Lei Jun, founder and CEO of Xiaomi, recently made a significant personal investment in the company, purchasing 2.6 million shares for over HKD 100 million. This move increased his stake to 23.26%, signaling strong confidence in Xiaomi's growth prospects amid a challenging market environment.

Xiaomi's stock had fallen more than 30% from its June peak, erasing over HKD 500 billion in market value. However, Lei's substantial buyback triggered an immediate positive response. On November 25, Xiaomi's shares surged 4.35% to close at HKD 40.34, pushing its market capitalization back above HKD 1 trillion.

The company itself has been actively repurchasing shares, spending over HKD 800 million on buybacks just this month. Year-to-date repurchases exceed HKD 23 billion. This dual approach of corporate buybacks and founder investment sends a powerful message to investors.

Despite market volatility, Xiaomi's fundamentals remain strong. Q3 2025 revenue reached RMB 113.12 billion, up 22.3% year-over-year, marking four consecutive quarters above RMB 100 billion. Adjusted net profit hit a record RMB 11.3 billion, growing 80.9% year-over-year.

Notably, Xiaomi's electric vehicle (EV) business achieved profitability for the first time, generating RMB 29 billion in revenue (up 199% year-over-year) with RMB 700 million in operating profit. Cumulative EV deliveries surpassed 260,000 units through September, including a record 108,800 in Q3. On November 20, Xiaomi celebrated its 500,000th EV produced, setting a global record for fastest production ramp in the new energy vehicle sector.

However, challenges remain. Xiaomi faces intensifying competition in the EV market, potential margin pressure, and ongoing legal disputes related to vehicle sales contracts. Some customers have sued over alleged misleading marketing claims, with one recent court ruling ordering Xiaomi to refund double a customer's deposit due to unfair contract terms.

The company is also adjusting its marketing approach after criticism of fine-print disclaimers in promotional materials. Recent campaigns have adopted more transparent messaging, particularly regarding autonomous driving features.

Management changes are underway as well, with Xiaomi's PR head Wang Hua transferring to a regional operations role, potentially signaling shifts in corporate communication strategy.

Looking ahead, Xiaomi continues to innovate technologically. The company recently announced a major winter OTA update for its vehicle lineup and plans to debut an enhanced version of its assisted driving system at the upcoming Guangzhou Auto Show.

While market sentiment fluctuates, Xiaomi's combination of strong financial performance, strategic investments, and technological advancements positions it for long-term growth, though navigating the competitive EV landscape will require sustained execution.