Report Industry Investment Rating No information provided. Core Viewpoints - In Q3 2025, the total asset net value of the four types of bond funds decreased by 252.7 billion yuan compared to the previous quarter, with a significant reduction in pure bond funds and an increase in secondary bond funds [1][8]. - The bond positions of the four types of bond funds decreased, while the stock positions increased slightly. The four types of bond funds significantly reduced their bond holdings in Q3 after increasing them in Q2 [2][17]. - In Q3, bond funds generally reduced leverage and shortened duration due to the weakening bond market and rising interest rates [3][24]. - All four types of bond funds significantly reduced their holdings of credit bonds and interest - rate bonds. The proportion of interest - rate bonds in medium - and long - term pure bond funds decreased, and short - term pure bond funds significantly reduced their credit bond holdings [3][32]. - In Q3, pure bond funds and hybrid first - and second - tier bond funds reduced their holdings of interest - rate bonds, financial bonds, and certificates of deposit, and increased their holdings of industrial bonds and urban investment bonds. The proportion of high - grade bonds in the heavy - position credit bonds of some bond funds changed [4][51]. Summary by Directory I. Bond Fund Scale Overall Decline, Pure Bond Fund Scale Decrease - In Q3 2025, the total asset net value of the four types of bond funds was 9 trillion yuan, a decrease of 252.7 billion yuan from the previous quarter. Medium - and long - term pure bond funds decreased by 546.3 billion yuan to 5.91 trillion yuan, and short - term pure bond funds decreased by 198.5 billion yuan to 945.3 billion yuan. First - tier bond funds decreased by 3.1 billion yuan to 847.1 billion yuan, and second - tier bond funds increased by 495.3 billion yuan to 1.3 trillion yuan [1][8]. II. Asset Structure: Bond Positions Decline - The four types of bond funds increased their bond holdings by 800.7 billion yuan in Q2 and significantly reduced them by 827 billion yuan in Q3. By the end of Q3, medium - and long - term pure bond funds, short - term pure bond funds, first - tier bond funds, and second - tier bond funds held bond market values of 6.88 trillion yuan, 1 trillion yuan, 923.5 billion yuan, and 1.17 trillion yuan respectively, with the first three reducing their holdings and the second - tier bond funds increasing their holdings compared to Q2. - The proportion of bond market value to total asset value of the four types of bond funds decreased in Q3 compared to Q2, while the proportion of stock market value to total asset value of first - tier and second - tier bond funds increased [2][17]. III. Bond Funds Reduce Leverage and Shorten Duration - In Q3 2025, due to the good performance of the capital market and the flow of funds from fixed - income products to the equity market, the arithmetic average leverage ratios of medium - and long - term pure bond funds, short - term pure bond funds, first - tier bond funds, and second - tier bond funds decreased compared to Q2. - With the upward - trending bond market yields in Q3, all types of bond funds reduced their duration exposure. The average durations of medium - and long - term interest - rate bond funds, medium - and long - term credit bond funds, short - term interest - rate bond funds, and short - term credit bond funds decreased compared to Q2 [3][24]. IV. Bond Type Portfolio: Both Credit Bonds and Interest - Rate Bonds Are Reduced - The four types of bond funds significantly reduced their holdings of credit bonds by 359.2 billion yuan and interest - rate bonds by 415.1 billion yuan. By the end of Q3 2025, medium - and long - term pure bond funds reduced their holdings of credit bonds and interest - rate bonds compared to Q2, with the proportion of credit bonds increasing and that of interest - rate bonds decreasing. Short - term pure bond funds also reduced their holdings of credit bonds and interest - rate bonds. - First - and second - tier bond funds also reduced their holdings of credit bonds and interest - rate bonds. In terms of different bond types, different types of bond funds had different reduction or increase trends [3][32]. V. Heavy - Position Bond Analysis: High - Grade Proportion Declines - In Q3 2025, pure bond funds and hybrid first - and second - tier bond funds reduced their holdings of interest - rate bonds, financial bonds, and certificates of deposit, and increased their holdings of industrial bonds and urban investment bonds. - Among the heavy - position credit bonds, the proportion of AAA - rated bonds in medium - and long - term pure bond funds and short - term pure bond funds decreased, while the proportion of AA + - rated bonds increased. In first - tier and second - tier bond funds, the proportion of AAA - rated bonds increased. - In terms of regional distribution of heavy - position urban investment bonds, the top four provinces or regions with the most holdings in Q3 were Zhejiang, Jiangsu, Hubei, and Hunan. Compared with Q2, Jiangsu increased its holdings, while Shandong, Anhui, Tianjin, and Jilin reduced their holdings [4][51][58].