Core Insights - In February 2026, BYD's Fudi Battery achieved an installed capacity of 4628 MWh, capturing 17.0% of the domestic market share, with Xiaomi Automotive emerging as its largest external customer at 17.9% procurement share, surpassing other partners [1][6][9] Group 1: Market Performance - The overall domestic power battery market is undergoing structural adjustments, with a year-on-year decline in installed capacity, yet lithium iron phosphate batteries maintain a dominant position due to their comprehensive advantages [4][9] - Fudi Battery's performance during this adjustment period is attributed to its technological and production capacity advantages, as well as strong support from external customers like Xiaomi [4][9] Group 2: Customer Dynamics - Xiaomi Automotive's procurement share of 17.9% positions it as the leading external customer for BYD batteries, significantly ahead of other clients such as Equation Leopard and XPeng, which have shares of 10.0% and 6.6% respectively [2][7] - The collaboration between Xiaomi and BYD has deepened, with multiple Xiaomi models utilizing Fudi's lithium iron phosphate batteries, enhancing their competitive edge in the market [3][8] Group 3: Strategic Developments - BYD is transitioning from a "self-supply" model to becoming a "global super supplier," with its external supply ratio exceeding 20% in the first three quarters of 2025, doubling from the end of 2024 [3][8] - The partnership with Xiaomi is expected to expand BYD's external supply landscape and foster deeper cooperation in technology development and production capacity [4][9]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810.HK) [6] Core Insights - In 2025, Xiaomi Group achieved a revenue of 457.3 billion CNY, representing a year-on-year growth of 25.0%, and a Non-IFRS net profit of 39.2 billion CNY, up 43.8% year-on-year [1] - The company’s smart electric vehicle and AI segments generated over 100 billion CNY in revenue for the first time, achieving an annual operating profit of 900 million CNY [1] - The smartphone business faced challenges with a revenue decline of 2.8% year-on-year, attributed to a slight drop in shipment volume and increased core component costs impacting gross margins [2] - The IoT and lifestyle products segment saw robust growth, with a revenue increase of 18.3% year-on-year, although Q4 experienced a slowdown due to subsidy reductions [3] - The automotive business delivered 411,082 vehicles in 2025, marking a 200.4% increase year-on-year, and the launch of the new Xiaomi SU7 series is expected to drive further growth [4] - The report highlights the integration of AI strategies across the company's ecosystem as a key growth driver in the AI era [4] Summary by Sections Financial Performance - In 2025, Xiaomi Group's total revenue reached 457.3 billion CNY, with a Non-IFRS net profit of 39.2 billion CNY, reflecting significant growth compared to the previous year [1] - The smartphone segment generated 186.4 billion CNY in revenue, down 2.8% year-on-year, with a gross margin of 10.9%, a decrease of 1.7 percentage points [2] - IoT and lifestyle products revenue reached 123.2 billion CNY, up 18.3% year-on-year, with a gross margin of 23.1% [3] - The automotive segment reported revenue of 106.1 billion CNY, a remarkable increase of 223.8% year-on-year, achieving a gross margin of 24.3% [4] Future Outlook - The report projects a decline in Non-IFRS net profit for 2026 and 2027 to 32.0 billion CNY and 41.6 billion CNY, respectively, due to rising upstream costs and market competition [5] - Despite short-term challenges in the smartphone segment, the strong performance of the automotive business and the integration of AI strategies are expected to open new growth avenues [5]

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） 根 據 2023 年股份計劃授出獎勵 及 根 據 2024 年小米香港股份計劃授出小米香港購股權 董事會謹此宣佈，本公司於2026年3月25日根據2023年股份計劃獎勵合共26,668,415股獎 勵股份予954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40,570份小米香港購股權予1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2026年3月25日，本公司根據2023年股份計劃獎勵合共26,668,415股獎勵股份予954 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 授出日期： 2026年3月25日 獎勵股份數量： 根據2023年股份計劃，僱 ...

