Core Viewpoint - Xiaomi's self-developed chip "Xuanjie O1" won the highest award at the 2025 "Million Technology Award," highlighting the company's commitment to innovation and technology development [1][5]. Group 1: Award Details - The 2025 "Million Technology Award" received submissions from 10 departments within Xiaomi, totaling 154 projects, with 66 projects entering the review phase, marking a historical high in both quantity and quality [3][7]. - The highest award was given to the "Xuanjie O1" team, while other notable projects included the Xiaomi 17 Pro series, 2200MPa super steel, and various innovations in AI and battery technology, which received second and third prizes [3][7]. Group 2: R&D Investment - Over the past five years, Xiaomi committed to a research and development investment of 100 billion, with actual spending around 105 billion, and plans to invest 200 billion in the next five years [4][8]. - The CEO emphasized the importance of effectively allocating these funds to tackle core technologies in chips, operating systems, and AI, aiming to build a comprehensive ecosystem for Xiaomi [4][8]. Group 3: Future Plans - By 2026, Xiaomi aims to integrate self-developed chips, operating systems, and AI models into a single terminal, while also focusing on innovation in robotics [4][8].

Core Insights - Xiaomi Group's strategy has officially upgraded to a "Human-Vehicle-Home Ecosystem," aiming to create a complete closed loop with the upcoming launch of Xiaomi cars in 2024, positioning itself as a leader in the global technology ecosystem [1][2] User and Hardware Ecosystem - Xiaomi's global monthly active users have reached 742 million, while the AIoT platform has connected over 1.04 billion devices, with more than 15,000 hardware partners [1] - The domestic application ecosystem sees a monthly app distribution volume exceeding 1.1 billion [1] Automotive Development - Xiaomi's automotive deliveries have entered a new phase, with cumulative deliveries surpassing 500,000 units, and over 350,000 units delivered in 2025 alone [1][2] - The CarIoT platform has opened over 30 product categories and established deep collaborations with four automotive manufacturers, including BYD and GAC Toyota [2] AI and R&D Investments - Since April, Xiaomi has launched several AI models and opened them to global developers, including the Xiaomi MiMo language and multimodal models [2] - Xiaomi MiMo-V2-Flash, a self-developed hybrid expert language model, has been announced as open-source, ranking among the top two global open-source models in multiple benchmarks [2] - The company plans to invest 200 billion yuan in R&D over the next five years, with an expected investment of 32-33 billion yuan in 2023 and around 40 billion yuan in 2026, focusing on core technologies such as chips, operating systems, and AI [2]

