Group 1 - Xiaomi's automotive business is expected to achieve quarterly profitability in Q3 and Q4 of this year as losses continue to narrow [1] - In Q1 2025, Xiaomi's smart electric vehicle and AI innovation segment generated total revenue of 18.6 billion yuan, accounting for 16.71% of the group's total revenue, with smart electric vehicle revenue reaching 18.1 billion yuan, a 10.7% increase quarter-on-quarter [1] - The operating loss for the smart electric vehicle segment has decreased to 500 million yuan, down from a net loss of 700 million yuan in the previous quarter [1] Group 2 - Xiaomi's first SUV model, the YU7, was launched on May 22, 2023, and is positioned as a luxury high-performance SUV, with mass production expected to begin in July [2] - Sales of Xiaomi vehicles in May exceeded 28,000 units, remaining stable compared to April, despite facing a public relations crisis following the SU7 fire incident [2] - Regulatory bodies have intensified scrutiny on issues related to assisted driving and other promotional claims in the automotive industry, following the SU7 incident [2]

Core Viewpoint - Xiaomi's automotive business is expected to achieve profitability in the third or fourth quarter of 2025, according to CEO Lei Jun's predictions during the investor conference [1][3]. Group 1: Automotive Business Developments - The newly launched Xiaomi YU7 is not priced at the rumored 235,900 yuan, with the official price to be confirmed one to two days before sales begin [2][7]. - Xiaomi is committed to not engaging in price wars and plans to develop its own automotive chips, with expectations of breaking even and achieving profitability in new business segments by the third or fourth quarter of 2025 [2][9]. - The YU7 has generated significant interest at the 2025 Guangdong-Hong Kong-Macao Greater Bay Area Auto Show, with long queues for static displays [4][6]. Group 2: Product Specifications and Market Position - The YU7 is positioned as a "luxury high-performance SUV," featuring a standard range of 835 km, a maximum power of 690 PS, and a 0-100 km/h acceleration time of 3.23 seconds [7]. - Xiaomi's investment in the YU7's intelligent driving research and development totals 3.5 billion yuan, indicating a strong commitment to innovation in the automotive sector [7]. - The SU7 model has already seen over 28,000 units delivered as of May 2025, and mass production of the YU7 is expected to begin in July [8]. Group 3: Industry Context and Competitive Strategy - Xiaomi's strategy aligns with industry leaders who advocate for competition based on technology and service rather than price, as highlighted by comments from executives of other automotive companies [10]. - The automotive industry in China is experiencing intense competition, with over 200 models participating in price reductions, which has led to declining profit margins [10].