Core Viewpoint - Xiaomi is successfully implementing its "new retail" strategy in Southeast Asia, focusing on high-end products and a comprehensive customer experience through its physical stores, such as the Xiaomi Home in Bangkok, which has significantly contributed to its overseas revenue [1][5][6]. Group 1: Store Experience and Product Performance - The Xiaomi Home in Bangkok resembles a technology exhibition rather than a typical retail store, allowing customers to interact with various smart devices, enhancing the immersive experience [2][6]. - The flagship Xiaomi 15 series smartphones accounted for 45% of the store's total revenue shortly after launch, highlighting the strong performance of high-end products in a competitive market [4][6]. - In Q2 2025, Xiaomi regained the top position in the Southeast Asian smartphone market with a 19% market share, selling 4.7 million units, while the high-end smartphone segment saw a 54% year-on-year increase in sales [4][6]. Group 2: New Retail Strategy and Market Expansion - Xiaomi's new retail strategy aims to enhance efficiency and user experience through direct sales and digital management, eliminating intermediaries and reducing costs [5][6]. - The company plans to open over 100 new stores in Thailand and Malaysia this year, with a long-term goal of establishing 10,000 Xiaomi Homes globally within five years [6][7]. - Xiaomi's approach to international markets includes a mix of direct sales and local partnerships, allowing for rapid expansion while maintaining brand consistency [6][7]. Group 3: Product Diversification and Future Plans - 2025 marks the beginning of Xiaomi's major push into the home appliance market in Southeast Asia, with significant sales of air conditioners and other high-end products [4][7]. - The company is also exploring opportunities in the European market for home appliances and plans to expand its automotive offerings by 2027 [7][11].

Core Insights - The company reported a significant increase in total revenue and adjusted net profit for the first half of 2025, with total revenue reaching 227.2 billion yuan, up 38.2% year-on-year, and adjusted net profit at 21.5 billion yuan, up 69.8% [1] Automotive Sector - The automotive segment experienced accelerated growth, with revenue from smart electric and innovative businesses reaching 21.3 billion yuan, a year-on-year increase of 234% and a quarter-on-quarter increase of 14%, driven by continuous delivery growth and an increase in average selling price (ASP) [2] - The company delivered 81,000 vehicles in Q2, marking a year-on-year increase of 198% and a quarter-on-quarter increase of 7%, with an ASP of 254,000 yuan, up 11% year-on-year, primarily due to the increased delivery of the high-priced SU7 Ultra [2] - The automotive business gross margin improved to 26.4%, up 11 percentage points year-on-year and 3 percentage points quarter-on-quarter, benefiting from robust orders and capacity ramp-up [2] - The company anticipates that the launch of the YU7 model in June will further enhance quarterly deliveries and potentially lead to profitability within the year [2] Smartphone Sector - In Q2 2025, the smartphone business generated revenue of 45.5 billion yuan with a shipment volume of 42.4 million units, achieving year-on-year growth for eight consecutive quarters and maintaining a top-three position globally for five years [2] - The company achieved significant market share in the high-end segment, with a 24.7% market share in the 4,000-5,000 yuan price range, ranking first, and a 15.4% market share in the 5,000-6,000 yuan range, an increase of 6.5 percentage points year-on-year [2] - The successful launch and mass production of the self-developed 3nm flagship SoC, the Xuanjie O1, provide the company with a long-term competitive advantage [2] IoT Sector - The IoT and lifestyle consumer products segment achieved record revenue of 38.7 billion yuan in Q2, a year-on-year increase of 45%, with a gross margin of 22.5%, up 3 percentage points [3] - The smart home appliance category showed strong performance, with revenue growth of 66% year-on-year, air conditioner shipments exceeding 5.4 million units (up over 60% year-on-year), refrigerator shipments exceeding 790,000 units (up over 25% year-on-year), and washing machine shipments exceeding 600,000 units (up over 45% year-on-year) [3] - The company launched the Xiaomi AI glasses in June, featuring a 12-megapixel ultra-transparent optical lens, which is expected to further expand the IoT business space [3] Financial Forecast - The company projects revenues of 474.4 billion yuan, 588.7 billion yuan, and 696.4 billion yuan for 2025-2027, representing year-on-year growth rates of 30%, 24%, and 18% respectively; net profit attributable to shareholders is expected to be 43.7 billion yuan, 56.7 billion yuan, and 71.4 billion yuan, with corresponding year-on-year growth rates of 85%, 30%, and 26% [3]

