RMB’000 (Unaudited)	2024 RMB’000 (Unaudited)	2025 RMB’000 (Unaudited)	2024 RMB’000 (Unaudited)
Current income tax	1,063,778	1,503,240	5,115,967	4,526,372
Deferred income tax	1,635,126	(26,338)	2,387,779	(390,588)
Income tax expenses	2,698,904	1,476,902	7,503,746	4,135,784

5 Earnings per share

(a) Basic

Basic earnings per share for the three months and nine months ended September 30, 2025 and 2024 are calculated by dividing the profit attributable to the Company's owners by the weighted average number of ordinary shares in issue during the periods and excluding treasury shares.

	Three months ended September 30,		Nine months ended September 30,
	2025 (Unaudited)	2024 (Unaudited)	2025 (Unaudited)	2024 (Unaudited)
Net profit attributable to the owners of the Company (RMB’000)	12,270,874	5,352,404	35,099,600	14,632,467
Weighted average number of ordinary shares in issue (thousand shares)	25,905,602	24,797,411	25,573,338	24,835,661
Basic earnings per share (expressed in RMB per share)	0.47	0.22	1.37	0.59

(b) Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

	Three months ended September 30,		Nine months ended September 30,
	2025 (Unaudited)	2024 (Unaudited)	2025 (Unaudited)	2024 (Unaudited)
Net profit attributable to the owners of the Company (RMB’000)	12,270,874	5,352,404	35,099,600	14,632,467
Add: Interest expense on convertible bonds (RMB’000)	59,627	—	184,854	—
Net profit attributable to the owners of the Company for calculation of diluted earnings per share (RMB’000)	12,330,501	5,352,404	35,284,454	14,632,467
Weighted average number of ordinary shares in issue (thousand shares)	25,905,602	24,797,411	25,573,338	24,835,661
Adjustments for restricted shares units and share options (thousand shares)	774,182	614,790	825,455	634,655
Adjustments for convertible bonds (thousand shares)	169,131	—	176,598	—
Weighted average number of ordinary shares for calculation of diluted earnings per share (thousand shares)	26,848,915	25,412,201	26,575,391	25,470,316
Diluted earnings per share (expressed in RMB per share)	0.46	0.21	1.33	0.57

6 Investments

	As of September 30, 2025 RMB’000 (Unaudited)	As of December 31, 2024 RMB’000 (Audited)
Current assets
Short-term investments measured at
— Amortized cost	—	700,163
— Fair value through other comprehensive income	—	1,681,062
— Fair value through profit or loss	19,383,757	28,123,777
	19,383,757	30,505,002

	As of September 30, 2025 RMB’000 (Unaudited)	As of December 31, 2024 RMB’000 (Audited)
Non-current assets
Long-term investments measured at amortized cost	11,190,926	3,219,462
Long-term investments measured at fair value through profit or loss
— Ordinary shares investments	20,286,541	14,401,979
— Preferred shares investments	33,992,544	33,537,891
— Treasury investments	22,497,192	10,339,549
— Other investments	3,896,306	3,832,769
	91,863,509	65,331,650

Amounts recognized in profit or loss for investments measured at fair value through profit or loss:

	Three months ended September 30,		Nine months ended September 30,
	2025 RMB’000 (Unaudited)	2024 RMB’000 (Unaudited)	2025 RMB’000 (Unaudited)	2024 RMB’000 (Unaudited)
Long-term investments measured at fair value through profit or loss
— Ordinary shares investments	4,031,183	749,063	7,849,209	(912,041)
— Preferred shares investments	1,144,044	(453,434)	3,153,751	(1,130,177)
— Treasury and other investments	401,072	96,212	525,668	194,103
Short-term investments measured at fair value through profit or loss	198,807	125,488	470,810	334,806
	5,775,106	517,329	11,999,438	(1,513,309)

7 Trade and notes receivables

The Group generally allows a credit period within 180 days to its customers. Aging analysis of trade and notes receivables based on invoice date is as follows:

