25 Mar 2026 CMB International Global Markets | Equity Research | Company Update Xiaomi (1810 HK) Xiaomi (1810 HK) - 4Q25 better 27 4Q25 better than feared; Positive on AI investment to bear fruit in 2026-27 Xiaomi's 4Q25 results were better than feared, with revenue/adj. net profit growth of +7%/-24% YoY, 1%/10% above Bloomberg consensus estimates, thanks to better smartphone ASP (+7% YoY), smart EV's stronger operating income and better operating leverage. Looking into FY26E, while smartphone/auto industry ...

Core Insights - XPeng Inc. is recognized as one of the best emerging market stocks to invest in currently, particularly following its strategic partnership with Antom to introduce a unified in-app payment solution for electric vehicle charging [1] Group 1: Strategic Developments - XPeng has launched an in-app payment system in Hong Kong, enabling drivers to initiate and pay for charging directly through the XPeng app using AlipayHK, covering around 1,600 public EV chargers [4] - The partnership with Antom is expected to facilitate XPeng's expansion into other Southeast Asian markets, including Singapore, Thailand, Malaysia, and Indonesia [5] - Lawrence Li, General Manager of XPENG Overseas Charging, emphasized that the collaboration aims to enhance user experience and drive traffic to XPENG's branded charging stations through cross-industry partnerships [6] Group 2: Operational Performance - In January, XPeng reported delivering 20,011 vehicles, contributing to a significant reduction in greenhouse gas emissions, estimated to be over 300,000 tons, equivalent to the carbon absorption of nearly 5 million tree seedlings over a decade [6] - XPeng has launched its new P7+ model across 36 countries and showcased it at the Brussels Motor Show, indicating its commitment to expanding its product offerings [6] - By the end of 2025, XPeng aims to operate in 60 countries with a rapidly growing sales network of 380 stores and over 1,000 outlets globally [6] Group 3: Company Overview - XPeng Inc. is a leading Chinese technology company focused on designing, developing, manufacturing, and marketing smart electric vehicles (Smart EVs), targeting tech-savvy middle-class consumers with advanced, in-house developed software [7]

Core Insights - XPeng Inc. reported a total of 429,445 vehicle deliveries for the full year 2025, marking a significant 126% year-over-year increase [1] - In December 2025 alone, the company delivered 37,508 vehicles, which is a 2% increase compared to the same month in the previous year [1] - The company expanded its overseas vehicle deliveries to 45,008 units in 2025, reflecting a 96% year-over-year growth, and extended its global presence to 60 countries and regions by year-end [2] Environmental Impact - The total vehicles delivered by XPeng in 2025 are projected to reduce life-cycle greenhouse gas emissions by over 6.61 million tons, equivalent to the carbon absorption of 110 million young trees over a decade [2] Infrastructure Development - In 2025, XPeng accelerated the growth of its self-operated charging network, adding more than 1,100 new charging stations, bringing the total to 3,000 stations, which is a significant milestone for the company's infrastructure [3] Company Overview - XPeng is a leading Chinese Smart EV company focused on designing, developing, manufacturing, and marketing Smart EVs for technology-savvy middle-class consumers [4] - The company aims to enhance customer mobility experiences through in-house development of advanced driver-assistance systems and intelligent operating systems, alongside core vehicle systems [4]

Core Insights - Leapmotor has become the first Chinese EV manufacturer to receive investment from a state-owned enterprise, FAW Group, which acquired a 5% stake for 3.74 billion yuan (US$534 million) [1][2] - The investment reflects growing investor confidence in Leapmotor, despite bearish sales forecasts for mainland China's car market [2] - Leapmotor aims to achieve annual deliveries of 4 million units in 10 years, which would position it among the world's top 10 car vendors [3] Investment and Strategic Developments - FAW's investment will facilitate joint development of new EV models with Leapmotor, enhancing management efficiency and brand awareness [4] - Leapmotor is expected to deliver 1 million vehicles in 2026, representing a more than 60% year-on-year sales increase, potentially making it the No. 3 EV maker in mainland China [5] - Leapmotor has been a top vendor in the competitive mainland EV market, with full-year sales expected to exceed 600,000 units this year [6]

