Citigroup released a report stating that Lei Jun, Chairman of Xiaomi Group (01810.HK), revealed during a New Year’s livestream on the evening of January 3 that the company’s 2026 electric vehicle delivery target is 550,000 units. This figure is lower than investors’ expectations of 600,000 to 700,000 units and also falls short of Citigroup’s estimate of 700,000 units. The bank’s scenario analysis indicates that a 21% reduction in EV shipments could impact EV operating profit by RMB 5.4 billion, equivalent to 11% of the bank’s forecast for Xiaomi’s 2026 adjusted net profit. Citi believes this target is conservative, as based on the run rate of over 50,000 monthly deliveries in December 2025, its production capacity is likely sufficient to support deliveries exceeding 600,000 units. The bank believes that Xiaomi’s actual backlog is already below 200,000 units, and monthly new orders at year-end have stabilized at around 20,000 units.