Core Viewpoint - The Chinese automotive industry is currently experiencing a "Darwinian" competition, where survival of the fittest is paramount, yet some new entrants have found their evolutionary path to success despite the challenges faced by established players like Mercedes-Benz, which reported a 56% decline in net profit year-on-year [2][5]. Group 1: Performance of New Entrants - The "growth trio" of new energy vehicle companies—Li Auto, Xpeng, and Xiaomi—have emerged as the top performers in terms of sales and growth rates in the first half of the year [5]. - These companies have the highest completion rates for their annual sales targets, indicating strong operational efficiency [5]. Group 2: Healthy Growth Amid Price Wars - The commonality among the "growth trio" is achieving "healthy growth," characterized by simultaneous increases in sales volume and gross margin [7]. - This success can be attributed to two main factors: strong economies of scale and precise market trend understanding [8]. Group 3: Economies of Scale - The automotive industry benefits from economies of scale, which help to dilute costs and enhance profits [10]. - For instance, Li Auto's Q2 sales surged by 53% quarter-on-quarter, reaching 134,000 units, contributing to a stable gross margin of 13.6% [13]. - Xpeng and Xiaomi also benefited from increased sales, with Xpeng's Q2 sales rising by 10% and Xiaomi's SU7 model achieving over 100,000 units in cumulative sales within four months [13]. Group 4: Enhancing Per Vehicle Value - The "growth trio" has improved per-vehicle value through various strategies, driving gross margin growth [14]. - Li Auto focuses on cost control through vertical integration, allowing it to maintain gross margin despite lower average vehicle prices [14]. - Xpeng's gross margin increased to 14.3% due to a shift in product mix towards higher-end models [14]. - Xiaomi's gross margin benefited from the strong sales of its higher-priced SU7 Ultra model [14]. Group 5: Market Precision and Emotional Value - Xiaomi's YU7 model achieved remarkable pre-order success, highlighting the importance of brand power and emotional value in the Chinese automotive market [16][20]. - The user demographic for YU7 shows a preference for aesthetics and brand identity, with a significant portion of buyers being young and affluent [25]. - The "growth trio" recognizes the shift towards emotional value, with each company adapting its strategies to resonate with consumer sentiments [21]. Group 6: Global Expansion Strategies - As domestic competition intensifies, the "growth trio" is looking to global markets for growth opportunities [22]. - Li Auto has established a joint venture with Stellantis, rapidly expanding its overseas presence with over 600 stores, primarily in Europe [26]. - Xpeng is adopting a flexible approach, establishing direct sales in Europe while partnering with local firms in Southeast Asia for assembly [26]. - Xiaomi aims to enter the European market by 2027, indicating its commitment to global expansion [27]. Group 7: Conclusion - The innovative models and strategic foresight demonstrated by the "growth trio" suggest they have the potential to define the future of the automotive industry [29]. - The competitive landscape indicates that traditional players may need to reconsider their strategies as Chinese companies leverage their hard-earned competitive advantages on a global scale [29].

Core Viewpoint - Xiaomi Group-W (01810.HK) announced the granting of a total of 44.24 million shares to 2,496 selected participants under the 2023 Share Plan, aimed at aligning the interests of participants with the company's long-term growth [1] Group 1 - The company awarded 44.24 million shares to selected participants, including employees and service providers, as part of the 2023 Share Plan [1] - The 2023 Share Plan participants include employees and service providers who provide beneficial consulting services to the company on a continuous or regular basis [1] - The purpose of granting shares is to align the interests of participants with the company's interests through share ownership, dividends, and capital appreciation, as well as to recognize their contributions and attract and retain talent for the company's ongoing operations and development [1] Group 2 - On the same day, Xiaomi Hong Kong granted a total of 248,300 stock options to two selected participants who are employees of Xiaomi Hong Kong under the 2024 Xiaomi Hong Kong Share Plan [1]