Core Viewpoint - The recent price increases in smartphones are primarily driven by the soaring costs of storage chips, which have seen a dramatic rise due to increased demand from AI infrastructure and limited supply from major manufacturers [6][9]. Group 1: Price Adjustments - OPPO initiated the first wave of price adjustments for its A series, K series, and some OnePlus models, followed by vivo and other brands like Redmi and Honor [5][6]. - The price hikes are particularly pronounced in the mid-range segment, with many models seeing increases of 100 to 1000 yuan [8][16]. Group 2: Impact of Storage Chip Prices - The price surge in storage chips has disproportionately affected mid-range smartphones, which have less cost elasticity compared to high-end models [9][13]. - For instance, the storage cost for the iPhone 17 Pro Max is approximately 300 yuan, which is negligible for its overall price, while for mid-range devices, storage costs can account for up to 43% of the BOM [13][14]. Group 3: Market Dynamics - The current market dynamics show that brands with a higher proportion of low-end models face greater pressure from rising costs, leading to a necessity for price increases [14][27]. - In contrast, brands like Huawei and Apple have managed to lower prices on some models, indicating a different strategy in response to market conditions [15][18]. Group 4: Historical Context - The current storage chip price cycle is reminiscent of the 2016-2018 period, which also saw significant price increases due to supply constraints and rising demand from both smartphone manufacturers and data centers [20][21]. - The absence of a "buffer layer" of mid-tier brands, which previously absorbed some of the cost pressures, has made the current situation more challenging for leading brands [28][29]. Group 5: Supply Chain Challenges - The concentration of power among a few storage chip manufacturers (Samsung, SK Hynix, Micron) has diminished the bargaining power of smartphone brands compared to previous years [30][33]. - As demand from cloud computing companies increases, smartphone manufacturers are left with less leverage in negotiations for storage components, leading to higher costs being passed on to consumers [34][37].

Group 1: Market Overview - Southbound funds traded approximately 165.56 billion HKD today, an increase of 21.8 billion from the previous day, accounting for 47.18% of the total turnover of the Hang Seng Index [1] - The Hong Kong stock market continued its rebound, with a net inflow of southbound funds amounting to 22.32 billion HKD, including a net inflow of about 14.23 billion HKD from the Shanghai-Hong Kong Stock Connect and approximately 8.09 billion HKD from the Shenzhen-Hong Kong Stock Connect [1] Group 2: ETF Activity - After a significant outflow the previous day, funds reversed to buy three major ETFs: the Tracker Fund of Hong Kong (02800.HK) received 11.38 billion HKD, the Southern China Technology ETF (03033.HK) received 3.40 billion HKD, and the Hang Seng China Enterprises Index ETF (02828.HK) received 1.32 billion HKD [1] Group 3: Individual Stock Performance - Pop Mart (09992.HK) saw a net buy of 2.31 billion HKD despite a drop of 22.51% today, with funds increasing their holdings by 3.07 million shares over the past five days [4] - Meituan-W (03690.HK) experienced a net buy of 1.72 billion HKD, with a price increase of 13.92%, although funds reduced their holdings by 1.04 million shares in the last five days [9] - Alibaba-W (09988.HK) had a net buy of 1.51 billion HKD, with a price increase of 4.63% and an increase in holdings by 4.34 million shares over the past five days [9] - Xiaomi Group-W (01810.HK) saw a net buy of 0.97 billion HKD, with a slight decrease of 0.49% today and an increase in holdings by 7.27 million shares over the past five days [5] Group 4: Notable Outflows - China National Offshore Oil Corporation (00883.HK) experienced a significant