Xiaomi, Founder Stem Stock Rout With $115 Million Buyback
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Xiaomi Corp. and its founder have gone on a stock buyback spree, repurchasing more than HK$900 million ($115.6 million) of the company’s shares on three consecutive trading days, as its stock continues to slump.
The move comes as the Hong Kong-listed electronics giant’s shares have plunged more than 30% since late September, erasing over HK$550 billion in market value and making it a laggard on the Hang Seng Tech Index.
The stock rout reflects growing investor anxiety over Xiaomi’s future profitability, triggered by a series of setbacks including market disappointment after a new phone launch, a fatal accident involving one of its electric vehicles (EVs) and a warning of shrinking margins at its core smartphone and burgeoning EV businesses.
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- Xiaomi repurchased over HK$900 million ($115.6M) of shares in three days after a 30% stock slump since late September, erasing HK$550 billion in market value.
- The decline followed market concerns over new phone launches, EV accident, and margin warnings, despite Q3 net profit beating expectations.
- Several brokerages cut revenue and profit forecasts for 2025–2027; Xiaomi lowered its full-year shipment target to 170 million units.
- Xiaomi Corp.
- Xiaomi Corp. has recently seen its stock slump, prompting buybacks exceeding HK$900 million by the company and its founder. This comes amidst investor anxiety over profitability, exacerbated by a new phone launch disappointment, a fatal EV accident, and warnings of shrinking margins in its smartphone and EV businesses. Brokerages have subsequently cut earnings forecasts for Xiaomi.
- BOCOM International Holdings Co. Ltd.
- BOCOM International Holdings Co. Ltd. (交通银行国际控股有限公司) has reduced its revenue forecasts for Xiaomi. Specifically, it lowered its 2025 revenue estimate to 466.6 billion yuan and its 2026 estimate to 534 billion yuan. This adjustment reflects investor concerns over Xiaomi's profitability.
- Huatai Securities Co. Ltd.
- Huatai Securities Co. Ltd. has reduced its non-GAAP net profit estimates for Xiaomi in 2025, 2026, and 2027 by 1.6%, 7.6%, and 4.3% respectively. Additionally, it has cut Xiaomi's target stock price from HK$65.4 to HK$53.8.
- September 25, 2025：
- Xiaomi held a product launch, initiating a downward trend in its stock price.
- September 26, 2025：
- Xiaomi shares dropped over 8% the day after the product launch.
- Late September 2025：
- By this point, Xiaomi’s shares had plunged more than 30%, erasing over HK$550 billion in market value.
- After September 25, 2025：
- Xiaomi stock began a downward spiral, attributed to various setbacks.
- October 2025：
- Xiaomi opened its third major manufacturing base to produce smart home appliances.
- October 13, 2025：
- Xiaomi shares fell 5.7% amid public concerns over a fatal collision involving a Xiaomi EV.
- November 19, 2025：
- Xiaomi shares dropped a further 4.8% the day after the company released its mixed third-quarter results.
- November 20, 2025：
- Xiaomi conducted a stock buyback totaling more than HK$811 million.
- November 21, 2025：
- Xiaomi conducted a second stock buyback as part of its buyback spree.
- November 24, 2025：
- CEO Lei Jun purchased 2.6 million Xiaomi shares for over HK$100 million via Team Guide Ltd.
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