Xiaomi’s Buyback Program Creeps Along as EV Losses Mount and a Key Earnings Date Looms
Published on 07/25/2026 at 07:42 | Redaktion boerse-global.de
Xiaomi has been quietly buying back its own stock for weeks, but the pace has left investors underwhelmed. Since launching a HK$20 billion repurchase program on June 3, the company has deployed just HK$2.2 billion — a mere 11% of the authorized total. That modest uptake weighed on the stock in Hong Kong on Friday, where shares closed at HK$26.72, down 1.55%.
The buyback has so far covered 89.18 million shares, or 0.35% of all outstanding stock, at an average price of HK$24.62 each. While the program signals management’s confidence on paper, the slow execution raises questions about whether the board genuinely views the current price as undervalued or prefers to conserve cash for other priorities.
That caution arrives at a delicate moment. Xiaomi’s first-quarter adjusted net profit tumbled 43% to 6.1 billion yuan, missing the consensus estimate of 6.4 billion yuan. Smartphone revenue fell 12.5% to 44.3 billion yuan, while gross margins in that segment shrank from 12.4% to 10.1%. The core handset business, long the company’s primary profit engine, is clearly under strain.
EV Unit Burns Cash as Expansion Accelerates
There is a brighter spot — but it comes with a hefty price tag. Xiaomi’s electric-vehicle division posted a 5.1% revenue increase to 19 billion yuan in the first quarter, yet the segment still recorded an operating loss of 3.1 billion yuan. The company is pouring capital into its automotive ambitions, and the payoff remains distant.
Should investors sell immediately? Or is it worth buying Xiaomi?
The next major milestone is the second-quarter earnings report, scheduled for August 18. Investors will scrutinize whether the margin erosion in smartphones has stabilized and whether rising EV deliveries are beginning to narrow the unit’s losses.
Meanwhile, Xiaomi is pressing ahead with product development. The company has released new details about its upcoming SkyNomad N90 SUV, which features an unusual 2-2-3 seat layout instead of the 2-2-2 configuration typical of premium models. CEO Lei Jun has positioned the vehicle as a versatile option for both families and business clients. The SUV is built on a modular “Kunlun” architecture that allows the cabin to be converted into a mobile workspace or leisure area. Xiaomi has already pre-produced over 10,000 units, signaling readiness for immediate deliveries once sales begin in late August 2026.
Memory-Chip Headwinds and European Ambitions
The automotive push is unfolding against a difficult backdrop for Xiaomi’s smartphone business. The company, along with rivals OPPO and Vivo, is pushing back against price increases from suppliers of DRAM and NAND memory chips. Stabilizing these costs will be critical to meeting annual shipment targets without further squeezing hardware margins.
On the international front, Xiaomi is joining Chinese peers including Huawei, Li Auto, and Xpeng in a coordinated push into Europe’s premium EV segment. The company has set its sights on Germany and aims to rank among the top five premium brands in Europe by 2030. Chinese automakers already accounted for 9% of new registrations in Europe in the first half of the year, and 15% in the UK. Consulting firm AlixPartners projects that share will rise to 16% by 2030.
Stock Shows Signs of Life, But Recovery Is Fragile
The shares have been under severe pressure. In European trading, the stock closed at €3.00, roughly 54% below its 52-week high of €6.51 set in September. The year-to-date decline exceeds 30%. Yet there are tentative signs of a rebound: over the past 30 days, the stock has gained 16.82%, suggesting that some of the bad news may already be priced in.
Xiaomi at a turning point? This analysis reveals what investors need to know now.
Technically, the stock sits just above its 50-day moving average of €2.92 but remains 21% below the 200-day average of €3.77. The 52-week low of €2.34, marked in June, continues to serve as a key support level.
The immediate catalyst will be the technology showcase for the SkyNomad N90 later this month. But the real test comes on August 18, when Xiaomi’s second-quarter numbers will reveal whether the company’s two-speed strategy — defending margins in phones while investing heavily in EVs — is gaining traction or stretching resources too thin.
Ad
Xiaomi Stock: New Analysis - 25 July
Fresh Xiaomi information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