net outflow of 1.06 billion HKD, with a price drop of 3.19% and a decrease in holdings by 1.78 million shares over the past five days [3][6] - Tencent Holdings (0700.HK) had a net outflow of 0.62 billion HKD, with a price drop of 1.65% and a decrease in holdings by 0.86 million shares over the past five days [3][7]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 40.8, indicating a potential upside of 24.8% from the recent closing price [7]. Core Insights - The automotive business has become a key growth driver, achieving a revenue of RMB 372 billion in Q4 2025, representing a year-on-year increase of 123.4% and marking the first quarter of operational profitability at RMB 11 billion [1][2]. - Traditional businesses, such as smartphones and AIoT, are facing short-term pressure due to rising core component and storage costs, impacting overall profitability [1][3]. - The internet services segment showed steady growth, with Q4 2025 revenue reaching RMB 99 billion, a 5.9% year-on-year increase, supported by a record high in advertising revenue [3]. - The IoT and lifestyle consumption segment experienced a decline, with Q4 2025 revenue falling by 20.3% due to a weak domestic appliance market [4]. Summary by Relevant Sections Automotive Business - The automotive segment's revenue reached RMB 372 billion, accounting for 31.8% of total revenue, with a gross margin of 22.7%. The average selling price (ASP) of vehicles increased by 6.6% to RMB 249,846 per unit, driven by higher-value model deliveries [2]. - The company aims to deliver 550,000 vehicles in 2026 and plans to invest over RMB 200 billion in R&D over the next five years, with RMB 60 billion allocated to AI initiatives [4]. Smartphone Business - The smartphone segment's global shipments reached 37.7 million units in Q4 2025, a decline of 11.6% year-on-year, attributed to reduced promotional activities in overseas markets. The ASP increased by 10.7% to RMB 1,176.0 due to a higher proportion of premium models sold [3]. Internet Services - Internet services revenue for Q4 2025 was RMB 99 billion, with a gross margin of 76.8%. Advertising revenue reached RMB 78 billion, marking a 10.4% year-on-year increase and providing solid support for overall profitability [3]. IoT and Lifestyle Consumption - The IoT and lifestyle consumption segment reported a revenue of RMB 246 billion in Q4 2025, down 20.3% year-on-year, primarily due to a downturn in the domestic appliance market [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 40.8, indicating a potential upside of 24.8% from the recent closing price [7]. Core Insights - The automotive business has become a key growth driver, achieving a revenue of RMB 372 billion, a year-on-year increase of 123.4%, and marking the first quarter of operational profitability at RMB 11 billion [1][2]. - Traditional businesses, such as smartphones and IoT, are facing short-term pressures due to rising costs and market competition, impacting overall profitability [3][4]. - The company plans to focus on delivering 550,000 vehicles in 2026 and has committed to significant R&D investments, exceeding RMB 200 billion over the next five years, with RMB 60 billion specifically for AI [4][5]. Summary by Sections Automotive Business - The automotive segment's revenue reached RMB 372 billion, accounting for 31.8% of total revenue, with a gross margin of 22.7% [2]. - The company delivered 145,115 new vehicles in the quarter, a 108.2% increase year-on-year, driven by strong demand and an increase in average selling price (ASP) to RMB 249,846 per vehicle [2]. Smartphone Business - The smartphone segment's global shipments reached 37.7 million units, but faced an 11.6% year-on-year decline due to reduced promotional activities in overseas markets [3]. - The ASP for smartphones increased by 10.7% quarter-on-quarter to RMB 1,176, supported by higher sales of premium models [3]. Internet Services - Internet