XIAOMI(HK:01810) 3 6 Ke·2025-11-19 00:02Core Viewpoint - Xiaomi's electric vehicle sales are expected to reach 350,000 units by the end of this year, with projections for 400,000 units in 2025, marking a significant growth trajectory in the automotive sector [4][5]. Financial Performance - In Q3 2025, Xiaomi's smart electric vehicle sales revenue reached 28.3 billion RMB, a record high, with a gross margin of 25.5% [7][11]. - The automotive segment achieved a quarterly operating profit of 700 million RMB, a turnaround from a loss of 300 million RMB in the previous quarter [10]. - The average selling price (ASP) of smart electric vehicles increased to 260,000 RMB, up 2.5% from the previous quarter [9]. Sales and Delivery - Xiaomi delivered 108,800 new vehicles in Q3 2025, a 33.8% increase from the previous quarter, contributing to a total of 266,000 units delivered in the first three quarters [8][10]. - The company is on track to meet its annual delivery target of 350,000 units, with expectations for continued growth in 2026 [5][6]. Margin and Cost Outlook - The gross margin for the automotive segment is expected to remain stable in Q4 2025, but a decline is anticipated in 2026 due to reduced purchase tax subsidies and increased competition in the market [5][11]. - The automotive segment's gross margin improved significantly from 17.1% in the previous year to 25.5% in Q3 2025, although it decreased slightly from 26.4% in Q2 2025 [11][14]. Research and Development - Xiaomi's R&D expenditure in Q3 2025 was 9.1 billion RMB, a 16.7% increase from the previous quarter, reflecting ongoing investments in electric vehicles and AI-related projects [13].