Core Viewpoint - The controversy surrounding the Xiaomi SU7 Ultra's "carbon fiber perforated hood" has led to a significant trust crisis for the brand, despite the company's impressive financial performance and profitability in its automotive business [1][3][15]. Group 1: Controversy and Legal Issues - The first court hearing regarding the "Xiaomi SU7 Ultra perforated hood" dispute took place, with Xiaomi's legal team presenting 84 pages of new evidence, leading to public outcry over the statement "Lei Jun does not understand structure" [1][11]. - The initial delivery of the Xiaomi SU7 Ultra revealed that the advertised "dual air duct" feature did not function as claimed, prompting customers to accuse Xiaomi of false advertising and seek refunds [9][20]. - Xiaomi's legal defense emphasized that Lei Jun had warned consumers about the product's high price and that the promotional content was not part of the purchase contract, which they argued did not constitute a breach of contract [11][13]. Group 2: Financial Performance - Xiaomi Group reported a revenue of 113.12 billion RMB for Q3 2025, a 22.3% year-on-year increase, marking the fourth consecutive quarter of revenue exceeding 100 billion RMB [15][19]. - The adjusted net profit for Q3 2025 reached 11.31 billion RMB, reflecting an 80.9% increase year-on-year, with a total adjusted net profit of 32.82 billion RMB for the first three quarters, up 73.5% [15][17]. - The automotive segment, described by Lei Jun as his "last entrepreneurial venture," saw revenues soar to 29.01 billion RMB in Q3, a staggering 199.2% increase, achieving profitability within a year of operation [20][21]. Group 3: Brand Image and Consumer Trust - The legal team's assertion that "Lei Jun does not understand structure" undermines his image as a core brand ambassador for Xiaomi, which has relied heavily on his personal brand to build consumer trust [13][14]. - The shift in consumer sentiment towards valuing product performance and safety over marketing narratives indicates a changing landscape where brand loyalty is increasingly tied to tangible product quality [22][23]. - Moving forward, Xiaomi must focus on building brand value through standardized management, transparent information, and professional services to restore consumer trust [23].