	As of September 30, 2025 RMB’000 (Unaudited)	As of December 31, 2024 RMB’000 (Audited)
Up to 3 months	17,559,999	12,652,651
3 to 6 months	2,930,898	851,454
6 months to 1 year	1,528,724	526,725
1 to 2 years	351,173	224,018
Over 2 years	829,265	875,784
	23,200,059	15,130,632
Less: credit loss allowance	(562,631)	(542,053)
	22,637,428	14,588,579

8 Inventories

	As of September 30, 2025 RMB’000 (Unaudited)	As of December 31, 2024 RMB’000 (Audited)
Raw materials	18,960,089	14,321,504
Finished goods	44,535,196	40,837,606
Work in progress	8,438,214	5,446,620
Spare parts	3,869,601	3,800,223
Others	871,614	579,858
	76,674,714	64,985,811
Less: provision for impairment (Note (a))	(2,678,983)	(2,476,129)
	73,995,731	62,509,682

Note:
(a) During the three months and nine months ended September 30, 2025, the Group incurred inventory impairment provision approximately RMB1,541,484,000 and RMB4,709,784,000, respectively (2024: RMB1,467,728,000 and RMB4,414,474,000, respectively) and transferred out of such provision upon the sales of inventories approximately RMB1,483,333,000 and RMB4,506,930,000, respectively (2024: RMB1,561,815,000 and RMB4,126,353,000, respectively).

9 Borrowings

	As of September 30, 2025 RMB’000 (Unaudited)	As of December 31, 2024 RMB’000 (Audited)
Included in non-current liabilities
Secured borrowings	1,754,270	1,827,365
Unsecured borrowings	16,245,809	15,448,356
	18,000,079	17,275,721
Included in current liabilities
Secured borrowings	73,095	73,094
Unsecured borrowings	4,399,164	7,893,845
Convertible bonds	5,116,613	5,360,358
	9,588,872	13,327,297

10 Trade payables

Trade payables primarily include payables for inventories. Trade payables and their aging analysis based on invoice date are as follows:

	As of September 30, 2025 RMB'000 (Unaudited)	As of December 31, 2024 RMB'000 (Audited)
Up to 3 months	100,422,068	68,064,824
3 to 6 months	10,865,586	18,694,125
6 months to 1 year	2,718,748	9,035,928
1 to 2 years	1,444,533	1,626,560
Over 2 years	1,357,800	859,148
	116,808,735	98,280,585

11 Dividends

No dividends have been paid or declared by the Company during the three months and nine months ended September 30, 2025 and 2024.

12 Contingencies

The Group, in the ordinary course of its business, is involved in various claims, lawsuits, and legal proceedings that arise from time to time. Since December 2021, Xiaomi Technology India Private Limited ("Xiaomi India"), a wholly-owned subsidiary of the Group, has been involved in various investigations and notifications initiated by relevant Indian authorities including the Income Tax Department, the Directorate of Revenue Intelligence and the Directorate of Enforcement in relation to compliance of relevant income tax regulations, custom duties regulations as well as foreign exchange regulations, respectively.

In this connection, Xiaomi India received orders alleging that it has inappropriately deducted certain costs and expenses, including purchase costs of mobile phones and royalty fees paid to overseas third parties as well as companies within the Group. As a result, certain of its bank accounts have been attached and thereby India Rupees ("INR") 48,202,990,000 (equivalent to RMB3,869,736,000) has been considered as restrictive as of September 30, 2025 (December 31, 2024: INR47,042,193,000 (equivalent to RMB4,016,462,000)). The cases are currently in the hearing stages and not yet concluded.

Management assessed the aforesaid matters related to Xiaomi India, after taking into considerations of opinions from professional advisors, it is concluded that Xiaomi India has valid grounds to respond to the relevant Indian authorities. The Group, hence, has not made any material provision as of September 30, 2025 pertaining to these matters.

Conclusions of legal proceedings, investigations and allegations could take a long period of time, and the Group could receive judgments or enter into settlements that may adversely affect its operating results or cash flows. Quantifying the related financial effects is not practical at this stage.