services revenue for the quarter was RMB 99 billion, a 5.9% year-on-year increase, with a gross margin of 76.8% [3]. - Advertising revenue reached a record high of RMB 78 billion, growing 10.4% year-on-year, providing solid support for overall profitability [3]. IoT and Lifestyle Products - Revenue from the IoT and lifestyle segment declined by 20.3% year-on-year to RMB 246 billion, primarily due to a weak domestic appliance market [4]. Business Outlook - The automotive sector is positioned as the core growth engine for the company, with ambitious delivery targets and substantial R&D investments planned for the coming years [4][5].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 43 HKD [7][19]. Core Insights - The company reported FY2025 revenue of 457.3 billion RMB, a year-on-year increase of 25.0%, and a Non-GAAP net profit of 39.2 billion RMB, up 43.8% year-on-year. The 4Q25 revenue was 116.9 billion RMB, with a year-on-year growth of 7.3%, while Non-GAAP net profit for the quarter was 6.3 billion RMB, down 23.7% year-on-year [1][5]. - Management indicated that the storage price increase cycle may last longer and be more significant than previously expected, potentially extending into 2027, which is a more pessimistic outlook compared to earlier reports [1]. - The company has made significant advancements in AI, with the MiMo-V2-Pro model ranking among the top globally and the AI Agent "MiKe" entering beta testing, although commercialization is still in its early stages [3]. - The automotive segment achieved its first annual operating profit, delivering 411,082 vehicles, a 200.4% increase year-on-year, with the new SU7 model performing exceptionally well [4]. Summary by Sections Financial Performance - FY2025 revenue reached 457.3 billion RMB, with a 25.0% year-on-year increase. Non-GAAP net profit was 39.2 billion RMB, reflecting a 43.8% increase year-on-year. The 4Q25 revenue was 116.9 billion RMB, up 7.3% year-on-year, while Non-GAAP net profit for the quarter was 6.3 billion RMB, down 23.7% year-on-year [1][5]. Smartphone/IoT/Internet Business - In 4Q25, the smartphone and AIoT segment generated revenue of 79.7 billion RMB, a decrease of 13.7% year-on-year, with a gross margin of 20.0%. Smartphone revenue was 44.3 billion RMB, with a shipment of 37.7 million units, down 11.6% year-on-year. IoT revenue was 24.6 billion RMB, down 20.3% year-on-year, but the annual IoT revenue reached a record high of 123.2 billion RMB [2]. AI Development - The company launched several AI models, including MiMo-V2-Pro, MiMo-V2-Omni, and MiMo-V2-TTS, establishing a comprehensive AI technology foundation. The MiMo-V2-Pro model has the highest usage on the OpenRouter platform, priced significantly lower than competitors [3]. Automotive Business - The automotive segment achieved its first annual operating profit with a delivery of 411,082 vehicles, exceeding the initial target of 300,000 units. The new SU7 model saw strong demand, with over 15,000 orders within 34 minutes of launch [4]. Profit Forecast and Valuation - The report maintains Non-GAAP net profit forecasts of 34.5 billion RMB for 2026 and 45.4 billion RMB for 2027, introducing a forecast of 57.1 billion RMB for 2028. The target price of 43 HKD corresponds to a 32x PE ratio for 2026 [5][19].

Report Industry Investment Rating - Not provided in the report. Core Viewpoints - Maintain neutral on BTSDF 28 due to its stronger FY25 results and improving credit profile [4][8] - Maintain buy on XIAOMI 30 - 31 considering Xiaomi's solid credit profile, sizeable net cash position, less vulnerability to geopolitical risk, and potential benefit from government measures to stimulate domestic consumption [4][18] Summary by Directory Trading Desk Comments - Yesterday, WESCHI 28 - 29 leaked 0.7 - 1.0pt. West China Cement reported a 15.3% yoy increase in revenue in FY25 but weaker 2H25 results [2] - In Chinese IG space, XIAOMI 30 - 