Core Viewpoint - Xiaomi Group has demonstrated strong financial performance in Q1 2025, with revenue and adjusted net profit reaching new highs, signaling its ambition to become a global leader in consumer electronics [1][2][5]. Financial Performance - In Q1 2025, Xiaomi's revenue grew by 47.4% year-on-year to RMB 111.3 billion, marking a return to over RMB 100 billion after Q4 2024 [1][2]. - Adjusted net profit for the quarter reached RMB 10.7 billion, a significant increase of 64.5% year-on-year [1][2]. - The smartphone and AIoT segments generated RMB 927 billion in revenue, with a year-on-year growth of 22.8% [2]. Business Segments - Smartphone revenue increased by 8.9% to RMB 50.6 billion, while IoT and lifestyle products saw a remarkable growth of 58.7% to RMB 32.3 billion [2]. - Internet services revenue reached RMB 9.1 billion, growing by 12.8% with a gross margin of 76.9% [2]. - The smart electric vehicle segment, now rebranded as smart electric vehicles and AI innovation, generated RMB 18.6 billion in revenue with a gross margin of 23.2% [4]. Product Development and Strategy - Xiaomi's self-developed 3nm flagship chip, "Xuanjie O1," was unveiled, emphasizing the importance of chip development for the company's future [1][7]. - The launch of the Xiaomi YU7 SUV is anticipated to further penetrate the high-end electric vehicle market, with user interest significantly higher than previous models [1][13]. - Xiaomi's AIoT platform connected 943.7 million devices as of March 31, 2025, reflecting a 20.1% year-on-year increase [14]. Market Position and Growth Potential - Xiaomi's market share in high-end smartphones (priced above RMB 3,000) reached 25% in mainland China, with a leading position in the RMB 4,000-5,000 segment [10]. - The company plans to expand its retail presence, aiming for approximately 20,000 stores by the end of the year, enhancing its market reach [10]. - The introduction of the Xiaomi SU7 Ultra has set a new sales record in the luxury car segment, indicating strong demand for high-end products [10]. Future Outlook - Xiaomi is committed to investing in AI and chip development, with plans to allocate RMB 300 billion in R&D, of which 25% will focus on AI [16]. - The company aims to establish a comprehensive ecosystem integrating smartphones, vehicles, and IoT, enhancing user experience and product differentiation [14][16]. - Xiaomi's strategic focus on smart manufacturing aims to build a global benchmark for intelligent production, with plans for up to 20 world-class factories [17].