Core Points - The Jiangsu province will launch a "trade-in" subsidy program for consumer goods starting January 1, 2026, aimed at encouraging residents to upgrade their vehicles, home appliances, and digital products [4][18] Group 1: Vehicle Subsidies - The program offers a maximum subsidy of 20,000 yuan for trading in old vehicles for new ones, applicable to both new energy and fuel vehicles [4][7] - For scrapping old gasoline vehicles registered before June 30, 2013, or diesel vehicles registered before June 30, 2015, a subsidy of 12% of the new vehicle price is available, capped at 20,000 yuan [7] - For trading in old vehicles, a subsidy of 8% of the new vehicle price is available for new energy vehicles, with a maximum of 15,000 yuan, and 6% for fuel vehicles with a maximum of 13,000 yuan [10] Group 2: Home Appliance Subsidies - A subsidy of 15% of the final price, capped at 1,500 yuan, is available for upgrading home appliances such as refrigerators, washing machines, televisions, air conditioners, water heaters, and computers, provided they meet energy efficiency standards [14] Group 3: Digital Product Subsidies - For digital products like smartphones, tablets, smartwatches, and smart glasses, a subsidy of 15% of the final price is available, with a maximum of 500 yuan per item, applicable to items priced under 6,000 yuan [17] Group 4: Participation Requirements - To qualify for vehicle subsidies, both the old and new vehicles must be registered under the same individual's name, and the new vehicle's invoice and registration must be issued in Jiangsu [17] - For home appliances and digital products, the applicant, payer, and recipient must be the same person, and their information must match [17] Group 5: Implementation and Information Access - The "Jiangsu Consumption Trade-in Platform" will provide comprehensive support for the subsidy application process, and participating merchants will be listed by local business authorities [17][18] - Residents are encouraged to stay updated on specific implementation details and participating merchants through local official notifications [17]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached RMB 113.1 billion, up 22.3% year-on-year, marking the fourth consecutive quarter exceeding RMB 100 billion [4][17] - Gross profit margin increased to 22.9%, up 2.5 percentage points year-on-year, achieving a new record high [5][17] - Adjusted net profit reached RMB 11.3 billion, up 81% year-on-year, setting a new record high [5][23] Business Line Data and Key Metrics Changes - Revenue from the smartphone segment was RMB 46 billion, accounting for 40.6% of total revenue, with global smartphone shipments reaching 43.25 million units, marking a 0.5% year-on-year increase [17][18] - IoT business revenue was RMB 27.6 billion, with a gross margin of 23.9%, achieving seven consecutive quarters of year-on-year growth [10][19] - The smart EV, AI, and other new initiative segment generated revenue of RMB 29 billion, accounting for 25.6% of total revenue, with smart EV sales reaching RMB 28.3 billion [21][22] Market Data and Key Metrics Changes - Xiaomi ranked among the top three in global smartphone shipments with a market share of 13.6%, and achieved year-on-year market share growth in all regions except India [7][18] - In mainland China, smartphone market share reached 14.9%, with a 0.7 percentage point increase year-on-year [18] - The company ranked second in Latin America and the Middle East, with market shares of 17.9% and 16.9%, respectively [7] Company Strategy and Development Direction - The company aims to enhance its premiumization strategy, targeting the ultra-premium segment above RMB 6,000 as a new objective for the next five years [8][9] - The launch of Xiaomi HyperOS 3 is expected to improve user experience and drive product competitiveness [9] - The company plans to invest over RMB 200 billion in R&D over the next five years, with R&D expenses exceeding RMB 30 billion this year [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ensuring stable raw material supply despite rising memory costs and supply-demand dynamics [10] - The company anticipates a decline in smartphone gross margins due to increased memory costs but plans to mitigate this through product mix upgrades and ASP increases [30][31] - Management remains optimistic about the growth of the IoT business and the expansion of overseas markets [12][19] Other Important Information - The company achieved a record high of 742 million global MAUs in September 2025, an 8.2% increase year-on-year [20] - The smart home appliance factory commenced operations, with a planned peak annual production capacity of 7 million units [11][19] - The company was named to the Fortune Global 500 list for the seventh consecutive year, ranking 297th [14] Q&A Session Summary Question: Concerns about memory cost impact on smartphone gross margin and EV delivery strategy - Management acknowledged the long cycle of memory cost increases and its impact on gross margins, stating that price increases and product structure optimization will be necessary to mitigate this [27][30] - For EVs, management noted rising delivery volumes and improvements in delivery schedules due to efficiency enhancements [33][34] Question: Future smartphone strategy and EV subsidies impact on gross margin - Management indicated that while smartphone prices may