OTHER INFORMATION

Purchase, Sale or Redemption of the Company's Listed Securities

During the nine months ended September 30, 2025 and up to the date of this announcement, the Company repurchased a total of 34,125,200 Class B Shares on the Stock Exchange at an aggregate consideration of approximately HK$1,537,282,492 (the "Shares Repurchased") to enhance the shareholder value in the long run. Particulars of the Shares Repurchased are as follows:

Month of Repurchase	No. of Shares Repurchased	Price paid per share		Aggregate Consideration (approximately) (HK$)
		Highest (HK$)	Lowest (HK$)
January	6,829,800	33.65	32.60	224,943,300
September	525,400	53.25	53.15	27,954,680
October	26,770,000	53.25	45.90	1,284,384,512
Total	34,125,200			1,537,282,492

In respect of the Shares Repurchased, the weighted voting rights (the "WVR") beneficiaries of the Company simultaneously reduced their WVR in the Company proportionately by way of converting their Class A ordinary shares of the Company (the "Class A Shares") into Class B Shares on a one-to-one ratio pursuant to Rule 8A.21 of the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"), such that the proportion of shares carrying WVR of the Company shall not be increased, pursuant to the requirements under Rules 8A.13 and 8A.15 of the Listing Rules.

During the nine months ended September 30, 2025 and up to the date of this announcement, the number of Class B Shares in issue (excluding treasury shares) was reduced by 34,125,200 shares as a result of (i) the repurchase of 6,829,800 Class B Shares in January 2025, which were subsequently cancelled on March 6, 2025; and (ii) the repurchase of 27,295,400 Class B Shares from September 29, 2025 to October 17, 2025, which were subsequently cancelled on November 12, 2025.

A total of 1,228,325 Class A Shares were converted into Class B Shares on a one-to-one ratio on March 6, 2025, of which Mr. Lei Jun, through Smart Mobile Holdings Limited, converted 1,106,241 Class A Shares and Mr. Lin Bin, through Apex Star LLC, converted 122,084 Class A Shares.

A total of 4,728,665 Class A Shares were converted into Class B Shares on a one-to-one ratio on November 12, 2025, of which Mr. Lei Jun, through Smart Mobile Holdings Limited, converted 4,258,681 Class A Shares and Mr. Lin Bin, through Apex Star LLC, converted 469,984 Class A Shares.

In March 2025, the Company conducted the 2025 Placing and Subscription. For further details, please refer to the section headed "Liquidity and Financial Resources" above and the announcements of the Company dated March 25, 2025 and March 31, 2025.

Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's securities listed on the Stock Exchange (including sale of treasury shares) during the nine months ended September 30, 2025 and up to the date of this announcement.

Compliance with the Corporate Governance Code

The Company is committed to maintaining and promoting stringent corporate governance standards. The principles of the Company's corporate governance are to promote effective internal control measures and to enhance the transparency and accountability of the Board to all shareholders.

Save for code provision C.2.1 of the Corporate Governance Code (the "CG Code") contained in Appendix C1 to the Listing Rules, the Company has complied with all the code provisions set out in the CG Code during the nine months ended September 30, 2025.

Pursuant to code provision C.2.1 of the CG Code, companies listed on the Stock Exchange are expected to comply with, but may choose to deviate from the requirement that the responsibilities between the chairman and the chief executive officer should be segregated and should not be performed by the same individual. The Company does not have a separate chairman and chief executive officer and Mr. Lei Jun currently performs these two roles. The Board believes that vesting the roles of both chairman and chief executive officer in the same person has the benefit of ensuring consistent leadership within the Group and enabling more effective and efficient overall strategic planning for the Group. The Board considers that the balance of power and authority for the present arrangement will not be impaired and this structure will enable the Company to make and implement decisions promptly and effectively. The Board will continue to review and consider segregating the roles of chairman of the Board and chief executive officer of the Company at an appropriate time, taking into account the circumstances of the Group as a whole.

