Group 1 - The core viewpoint of XPeng Motors is the rebranding from "XPeng Motors Limited" to "XPeng Inc." starting April 1, 2026, marking a new beginning for the company after twelve years of development in the smart electric vehicle sector [1] - XPeng's chairman and CEO, He Xiaopeng, emphasized the company's journey from smart electric vehicles to advancements in flying cars, AI chips, autonomous driving models, humanoid robots, and Robotaxi, indicating a commitment to turning ambitious dreams into reality [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights the need to wait for a fundamental turning point, with a clearer picture of the AI strategy emerging [6] - The company has adjusted its profit forecasts for 2026 and 2027, maintaining a "Buy" rating despite the downward revisions [8] Financial Data and Earnings Forecast - Revenue projections for the company are as follows: - 2024: 365.9 billion RMB - 2025: 457.3 billion RMB - 2026E: 504.8 billion RMB - 2027E: 593.0 billion RMB - 2028E: 698.0 billion RMB - Year-on-year growth rates are projected at 35% for 2024, 25% for 2025, 10% for 2026, 17% for 2027, and 18% for 2028 [7] - Adjusted net profit forecasts are: - 2024: 27.3 billion RMB - 2025: 39.2 billion RMB - 2026E: 33.4 billion RMB - 2027E: 41.4 billion RMB - 2028E: 51.4 billion RMB - The report indicates a decrease in adjusted net profit for 2026 and 2027 compared to previous estimates [8][11] Business Segments - Smartphone segment: - Revenue for 2025 is projected at 186.4 billion RMB, with a year-on-year decrease of 3% - The average selling price (ASP) is expected to increase by 5% in 2026, reaching 1,185 RMB per unit [8] - IoT segment: - Revenue for 2025 is projected at 123.2 billion RMB, with a year-on-year growth of 18% - The report notes that the slowdown in growth is due to national subsidies and increased competition [8] - Internet services: - Revenue for 2025 is projected at 37.4 billion RMB, with a year-on-year growth of 10% [8] - Electric vehicles: - The company aims to deliver 550,000 vehicles in 2026, with a target of 410,000 deliveries in 2025 [8] Valuation - Based on a sum-of-the-parts (SOTP) valuation, the target valuation for the company is 986.7 billion RMB, indicating a potential upside of 33% from the current market value [15]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group [1] Core Insights - The report highlights the need to wait for a fundamental turning point, with a clearer picture of the AI strategy emerging [6] - Xiaomi's performance in Q4 2025 shows revenue of 116.9 billion RMB, a year-on-year increase of 7%, while adjusted net profit decreased by 24% [8] - The report anticipates a decline in smartphone shipments to 150 million units in 2026, a 9% year-on-year decrease, with an average selling price (ASP) increase of 5% [8] - The IoT segment is expected to see revenue growth of 10% in 2026, despite short-term challenges [8] - The report projects a total revenue of 504.8 billion RMB for 2026, with a net profit of 33.4 billion RMB, reflecting a 15% decrease from previous estimates [8] Financial Data and Profit Forecast - Revenue projections for Xiaomi Group are as follows: - 2024: 365.9 billion RMB - 2025: 457.3 billion RMB - 2026E: 504.8 billion RMB - 2027E: 593.0 billion RMB - 2028E: 698.0 billion RMB - The expected year-on-year growth rates are 35% for 2024, 25% for 2025, 10% for 2026, 17% for 2027, and 18% for 2028 [7] - Adjusted net profit forecasts are: - 2024: 27.3 billion RMB - 2025: 39.2 billion RMB - 2026E: 33.4 billion RMB - 2027E: 41.4 billion RMB - 2028E: 51.4 billion RMB [7] Business Segments - The smartphone segment is projected to generate revenue of 178 billion RMB in 2026, with a decline in shipments and a decrease in gross margin to 8% [8] - The IoT segment is expected to achieve revenue of 135.5 billion RMB in 2026, with a focus on high-end products and international expansion [8] - Internet services are forecasted to reach 41.2 billion RMB in revenue for 2026, maintaining a gross margin of 77% [8] - The electric vehicle segment aims for deliveries of 550,000 units in 2026, with a gross margin of 24.3% [8] Valuation and Target Price - Based on a sum-of-the-parts (SOTP) valuation, the target valuation for Xiaomi Group is set at 986.7 billion RMB, indicating a potential upside of 33% from the current market value [15]

