Xiaomi's Aggressive Buyback Strategy Amid Product Expansion

Xiaomi executes major share buybacks despite stock dip, preps flagship phone launch at MWC as its electric vehicle business becomes a top seller in China.

Despite a year-to-date share price decline of approximately nine percent, Chinese technology giant Xiaomi continues to execute a substantial repurchase program for its own stock. The company's latest move saw it acquire shares worth HKD 100 million on February 24 alone. This financial maneuver coincides with preparations for a major product launch event in Barcelona, raising questions about whether its smartphone division can regain momentum while its electric vehicle business thrives.

Financial Confidence Through Consistent Repurchases

Xiaomi's board has been authorizing frequent share buybacks, signaling strong internal confidence in the company's valuation. The purchase on February 24 involved 2.8 million Class B shares. This followed a repurchase of 4.3 million shares for HKD 152.2 million just four days earlier, on February 20. Another transaction occurred on February 16, when the company bought back 1.5 million shares for HKD 54.7 million.

These actions form part of a broader program announced in January, which authorizes buybacks of up to HKD 2.5 billion. Xiaomi's stock currently trades at HKD 35.74, notably below its level at the start of the year. Key valuation metrics show a trailing price-to-earnings (P/E) ratio of 22.71 and a forward P/E of 18.94.

Broad Product Portfolio Unveiled at MWC

The company is set to reveal a wide range of new products at the Mobile World Congress in Barcelona on February 28. The centerpiece will be the flagship smartphones, the Xiaomi 17 and Xiaomi 17 Ultra, which benefit from a deepened collaboration with camera specialist Leica. This partnership, established in May 2022, has evolved from a "Joint R&D" model to a "Strategic Co-creation" framework.

Beyond smartphones, the launch event will feature several other devices. These include the Xiaomi Tag Bluetooth tracker, expected to be priced around €17.99, the Xiaomi Watch 5, and the Electric Scooter 6 Ultra, anticipated to cost approximately €799.99. The product lineup will be rounded out by the REDMI Buds 8 Pro and an Ultra Thin Magnetic Power Bank.

Electric Vehicle Segment Gains Significant Traction

As smartphone sales face headwinds, Xiaomi's foray into the electric vehicle market is demonstrating remarkable strength. In January 2026, the YU7 SUV became China's best-selling passenger car, with 37,869 units sold, outperforming the Tesla Model Y which ranked 20th with 16,845 units.

Since commencing production in April 2024, Xiaomi has delivered more than 600,000 electric vehicles. Over 410,000 of those deliveries occurred in 2025 alone. An updated version of the SU7 sedan is currently in a pre-sale phase, with official sales scheduled to begin in April.

Upcoming Quarterly Results in Focus

Xiaomi's financial performance for the third quarter of 2025 showed robust growth, with revenue increasing by 22 percent to RMB 113.1 billion. Adjusted net profit surged by more than 80 percent to RMB 11.3 billion. The market now awaits the fourth-quarter results, expected on March 23, which will indicate whether the strength of the electric vehicle business can sufficiently offset continued softness in the smartphone segment.