Audit Committee

The Audit Committee (comprising one non-executive Director and two independent non-executive Directors, namely, Mr. Liu Qin, Dr. Chen Dongsheng and Mr. Wong Shun Tak) has reviewed the unaudited interim results of the Group for the three and nine months ended September 30, 2025. The Audit Committee has also discussed matters with respect to the accounting policies and practices adopted by the Company and internal control with senior management members and the external auditor of the Company, PricewaterhouseCoopers.

Material Litigation

As of September 30, 2025, the Company was not involved in any material litigation or arbitration, nor were the Directors aware of any material litigation or claims that were pending or threatened against the Company.

Events after September 30, 2025

Save as disclosed in this announcement, there has been no other significant events that might affect the Group after September 30, 2025 and up to the date of this announcement.

By order of the Board
Xiaomi Corporation
Lei Jun
Chairman

Hong Kong, November 18, 2025

As at the date of this announcement, the Board comprises Mr. Lei Jun as Chairman and Executive Director, Mr. Lin Bin as Vice-Chairman and Executive Director, Mr. Liu De as Executive Director, Mr. Liu Qin as Non-executive Director, and Dr. Chen Dongsheng, Mr. Wong Shun Tak and Ms. Cai Jinqing as Independent Non-executive Directors.

AI assistant

Xiaomi Corporation — Earnings Release 2025

50185_rns_2025-11-18_2e075049-2e34-450f-bf8c-7304cf4708b0.pdf

XIAOMI CORPORATION

RESULTS ANNOUNCEMENT FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025

KEY HIGHLIGHTS

BUSINESS REVIEW AND OUTLOOK

1. Overall Performance

2. Smartphone × AIoT

Smartphones

IoT and lifestyle products

Internet services

3. Smart EV, AI and Other New Initiatives

MANAGEMENT DISCUSSION AND ANALYSIS

Third Quarter of 2025 Compared to Third Quarter of 2024

Cost of Sales

Smartphone × AIoT

(i) Smartphones

(ii) IoT and lifestyle products

(iii) Internet services

Smartphone × AIoT

Smart EV, AI and Other New Initiatives

Operating Expenses

Research and Development Expenses

Selling and Marketing Expenses

Administrative Expenses

Fair Value Changes on Financial Instruments Measured at Fair Value Through Profit or Loss

Share of Net Profits of Investments Accounted for Using the Equity Method

Other Income

Other Gains/(Losses), Net

Finance (Costs)/Income, Net

Income Tax Expenses

Profit for the Period

Adjusted Net Profit

Third Quarter of 2025 Compared to Second Quarter of 2025

Cost of Sales

Smartphone × AIoT

(i) Smartphones

(ii) IoT and lifestyle products

(iii) Internet services

(iv) Other related businesses

Smart EV, AI and Other New Initiatives

Gross Profit and Margin

Smartphone × AIoT

Smart EV, AI and Other New Initiatives

Operating Expenses

Research and Development Expenses

Selling and Marketing Expenses

Administrative Expenses

Fair Value Changes on Financial Instruments Measured at Fair Value Through Profit or Loss

Share of Net Profits of Investments Accounted for Using the Equity Method

Other Income

Other Gains, Net

Finance (Costs)/Income, Net

Income Tax Expenses

Profit for the Period

Adjusted Net Profit

Non-IFRS Measure: Adjusted Net Profit

Notes:

Liquidity and Financial Resources

Issuance of Debt Securities

Consolidated Statement of Cash Flows

Net Cash Generated from Operating Activities

Net Cash Used in Investing Activities

Net Cash Used in Financing Activities

Borrowings

Capital Expenditures

Off-Balance Sheet Commitments and Arrangements

Investments Held

Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures

Employee and Remuneration Policy

Foreign Exchange Risk

Pledge of Assets

Contingent Liabilities

FINANCIAL INFORMATION

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

1 Basis of preparation

Xiaomi Corporation Earnings Release 2025