51 closed 1 - 4bps wider. Xiaomi's FY25 revenue was up 25% yoy to RMB457.3bn [2] - 5 - 10yr MEITUA tranches faced better - selling pressure and closed 3bps wider. ZHOSHK 28 was down another 0.8pt [2] - Selling flows were concentrated in the FRN space across Chinese financial names, EU/AU banks and Korean corporates [2] - In Chinese properties, LNGFOR 27 - 32 gained 0.6 - 1.1pts. VNKRLE 27 was 0.7pt higher, while VNKRLE 29 was 0.2pt lower [2] - In HK, HYSAN 4.85 Perp was down 1.3pts, while HYSAN 7.2 Perp gained 0.3pt [2] - In SE Asian space, VEDLN 28 - 33s recovered up to 1.1pts higher. The NCLAT allowed Adani Enterprises to proceed with the resolution process for Jaiprakash Associates, even after Vedanta's appeal [2] - GLPSPs/GLPCHI edged 0.1 - 0.9pt higher [2] - In the Middle East, PB accounts were buying long - end KSAs and aoyr ARAMCOs. The space stabilized compared to the previous lows and traded 0.2pt lower to 0.5pt higher [2] - Yankee and Japanese AT1s and insurance subs leaked 0.3pt during Asia session as PB and AM clients sought to trim risks, before gaining 0.3 - 0.5pt with short covering and buying from London [2] - Overall balanced two - way flows were seen with better buying concentrated in less than 5yr - to - call, and better selling in longer dated issues [2] - In LGFV space, increased better selling from AMs in higher - grade USD issues yielding 4% was observed, which closed 20bps wider. Higher - yielding papers remained largely well digested thanks to demand from RMs, especially for papers with shorter - duration [3] - This morning, the new KOROIL 29 - 31s tightened 10bps from RO at T + 65 and T + 70, respectively. The new KOROIL Float 29s tightened 10bps from RO at SOFR + 80. The new fixed - rate and floating CBAAU 29s were unchanged from RO at T + 43 and SOFR + 63, respectively [4] - LGENSO 26 - 35s widened 10bps, as LG Energy Solution proposes to issue USD bonds in four tranches [4] - ZHOSHK 28 gained 1.0pt [4] - BTSDF had a stronger set of FY25 results with an improving credit profile. BTSDF 28 was 0.1pt higher this morning, and maintain neutral on it [4][8] - Chinese TMT names were 2 - 4bps tighter this morning [4] Top Performers and Underperformers | Top Performers | Price | Change | Top Underperformers | Price | Change | | --- | --- | --- | --- | --- | --- | | TSINGH 6 1/2 01/31/28 | 87.8 | 1.1 | HYSAN 4.85 PERP | 74.9 | - 1.3 | | VEDLN 9.85 04/24/33 | 101.5 | 1.1 | WESCHI 9.9 12/04/28 | 92.4 | - 1.0 | | LNGFOR 3.95 09/16/29 | 77.9 | 1.1 | TELPM 3.45 06/23/50 | 70.7 | - 1.0 | | VEDLN 11 1/4 12/03/31 | 105.8 | 1.1 | ZHOSHK 5.98 01/30/28 | 93.1 | - 0.8 | | LNGFOR 4 1/2 01/16/28 | 88.3 | 1.0 | WESCHI 10 1/2 11/11/29 | 92.1 | - 0.7 | [5] Macro News Recap - On Tuesday, S&P (-0.37%), Dow (-0.18%) and Nasdaq (-0.84%) were lower. S&P Global Mar'26 Manufacturing PMI was 52.4, higher than the market expectation of 51.5. S&P Global Mar'26 Services PMI was 51.1, lower than the market expectation of 52.0 [7] - UST yield was higher on Tuesday. 2/5/10/30 year yield was at 3.90%/4.03%/4.39%/4.94% [7] Desk Analyst Comments - BTSDF had a stronger set of FY25 results with an improving credit profile. H&H's credit profile is improving, supported by active liability management and IMF recovery. Maintain neutral on BTSDF 9.125 07/24/28 on current valuation. In Chinese HY space, FOSUNI 8.5 05/19/28 is favored, which offers c120bps pick - up over BTSDF 28 and c2 months earlier to maturity. At 100.2, FOSUNI 8.5 05/19/28 is trading at YTM of 8.4% [8] - XIAOMI had stronger FY25 results despite softening in 4Q25. Maintain buy on XIAOMI 30 - 31, considering Xiaomi's solid credit profile with a sizeable net cash position, less vulnerability to geopolitical risk, and potential benefit from government measures to stimulate domestic consumption. At 95.5 and 91.7, XIAOMI 3.375 04/29/30 and XIAOMI 2.875 07/14/31 are both trading at YTM of 4.6% [18] BTSDF Analysis - H&H's revenue