Core Insights - Xiaomi's CEO Lei Jun emphasized a pragmatic approach in the recent launch of the 500,000th car, focusing on safety and delivery while accelerating production [2][3] - Xiaomi's automotive division has achieved profitability, a significant turnaround from a projected loss of 60,000 yuan per vehicle in 2024 [3][10] Financial Performance - Xiaomi Group reported a total revenue of 113.1 billion yuan for Q3, a year-on-year increase of 22.3%, marking the fourth consecutive quarter exceeding 100 billion yuan [3][5] - Adjusted net profit reached 11.3 billion yuan, up 80.9% year-on-year, setting a historical record [3][5] - The automotive business generated 29 billion yuan in revenue for Q3, a staggering 199.2% increase year-on-year, with electric vehicle revenue alone at 28.3 billion yuan, up 197.9% from the previous year [3][5][16] Production Milestones - Xiaomi achieved the milestone of producing 500,000 vehicles in just 602 days, the fastest record for any global new energy vehicle company [9][10] - The average net profit per vehicle sold is 6,434 yuan, indicating a shift from initial investment to profitability [9][10] Market Position and Strategy - Xiaomi's automotive division is now recognized for its established R&D, manufacturing, sales, delivery, and service systems, which are crucial for meeting market demand [9][10] - The company plans to invest 200 billion yuan in R&D over the next five years, focusing on AI and smart manufacturing integration [9][10] Competitive Landscape - Compared to competitors like NIO and Xpeng, which have not yet achieved profitability, Xiaomi's rapid success highlights its effective business model [11][14] - Xiaomi's automotive gross margin remains competitive, with a slight decrease to 25.5% in Q3, still among the highest in the industry [18][19]