Core Insights - Xiaomi's revenue reached 113.1 billion yuan in Q3, marking a 22.3% year-on-year increase, with adjusted net profit soaring by 80.9% to 11.3 billion yuan, a historical high [1][2] - The company is experiencing robust growth in its core business while its innovative sectors, particularly electric vehicles and AI, are rapidly gaining traction [2][8] - Xiaomi's R&D investment has reached 23.5 billion yuan in the first three quarters, with expectations to exceed 30 billion yuan for the entire year, laying a solid foundation for future growth [1][17][19] Revenue Breakdown - In Q3, revenue from the smartphone and AIoT segments was 84.1 billion yuan, with smartphone revenue at 46 billion yuan and IoT and lifestyle products at 27.6 billion yuan, reflecting a 5.6% year-on-year growth [4] - Internet services revenue reached 9.4 billion yuan, up 10.8% year-on-year, with overseas internet service revenue hitting a record 3.3 billion yuan, contributing significantly to growth [5] Smartphone Performance - Xiaomi's global smartphone shipments reached 43.3 million units in Q3, marking nine consecutive quarters of year-on-year growth, maintaining a top-three position globally for 21 quarters [4] - The Xiaomi 17 series has gained significant traction in the high-end market, achieving over 1 million sales within five days of launch [9][10] Innovative Business Growth - Revenue from the electric vehicle and AI segments surged to 29 billion yuan, with a year-on-year increase exceeding 199%, and the automotive division achieving profitability [5][12] - The contribution of innovative business to overall revenue growth has increased from 15.32% to 25.64% in Q3, indicating a shift towards self-sustaining growth [5] R&D and Future Outlook - Xiaomi plans to invest 200 billion yuan in R&D over the next five years, focusing on core technologies to transition from an internet company to a hard-tech company [19][20] - The company has launched new self-developed chips and operating systems, enhancing its ecosystem and user experience across devices [19][20] International Expansion - Xiaomi aims to increase the number of its retail stores overseas to 10,000 in the next five years, focusing on markets in Southeast Asia, Hong Kong, Taiwan, Japan, South Korea, and Europe [14][16] - The company has successfully established a presence in international markets, with significant interest in its electric vehicles and smart home products [13][14]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [6][8] Core Insights - Xiaomi Group's Q2 revenue and adjusted net profit reached new highs, with revenue of RMB 116 billion, a year-on-year increase of 30.5%, marking three consecutive quarters of over RMB 100 billion [8] - The adjusted profit was RMB 10.8 billion, exceeding Bloomberg's expectation of RMB 10.2 billion, and represented a year-on-year increase of 75% [8] - Key growth drivers include strong performance in IoT business, improved EV gross margins from the delivery of high-value models, and a slight offset from a decline in smartphone revenue [8] - The management reiterated the R&D expense guidance for 2025 at RMB 30 billion, with a quarter allocated to AI [8] Financial Data and Profit Forecast - Revenue projections for 2025-2027 are revised to RMB 4,854 billion, RMB 5,972 billion, and RMB 7,258 billion respectively, with adjusted net profit forecasts of RMB 436 billion, RMB 512 billion, and RMB 649 billion [2][8] - The expected growth rates for revenue are 33% in 2025, 23% in 2026, and 22% in 2027 [2] - The expected earnings per share for 2025 is RMB 1.63, with a net asset return rate of 20.1% [2] Market Data - As of August 19, 2025, Xiaomi's closing price was HKD 52.40, with a market capitalization of HKD 136.37 billion [3] - The stock has a 52-week high of HKD 61.45 and a low of HKD 17.10 [3] Business Segments Performance - Smartphone revenue in Q2 was RMB 45.5 billion, a year-on-year decrease of 2%, with a gross margin of 11.5% [8] - IoT revenue grew by 45% year-on-year to RMB 38.7 billion, with a gross margin of 22.5% [8] - The electric vehicle segment reported revenue of RMB 21.3 billion with a gross margin of 26.4%, and a delivery of 81,300 units [8]

Core Insights - Xiaomi reported a strong performance in Q1 2025, with revenue reaching 1112.93 billion RMB, a year-on-year increase of 47.4%, exceeding market expectations [1] - Adjusted net profit for the same period was 106.76 billion RMB, marking a 64.5% increase and setting a historical record, with an overall gross margin of 22.8% [1] Business Segments - The "Mobile × AIoT" segment generated revenue of 927 billion RMB, up 22.8% year-on-year, with a gross margin of 22.8%. Smartphone revenue was 506 billion RMB, a growth of 8.9%, while IoT and lifestyle product revenue surged by 58.7% to 323 billion RMB [1] - Xiaomi's global smartphone shipments reached 41.8 million units in Q1 2025, with a market share of 18.8% in mainland China, ranking first in the market [1] - Internet services revenue was 91 billion RMB, reflecting a 12.8% year-on-year growth, with a gross margin of 76.9%. The global monthly active user count reached 719 million, a 9.2% increase, with 181 million users in mainland China, up 12.9% [1] Innovative Business Growth - Revenue from smart electric vehicles and AI-related businesses rose significantly from 2.6 million RMB in Q1 2024 to 18.6 billion RMB in Q1 2025, with a gross margin of 23.2% and an operating loss of approximately 500 million RMB [2] - The smart electric vehicle revenue was 18.1 billion RMB, with 76,000 units of the Xiaomi SU7 series delivered in Q1 2025, totaling over 258,000 units since launch [2] - Xiaomi plans to expand production capacity and has entered the luxury car market with the launch of the Xiaomi SU7 Ultra and the upcoming SUV model YU7 [2] Research and Development Investment - R&D expenditure for Q1 2025 was 6.7 billion RMB, a 30.1% increase year-on-year, with a commitment to invest 200 billion RMB over the next five years [2] - The total number of R&D personnel reached a record high of 21,731 by March 31, 2025 [2] - Xiaomi has made significant advancements in core areas such as chips, operating systems, and AI, including the release of its self-developed 3nm flagship SoC chip and the open-sourcing of its first inference model, Xiaomi MiMo [2]