Core Insights - XPENG has entered a strategic partnership with EP Manufacturing Berhad (EPMB) to establish localized production in Malacca, Malaysia, with mass production expected to start in 2026, marking XPENG's third such project globally and second in the Asia-Pacific region [1][2] Group 1: Partnership and Production - The collaboration aims to leverage EPMB's local manufacturing expertise and production capacity to produce advanced intelligent electric vehicles (EVs) tailored to Malaysian and ASEAN consumer needs [3] - Localized production will enhance XPENG's integration into the regional market, improve responsiveness, and strengthen its competitive edge [3] Group 2: Strategic Alignment - The partnership aligns with the Malaysian government's vision for a green economy and aims to upgrade Malaysia's new energy vehicle (NEV) industrial ecosystem while creating skilled employment opportunities locally [4] - XPENG's Vice President emphasized that this project is a significant milestone in the company's global strategy and reflects a long-term commitment to the ASEAN region [5] Group 3: Market Expansion - From January to November 2025, XPENG's overseas deliveries reached 39,773 units, a 95% year-on-year increase, with a sales and service network spanning 52 countries and regions [5] - The new facility in Malaysia is designed to synergize with XPENG's existing operations in Europe and other Asia-Pacific markets, forming an integrated ecosystem for localized production, sales, charging services, and user operations [2][5] Group 4: Company Background - XPENG, founded in 2014, is a leading AI-driven mobility company focused on designing, developing, and manufacturing smart EVs, with a mission to drive the Smart EV revolution through cutting-edge technology [7] - EPMB has over 40 years of experience in automotive manufacturing and is committed to advancing Malaysia's manufacturing landscape through strategic partnerships and innovation [6]

Core Insights - The electric vehicle (EV) market is experiencing significant growth, with multiple companies reporting strong delivery numbers for November 2023 Company Performance - Lee Auto delivered 33,000 vehicles in November, bringing its total cumulative deliveries to nearly 1.5 million [1] - Neo sold 36,000 vehicles in November, marking a 76% year-over-year increase, with cumulative deliveries reaching 949,000 [2] - Xpang delivered 36,000 smart EVs in November, a 19% year-over-year increase, with total deliveries for the first 11 months of 2023 reaching almost 400,000 units, a 156% increase from the previous year [3] - Zeer Intelligent Technology reported 63,900 vehicles delivered in November, up 7% year-over-year [3] - Zeke and Link combined saw 63,000 deliveries, supported by over 2 million cumulative users [4] Market Trends - The growth in vehicle deliveries is driven by strong performance across various brands within the companies, indicating a competitive landscape focused on technology and product innovation [2][3] - The expansion of retail service and charging networks is a strategic focus for companies aiming for long-term competitiveness in the EV market [2]

Core Viewpoint - XPeng Inc. is facing significant challenges in the competitive electric vehicle market, particularly after reporting disappointing financial results that have impacted its stock performance [2][6]. Financial Performance - For Q3 2025, XPeng reported an earnings per share (EPS) of -$0.27, missing the estimated EPS of $0.06 [2][6]. - The company's revenue was approximately $1.42 billion, significantly lower than the expected $3.53 billion [2][6]. - Following these results, XPeng's stock price declined by 9.4%, now trading at $22.67 [2][6]. Market Position and Competition - XPeng operates in a highly competitive environment, particularly in China, where it competes with major players like Tesla and NIO [1]. - Despite record deliveries in Q3 2025, the company's outlook for the fiscal fourth quarter remains disappointing due to intense market competition [3]. Stock Performance and Valuation - XPeng's stock has fallen from a recent high of $28.23 on November 11, 2025, marking its fourth consecutive loss [4]. - The company has a negative price-to-earnings (P/E) ratio of approximately -35.43, indicating a lack of profitability [4][6]. - The price-to-sales ratio is about 2.51, and the enterprise value to sales ratio is approximately 2.71, reflecting the company's valuation relative to its revenue [4]. Options Market Activity - There has been significant activity in the options market with 95,000 calls and 26,000 puts traded, which is double the average intraday volume [5]. - The most popular option is the January 16, 2026, 30-strike call, indicating investor interest despite current challenges [5]. Growth Potential - Despite the recent downturn, XPeng has achieved a 91.8% increase in 2025, suggesting potential for future growth [5][6].

