Summary of Xiaomi Corp. (1810.HK) Conference Call Company Overview - **Company**: Xiaomi Corp. (1810.HK) - **Industry**: Smartphone and Consumer Electronics Key Points and Arguments Sales Performance - The Xiaomi 17 series launched on September 27, 2025, with the Xiaomi 17 Pro Max accounting for over 50% of sales volume on the first day [1][2] - The Xiaomi 17 series broke the first-day sales volume and GMV record for domestic smartphone models in 2025 YTD within 5 minutes of launch [1] - The 17 Pro series is estimated to have accounted for over 80% of the Xiaomi 17 series sales volume on Day 1, with 33% for Pro and 54% for Pro Max [3][9] Pricing Strategy - The starting price for the 17 Pro is Rmb4,999, which is Rmb200-500 lower than previous versions, while the 17 Pro Max is 50% cheaper than the iPhone 17 Pro Max in China [1] - This competitive pricing strategy is expected to attract consumers from the base model and expand the consumer base [1] Market Dynamics - Xiaomi's share price experienced high volatility, dropping 8% on September 26 and rising 4% on September 25, attributed to high investor expectations and market concerns regarding sales volume of the base model [2] - The favorable sales mix of the 17 Pro/Pro Max is expected to reverse concerns about soft sales volume of the base model [2] Premiumization Strategy - The favorable sales mix could drive a mid-teen percentage increase in average selling price (ASP) compared to the previous generation [3] - Xiaomi's premiumization execution is supported by enhanced R&D investments, expanding retail channels, and an integrated "Human x Car x Home" ecosystem [3] Competitive Landscape - The iPhone 17 base model recorded the highest sales volume increase in its first week, indicating strong competition in the smartphone market [3][11] Long-term Outlook - Xiaomi is positioned as the world's 3 smartphone brand with a projected 13.8% of 2024 shipments and is in the early stages of a multi-year ecosystem expansion [13] - The company is expected to achieve revenue and EPS CAGRs of 26% and 37% respectively from 2024 to 2027 [13] - Xiaomi's robust balance sheet and capabilities in software-hardware integration are expected to enhance its competitiveness in the EV market [13] Price Target and Risks - The 12-month target price for Xiaomi is set at HK$66, representing an upside of 20.8% from the current price of HK$54.65 [16] - Key downside risks include intense competition, higher GPM pressure, execution risks in brand premiumization, geopolitical risks, and softer macroeconomic conditions [14] Additional Insights - The company is leveraging its interconnected consumer terminals to build one of the largest consumer physical intelligence ecosystems globally [13] - The sales volume mix may change based on pricing strategy and competitive landscape [3] This summary encapsulates the critical insights from the conference call regarding Xiaomi Corp.'s recent performance, market dynamics, and strategic outlook.

Group 1: Product Launch and Competitive Positioning - Xiaomi hosted its flagship product launch event on September 25, introducing the Xiaomi 17 flagship phones, Pad 8 series tablets, and premium smart home products, along with a new customization service for YU7/SU7 Ultra EVs [1] - The starting price of Xiaomi 17 is RMB4,499, which is competitive against the iPhone 17 priced at RMB5,999, positioning it as the best compact flagship in China with significant upgrades such as a 7000mAh battery and Leica Summilux tri-camera [1][2] - The Xiaomi 17 Pro/Max series features innovative elements like the Magic Back Screen and direct integration with the Apple ecosystem, reinforcing Xiaomi's strategy to benchmark against the iPhone [1][3] Group 2: Technical Specifications and Features - The Xiaomi 17 series is equipped with a Snapdragon 8 Elite processor, offering superior performance in gaming and heat management compared to the iPhone 17, with a focus on the RMB4k-5k market segment [2] - The 17 Pro series includes features such as customizable wallpapers and notifications on the Magic Back Screen, along with advanced camera technology like the Light Shadow Hunter 950L sensor for improved image quality [3] - The 17 Pro Max is highlighted for its large 6.9-inch display and advanced camera capabilities, including a 5X periscope lens and enhanced dynamic range [3] Group 3: AIoT Products and EV Developments - Xiaomi also announced several premium AIoT products, including the Pad 8 series, Mi TV S Pro Mini LED, and various home appliances, enhancing its product ecosystem [4] - The YU7 electric vehicle deliveries exceeded 40,000 units within three months, and new customization options were introduced to enhance personalization in the EV segment [4] - The customization service for SU7 Ultra/YU7 Max aims to provide a high-end personalization experience similar to luxury brands, which is expected to improve Xiaomi's brand equity and profit margins in the EV market [4]

Xiaomi Investor Day 2025 Summary Company Overview - **Company**: Xiaomi - **Event**: Investor Day held on June 3, 2025 - **Current Price**: HK$53.20 - **Price Target**: HK$60.00 by December 31, 2025 Key Highlights Financial Targets - Xiaomi targets over 40% adjusted net profit growth and over 30% revenue growth for 2025, aligning with market expectations [4][4][4] - Expected smartphone unit growth of 4-7% and average selling price (ASP) increase of 3-5% [4][4] - Gross margins (GMs) projected to remain between 12-12.5% despite component price volatility [4][4] Electric Vehicle (EV) Strategy - EV delivery target set at 350,000 units with a potential breakeven in the second half of 2025 [4][4] - YU7 pre-orders are three times higher than SU7, indicating strong market interest [4][4][18] - Management emphasizes premiumization in the EV segment to compete against aggressive pricing in China [4][4] Premiumization Strategy - Continued focus on premiumization across all product categories, including smartphones, AIoT, home appliances, and EVs [4][4] - Xiaomi aims to increase its share in the premium smartphone segment, currently holding 17% in the RMB 4,000-6,000 range [4][4] International Business Growth - Xiaomi expects to double its international business revenue in the next three years, driven by smartphone share gains and AIoT product proliferation [4][7] - Plans to expand premium product shipments internationally, targeting significant growth in markets like Africa and Europe [7][7] Research and Development (R&D) Investments - Committed to investing RMB 200 billion over five years in R&D, focusing on AI, chip design, and automotive technologies [8][8] - Over 90% of the AI budget is allocated to large language model (LLM) development, with significant investments in GPU technology [8][8] Market Position and Competition - Xiaomi holds the No. 1 smartphone market share in China at 18.8% and aims to reach the top 2 globally [4][4] - The company has seen a net inflow of 13 million new smartphone users in 2024, with a strong brand recall and premiumization strategy [4][4][28] - Xiaomi's smartphone market share in China has increased from 10.5% in 2020 to 18.8% in 2025 [28][28] IoT and Home Appliances - IoT revenue growth is expected to exceed 30% in 2025, with gross margins expanding by 2.5% year-over-year [4][11] - Xiaomi plans to expand its Mi Home stores to 30,000 in China and 10,000 overseas by 2025 [18][18] Challenges and Risks - Despite positive growth projections, the company may face short-term profit-taking due to the lack of incremental catalysts to lift street estimates [4][4] - The competitive landscape in the smartphone and EV markets remains intense, with ongoing price wars impacting margins [4][4][21] Conclusion - Overall, Xiaomi's Investor Day presented a positive outlook for the company's growth trajectory, particularly in the EV and premium segments, while emphasizing the importance of R&D and international expansion. However, potential risks related to market competition and pricing strategies could impact short-term performance [4][4][4]