Core Viewpoint - Xiaomi Group reported a total revenue of 1159.56 billion yuan for Q2 2025, a year-on-year increase of 30.5%, and a net profit of 108.31 billion yuan, up 75.4% year-on-year, despite a challenging global smartphone market [1]. Business Performance - Xiaomi's smartphone and AIoT businesses remain the revenue pillars, generating 946.93 billion yuan in Q2, a 14.8% increase year-on-year, accounting for 81.7% of total revenue [5]. - The smartphone revenue for Q2 was 455.2 billion yuan, a decrease of approximately 10% from Q1 due to a decline in average selling price (ASP), although this was partially offset by an increase in shipment volume [5]. - The ASP for smartphones dropped from 1210.6 yuan in Q1 to 1073.2 yuan in Q2, a decline of 11.3%, primarily due to a higher proportion of lower-priced models sold overseas [5]. - Xiaomi's smartphone shipments reached 42.4 million units in Q2, a 1.5% increase quarter-on-quarter, with a market share of 16.8% in China, making it the top brand domestically [5][9]. Market Position - In Q2, Xiaomi's smartphone market share in Southeast Asia rose to 18.9%, ranking first, while in Europe, it regained the second position with a market share of 23.4%, surpassing Apple for the first time [6]. - Xiaomi's smartphone shipments have shown continuous growth in international markets, ranking in the top three in 60 countries and regions [6]. Strategic Goals - The company aims to enter the "200 million club" for annual smartphone sales, positioning itself alongside Apple and Samsung in a competitive landscape [10]. - Xiaomi's strategy has shifted from scale expansion to balancing quality and profit, focusing on high-end products and ecosystem synergy for new growth opportunities [9]. Business Structure Optimization - In Q2, Xiaomi's smartphone revenue share decreased to 39.3%, while IoT and lifestyle products increased to 33.4% [12]. - IoT and lifestyle product revenue reached 387 billion yuan, a 44.7% year-on-year increase, with smart home appliances growing by 66.2% [12]. - The innovative business segment, including smart electric vehicles and AI, generated 213 billion yuan, a staggering 234% increase year-on-year [12]. Future Outlook - Xiaomi's management expressed confidence in achieving a 30% year-on-year revenue growth target for the year, driven by smartphone sales and the growth of its internet services and electric vehicle segments [13].

Core Insights - Xiaomi Group reported a total revenue of 1159.56 billion yuan for Q2 2025, a year-on-year increase of 30.5%, and a net profit of 108.31 billion yuan, up 75.4% year-on-year [2][3] Business Performance - Despite a challenging global smartphone market, Xiaomi's smartphone business achieved significant growth, with Q2 smartphone shipments reaching 42.4 million units, a 1.5% increase quarter-on-quarter [5][6] - Xiaomi's smartphone revenue for Q2 was 455.2 billion yuan, a decrease of approximately 10% from Q1 due to a decline in average selling price (ASP), which fell from 1210.6 yuan to 1073.2 yuan [5][6] - The company aims to enter the "200 million club" for annual smartphone sales, positioning itself alongside Apple and Samsung [3][10] Market Position - In the Southeast Asian market, Xiaomi's market share rose to 18.9%, ranking first, while in Europe, it regained the second position with a market share of 23.4%, surpassing Apple for the first time [6][7] - In the domestic market, Xiaomi's smartphone activation volume reached 11.5 million units, securing a market share of 16.8% [6][9] Revenue Breakdown - Xiaomi's smartphone and AIoT businesses remain the main revenue drivers, contributing 946.93 billion yuan in Q2, a year-on-year increase of 14.8%, accounting for 81.7% of total revenue [5][11] - IoT and lifestyle products revenue reached 387 billion yuan, up 44.7% year-on-year, while smart electric vehicles and AI-related businesses generated 213 billion yuan, a staggering 234% increase [12][13] Strategic Focus - The company is shifting its strategy from scale expansion to a focus on quality and profitability, emphasizing high-end products and ecosystem synergy for new growth opportunities [8][10] - Xiaomi's high-end smartphone sales accounted for 27.6% of total smartphone sales in Q2, an increase of 5.5 percentage points year-on-year [9][11] Future Outlook - Xiaomi is confident in achieving its annual revenue growth target of approximately 30%, driven by smartphone scale and high-end user growth, alongside steady growth in internet services and smart vehicles [13]

