Core Insights - Xiaomi Group held the 2025 "Human-Vehicle-Home Ecosystem" Partner Conference, focusing on breakthroughs in large model technology, deepening ecosystem collaboration, and expanding an open ecosystem [1] Group 1: Large Model Technology - Xiaomi released the new generation base large model Mimo-V2-Flash, featuring a lightweight design with "309 billion total parameters + 15 billion activation parameters," ranking Top 2 in global open-source model evaluations [2] - The Mimo-V2-Flash model employs a Hybrid SWA architecture, achieving 2.0 to 2.6 times inference speedup, with single-machine throughput of 5000-15000 tokens per second [2] - The model's inference speed is three times that of DeepSeek V3.2, while its inference cost is 1/20 of Gemini 2.5 Pro, addressing efficiency and cost challenges for large model deployment [2] Group 2: Hardware Ecosystem - Xiaomi has built the world's largest consumer hardware platform, with 1.8 billion connected devices globally, including 740 million monthly active mobile users and over 1 billion IoT devices [2] - The company has delivered over 500,000 vehicles and opened more than 30 types of aftermarket ecological components, creating comprehensive hardware coverage across personal, transportation, and home devices [2] Group 3: Software Ecosystem - The upcoming Pengpai OS 3, set to launch in August 2025, will enhance ecosystem collaboration with features like support for over 60 applications and 70 scenarios, achieving 128 million application installations [3] - Xiaomi's interconnected ecosystem boasts 410 million daily active users, with over 270 million daily interconnect operations, enabling seamless integration across Apple and Windows ecosystems [3] - The Vela lightweight system has empowered 160 million smart devices, while the MINT platform integrates 3.9 terabytes of data and over 20 mature algorithms for efficient AI deployment [3] Group 4: Financial Outlook - Xiaomi plans to invest over 200 billion yuan in R&D over the next five years, with 40 billion yuan expected in 2026, indicating a long-term commitment to AI strategy [4] - The company maintains its Non-IFRS net profit forecasts of 42.6 billion yuan, 43.8 billion yuan, and 51 billion yuan for 2025-2027, respectively, and continues to hold a "buy" rating [4]

Core Viewpoint - Xiaomi Group is focusing on breakthroughs in large model technology, deepening ecosystem collaboration, and expanding an open ecosystem as highlighted in their 2025 "Human-Vehicle-Home Ecosystem" partner conference [4]. Group 1: Large Model Technology - Xiaomi has launched the new base large model Mimo-V2-Flash, which features a lightweight design with "309 billion total parameters + 15 billion activation parameters," ranking in the top 2 globally in code capability and agent capability evaluations [5]. - The Mimo-V2-Flash model employs a Hybrid SWA architecture with a 5:1 ratio, achieving a 2.0 to 2.6 times inference speedup, with single-machine throughput of 5000-15000 tokens per second and single-request throughput of 115-150 tokens per second [5]. - The model's inference speed is three times that of DeepSeek V3.2, while its inference cost is 1/20 of Gemini 2.5 Pro, addressing efficiency and cost challenges in large model deployment [5]. Group 2: Hardware Ecosystem - Xiaomi has established the world's largest consumer hardware platform, with 1.8 billion connected devices globally, including 740 million monthly active mobile users, over 1 billion IoT devices, and more than 500,000 cars delivered [7]. - The integration of personal, travel, and home devices creates a comprehensive hardware coverage that provides ample scenarios and data sources for AI technology deployment [7]. Group 3: Software Ecosystem - The upcoming release of the Surge OS 3 in August 2025 will enhance ecosystem collaboration with upgrades in application integration, interconnectivity, smart experience, and security [8]. - Xiaomi's ecosystem supports over 60 applications and 70 scenarios, with 1.28 billion application installations, and a daily active interconnect ecosystem of 410 million users [8]. - The Vela lightweight system has empowered 160 million smart devices, and the MINT platform integrates 3.9 terabytes of data and over 20 mature algorithms to facilitate complex AI deployments [8].

Core Insights - Xiaomi Group held the 2025 "Human-Vehicle-Home Ecosystem" Partner Conference on December 17, focusing on breakthroughs in large model technology, deepening ecosystem collaboration, and expanding an open ecosystem. The company's AI strategy is viewed as a long-term endeavor, with a comprehensive layout involving self-developed chips, the Surge OS, and AI foundational models, which will provide a fertile ground for future AI applications in various scenarios. The company maintains a "Buy" rating [1]. Group 1: Large Model Technology - Xiaomi released the new foundational model Mimo-V2-Flash, which features a lightweight design with "309 billion total parameters + 15 billion active parameters," ranking in the top 2 globally in code and agent capabilities, surpassing models with 2-3 times the parameter count [1]. - The Mimo-V2-Flash model employs a Hybrid SWA architecture with a 5:1 ratio, achieving a 2.0 to 2.6 times inference speedup, with single-machine throughput of 5000-15000 tokens per second and single-request throughput of 115-150 tokens per second [1]. - The model's inference speed is three times that of DeepSeek V3.2, while its inference cost is 1/20 that of Gemini 2.5 Pro, addressing efficiency and cost challenges for large model deployment [1]. Group 2: Hardware Ecosystem - Xiaomi has established the world's largest consumer hardware platform, with 1.8 billion connected devices globally, including 740 million monthly active mobile users, over 1 billion IoT devices, and more than 500,000 cars delivered [2]. - The company's hardware scale and multi-category collaboration are expected to provide extensive application scenarios and data sources for its AI technology [2]. Group 3: Software Ecosystem - The Surge OS 3, set to launch in August 2025, will serve as the core for ecosystem collaboration, enhancing capabilities across various applications, interconnectivity, smart experiences, and security [3]. - The OS will support over 60 applications and 70 scenarios, with 1.28 billion application installations, and has built a vast interconnected ecosystem with 410 million daily active users [3]. - The Vela lightweight system has empowered 160 million smart devices, and the MINT platform integrates 3.9 trillion data points and over 20 mature algorithms to facilitate complex AI deployments [3]. Group 4: Financial Projections - Xiaomi plans to invest over 200 billion yuan in R&D over the next five years, with an estimated 40 billion yuan in 2026. The company maintains its profit forecast for 2025-2027, projecting Non-IFRS net profits of 42.6 billion, 43.8 billion, and 51 billion yuan respectively [4].