Group 1: Xiaomi Group Analysis - Xiaomi Group reported a revenue of approximately 457.29 billion yuan for 2025, representing a year-on-year growth of 24.97% and an adjusted net profit of approximately 39.17 billion yuan, up 43.8% year-on-year [3][4] - The smartphone segment experienced a revenue decline of 2.8% year-on-year, with a total revenue of approximately 186.4 billion yuan in 2025, primarily due to reduced shipments in the Indian market and lower average selling prices (ASP) in emerging markets [4] - The IoT and lifestyle products segment saw a revenue of approximately 1,232 billion yuan in 2025, growing 18.3% year-on-year, but faced a decline in Q4 2025 due to reduced national subsidies and increased competition [5] - The smart electric vehicle segment delivered approximately 410,000 new vehicles in 2025, with a revenue of approximately 103.3 billion yuan, marking a significant year-on-year growth of 221.8% [5][6] - Xiaomi continues to invest heavily in AI, with plans to exceed 200 billion yuan in R&D spending over the next five years, aiming to become a global leader in core technology [6][7] Group 2: Yuntianhua Analysis - Yuntianhua reported a revenue of 48.415 billion yuan for 2025, a decrease of 21.47% year-on-year, with a net profit of 5.156 billion yuan, down 3.40% year-on-year [10][12] - The company faced pressure from rising sulfur prices, which impacted domestic phosphate fertilizer sales, while overseas phosphate prices increased significantly, leading to improved margins in international sales [12][14] - In Q4 2025, Yuntianhua's revenue was 10.816 billion yuan, down 27.56% year-on-year, with a net profit of 427 million yuan, reflecting a significant decline due to increased costs and reduced sales [11][14] - The company has a phosphate resource reserve of nearly 800 million tons and has recently acquired mining rights for a new phosphate mine, which is expected to enhance its production capabilities [17][19] - Yuntianhua plans to distribute a cash dividend of 12 yuan per 10 shares, totaling approximately 2.188 billion yuan, which represents 49.50% of its net profit for 2025 [18][19] Group 3: HeYu-B Analysis - HeYu-B's report highlights its efficient small molecule R&D platform, which is expected to continue producing FIC/BIC molecules, driving long-term growth [22][23] - The company’s lead product, Pimitinib, has shown a 76.2% overall response rate in clinical trials and is set to launch commercially in 2026, marking a significant milestone for the company [22][23] - The platform's unique capabilities in targeting and molecular structure optimization are expected to provide a competitive edge in the biotech market, particularly in the liver cancer segment [22][23]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][12]. Core Insights - The company reported a revenue of approximately 457.29 billion RMB for 2025, representing a year-on-year growth of 24.97%. The gross margin was approximately 22.26%, and the adjusted net profit was about 39.17 billion RMB, up 43.8% year-on-year [5][10]. - In Q4 2025, the company achieved a quarterly revenue of approximately 116.92 billion RMB, a year-on-year increase of 7.26% and a quarter-on-quarter increase of 3.36%. The gross margin for this quarter was around 20.84%, with an adjusted net profit of approximately 6.35 billion RMB, down 23.7% year-on-year [5][10]. Summary by Relevant Sections Smartphone Business - The smartphone segment faced challenges due to macroeconomic conditions, with Q4 2025 revenue of 44.3 billion RMB, a year-on-year decline of 13.6%. The shipment volume was approximately 37.7 million units, down 11.6% year-on-year, primarily due to reduced promotional activities in overseas markets. For the full year 2025, smartphone revenue was about 186.4 billion RMB, a decrease of 2.8%, with a gross margin of 10.9% [6]. IoT and Consumer Products - The IoT and consumer products segment experienced a decline in both revenue and gross margin in Q4 2025, with revenue of approximately 24.6 billion RMB, down 20.3% year-on-year. For the full year, this segment generated 123.2 billion RMB, an 18.3% increase year-on-year, with a gross margin of 23.1% [7]. Smart Electric Vehicles - The smart electric vehicle segment showed significant growth, with Q4 2025 revenue of approximately 36.3 billion RMB and a delivery volume of about 145,000 vehicles, representing a year-on-year increase of 108.2%. For the full year, the revenue from this segment was approximately 103.3 billion RMB, up 221.8% year-on-year, driven by increased delivery volumes and an average selling price (ASP) of approximately 251,000 RMB, up 7.1% year-on-year [8]. AI Development - The company continues to invest in AI, aiming to empower the "human-vehicle-home ecosystem" comprehensively. In March 2026, the company launched its flagship model Xiaomi Mimo-V2-Pro, designed for real-world agent work scenarios, featuring over 1 trillion parameters and innovative architecture [8]. Financial Projections - The company expects revenues of 538.3 billion RMB, 633.7 billion RMB, and 681.8 billion RMB for 2026, 2027, and 2028, respectively. Adjusted net profits are projected to be 43.5 billion RMB, 55.8 billion RMB, and 61.2 billion RMB for the same years, with corresponding adjusted P/E ratios of 17.1, 13.3, and 12.2 [10][11].

