Xiaomi slides as memory costs and weak EV sales hit profits

Xiaomi shares plunged to HK$22.62, their lowest level since September 2024, trimming the company’s market value to roughly $74 billion. The stock has fallen from a 12-month high of HK$61.55 and is one of the weaker performers on the Hang Seng Index.

The decline followed a global rise in memory prices. Xiaomi buys memory chips from suppliers including SK Hynix, Micron and Samsung Electronics rather than making its own. Higher component costs have led some smartphone makers to increase device prices.

Xiaomi’s electric vehicle business also weighed on results. Vehicle deliveries fell to 80,856 in the latest quarter from 145,115 in the fourth quarter, a period when many buyers accelerated purchases ahead of subsidy expirations. Beijing ended EV subsidies earlier this year.

The company reported first-quarter revenue of HK$99.14 billion, down 10.9% from HK$111.2 billion a year earlier. Net profit declined 56.5% to HK$4.7 billion and operating profit fell 60% to HK$5.3 billion. Smartphone shipments dropped to 33.8 million units from 41.8 million in the same period a year earlier.

Xiaomi repurchased 250 million shares at a cost of more than HK$8.4 billion, reducing the number of outstanding shares.

Technical indicators show the stock has broken several supports. The weekly chart recorded a triple-top near HK$61.5 with a neckline at about HK$36. The share price moved below the 50-week exponential moving average and under the 61.8% Fibonacci retracement level. The relative strength index fell below common oversold thresholds. The 78.2% retracement level lies near HK$19.86.

Xiaomi expanded from budget smartphones into internet services and electric vehicles in recent years to broaden revenue sources. The company’s recent results reflect higher input costs and weaker hardware sales across core divisions.