Core Viewpoint - Xiaomi Group is focusing on long-term AI strategy with breakthroughs in large model technology, deepening ecosystem collaboration, and expanding open ecosystems, as highlighted in their 2025 "Human-Vehicle-Home Ecosystem" partner conference [1] Group 1: Large Model Technology - Xiaomi has launched the new base large model Mimo-V2-Flash, which features a lightweight design with "309 billion total parameters + 15 billion active parameters," ranking in the top 2 globally for code and agent capabilities [2] - The Mimo-V2-Flash model utilizes a Hybrid SWA architecture, achieving a 2.0 to 2.6 times inference speedup, with throughput rates of 5000-15000 tokens per second [2] - The model's inference speed is three times faster than DeepSeek V3.2, while its inference cost is 1/20 of Gemini 2.5 Pro, addressing efficiency and cost challenges for large model deployment [2] Group 2: Hardware Ecosystem - Xiaomi has established the world's largest consumer hardware platform with 1.8 billion connected devices, including 740 million monthly active mobile users and over 1 billion IoT devices [3] - The company has delivered over 500,000 vehicles and opened more than 30 types of aftermarket IoT components, creating a comprehensive hardware coverage across personal, travel, and home devices [3] Group 3: Software System - The upcoming 澎湃OS 3, set to launch in August 2025, will enhance ecosystem collaboration with upgrades in application integration, interconnectivity, smart experience, and security [4] - Xiaomi's ecosystem supports over 60 applications and 70 scenarios, with 1.28 billion app installations, and a daily active interconnectivity of 410 million users [4] - The Vela lightweight system has empowered 160 million smart devices, while the MINT platform integrates 3.9 trillion data points and over 20 algorithms for efficient AI deployment [4] Group 4: Profit Forecast and Valuation - Xiaomi plans to invest over 200 billion yuan in R&D over the next five years, with an estimated 40 billion yuan in 2026, maintaining profit forecasts of 426/438/510 billion yuan for 2025-2027 [5]

Investment Rating - The report maintains a "Buy" rating for Xiaomi Group (1810.HK) [5][7]. Core Insights - Xiaomi's AI strategy is characterized as a long-distance race rather than a sprint, with significant investments planned for the next five years, exceeding 200 billion RMB [5]. - The newly released Mimo-V2-Flash model demonstrates industry-leading performance with a lightweight design featuring 309 billion total parameters and 15 billion activation parameters, outperforming competitors in key metrics [2]. - Xiaomi has established the largest consumer hardware platform globally, with 1.8 billion connected devices, including 740 million active mobile users and over 1 billion IoT devices, which provides a robust foundation for AI technology deployment [3]. Summary by Sections AI Model Development - The Mimo-V2-Flash model achieves a 2.0 to 2.6 times increase in inference speed and has a throughput of 5000-15000 tokens per second, significantly enhancing efficiency and cost-effectiveness for large-scale AI applications [2]. - The model is fully open-sourced, with APIs and web experiences available, aiming to attract global developers and create a positive feedback loop for model iteration [2]. Hardware Ecosystem - Xiaomi's hardware ecosystem includes 1.8 billion connected devices, with a focus on personal, automotive, and home devices, which enhances the potential for AI technology applications [3]. Software Infrastructure - The upcoming release of the Pengpai OS 3 in August 2025 will enhance ecosystem collaboration, supporting over 60 applications and 70 scenarios, with a daily active user base of 410 million [4]. - The Vela lightweight system and MINT platform are designed to facilitate AI deployment across various devices, with over 100 open-source partners contributing to the ecosystem [4]. Financial Projections - Revenue projections for Xiaomi indicate a growth trajectory, with expected revenues of 270.97 billion RMB in 2023, increasing to 635.31 billion RMB by 2027, and Non-IFRS net profits projected to rise from 19.27 billion RMB in 2023 to 50.97 billion RMB in 2027 [6][26]. - The report anticipates a significant increase in Non-IFRS earnings per share, from 0.77 RMB in 2023 to 1.96 RMB in 2027, reflecting strong profitability growth [6][26].