Xiaomi Raises $5.5B to Accelerate EV Plans

On March 25, Xiaomi Group announced that it has successfully raised $5.5 billion through an expanded share placement to accelerate its electric vehicle (EV) manufacturing initiatives.

In a statement filed with the Hong Kong Stock Exchange, Xiaomi disclosed that it sold 800 million shares at HK$53.25 per share. Originally planning to issue 750 million shares, the company increased the offering size during the book-building process. The final pricing was near the lower end of the HK$52.80–HK$54.60 range previously communicated to investors, marking a 6.6% discount from Xiaomi's closing price of HK$57 on the prior trading day.

As the world's third-largest smartphone manufacturer, Xiaomi officially entered the EV sector in 2024 with the launch of its Xiaomi SU7 sedan. The capital raised will support business expansion, research, and technology development as the company strengthens its presence in the automotive industry.

Last week, Xiaomi reported a nearly 50% revenue increase in Q4 and raised its 2025 EV delivery target from 300,000 to 350,000 units. In 2024, Xiaomi's EV division generated RMB 32.1 billion ($4.4 billion) in revenue and delivered over 135,000 SU7 sedans. The company has also announced plans to begin overseas vehicle sales by 2027.

To scale up production, Xiaomi has acquired a new 52-hectare (128.5-acre) land parcel in southern Beijing for the third phase of its automotive factory, aiming to increase its annual output capacity.

Xiaomi President Lu Weibing stated that approximately one-quarter (RMB 7–8 billion) of the company's RMB 30 billion R&D budget for 2025 will be allocated to artificial intelligence (AI) development.

This fundraising aligns with a broader trend of technology-focused capital market activity in Hong Kong. Chinese companies have been leveraging positive market sentiment toward the tech sector, with equity capital market transactions in Q1 2025 reaching $16.8 billion—more than double the amount recorded in the same period last year, according to LSEG data.