Xiaomi (01810.HK) shares closed down 1.55% on the day of its new vehicle launch, with the company's Hong Kong market capitalisation shrinking by over HK$10 billion in a single session

ZC Asia has learned that on January 7, Xiaomi Group (01810.HK) closed at HK$38.16 per share, down HK$0.60 from the previous trading day, a decline of 1.55%. The day's turnover reached HK$7.325 billion, with a turnover rate of 0.89%. The company's Hong Kong market capitalisation shrank to HK$821.835 billion.

(Image source: Snowball)

It is reported that at 10 a.m. that day, Xiaomi officially opened pre-orders with a refundable deposit for its new-generation SU7 model. The pre-sale price range is ¥229,900 to ¥309,900, with the vehicle expected to officially launch in April 2026. The new car is equipped with lidar and 4D millimetre-wave radar, supports a 15-minute fast charge providing 670 km of range, and offers a maximum CLTC range of up to 902 km. It also introduces a new exclusive "Capri Blue" paint finish and an intelligent chassis system, further enhancing the product's competitiveness.

However, coinciding with this new product announcement, Xiaomi found itself embroiled in a public controversy over a cooperation dispute. Previous reports indicated the company intended to collaborate with digital influencer "Wanneng de Daxiong" (Zong Ning), but this blogger has long been perceived by users as a "Mi critic," triggering strong opposition from Xiaomi fans. On the evening of January 5, Xu Jieyun, Xiaomi's Head of Public Relations, urgently announced the termination of the cooperation and apologised.

Subsequently, the company issued a statement late on January 6 detailing disciplinary actions: the employee involved was dismissed, while Vice President and CMO Xu Fei and Public Relations Head Xu Jieyun received formal reprimands and had their 2025 performance bonuses revoked. Lei Jun emphasised that "making friends with users" is Xiaomi's core philosophy, and any actions damaging user trust will be dealt with seriously.

Despite Xiaomi's attempt to stabilise market confidence with a HK$150 million share buyback of 3.85 million shares on January 6, its share price failed to stabilise on January 7. Furthermore, according to a company filing, Xiaomi co-founder Lin Bin plans to sell up to $2 billion worth of shares starting from October 2026.

Although the internal management incident was handled swiftly, it may still have a short-term impact on the brand's image. Finding a balance between maintaining user relationships and expanding commercial partnerships will be a crucial challenge for Xiaomi moving forward.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.