Core Viewpoint - The A-share market is experiencing significant volatility, driven by liquidity rather than economic fundamentals, with external factors influencing investor sentiment and market movements [3][4][8]. Market Analysis - The A-share market showed mixed performance today, with major indices closing slightly down, while the Northbound trading saw significant activity [4][28]. - The market's fluctuations are characterized by a tug-of-war between bullish and bearish sentiments, with liquidity being a key driver [2][3]. Liquidity and Fund Flows - External investment banks, including Goldman Sachs and Citigroup, emphasize that the current A-share rally is primarily liquidity-driven, with household savings shifting towards financial assets [3][4]. - Predictions indicate that public funds will need to increase their A-share holdings significantly in the coming years, with estimates of at least 590 billion yuan in 2025 [3][10]. Sector Performance - The white wine sector has shown strong performance, attributed to valuation recovery and seasonal consumption expectations [16]. - The innovative drug sector experienced volatility, with several stocks hitting the upper limit, driven by upcoming international conferences [16]. - The robotics sector saw a surge following government initiatives to promote AI and manufacturing integration [16]. Investor Sentiment - Retail investors are currently the main driving force in the market, with margin balances reaching historical highs [5][8]. - The sentiment among retail investors has improved, as indicated by increased trading volumes and a shift in household savings [8][9]. Institutional Activity - Institutional investors are focusing on technology and consumer sectors, with passive funds leading the charge in A-share investments [8][9]. - The "national team" has been active in the market, particularly in ETF purchases, although intervention has lessened above certain index levels [10][11]. Future Outlook - The outlook for A-share market liquidity remains positive, with expectations of continued inflows from various institutional sources [3][10]. - However, potential tightening of liquidity could lead to a return to range-bound trading patterns [8][9].

Investment Rating - The investment rating for Xiaomi Group is "Buy" and is maintained [7] Core Views - Xiaomi Group reported record high performance in Q1 2025, with revenue reaching 1112.93 billion yuan, a year-on-year increase of 47.4%. The net profit attributable to shareholders was 109.24 billion yuan, up 161.2% year-on-year, and the adjusted net profit was 106.76 billion yuan, reflecting a 64.5% increase year-on-year. The gross margin was 22.8%, an increase of 0.5 percentage points year-on-year, while the net profit margin attributable to shareholders was 9.8%, up 4.3 percentage points year-on-year [2][4] Summary by Sections Automotive Business - In Q1 2025, Xiaomi's automotive business generated revenue of 18.1 billion yuan, primarily driven by increased deliveries of the Xiaomi SU7. The SU7 series delivered 75,869 units, a quarter-on-quarter increase of 8.86%. The average selling price per vehicle was 238,600 yuan, up 2.01% quarter-on-quarter. The loss in this segment was 500 million yuan, significantly narrowed by 50.2% quarter-on-quarter. The gross margin for the automotive business was 23.2%, an increase of 2.72 percentage points quarter-on-quarter. The company expects to reach a profit inflection point in 2025 for its automotive business, contributing positively to Xiaomi's core performance [6] Smartphone Business - Xiaomi's smartphone business revenue in Q1 2025 was 50.6 billion yuan, a year-on-year increase of 8.9%, with a gross margin of 12.4%. Global smartphone sales reached 41.8 million units, a 3.0% year-on-year increase, marking the seventh consecutive quarter of growth. Xiaomi regained the top position in the Chinese market with a market share of 18.8%, a 40.0% year-on-year increase. The average selling price of Xiaomi smartphones was 1,210.5 yuan, up 5.7% year-on-year. High-end models accounted for 25% of total sales in China, up 3.3 percentage points year-on-year [6] IoT and Consumer Products - In Q1 2025, Xiaomi's IoT and consumer products business achieved revenue of 32.3 billion yuan, a year-on-year increase of 58.7%, with a gross margin of 25.2%, up 5.4 percentage points year-on-year. The revenue from smart home appliances more than doubled, indicating the initial success of the high-end strategy. Sales of major appliances saw significant growth, with air conditioning units sold exceeding 1.1 million, a year-on-year increase of over 65% [6]