Investment Rating - The investment rating for the company is "Buy" [5][11] Core Insights - The company reported a total revenue of 227.2 billion yuan for the first half of 2025, representing a year-on-year increase of 38.2%, with an adjusted net profit of 21.5 billion yuan, up 69.8% year-on-year. In Q2 alone, the total revenue reached 116 billion yuan, with an adjusted net profit of 10.8 billion yuan, reflecting a year-on-year growth of 75.4% [3][11] Summary by Sections Automotive Sector - The automotive business saw accelerated scale effects, with Q2 revenue from smart electric vehicles and other innovative businesses reaching 21.3 billion yuan, a year-on-year increase of 234%. The company delivered 81,000 vehicles in Q2, a year-on-year increase of 198%, with an average selling price (ASP) of 254,000 yuan, up 11% year-on-year. The gross margin for the automotive business was 26.4%, an increase of 11 percentage points year-on-year [12] Smartphone Sector - In Q2 2025, the smartphone business generated revenue of 45.5 billion yuan, with a shipment volume of 42.4 million units, marking eight consecutive quarters of year-on-year growth. The company achieved a market share of 24.7% in the 4,000-5,000 yuan price range, ranking first, and a 15.4% market share in the 5,000-6,000 yuan range, up 6.5 percentage points year-on-year [13] IoT Sector - The IoT and lifestyle products segment achieved a record revenue of 38.7 billion yuan in Q2, a year-on-year increase of 45%, with a gross margin of 22.5%. The smart home appliances segment performed strongly, with air conditioner shipments exceeding 5.4 million units, a growth of over 60% year-on-year [14] Financial Forecast and Valuation - The company is expected to achieve revenues of 474.4 billion yuan, 588.7 billion yuan, and 696.4 billion yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 30%, 24%, and 18%. The net profit attributable to shareholders is projected to be 43.7 billion yuan, 56.7 billion yuan, and 71.4 billion yuan for the same years, with corresponding EPS of 1.68 yuan, 2.18 yuan, and 2.74 yuan per share [14][15]

Group 1 - The company announced the granting of a total of 44.2363 million shares as rewards to 2,496 selected participants, including employees and service providers, under the 2023 share plan on August 20, 2025 [1] - On the same day, the company granted a total of 248,300 stock options to 2 selected participants who are employees of Xiaomi Hong Kong under the 2024 Xiaomi Hong Kong share plan [1]

Core Viewpoint - Xiaomi Group-W (01810) announced the issuance of a total of 44.2363 million shares as rewards to 2,496 selected participants, including employees and service providers, under the 2023 share plan on August 20, 2025 [1] Summary by Categories Share Awards - The company will reward a total of 44.2363 million shares to 2,496 selected participants [1] - The participants include both employees and service providers of the group [1] Stock Options - On the same day, Xiaomi Hong Kong granted a total of 248,300 stock options to 2 selected participants who are employees of Xiaomi Hong Kong under the 2024 Xiaomi Hong Kong share plan [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任 何責任。 XIAOMI CORPORATION 小米集團 （於開曼群島註冊成立以不同投票權控制的有限公司） 股份代號：1810（港幣櫃台）及81810（人民幣櫃台） 此公告由本公司根據上市規則第17.06A條、第17.06B條及第17.06C條作出。 董事會謹此宣佈，本公司於2025年8月20日根據2023年股份計劃獎勵合共44,236,295股獎 勵股份予2,496名選定參與者，包括本集團僱員及服務供應商。同日，小米香港根據2024 年小米香港股份計劃授出合共248,300份小米香港購股權予2名為小米香港集團僱員的小 米香港選定參與者。 1. 根據2023年股份計劃授出獎勵 於2025年8月20日，本公司根據2023年股份計劃獎勵合共44,236,295股獎勵股份予2,496 名選定參與者，包括本集團僱員及服務供應商。 授出獎勵詳情 獎勵代價： 零 1 根 據 2023 年股份計劃授出獎勵 及 根 據 2024 ...

Core Viewpoint - The article highlights the growing dissatisfaction among Xiaomi car owners due to aggressive payment collection practices for vehicle tail payments before delivery, which has led to a decline in trust towards the brand [4][21][22]. Group 1: Payment Collection Practices - Multiple Xiaomi car owners reported being pressured to pay the remaining balance within seven days before vehicle delivery, with threats of order cancellation and forfeiture of deposits [4][5]. - Affected owners expressed frustration, especially when delivery timelines were extended, leading to concerns about potential vehicle damage before receipt [4][18]. - Xiaomi's approach contrasts with industry norms, where payment is typically collected upon delivery, raising questions about the legality and fairness of their practices [6][9]. Group 2: Customer Sentiment and Trust Issues - Trust among Xiaomi car owners is eroding, with many feeling misled and treated unfairly, leading to a sense of betrayal among loyal customers [21][22]. - Some owners have resorted to creative means to reclaim deposits, indicating a significant level of dissatisfaction and distrust towards the company [10][12]. - The article notes that the perception of Xiaomi as a brand has shifted from a symbol of innovation to one associated with aggressive sales tactics, impacting customer loyalty [22][23]. Group 3: Market Position and Competition - Despite the challenges, Xiaomi has achieved significant sales milestones, with over 311,700 vehicles delivered within 15 months, outperforming competitors like NIO [4][29]. - However, the aggressive payment collection strategy may backfire, as competitors are poised to capitalize on Xiaomi's declining reputation and customer dissatisfaction [27][29]. - The article suggests that Xiaomi needs to improve production capacity and customer relations to maintain its market position and avoid losing customers to rival brands [24][27].