rose 10.0% yoy to RMB14.4bn in FY25, with all business segments recording growth. Gross profit increased 13.2% yoy to RMB9.0bn, with GPM expanded to 62.4%, primarily driven by improved margins within the ANC and PNC segments and sourcing costs optimization [9] - Adj. EBITDA rose 5% yoy to RMB2.1bn, though adj. EBITDA margin contracted slightly to 14.3% due to higher revenue mix from the lower - margin BNC segment, higher SG&A on increased investment for ANC and PNC expansion in the Southeast Asia [9] - H&H met its revised FY25 guidance of high - single - digit to low - double - digit revenue growth. Adj. EBITDA margin and adj. net profit margin of 14.3% and 4.6%, respectively, were broadly in line with its targets of c15% and c5% [10] - China continued to be H&H's largest market with strong revenue growth of 17.5% yoy to RMB10.2bn in FY25, primarily driven by robust IMF revenue growth of 28.3% yoy in the BNC segment. Its market share in super - premium IMF segment rose to 17.1% as of Dec'25 from 13.3% a year earlier, while Biostime retained its No.1 position in the paediatric probiotic market. ANC revenue also recorded healthy growth of 13.3% yoy, and Swisse ranked No. 1 in the overall VHMS market [11] - Revenue growth in North America was steady at 7.8% yoy to RMB1.7bn, supported by Zesty Paws in the PNC segment. Zesty Paws' revenue grew 12.8% yoy on a LFL basis, while Solid Gold recorded 13.1% yoy decline in revenue on a LFL basis under H&H's product premiumisation strategy. Revenue from ANZ markets contracted 21.8% yoy to RMB1.6bn owning to decline in corporate daigou business in the ANC segment, through Swisse became the No.1 VMS brand in Australia on both volume and value basis [12] - As of Dec'25, H&H's cash balance increased to RMB1.7bn, supported by positive FCF. The cash conversion cycle was also shorter to 88 days from 109 days in FY24. H&H has been proactive in managing its debt maturity profile throughout 2025, including a tender offer and concurrent new USD bond issuance and prepayment of USD term loan. Debt maturities are more concentrated in 2027, and it is expected to refinance these obligations given its good access to diversified funding channels. Management reiterated its target to lower the leverage ratio to below 3x by end - 2027 and below 2x by end - 2028, from 3.45% as of Dec'25, through a combination of debt reduction and EBITDA growth [13] - The review of H&H's objection by the Australian Tax Office (ATO) remains ongoing, and expects to receive an official reply from ATO on the objection by Jun'26. There is no need to be overly concerned about the ongoing tax audit of H&H's subsidiary Biostime Healthy Australia Pty (BHA) materially impacting its near - term liquidity. No further deposit is required until the case reaches a final conclusion [14] Xiaomi Analysis - Xiaomi's revenue increased by 25.0% yoy to RMB457.3bn in FY25, driven by a 223.8% yoy revenue growth in the Smart EV, AI and other new initiatives, as well as a steady 5.4% yoy revenue growth in the segment of Smartphone x AIoT [20] - Within the Smartphone x AIoT segment, Xiaomi's smartphones revenue declined by 2.8% yoy in FY25 due to lower ASP and shipment volumes. The ASP fell by 0.8% yoy to RMB1,129 per unit in FY25. The higher ASP of smartphone in China was more than offset by the lower ASP overseas. In FY25, the shipment volumes of Xiaomi's smartphones decreased 2.0% yoy to 165.2mn units, compared to 168.5mn in FY24. Decline of shipments in India was partially offset by increased shipments of premium smartphones in the China, Latin America and Africa. Xiaomi remained as the world's 3rd largest smartphone manufacturer (after Samsung and Apple) by shipments with 13.3% market shares in FY25 [21] - In FY25, revenue of IoT and lifestyle products grew 18.3% yoy, primarily supported by tablets, smart large home appliances and wearables. Smart EV segment revenue rose 223.8% yoy and reached