increase, the overall market may experience a downturn, and they aim to maintain a premium strategy [39][41] - Regarding EVs, management expects some impact on gross margin due to subsidies but believes current margins are healthy [42][43] Question: AIoT growth and large appliances strategy - Management highlighted the integration of AI with IoT devices and the importance of maintaining an open ecosystem for future growth [46][66] - For large appliances, management emphasized the importance of innovation and the impact of national subsidies, stating that they will adapt to changes in the market [50][51] Question: Autonomous driving advancements and overseas development - Management confirmed that autonomous driving is a critical focus for future EV development, with significant enhancements in technology and data utilization [56][57] - The company is expanding its overseas presence, particularly in East Asia and Southeast Asia, while maintaining good relationships with traditional distributors [58][59] Question: Inventory management and Miloco ecosystem plans - Management reassured that inventory levels are well-managed and that they will maintain an open ecosystem for Miloco while exploring AI integration [64][66] Question: Smartphone market stability and large appliance factory role - Management noted that the smartphone market is currently stable, with cost increases impacting all players, and emphasized the advanced capabilities of the new large appliance factory [70][73]

Financial Data and Key Metrics Changes - In Q1 2025, total revenue reached RMB111.3 billion, up 47.4% year on year, marking a record high for the company [25][13] - Adjusted net profit exceeded RMB10 billion for the first time, reaching RMB10.7 billion, up 64.5% year on year [36][25] - Gross margin was 22.8%, a historical high, up 0.5 percentage points year on year [25][26] Business Line Data and Key Metrics Changes - Smartphone revenue was RMB50.6 billion, accounting for 45.5% of total revenue, up 8.9% year on year [26] - IoT revenue reached RMB32.3 billion, up 59% year on year, marking a record high [17][29] - Internet service revenue was RMB9.1 billion, up 12.8% year on year, with a gross margin of 76.9% [30][31] Market Data and Key Metrics Changes - Xiaomi regained the number one position in smartphone shipments in Mainland China with a market share of 18.8%, up 4.7 percentage points year on year [14][28] - Global smartphone shipments reached 41.8 million units, with a market share of 14.1% [27][28] - In the high-end smartphone segment in Mainland China, Xiaomi's market share increased from 21% to 25% year on year [15][81] Company Strategy and Development Direction - The company aims to invest RMB30 billion in R&D in 2025, with a total investment exceeding RMB102 billion from 2021 to 2025 [7][8] - Xiaomi is focusing on becoming a global leader in hardcore technology, particularly in AI and chip development [5][8] - The company plans to enhance its premiumization strategy across various product lines, including smartphones and home appliances [72][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite increasing competition in the IoT space [41][42] - The company is optimistic about its EV business, with plans to deliver 76,000 new EVs in Q1 2025 [21][22] - Management acknowledged challenges in the smartphone market but emphasized a focus on improving product structure rather than just sales volume [61][62] Other Important Information - Xiaomi's R&D team reached a historical record of 21,731 employees, with R&D expenses totaling RMB6.7 billion in Q1 2025 [34][35] - The company has been recognized for its efforts in ESG, completing 95.94% of its electronic waste recovery target [36][38] Q&A Session Summary Question: What strategies will Xiaomi implement to face increased competition in the IoT market? - Management noted that Xiaomi is still in a high growth stage and has not felt significant competitive pressure yet, emphasizing the importance of maintaining product availability and quality [42][43] Question: How will Xiaomi ensure the success of its EV business amidst potential price competition? - Management expressed confidence in the Su-seven model's strong sales and indicated that production capacity is currently a greater concern than pricing [48][49] Question: Can you elaborate on the efficiency and profitability enhancements expected from the smart appliance and EV factories? - Management highlighted the importance of building a smart manufacturing platform that enhances supply chain efficiency across different product categories [50][52] Question: What is the outlook for smartphone shipments and pricing strategies in light of market conditions? - Management indicated that while there may be some adjustments in growth expectations, the focus will be on improving product structure rather than just increasing sales volume [60][61] Question: How does Xiaomi plan to utilize its self-developed chips in future products? - Management clarified that the focus is currently on flagship chips, with plans to explore their use in other product categories as capabilities develop [86][88] Question: What is the competitive landscape in overseas markets, particularly in India and Africa? - Management acknowledged challenges in India but sees significant growth potential in Africa, emphasizing the need for tailored strategies in different markets [102][104]