Core Insights - The "China Online Consumption Brand Index" (CBI) and "Global Brand China Online Top 500" (CBI500) indicate a continued growth in online consumer brand index, rising from 63.38 in Q1 2025 to 65.17 in Q2 2025, reflecting a trend towards purchasing quality brand products among Chinese consumers [1][2]. Group 1: Consumer Behavior Trends - During major shopping festivals like 618 and Double 11, consumers show a preference for quality brands over low-priced private labels, indicating that promotional events are crucial for brand management and quality consumption [1][4]. - The CBI index demonstrates significant seasonal fluctuations, with higher values recorded in the second and fourth quarters, which include these shopping festivals [2][3]. Group 2: Brand Rankings and Market Dynamics - The CBI500 list saw notable changes, with Apple, Midea, Xiaomi, Haier, and Huawei occupying the top five positions. Seasonal demand for summer products like air conditioners and fans contributed to shifts in rankings [5][11]. - The ranking methodology emphasizes real consumer behavior, focusing on sales, search volume, and customer reviews, rather than traditional metrics like revenue and profit [5][6]. Group 3: Emerging Brands and Market Opportunities - The introduction of the "Fast-Moving Consumer Goods New Brands List" highlights the growth potential of emerging brands, with 48 out of 50 listed brands being new entrants from mainland China [7][8]. - The study indicates that attracting high-value consumers and fostering repeat purchases are critical for new brands to transition from short-lived popularity to sustained success [8].

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 66.86 HKD [1][7] Core Views - The company has shown strong product innovation and delivery capabilities, with record monthly deliveries in its automotive segment and significant growth in IoT and home appliance businesses [6][10] - The revenue and adjusted net profit reached new quarterly highs, indicating robust financial performance [10] - The automotive gross margin has significantly improved, and the IoT business is experiencing rapid growth, contributing to the overall positive outlook for the company [6][10] Financial Performance Summary - The company’s revenue for 2023 is projected at 270,970 million HKD, with a year-on-year growth of -3%. By 2025, revenue is expected to reach 484,886 million HKD, reflecting a 33% growth [9] - Operating profit is forecasted to increase from 20,009 million HKD in 2023 to 49,537 million HKD in 2025, with a substantial year-on-year growth of 102% [9] - The net profit attributable to the parent company is expected to grow from 17,475 million HKD in 2023 to 42,655 million HKD in 2025, marking an 80% increase [9] - The earnings per share (EPS) is projected to rise from 0.67 HKD in 2023 to 1.64 HKD in 2025 [9] Product and Market Performance - In Q2 2025, the company achieved a revenue of 1160 million HKD, a 30% year-on-year increase, with an adjusted net profit of 108 million HKD, up 75% year-on-year [10] - The automotive segment generated 206 million HKD in revenue in Q2 2025, with a gross margin of 26.4%, indicating strong consumer acceptance of high-end models [10] - The IoT and lifestyle product segment reached a record revenue of 387 million HKD in Q2 2025, growing 45% year-on-year, with significant contributions from major appliances [10]

Core Viewpoint - The company reported record high revenue and adjusted net profit for Q2 2025, driven by strong performance in various business segments, particularly in IoT and automotive sectors [1][2][3]. Automotive - Q2 2025 revenue from smart electric vehicles and AI-related businesses reached 213 billion, with a sequential increase of 14.4%, while operating losses narrowed from 5 billion to 3 billion [2] - The gross margin improved to 26.4%, attributed to lower core component costs and increased deliveries of the SU7 Ultra model [2] - The company plans to accelerate production capacity in the second half of 2025 and aims to enter the European market by 2027, enhancing its global brand influence [2] IoT - Q2 2025 IoT business revenue was 387 billion, marking a year-on-year growth of 44.7% and a sequential increase of 19.7%, driven by strong sales in smart home appliances and wearables [3] - The gross margin for IoT was 22.5%, with a year-on-year increase of 2.8 percentage points, reflecting improved product mix [3] - The company is expanding its retail strategy, increasing the number of offline stores in mainland China from approximately 16,000 to over 17,000 [3] Mobile Phones - Q2 2025 mobile phone revenue was 455 billion, showing a year-on-year decline of 2.1% and a sequential decline of 10.1% [4] - The average selling price (ASP) decreased to 1,073, with a gross margin of 11.5%, impacted by fluctuations in component prices [4] - Despite a challenging domestic market, the company achieved a 3.6% year-on-year increase in its smartphone sales [5] Internet Services - Q2 2025 internet services revenue was 91 billion, reflecting a year-on-year growth of 10.1% [6] - The gross margin for internet services was 75.4%, with a slight decline compared to the previous year [6] - The global monthly active user count reached 730 million, marking a year-on-year increase of 8.2% [6] Investment Outlook - The company is positioned as a leading player in the global smartphone market and the largest AIoT hardware platform, with positive long-term growth prospects across its business segments [6] - The automotive sector is expected to benefit from the expansion of its vehicle lineup and ecosystem synergies, aiming to rank among the top five global automakers by 2025-2027 [6]