RMB106.1bn in FY25, driven by a 200.4% yoy growth in vehicle deliveries and 7.1% yoy increase in ASP, primarily due to the introduction of Xiaomi SU7 Ultra and Xiaomi YU7 Series. The growing contribution from smart EV should help to mitigate the softened smartphone market [22] - The GP margin of Xiaomi in FY25 improved to 22.3%, compared to 20.9% in FY24, driven by higher gross margin in both the Smartphone x AIoT segment and Smart EV segment. The margin expansion was attributable to an increase in GP margin of certain products, as well as higher revenue contribution of those products, namely wearables and certain lifestyle products. EBITDA rose 34.9% yoy to RMB37.6bn in FY25, with EBITDA margin improved 0.6 pct. pt. to 8.2% [23] - Xiaomi's operating performance softened in 4Q25, primarily due to the decrease of revenue from smartphones as well as IoT and lifestyle products, partly offset by solid growth in the smart EV segment. The decline of smartphones revenue in 4Q25 was attributable to reduced promotions in the overseas markets. Lower revenue from IoT and lifestyle products was a result of reduced national subsidies and increased competition in the Chinese mainland [24] - As of Dec'25, Xiaomi had net cash (unrestricted cash and short term investments minus total debts) of RMB71.6bn, representing an 2.4% increase from RMB69.9bn as of Dec'24. Xiaomi's operating cash flows, after R&D of RMB33.1bn, decreased by 13.1% yoy to RMB34.1bn. In FY25, Xiaomi invested RMB18.2bn in capex (73% yoy increase). Xiaomi expects to spend over RMB40bn in R&D in FY26 and over RMB200bn over the next five years. Xiaomi has a strong liquidity profile with unrestricted cash to ST debts ratio at 2.0x [25] - Xiaomi's FY26 outlook includes: 1) deeply integrate AI in Xiaomi's ecosystem and invest RMB60bn in AI over the next three years; 2) expand the overseas market from 450 stores in FY25 to 1k stores in FY26 for higher sales of IoT products; and 3) reach 550,000 vehicle deliveries (compared to 410,000 units in FY25). It is expected that Xiaomi will maintain a sizeable net cash position over the medium term as increasing R&D expenses and capex will be largely covered by internal resources and strong operating cash inflow, which, in turn, will be supported by the growing contribution from the Smart EV segment [26] Offshore Asia New Issues Priced | Issuer/Guarantor | Size | Tenor | Coupon | Priced | Issue Rating | | --- | --- | --- | --- | --- | --- | | Commonwealth Bank of Australia | 1100/900 | 3yr/3yr | 4.355%/SOFR + 63 | T + 43/SOFR + 63 | Aa2/AA - /AA | | | 400 | 3yr | 4.5% | T + 65 | | | Korea National Oil Corporation | 500/300 | 3yr/5yr | SOFR + 80/4.625% | SOFR + 80/T + 70 | Aa2/AA - | [30] Pipeline | Issuer/Guarantor | Currency | Size (USD mn) | Tenor | Pricing | Issue Rating (M/S/F) | | --- | --- | --- | --- | --- | --- | | LG Energy Solution | USD | - | 3yr/5yr/5yr/10yr | T + 150/T + 165/SOFR Equiv/T + 200 | Baa2/BBB - | | Nippon Life Insurance | USD | - | 5yr/7yr | T + 120/T + 135 | A2/A - | [31] News and Market Color - Regarding onshore primary issuances, there were 192 credit bonds issued yesterday with an amount of RMB136bn. As for month - to - date, 2,037 credit bonds were issued with a total amount of RMB1,680bn raised, representing a 8.8% yoy increase [32] - [BCDHGR] Beijing Capital Development plans up to USD517mn bond offering to refinance BCDHGR 3.25 07/15/26 [32] - [CHJMAO] China Jinmao FY25 revenue rose 0.5% yoy to RMB59.4bn (cUSD8.6bn); mulls offshore issuance to refinance CHJMAO 3.2 04/09/26 of USD600mn [32] - [CWAHK] China Water Affairs repurchased USD25mn of CWAHK 4.85 05/18/26, outstanding amount is reduced to USD325mn [32] - [FRIDPT] Freeport Indonesia expects to resume operations at its Grasberg Block Cave underground mine in 2 - 3 weeks after being hit by a landslide [32] - [HAIDIL] Haidilao International FY2

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]