XIAOMI(HK:01810) 第一财经·2025-06-03 15:52Core Viewpoint - Xiaomi's automotive business is gradually reducing losses and is expected to achieve profitability in the third and fourth quarters of 2025 [1] Group 1: Financial Performance - In Q1 2025, Xiaomi's revenue from smart electric vehicles and AI innovation business reached 18.6 billion yuan, accounting for 16.71% of total revenue [1] - Revenue from smart electric vehicles was 18.1 billion yuan, a quarter-on-quarter increase of 10.7%, with operating losses narrowing to 500 million yuan compared to a net loss of 700 million yuan in the previous quarter [1] Group 2: Product Development - Xiaomi is developing automotive chips and has been investing in robotics for five years, with the automotive factory currently testing related capabilities [1] - The new Xiaomi YU7 SUV was launched on May 22, 2025, and is positioned as a luxury high-performance SUV, with mass production expected to begin in July [2] Group 3: Market Challenges - Xiaomi's automotive sales in May exceeded 28,000 units, remaining stable compared to April, but faced a public relations crisis following the "3.29 Xiaomi SU7 explosion incident" [2] - Regulatory bodies have intensified scrutiny on advertising claims related to advanced driver assistance systems and other features in the automotive industry [3] - Xiaomi's CEO stated that the company will not engage in price wars, emphasizing a strategy against industry "involution" [3]