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report In recent years, the mismatch between the duration of banks' assets and liabilities has intensified, with the duration of the asset side lengthening and that of the liability side shortening. This has put pressure on some liquidity indicators and constrained banks' asset allocation behavior. The increase in long - term bond holdings has also increased the pressure on interest rate risk indicators. The report analyzes the current indicator constraints on banks' bond allocation and the prospects of these indicator pressures [1]. 3. Summary by Related Catalogs 3.1 Liability - side Duration Reduction and Asset - side Duration Extension - **Net Interest Margin Pressure**: Since 2022, the net interest margin of commercial banks has continued to decline, from 2.08% at the end of December 2021 to 1.42% at the end of June 2025, compressing banks' profit margins [9]. - **Liability - side Duration Reduction**: - **Deposit**: Since 2023, the duration of new deposits has significantly shortened. High - cost, long - term deposits have been significantly reduced due to the expiration of high - interest fixed deposits in 2025 - 2026 and the suspension of "manual interest compensation" in 2024. Banks tend to guide customers to transfer to short - term deposits, and customers are less attracted to long - term deposits. New deposits are concentrated within 1 year [10]. - **Inter - bank Liabilities**: In 2025, banks mostly reduced the issuance of 9M and 1Y certificates of deposit (CDs) and increased the issuance of 3M and 6M CDs [15]. - **Asset - side Duration Extension**: Since 2019, the loan growth rate of listed banks has continued to decline, and financial investment has become an important alternative asset on the asset side. Bond investment is a major part of financial investment, with government bonds accounting for a relatively high proportion. From 2023 - 2025, the average duration of local government bonds has lengthened from 12.39 years to 15.62 years, and it is expected that the duration of the asset side of national and joint - stock banks will lengthen [17]. 3.2 What Indicator Constraints Do Banks Face in Bond Allocation? 3.2.1 Liquidity Risk: Low NSFR Index for Joint - stock Banks - **Liquidity Regulatory Indicators**: Chinese banks need to meet five liquidity regulatory indicators, including LMR, LR, NSFR, LCR, and HQLAAR. The report mainly analyzes LR, NSFR, and LCR. In mid - 2025, the LR and LCR of listed banks generally had sufficient safety margins, while the NSFR safety cushions of joint - stock banks (except China Merchants Bank) and some city commercial banks were relatively thin [3][22]. - **Reasons for Low NSFR in Joint - stock Banks**: The core reason lies in the liability side. Retail deposits are not advantageous, the proportion of inter - bank liabilities is high, and deposits tend to be short - term. This leads to a low Available Stable Funds (ASF) [41]. - **Measures to Deal with NSFR Pressure**: - **Increase the Numerator**: In October, joint - stock banks significantly increased the issuance of 1Y CDs. The net financing of joint - stock bank CDs in October reached 62.44 billion yuan, and the issuance scale of 1Y CDs was significantly increased [45]. - **Reduce the Denominator**: From January to September this year, joint - stock banks basically maintained a monthly net reduction of CDs and increased the allocation of interest - rate bonds, which is conducive to reducing the Required Stable Funds (RSF) and improving the NSFR [48]. 3.2.2 Interest Rate Risk: The ΔEVE/First - tier Capital of Some State - owned Banks Approaches the Upper Limit - **Regulatory Requirements**: According to the "Administrative Measures for the Interest Rate Risk of Commercial Banks' Banking Books (Revised)", when the economic value change of state - owned large commercial banks exceeds 15% of their first - tier capital, the banking regulatory authority should pay attention and conduct follow - up evaluations [53]. - **Interest Rate Risk of Banking Books**: In 2024, under six standardized interest rate shock scenarios, the maximum economic value change losses of Agricultural Bank of China (- 14.31%), Industrial and Commercial Bank of China (- 14.71%), and China Construction Bank (- 14.73%) as a percentage of their first - tier capital were close to - 15%. This has objectively constrained bond - allocation behavior and will affect the volume and duration of state - owned banks' bond investments [55].

