2025-11-18 12:30Financial 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 [2][3] - Gross profit margin reached a record high of 22.9%, up 2.5 percentage points year-on-year [3][13] - Adjusted net profit reached RMB 11.3 billion, up 81% year-on-year, setting a new record high [3][18] 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 [13][14] - IoT business revenue was RMB 27.6 billion, with a gross margin of 23.9%, achieving seven consecutive quarters of year-on-year growth [8][15] - Revenue from the smart EV, AI, and other new initiatives segment reached RMB 29 billion, accounting for 25.6% of total revenue, with smart EV sales generating RMB 28.3 billion [16][17] 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 [4][14] - In mainland China, smartphone market share increased to 14.9%, while in Latin America and the Middle East, market shares increased to 17.9% and 16.9%, respectively [4][5] - The company ranked first in domestic smartphone sales during the Double 11 shopping festival for the third consecutive year [5] 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 [5][6] - Continuous investment in foundational core technologies is planned, with R&D expenses projected to exceed RMB 30 billion this year and RMB 200 billion over the next five years [11][18] - The launch of Xiaomi HyperOS 3 aims to improve user experience and system fluidity, supporting the company's strategy to drive innovation [6][12] 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 [7][8] - 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 [21][24] - Management remains optimistic about the growth potential in the EV market, with expectations for steady growth in delivery volumes [10][29] Other Important Information - The company achieved a record high of 742 million global MAUs for internet services, with revenue reaching RMB 9.4 billion, up 10.8% year-on-year [16] - The smart home appliance factory commenced operations, designed for a peak annual capacity of 7 million units, enhancing the company's manufacturing capabilities [9][15] - The company was named to the Fortune Global 500 list for the seventh consecutive year, ranking 297th [11] Q&A Session Summary Question: Concerns about smartphone gross margin due to rising memory costs - Management acknowledged the long cycle of memory cost increases and its impact on gross margins, indicating that solutions include price increases and product structure optimization [21][23][24] Question: EV delivery schedule and future development strategy - Management highlighted the rising delivery volumes and improvements in delivery efficiency, emphasizing ongoing efforts to enhance delivery capabilities [25][26] Question: Adjustments to smartphone strategy and premiumization - Management confirmed that premiumization remains a key focus, with a target of 30 million premium units in the future [28][29] Question: Impact of subsidies on EV gross margin - Management indicated that while subsidies may impact gross margins, the current gross margin remains healthy, and efforts are being made to maintain delivery capabilities [29][30] Question: AIoT ecosystem and future plans - Management discussed the integration of AI with IoT devices and the commitment to maintaining an open ecosystem for collaboration [31][42] Question: Role of the new large appliance factory - Management emphasized the advanced technology and automation in the new factory, which is expected to enhance production efficiency and quality [48][49]