Xiaomi’s Quarterly Profit Slumps as Rising Chip Costs Squeeze Margins

Xiaomi Corp reported a decline in quarterly net profit, missing analyst expectations on both the top and bottom lines. Earnings per share (EPS) came in at $0.16, falling short of the estimated $0.18, while quarterly revenue reached approximately $16.93 billion against a forecast of $17.01 billion. The results were primarily driven by rising memory chip costs and global supply chain pressures that squeezed hardware margins. Despite these challenges, the company maintains a stable balance sheet with a low debt-to-equity ratio of 0.10 and a current ratio of 1.32. Investor confidence remains steady as reflected in a price-to-earnings (P/E) ratio of 16.90. Xiaomi's American Depositary Receipts (ADRs) continue to trade on the OTC market under the ticker XIACY.

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