Xiaomi’s Buyback Mandate Wins 99.98% Support as Product Expansion Struggles to Lift Sinking Stock

Xiaomi shareholders sent a clear message at this month’s annual general meeting: they overwhelmingly back share repurchases, but they are far more wary of authorizing new equity issuance. The buyback program received 99.982174% approval, while the general mandate to issue new B-shares secured just 63.127453% of the vote from B-share holders. That 37-point gap underscores a deepening sensitivity to dilution at a time when the stock is scraping multi-year lows.

The board acted swiftly on that mandate. On June 5, Xiaomi bought back 3.5 million B-shares on the open market for a total of HKD 98.03 million, with the purchase price ranging from HKD 27.98 to HKD 28.04 per share. Rather than treasury stock, the shares are earmarked for cancellation, a move that will eventually reduce the total outstanding count. So far, the company has acquired 7.0 million shares under the program, representing just 0.03% of the 2.58 billion shares authorized for repurchase.

A new moratorium accompanies the buyback: Xiaomi has barred itself from issuing new shares, or selling or transferring any treasury shares, until July 5, 2026. The restriction can be waived only under specific exchange rules or with bourse approval. That is significant because small equity issuances tied to share-based programs continue alongside the buyback—193,000 B-shares were issued the day before the repurchase, and another 115,000 went out on the same day to participants who are not company directors. The gross count of B-shares consequently ticked up to 21.386 billion from 21.386 billion, even as the bought-back shares await formal cancellation.

Operationally, Xiaomi is trying to counter the market headwinds with a broader ecosystem play. The 17T Pro smartphone will receive a software update (OS3.0.308.0) that adds an expanded Quick Share function compatible with Apple’s AirDrop, allowing file transfers between Xiaomi and Apple devices. The feature requires an active Google account and both Bluetooth and Wi-Fi toggled on. Beyond phones, Xiaomi’s Redmi Watch 6 is rolling out internationally in Poland, Romania, and Thailand; the NFC variant extends contactless payments. The watch sports a 2.07-inch AMOLED display with peak brightness of 2,000 nits and up to 24 days of battery life. In the smart home segment, the Mijia Air Purifier 6, controlled via HyperOS, has also launched.

Should investors sell immediately? Or is it worth buying Xiaomi?

Yet product breadth has not translated into financial momentum. In the first quarter ended March 31, 2026, Xiaomi reported revenue of CNY 99.1 billion, down 10.9% year on year. Earnings per share more than halved, falling from CNY 0.44 to CNY 0.18. Analysts expect full-year EPS of CNY 1.13, but the second-quarter results, due on August 26, will test whether the raft of new devices can arrest the profit slide.

The stock itself remains under heavy pressure. On Friday, Xiaomi shares closed at EUR 2.99 on the German market, down 4.47%, after touching a fresh 52-week low of EUR 2.98 intraday. The year-to-date decline now stands at 33.41%, while the 12-month drop reaches 50.46%. The current price sits 30.59% below its 200-day moving average and 54.70% below the 52-week high. The RSI of 36.5 suggests selling pressure is easing, but it is not yet a decisive reversal signal.

Over the next month, the moratorium shields the stock from new issuance risk. The market’s attention now turns to two concrete milestones: when Xiaomi actually cancels the repurchased shares, and whether it will continue deploying the buyback mandate after the initial tranche. Neither step alone can substitute for a fundamental earnings recovery, but each buys time in a market that has priced in very little good news.