Core Insights - XPeng Inc. achieved record deliveries of 42,013 Smart EVs in October 2025, representing a 76% increase year-over-year and a 1% increase month-over-month [2][7] - The total deliveries for the first 10 months of 2025 reached 355,209 units, which is 190% higher compared to the same period last year [2] - XPeng's global expansion accelerated with entry into seven new markets: Lithuania, Latvia, Estonia, Cambodia, Morocco, Tunisia, and Qatar [3] User Adoption and Technology - The user adoption of XPeng's advanced driver assistance system, XNGP, remains strong, with a monthly active user penetration rate of 86% in urban driving as of October [3] - XPeng will host its 2025 XPENG AI Day on November 5, focusing on breakthroughs and future developments in AI technology, including Physical AI and robotaxi advancements [4] Company Overview - XPeng is a leading Chinese Smart EV company that designs, develops, manufactures, and markets Smart EVs, targeting technology-savvy middle-class consumers [5] - The company is headquartered in Guangzhou, China, with manufacturing plants located in Zhaoqing and Guangzhou, Guangdong province [5]

Core Insights - XPeng Inc. reported record vehicle deliveries in September 2025, with 41,581 Smart EVs delivered, marking a 95% year-over-year increase and a 10% month-over-month increase, surpassing the 40,000 monthly deliveries milestone [2][8] - For the third quarter of 2025, XPeng delivered a total of 116,007 Smart EVs, representing a 149% year-over-year increase [2][8] - Cumulative deliveries for the first nine months of 2025 reached 313,196 units, which is a 218% increase compared to the same period in 2024 [2] Production and Milestones - The 10,000th New XPENG P7 was produced in September, making it the fastest model in the company's lineup to achieve 40 jobs per hour on a new production line [3] - XPeng achieved a monthly active user penetration rate of 83% for its XNGP in urban driving, with the rollout of its VLA-powered XNGP featuring door-to-door full scenario ADAS capabilities [4] ESG and Company Overview - XPeng received the highest MSCI ESG Rating of AAA for the third consecutive year, reinforcing its leading position in the global automotive industry [3] - The company focuses on designing, developing, manufacturing, and marketing Smart EVs, targeting technology-savvy middle-class consumers [5]

Core Insights - XPeng Inc. reported a record delivery of 37,709 Smart EVs in August 2025, representing a 169% year-over-year increase and a 3% month-over-month increase [3][7] - Total deliveries for the first eight months of 2025 reached 271,615 units, marking a 252% increase compared to the same period last year [3] - The company launched the all-new XPENG P7 model on August 27, with deliveries starting on August 28 [3] User Engagement and Technology - XPENG's XNGP achieved an urban driving monthly active user penetration rate of 85% in August 2025, indicating strong user acceptance of its human-AI co-pilot feature [4] Company Overview - XPeng is a leading Chinese Smart EV company focused on designing, developing, manufacturing, and marketing Smart EVs for technology-savvy middle-class consumers [5] - The company aims to enhance customer mobility experiences through in-house development of advanced driver-assistance systems and intelligent operating systems [5] - XPeng is headquartered in Guangzhou, China, with manufacturing plants located in Zhaoqing and Guangzhou, Guangdong province [5]