2025-11-18 12:32Financial 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 reached a record high of 22.9%, up 2.5 percentage points year-on-year [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 reached RMB 46 billion, accounting for 40.6% of total revenue, with global smartphone shipments at 43.25 million units, marking a 0.5% year-on-year increase [17][18] - IoT business revenue was RMB 27.6 billion, marking seven consecutive quarters of year-on-year growth, with a gross margin of 23.9% [10][19] - Revenue from the smart EV segment reached RMB 28.3 billion, with a gross profit margin of 25.5% [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% [7][18] - In mainland China, smartphone market share increased to 14.9%, with significant growth in the premium smartphone segment [7][18] - IoT platform connected over 1 billion devices, with overseas IoT revenue reaching record highs [19][20] Company Strategy and Development Direction - The company aims to enhance premiumization, 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 aims to improve user experience and system fluidity, supporting the company's strategy to drive innovation [9][10] - 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 impacting smartphone gross margins [10][27] - The company is focused on maintaining profitability through product mix upgrades and ASP increases [10][29] - Management acknowledged the challenges posed by industry competition but emphasized the importance of innovation and product value [11][12] Other Important Information - The smart home appliance factory commenced operations, designed for a peak annual 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] - The MSCI ESG rating was upgraded from BBB to AA, marking the third consecutive year of improvement [23][24] Q&A Session Summary Question: Concerns about the impact of rising memory costs on smartphone gross margins - Management acknowledged the long cycle of cost increases for memory and its impact on gross margins, suggesting price increases and product structure optimization as solutions [27][29] Question: Strategy for EV deliveries and future development - Management highlighted the rising delivery volumes and improvements in delivery efficiency, with a focus on maintaining quality and expanding the sales network [32][33] Question: Adjustments to smartphone strategy and profitability - Management indicated that while price increases may impact the overall smartphone market, the focus remains on enhancing ASP and achieving premiumization targets [39][41] Question: Impact of subsidies on EV gross margins - Management noted that while there may be short-term impacts from subsidies, the current gross margin remains healthy, and efforts are being made to maintain delivery capabilities [42][43] Question: AIoT ecosystem and future plans - Management discussed the integration of AI with IoT devices and the commitment to maintaining an open ecosystem for future developments [46][67] Question: Expansion strategy for stores and overseas markets - Management outlined plans for store efficiency improvements and gradual expansion in overseas markets, emphasizing the complementary nature of AIoT products [82][84] Question: Operating expenses trends - Management explained that the increase in operating expenses is primarily due to R&D investments and the expansion of the retail network [85][86]