Xiaomi's Diversified Strategy Investment Value: Growth Engine Analysis

Xiaomi’s three growth engines show differentiated trends. The automotive business generated 28.3 billion yuan in revenue in Q3 2025, accounting for 98% of the innovative business segment, with a year-on-year growth of 199.2% and its first quarterly profit. It delivered 108,800 units in Q3 and is expected to deliver over 350,000 units for the full year, having established a foothold in the competitive new energy vehicle market [1][2]. The high-endization of the mobile phone business has achieved significant results: the Xiaomi 17 series set a new record for domestic mobile phone sales in 2025 within the first 5 minutes of its launch, with high-end models accounting for over 50% of sales [5]. In terms of overseas expansion: Xiaomi phones have ranked among the top three globally for 20 consecutive quarters, and it plans to build 10,000 overseas Xiaomi Home stores within 5 years, but the forecast of ‘over 50% growth potential’ lacks clear public basis [3][4]. Although the human-vehicle-home ecosystem services have formed a closed loop, the claim that ‘the confidence index is only 20%’ has not been verified by public data.

Xiaomi’s Q3 2025 revenue reached 113.1 billion yuan, exceeding 100 billion yuan for four consecutive quarters, with adjusted net profit of 11.3 billion yuan hitting a historical high. The ‘bankruptcy rumors’ lack basis [0][1]. Overall market sentiment is positive: the automotive business is regarded as the core growth engine due to its rapid volume growth and profit performance; overseas expansion is cautiously optimistic, requiring attention to policy risks and local competition; the monetization capacity of ecosystem services remains to be observed [0].

1. Automotive business may become the short-term core growth driver
   : Its revenue share and growth rate far exceed other innovative businesses, and the emergence of the profit inflection point has boosted market confidence [1][2].
2. Overseas expansion and mobile phone high-endization support each other
   : The global user scale of 740 million provides a foundation for overseas expansion, and mobile phone high-endization enhances brand premium; the two will jointly promote overseas market growth [3][5].
3. Uncertainty remains in ecosystem service monetization
   : Although a human-vehicle-home closed loop has been formed, the value-added service capacity has not been verified and requires long-term observation [0].

• Opportunities
  : The rapid development of the automotive business provides new growth points for the diversified strategy; mobile phone high-endization enhances brand value; the overseas store expansion plan releases offline channel potential [1][3][5].
• Risks
  : The automotive business faces trust crises and production capacity challenges; overseas expansion needs to deal with policy risks and fierce competition in markets such as India and South Korea; mobile phone ASP is still lower than Apple and Huawei, requiring continuous investment in high-endization [0][2][3].

Xiaomi’s financial situation is healthy, and the effects of its diversified strategy are gradually emerging. The automotive business has strong growth momentum and is currently the most potential growth engine; overseas expansion has a good foundation but its growth potential needs further verification; the monetization capacity of human-vehicle-home ecosystem services remains to be observed. Investors should pay attention to the delivery progress of the automotive business, changes in the overseas policy environment, and the continuous advancement of mobile phone high-endization.