XIAOMI(HK:01810) Soochow Securities·2025-06-25 07:17Investment Rating - The report does not explicitly state an investment rating for the automotive industry or Xiaomi's automotive business Core Insights - Xiaomi's automotive success is fundamentally driven by its "Xiaomi Methodology," which has allowed it to disrupt the traditional automotive industry through a user-driven approach rather than a product-driven one [2] - The next 2-3 years for Xiaomi's automotive business will focus on a comprehensive product strategy, rapid technological follow-up, and maintaining a user-centric ecosystem [2] Summary by Sections Xiaomi Business Line Overview - Xiaomi's revenue is primarily derived from smartphones, IoT products, internet services, and innovative businesses like smart electric vehicles, with internet services contributing significantly to gross profit [8][11] Xiaomi Automotive Business Review and Outlook - Xiaomi's automotive journey began with a significant investment of 10 billion CNY, with the first model, SU7, expected to launch in March 2024 [36] - The SU7 has shown promising sales, surpassing the Model 3 in the 20-30 million CNY price segment, with an average monthly sales of 26,500 units in early 2025 [52] - The automotive business is expected to narrow losses and potentially achieve profitability by Q3 or Q4 of 2025 [40] Technology Analysis - The SU7 features advanced design elements aimed at reducing drag and enhancing performance, with a focus on aerodynamics and efficient energy use [67] - The vehicle's battery technology, including the new Kirin 2 battery, offers impressive specifications such as a peak voltage of 897V and a maximum discharge power of 1330kW, significantly enhancing performance and charging capabilities [78][79]