Investment Rating - The report maintains a "Buy" rating for the power sector, emphasizing the potential for price recovery and demand restoration in the future [4]. Core Insights - The power sector's overall performance in Q3 2025 aligns with expectations, with thermal power showing revenue decline but profit increase, hydropower remaining stable, and green energy facing pressure [4]. - The report forecasts a 5% year-on-year growth in total electricity consumption for 2025, with an expected increase in installed capacity exceeding 500 million kilowatts [11][4]. - Coal prices are projected to continue their downward trend due to weak downstream demand, with the average price for Q3 2025 at 673 RMB/ton, a 26.7% decrease year-on-year [20][4]. Summary by Sections Market Review - From January to September 2025, total electricity consumption reached 77,675 billion kWh, a 4.6% increase year-on-year, while industrial power generation grew by 1.6% [11]. - The performance of the power sector indices shows that the CSI 300 index rose by 17.90%, while the CITIC Power and Utilities index only increased by 3.05%, underperforming by 14.86 percentage points [23][2]. - Fund holdings in the power sector have decreased, with active funds holding 0.65% and index funds holding 1.74% of the sector, both showing declines compared to previous quarters [28][2]. Performance Overview - The power sector's total revenue for the first three quarters of 2025 was 1,436.5 billion RMB, down 1.34% year-on-year, while net profit increased by 5.81% to 169.4 billion RMB [3]. - Thermal power revenue decreased by 3.12% to 906 billion RMB, but net profit rose by 15.83% to 71.1 billion RMB [3]. - Hydropower revenue grew by 1.66% to 148.8 billion RMB, with net profit increasing by 3.32% to 51.3 billion RMB [3]. - New energy generation, including nuclear power, saw a slight revenue increase of 0.77% to 235.6 billion RMB, but net profit fell by 5.59% to 35.3 billion RMB [3]. Investment Recommendations - The report suggests focusing on the thermal power sector, particularly companies like Huaneng International and Huadian International, due to expected price stabilization and performance recovery [4][7]. - It also recommends increasing positions in undervalued green energy stocks and highlights the importance of energy storage policies and flexible power generation [4][7].

Investment Rating - The report indicates a low overall allocation in the agriculture, forestry, animal husbandry, and fishery sector, with a heavy stock allocation ratio of 0.78% as of Q3 2025, which is below the standard allocation ratio and historical average [2][11][19] Core Viewpoints - The report highlights a significant reduction in heavy stock allocations in the feed and breeding sectors, with breeding at 0.31% and feed at 0.40% for Q3 2025, both showing a decline compared to previous quarters [12][19] - Major companies such as Haida Group and Muyuan Foods have reduced their allocations, indicating a trend of decreased investment in leading stocks within the sector [3][14] - The report suggests that the breeding sector is entering a phase of high-quality development, recommending investments in low-cost leading companies and growth-oriented stocks [4][19] Summary by Sections Heavy Stock Allocation Analysis - As of the end of Q3 2025, the heavy stock allocation in the agriculture, forestry, animal husbandry, and fishery sector is 0.78%, down 0.58 percentage points from the previous quarter and 0.56 percentage points year-on-year [11][12] - The heavy stock allocation in the breeding industry is 0.31%, a decrease of 0.1 percentage points, while the feed industry allocation is 0.40%, down 0.45 percentage points [12][14] Company-Specific Allocation Changes - Among the top 15 heavy stocks, most companies have reduced their allocations, with Haida Group and Muyuan Foods decreasing by 0.34 percentage points and 0.04 percentage points, respectively [3][14] - The top five stocks with increased heavy stock allocation include Tiankang Biological (+2.42%) and Hainan Rubber (+1.41%), while the top five with decreased allocations include Zhongchong Pet (-3.21%) and Juxing Agriculture (-3.14%) [15][18] Investment Recommendations - The report recommends focusing on leading stocks in the breeding sector such as Muyuan Foods and Wens Foodstuffs, as well as seasonal rebounds in chicken prices [4][19] - For breeding support (feed and animal health), it suggests monitoring leading companies like Haida Group and BANGJI Technology for potential restructuring opportunities [4][19] - The planting sector shows stable profitability, with recommendations to pay attention to companies like Suqian Agricultural Development and Beidahuang [4][19]

