Xiaomi's H1 Numbers Land as SU7 Hits Half a Million and Buybacks Accelerate

Xiaomi's H1 report faces scrutiny over EV margins and sales targets, despite SU7 passing 500k deliveries and recent buybacks.

The market's attention turns squarely to Hong Kong this evening, where Xiaomi Corp. is due to publish its first-half results at 19:30 local time, followed by an investor webcast with management. Consensus forecasts put quarterly revenue at 108.34 billion yuan, with earnings per share of 0.220 yuan — figures that will be scrutinised less for their headline size than for what they reveal about the economics of the company's electric vehicle push.

That EV business has just crossed a symbolic threshold. The SU7 sedan series has now passed 500,000 cumulative deliveries, a milestone that arrives amid growing questions about whether Xiaomi can hit its own sales targets for the year. Reuters reported earlier this month that vehicle sales are tracking behind internal forecasts, prompting the company to accelerate plans for larger SUV models in an effort to regain momentum.

The tension between that delivery milestone and the softer sales trajectory captures the central dilemma facing investors. The SU7 clearly retains demand, but the gap between targets and actual sales across newer models raises doubts about how quickly the auto division can move toward sustainable profitability.

Buyback programme signals confidence

Xiaomi has been quietly signalling its own view of the share price. A Hong Kong exchange filing shows the company repurchased roughly 1.9 million Class B shares on 14 August for 49.8 million Hong Kong dollars, just days after buying a near-identical quantity of stock for around 50 million Hong Kong dollars on 11 August. The back-to-back purchases suggest management sees value in the current valuation, even as the stock languishes well below its peaks.

The share price closed Monday at 2.85 euro, marginally beneath its 50-day moving average of 2.89 euro — a picture of a market that has yet to pick a direction ahead of the numbers. The stock has fallen 34 percent over the past year and sits 56 percent below the record high of 6.54 euro touched in September 2025. Market capitalisation stands at roughly 72.77 billion euro.

Margins take centre stage

LBBW analyst Henning Oligmüller has framed today's release as a defining moment for China's technology sector, with particular attention on the gross margin of the EV division. Since the SU7's launch, that business has evolved into a genuine second pillar alongside smartphones, and the extent to which economies of scale are offsetting pricing pressure will matter more for the company's valuation than top-line growth alone.

The sceptical tone around the stock has been reinforced by CLSA, which cut its price target earlier this month while pointing to an expected drop in earnings. That assessment has helped shape the cautious mood entering today's report.

Product pipeline moves in parallel

The results land amid a flurry of product announcements. Early August brought news of a patent for a retractable vehicle logo designed to improve aerodynamics on future EV models, alongside the unveiling of HyperOS 4.0 with expanded artificial intelligence integrations. These moves underscore Xiaomi's ambition to weave its smartphone, automotive and software businesses into a tighter ecosystem — a strategy that today's financials may show for the first time in concrete revenue and margin terms.

The next checkpoint is already on the calendar: third-quarter results are scheduled for 24 November. Between now and then, the evolution of the EV gross margin will remain the focal point of analyst debate, as it offers the clearest signal of whether Xiaomi can steer its automotive arm toward durable profitability. Today's figures provide the first substantive evidence of whether that trajectory is on track.