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810.HK) [6] Core Insights - In 2025, Xiaomi Group achieved a revenue of 457.3 billion CNY, representing a year-on-year growth of 25.0%, and a Non-IFRS net profit of 39.2 billion CNY, up 43.8% year-on-year [1] - The company’s smart electric vehicle and AI segments generated over 100 billion CNY in revenue for the first time, achieving an annual operating profit of 900 million CNY [1] - The smartphone business faced challenges with a revenue decline of 2.8% year-on-year, attributed to a slight drop in shipment volume and increased core component costs impacting gross margins [2] - The IoT and lifestyle products segment saw robust growth, with a revenue increase of 18.3% year-on-year, although Q4 experienced a slowdown due to subsidy reductions [3] - The automotive business delivered 411,082 vehicles in 2025, marking a 200.4% increase year-on-year, and the launch of the new Xiaomi SU7 series is expected to drive further growth [4] - The report highlights the integration of AI strategies across the company's ecosystem as a key growth driver in the AI era [4] Summary by Sections Financial Performance - In 2025, Xiaomi Group's total revenue reached 457.3 billion CNY, with a Non-IFRS net profit of 39.2 billion CNY, reflecting significant growth compared to the previous year [1] - The smartphone segment generated 186.4 billion CNY in revenue, down 2.8% year-on-year, with a gross margin of 10.9%, a decrease of 1.7 percentage points [2] - IoT and lifestyle products revenue reached 123.2 billion CNY, up 18.3% year-on-year, with a gross margin of 23.1% [3] - The automotive segment reported revenue of 106.1 billion CNY, a remarkable increase of 223.8% year-on-year, achieving a gross margin of 24.3% [4] Future Outlook - The report projects a decline in Non-IFRS net profit for 2026 and 2027 to 32.0 billion CNY and 41.6 billion CNY, respectively, due to rising upstream costs and market competition [5] - Despite short-term challenges in the smartphone segment, the strong performance of the automotive business and the integration of AI strategies are expected to open new growth avenues [5]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 40.8, indicating a potential upside of 24.8% from the recent closing price [7]. Core Insights - The automotive business has become a key growth driver, achieving a revenue of RMB 372 billion in Q4 2025, representing a year-on-year increase of 123.4% and marking the first quarter of operational profitability at RMB 11 billion [1][2]. - Traditional businesses, such as smartphones and AIoT, are facing short-term pressure due to rising core component and storage costs, impacting overall profitability [1][3]. - The internet services segment showed steady growth, with Q4 2025 revenue reaching RMB 99 billion, a 5.9% year-on-year increase, supported by a record high in advertising revenue [3]. - The IoT and lifestyle consumption segment experienced a decline, with Q4 2025 revenue falling by 20.3% due to a weak domestic appliance market [4]. Summary by Relevant Sections Automotive Business - The automotive segment's revenue reached RMB 372 billion, accounting for 31.8% of total revenue, with a gross margin of 22.7%. The average selling price (ASP) of vehicles increased by 6.6% to RMB 249,846 per unit, driven by higher-value model deliveries [2]. - The company aims to deliver 550,000 vehicles in 2026 and plans to invest over RMB 200 billion in R&D over the next five years, with RMB 60 billion allocated to AI initiatives [4]. Smartphone Business - The smartphone segment's global shipments reached 37.7 million units in Q4 2025, a decline of 11.6% year-on-year, attributed to reduced promotional activities in overseas markets. The ASP increased by 10.7% to RMB 1,176.0 due to a higher proportion of premium models sold [3]. Internet Services - Internet services revenue for Q4 2025 was RMB 99 billion, with a gross margin of 76.8%. Advertising revenue reached RMB 78 billion, marking a 10.4% year-on-year increase and providing solid support for overall profitability [3]. IoT and Lifestyle Consumption - The IoT and lifestyle consumption segment reported a revenue of RMB 246 billion in Q4 2025, down 20.3% year-on-year, primarily due to a downturn in the domestic appliance market [4].