Investment Rating - Maintain "Buy" rating for the company [5] Core Insights - The company, Chuangxiang Sanwei, is a leading player in the 3D printing industry, with a comprehensive product matrix and a strong market presence, holding a global market share of 27.9% in consumer-grade 3D printers [1][11] - The 3D printing industry is experiencing rapid growth, driven by advancements in generative AI technology and improvements in printer performance, with the market expected to reach USD 4.1 billion in 2024 and grow to USD 16.9 billion by 2029, representing a CAGR of 33.0% [2][36] - Chuangxiang Sanwei has established a unique competitive advantage through its diverse product offerings, technological innovations, and a robust global sales network, making it difficult for competitors to replicate [3][48] Company Overview - Chuangxiang Sanwei is recognized as China's leading 3D printing company, continuously expanding its product offerings, which include 3D printers, consumables, and related services [1][11] - The company was founded in 2014 and transitioned to a joint-stock company in 2021, marking a significant expansion and capitalization phase [1][11] - As of 2024, the company is the largest consumer-grade 3D printing company globally by cumulative shipment volume, with a market share of 27.9% [1][46] Industry Analysis - The consumer-grade 3D printing industry is characterized by a significant reduction in entry barriers, allowing for broader user participation and creativity [2][29] - The market is projected to grow rapidly, with the global consumer-grade 3D printing market expected to reach USD 41 billion in 2024 and USD 169 billion by 2029, driven by technological advancements and increased consumer demand [2][36] - The industry is witnessing a shift towards personalized and on-demand manufacturing, supported by advancements in AI and materials science [41][44] Competitive Advantages - Chuangxiang Sanwei has built a strong competitive advantage through its comprehensive product matrix, which includes consumer-grade 3D printing, scanning, and laser engraving [48] - The company invests heavily in R&D, holding over 840 patents, which supports its technological advancements and product performance [49][61] - A well-established global sales network, with over 2,163 distributors and stores across approximately 140 countries, enhances the company's market reach and customer engagement [3][48]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company is positioned as a rare AI computing chip supplier, leveraging self-developed AI large language models and industry knowledge to provide cutting-edge chip application solutions and supply chain management services [1][9] - The company achieved significant revenue growth in the first half of 2025, with revenue reaching 6.676 billion RMB, a year-on-year increase of 54.5%, and a net profit of 132 million RMB, up 17.2% year-on-year [1][20] - The report highlights the explosive demand for AI-driven chips, with global computing power expected to reach 14,130 EFlops by 2029, and the AI chip market projected to grow to 400 billion USD by 2027 [2][9] Summary by Sections 1. AI Computing Demand and Revenue Growth - The company has established a comprehensive chip-end-cloud industry chain layout, capturing explosive demand for AI computing, resulting in a revenue increase of 54.5% in the first half of 2025 [1][20] - The company operates through two main platforms: KETON Technology, which serves as a core supplier in the AI computing supply chain, and Hard Egg Technology, focusing on AIoT data and technology services [1][17] 2. AI Chip Market Dynamics - The report emphasizes the scarcity of high-end computing resources driven by AI large models, with demand for computing power increasing exponentially [2][9] - The global AI chip market is expected to grow significantly, with infrastructure spending projected to reach 3-4 trillion USD by 2030 [2][9] 3. Physical AI and Technological Advancements - The emergence of physical AI is anticipated to transform industries valued at 50 trillion USD, with NVIDIA's platforms aiding in overcoming technological barriers [3][9] - The company is positioned to leverage NVIDIA's Jetson series products to provide AI solutions in robotics and other applications [3][9] 4. Self-Developed SOM and Growth Potential - The company is developing self-researched System on Module (SOM) products, which are expected to create a second growth curve by expanding into larger edge applications [4][9] - The SOM market is projected to exceed 3.22 billion USD by 2025 and 7.76 billion USD by 2035, indicating significant growth potential [4][9] 5. Financial Projections and Valuation - The company is expected to achieve revenues of 13.36 billion RMB, 20.03 billion RMB, and 27.08 billion RMB for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 250 million RMB, 379 million RMB, and 502 million RMB [9][11] - The report highlights the company's valuation advantages, with projected P/E ratios of 16.7, 11.2, and 8.4 for the years 2025, 2026, and 2027 [9][11]

