Profitability

Xiaomi CEO Lei Jun stated the company will avoid a price war, focusing on sustainable growth in the automotive sector. Xiaomi aims for a long-term hardware profit margin capped at 5% and plans to produce its own automotive chips. The YU7 standard edition pricing will be decided just before launch. The company projects its automotive, chip, and other new ventures will achieve profitability in Q3 or Q4, supported by strong Q1 performance and significant investment in intelligent driving system R&D.

Agora Inc. (API) reported a second consecutive quarter of GAAP profitability, achieving a net income of $0.4 million in Q1 2025. While overall revenue grew slightly to $33.3 million, the Agora segment saw a 17.7% increase. The company maintains a strong cash position of $388 million. For Q2 2025, Agora projects revenue between $33-35 million.