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 40.8, indicating a potential upside of 24.8% from the recent closing price [7]. Core Insights - The automotive business has become a key growth driver, achieving a revenue of RMB 372 billion, a year-on-year increase of 123.4%, and marking the first quarter of operational profitability at RMB 11 billion [1][2]. - Traditional businesses, such as smartphones and IoT, are facing short-term pressures due to rising costs and market competition, impacting overall profitability [3][4]. - The company plans to focus on delivering 550,000 vehicles in 2026 and has committed to significant R&D investments, exceeding RMB 200 billion over the next five years, with RMB 60 billion specifically for AI [4][5]. Summary by Sections Automotive Business - The automotive segment's revenue reached RMB 372 billion, accounting for 31.8% of total revenue, with a gross margin of 22.7% [2]. - The company delivered 145,115 new vehicles in the quarter, a 108.2% increase year-on-year, driven by strong demand and an increase in average selling price (ASP) to RMB 249,846 per vehicle [2]. Smartphone Business - The smartphone segment's global shipments reached 37.7 million units, but faced an 11.6% year-on-year decline due to reduced promotional activities in overseas markets [3]. - The ASP for smartphones increased by 10.7% quarter-on-quarter to RMB 1,176, supported by higher sales of premium models [3]. Internet Services - Internet services revenue for the quarter was RMB 99 billion, a 5.9% year-on-year increase, with a gross margin of 76.8% [3]. - Advertising revenue reached a record high of RMB 78 billion, growing 10.4% year-on-year, providing solid support for overall profitability [3]. IoT and Lifestyle Products - Revenue from the IoT and lifestyle segment declined by 20.3% year-on-year to RMB 246 billion, primarily due to a weak domestic appliance market [4]. Business Outlook - The automotive sector is positioned as the core growth engine for the company, with ambitious delivery targets and substantial R&D investments planned for the coming years [4][5].

Group 1 - Xiaomi Group reported a total revenue of 457.3 billion yuan for 2025, a year-on-year increase of 25.0%, and an adjusted net profit of 39.2 billion yuan, up 43.8%, both hitting historical highs [2] - The smart electric vehicle and AI innovation businesses became the strongest growth engines, with revenue surpassing 100 billion yuan for the first time, reaching 106.1 billion yuan, a year-on-year increase of 223.8% [3] - The smartphone business remains stable, generating revenue of 186.4 billion yuan, with global shipments ranking in the top three for five consecutive years. The high-end strategy showed significant results, with models priced at 3,000 yuan and above accounting for 27.1% of sales in mainland China, a historical high [4] Group 2 - AI has been established as a core future strategy, with Xiaomi announcing an investment of at least 60 billion yuan in AI over the next three years. Its self-developed large model MiMo-V2-Pro has entered the global first tier, and the mobile agent product Xiaomi miclaw is promoting AI in the "people, vehicles, and home ecosystem" [5] - XPeng Motors achieved total revenue of 76.72 billion yuan in 2025, a year-on-year increase of 87.7%, with annual deliveries reaching 429,445 vehicles, a year-on-year increase of 125.9% [6] - XPeng's fourth quarter revenue reached 22.25 billion yuan, marking a new quarterly high, with a net profit of 380 million yuan and a comprehensive gross margin of 21.3%, the highest in history [6] Group 3 - XPeng provided conservative guidance for Q1 2026, expecting vehicle deliveries between 61,000 and 66,000, a year-on-year decline of approximately 30% to 35%, with total revenue projected to be between 12.2 billion and 13.28 billion yuan, a year-on-year decrease of about 16% to 23% [7] - The company is transitioning from "selling cars" to "selling technology," seeking diversified revenue streams through technology licensing of its self-developed Turing chip and second-generation VLA intelligent driving system [7] - XPeng plans to launch four new vehicles in 2026, accelerate overseas expansion, and aims for overseas revenue to exceed 20% [9] Group 4 - The new flagship processor XuanTie C950 launched by Alibaba is tailored for the AI Agent era, setting global records in performance and computing efficiency, enhancing the competitiveness of domestic processors in AI terminal and edge computing [13] - Apple is reportedly advancing the largest product innovation in its history, with two flagship models: the first foldable iPhone expected to launch in September 2026 and the 20th anniversary edition of the iPhone in 2027 [14][15] - The foldable iPhone is expected to feature a horizontal inward-folding design with an internal screen of approximately 7.7 inches and an external screen of about 5.3 inches, addressing crease issues with new hinge and screen technology [15]

Xiaomi Corporation 2025 Fourth Quarter and Annual Results Disclaimer By attending the meeting where this presentation is made, or by reading the presentation materials, you agree to be bound by the following limitations: The information in this presentation has been prepared by representatives of Xiaomi Corporation (the "Company", and together with its subsidiaries, the "Group") for use in presentations by the Group and does not constitute a recommendation regarding the securities of the Group. No part of t ...