- The six-cycle model is introduced to describe China's macroeconomic state based on three dimensions: monetary, credit, and growth. Currently, the economy is in stage 2, characterized by loose monetary policy, credit expansion, and growth recovery. The monetary factor is in a 14% easing range, credit expansion is identified using the three-month difference in medium-to-long-term loan pulses, and growth is assessed through PMI indicators [1][10][17] - Style rotation strategy is proposed based on the six-cycle framework. Growth style dominates in stages 1-2 due to credit expansion and economic recovery, quality style prevails in stages 3-4 as liquidity tightens, and value style performs better in stages 5-6 during economic slowdown and monetary easing. Growth style uses ChiNext ETF, quality style uses free cash flow ETF, and value style uses dividend low-volatility ETF [2][11][13] - Multi-asset rotation strategy is designed under the six-cycle framework. Different asset classes exhibit distinct performance across stages: equities and commodities excel in stages 1-3, bonds perform defensively in stages 4-6, and gold acts as a transitional asset in stages 5-6. Specific ETFs are allocated for each stage, such as ChiNext ETF for growth, free cash flow ETF for quality, and dividend ETF for value [17][18][19] - Strategy design ①: Risk parity is applied across all six stages without predicting economic cycles, inspired by Bridgewater's All Weather approach. The strategy achieves an annualized return of 11.5%, annualized volatility of 6.9%, maximum drawdown of 11.2%, and a Sharpe ratio of 1.66 since 2014 [3][20][23] - Strategy design ②: A multi-asset ETF rotation strategy based on the six-cycle model achieves an annualized return of 23.0%, annualized volatility of 11.3%, maximum drawdown of 12%, and a Sharpe ratio of 2.0 since 2014. Monthly win rate is 72%, and annual turnover is 2.4 times. As of October 2023, the strategy's absolute return is 23.2%, with a drawdown of 4.4% [3][26][29] - Strategy design ③: A volatility-constrained version of the multi-asset ETF rotation strategy limits volatility to around 3%. This strategy achieves an annualized return of 9.4%, annualized volatility of 3.2%, maximum drawdown of 3.4%, and a Sharpe ratio of 2.88 since 2014. As of October 2023, the strategy's absolute return is 5.4% [3][31][34]

Report Industry Investment Rating - Not provided in the content Core Viewpoints - Despite the recent Fed rate cut, the US dollar liquidity has tightened instead of loosening, leading to price fluctuations in various assets and significant declines in risk assets [1][2] - The current tightening of US dollar liquidity is mainly caused by the depletion of ONRRP and the accumulation of funds in the TGA account due to the US government shutdown [3] - Whether this liquidity crunch will persist depends on when the US government shutdown ends and the Fed's subsequent operations. If the two parties reach an agreement and the government re - opens, or the Fed injects liquidity, the market may return to normal [4] Summary by Related Content Liquidity Tightening Indicators - **Volume Indicators**: At the end of October, the New York Fed's repurchase volume approached $50 billion, and in early November, the daily average repurchase volume remained at a high level of nearly $15 billion, indicating a normal and continuous liquidity crunch [1][7] - **Price Indicators**: On October 31, the US secured overnight financing rate (SOFR) climbed to 4.22%. Although it dropped to 4.13% on November 4, it was still much higher than the Fed's 3.9% excess reserve rate, with a spread of 23bp, the highest since July 29, 2021 [1][10] Impact on Asset Prices - **US Dollar**: The US dollar index rose from 99.15 on October 29 to 100.21 on November 4 [2][14] - **US Stocks**: The S&P 500 index fell from 6891 points on October 29 to 6772 points on November 4, a cumulative decline of 1.7% [2][14] Causes of Liquidity Tightening - **ONRRP Depletion**: ONRRP has dropped to a historical low, with an average daily volume of $11.8 billion since October. As the "US dollar reservoir", its exhaustion means that each financing of the fiscal TGA account consumes bank reserves, intensifying the liquidity crunch [3][16] - **US Government Shutdown**: During the shutdown, the TGA account balance increased from $758 billion before the shutdown in September to nearly $1 trillion in October, the highest since May 2021, exacerbating the "pumping effect" on the financial market [3][16] Historical Cases of TGA Account Balance Increase - **2020**: Due to the public health event, the TGA account balance increased from $0.38 trillion at the end of March to $1.79 trillion at the end of July, leading to a liquidity crunch. But the market liquidity expanded with the Fed's injection, and the stock market recovered after an initial slump [3][19] - **2022**: After the US Congress approved raising the debt ceiling at the end of 2021, the increase in Treasury bond issuance in 2022 led to a decline in US stocks from the end of March and a strengthening of the US dollar, but the impact only lasted until May [3][19] - **2023**: After the suspension of the debt ceiling in mid - 2023, the Treasury's large - scale bond issuance to rebuild the TGA cash buffer led to a decline in US stocks and a strengthening of the US dollar. The impact weakened after the TGA account balance started to decline in October [3][19] Future Outlook - The persistence of the current liquidity crunch depends on the end of the US government shutdown and the Fed's subsequent operations. If the government re - opens or the Fed injects liquidity, the market may return to the previous trend [4][23]

Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company's Q3 performance showed a significant narrowing of revenue decline, primarily driven by increased coking coal sales, with Q3 coking coal trade volume reaching 1.54 million tons, a year-on-year increase of 75% and a quarter-on-quarter increase of 32% [1][2]. - The overall gross margin improved, with a Q1-3 gross margin of 14.24%, up 2.5 percentage points year-on-year, and a Q3 gross margin of 16.68%, up 0.44 percentage points year-on-year [2]. - The electricity operation segment is steadily expanding, with significant contributions expected from ongoing projects, including a projected annual net profit of USD 100 million from the Bangladesh thermal power station starting next year [3]. Financial Performance Summary - For the first three quarters of 2025, the company reported total revenue of CNY 9.9 billion, a year-on-year decline of 30%, and a net profit attributable to shareholders of CNY 480 million, down 36% [1]. - The company’s operating cash flow showed a significant increase, with a net inflow of CNY 900 million for Q1-3, up CNY 1.36 billion year-on-year, indicating improved cash flow management [2]. - The forecast for net profit attributable to shareholders for 2025-2027 is adjusted to CNY 882 million, CNY 1.187 billion, and CNY 1.382 billion, reflecting a year-on-year decline of 16% in 2025, followed by growth of 35% and 16% in subsequent years [4].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [3][5]. Core Views - Xiaomi is accelerating its high-end smartphone offerings, with the recent launch of the Xiaomi 17 series achieving record sales within minutes of release. The company aims to mitigate storage cost pressures through product structure optimization [1]. - The automotive segment is showing promising growth, with 400,000 units delivered within a year and monthly deliveries exceeding 40,000 units in September and October 2025. The company is expected to achieve breakeven in quarterly automotive operations [2]. - Despite a slowdown in national subsidies for IoT products, Xiaomi's competitive edge in the IoT sector remains strong due to product quality and supply chain management [2]. Financial Projections - Revenue is projected to grow from 270.97 billion CNY in 2023 to 748.7 billion CNY by 2027, with year-on-year growth rates of -3%, 35%, 29%, 31%, and 22% respectively [4][10]. - Non-GAAP net profit is expected to increase from 19.27 billion CNY in 2023 to 79.53 billion CNY in 2027, with significant growth rates of 126%, 41%, 55%, 46%, and 29% [4][10]. - The company anticipates maintaining a gross margin of approximately 11% for Q3 and Q4 2025, despite rising storage costs [1]. Market Position - Xiaomi holds a 14% market share in the global smartphone market, ranking among the top three manufacturers. In China, it has a 15% market share, placing it fourth [1]. - The company has successfully entered the high-end smartphone market, with the Xiaomi 17 Pro Max leading sales in the new series [1]. Automotive Business - Xiaomi has delivered 400,000 vehicles since the launch of its automotive products, with a strategy to provide tax subsidies to enhance consumer benefits [2]. - The automotive division is expected to reach a quarterly breakeven point as delivery volumes increase [2]. IoT and Consumer Products - The IoT business is projected to maintain robust competitiveness despite reduced national subsidies, supported by Xiaomi's product quality and supply chain capabilities [2].