Financial Data and Key Metrics Changes - The group revenue reached an all-time high of $20.5 billion, growing at almost 15% year-on-year [2][11] - Adjusted net income increased more than 25% year-on-year to $512 million, with an adjusted net income margin expanding to 2.5% [2][11] - AI-related revenues accounted for 30% of the group's total, increasing by 13 percentage points year-on-year [2][11] Business Line Data and Key Metrics Changes - Intelligent Devices Group (IDG) revenue exceeded $15 billion, with 12% year-on-year growth [6][15] - Infrastructure Solutions Group (ISG) revenue grew 24% year-on-year to exceed $4 billion [8][17] - Solutions and Services Group (SSG) achieved 18% year-on-year revenue growth, marking the 18th consecutive quarter of double-digit expansion [9][20] Market Data and Key Metrics Changes - The PC market share exceeded 25% for the first time in Lenovo's history, reaching a historic high of 25.6% global market share [6][11] - The smartphone business achieved record-high concurrent quarter activations, driven by solid end-user demand [11][12] - All reported geographies delivered double-digit year-on-year revenue growth, reinforcing balanced strength across 180 markets [12] Company Strategy and Development Direction - The company is focusing on AI democratization, with significant progress in personal AI and enterprise AI [2][3] - The strategy includes leveraging a unique global local model to navigate uncertainties and capture hybrid AI opportunities [3][4] - The company aims to create an enterprise AI twin for customers, driving data into insights and value [7][8] Management's Comments on Operating Environment and Future Outlook - Management sees positive signs of stabilization despite uncertainties in the external environment [2] - The company is confident in maintaining double-digit growth in both PC and server businesses over the next two quarters [31] - The outlook for the overall group remains strong, with reaffirmation of estimates despite some market fluctuations [73] Other Important Information - The company is recognized for its leadership in ESG, ranking eighth in Gartner Supply Chain Top 25 [22] - The upcoming Tech World event is expected to showcase new innovations in personal AI [4][59] Q&A Session Summary Question: Impact of memory price on margin - Management believes they are in a better position to manage supply shortages and rising component costs due to strong supplier relationships and procurement power [30][31] Question: PC outlook for next year - The company is optimistic about maintaining double-digit growth and expanding market share despite rising storage and memory component prices [34][35] Question: Smartphone outlook for 2026 - The smartphone market is expected to grow in single digits, with a focus on premium devices that are less affected by component cost increases [36][39] Question: Opportunities in hybrid AI infrastructure - The company is leveraging its hybrid AI strategy to resonate with customer needs, focusing on agility and flexibility [42][43] Question: General server demand outlook - Continued high double-digit growth is expected in the CSP segment, with high single-digit growth in the ESMB segment [56][63] Question: AI server strategy - The company is focusing on inferencing services and capabilities, which are becoming increasingly important for enterprise customers [70] Question: Overall business outlook - The company reaffirms strength in order levels, particularly for PCs, and maintains confidence in market estimates [73][74]

Financial Data and Key Metrics Changes - Lenovo reported a record revenue of $20.5 billion for the last quarter, representing a year-on-year growth of almost 15% [2][11] - Adjusted net income increased by more than 25% year-on-year to $512 million, with an adjusted net income margin expanding to 2.5% [11][12] - AI-related revenues accounted for 30% of the group's total, marking a 13 percentage point increase year-on-year [2][11] Business Line Data and Key Metrics Changes - Intelligent Devices Group (IDG) revenue grew 12% year-on-year to $15.1 billion, with operating profit climbing 11% to $1.1 billion [15] - Infrastructure Solutions Group (ISG) revenue increased by 24% year-on-year to exceed $4 billion, driven by AI infrastructure demand [8][17] - Solutions and Services Group (SSG) achieved 18% year-on-year revenue growth, marking the 18th consecutive quarter of double-digit expansion [9][19] Market Data and Key Metrics Changes - Global PC market share reached a historic high of 25.6%, with Lenovo maintaining leadership in both consumer and commercial segments [11][15] - The smartphone business achieved record-high concurrent quarter activations, supported by strong end-user demand [11] - All reported geographies delivered double-digit year-on-year revenue growth, reinforcing balanced strength across 180 markets [12] Company Strategy and Development Direction - Lenovo is focusing on AI democratization, with a strategy that includes personal AI and enterprise AI, aiming to capture hybrid AI opportunities [2][3] - The company plans to launch a personal AI super agent at Tech World in January 2026, emphasizing hyper-personalization across multiple devices [4][5] - Lenovo's hybrid AI strategy aims to create enterprise AI twins for customers, enhancing their data processing and insights capabilities [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties and capturing substantial AI opportunities despite external challenges [2][3] - The company anticipates continued double-digit growth in both PC and server businesses over the next two quarters [28] - Management highlighted the importance of maintaining competitive costs and supply chain resilience amid rising component prices [26][28] Other Important Information - Lenovo's commitment to sustainability and ESG initiatives was emphasized, with recognition in global rankings for supply chain performance and inclusion efforts [22][23] - The company is optimistic about global trade improvements and plans to elevate its brand through partnerships and major initiatives [23] Q&A Session Summary Question: How big will the memory price impact on margin? - Management believes Lenovo is well-positioned to manage supply shortages and rising component costs due to strong supplier relationships and procurement power [26][28] Question: What is the PC outlook for the next year? - Management is optimistic about maintaining double-digit growth in the PC segment, despite rising storage and memory component prices [30][31] Question: What is the smartphone outlook for 2026? - The smartphone market is expected to grow in single digits, with a focus on premium devices that are less affected by component cost increases [32][33] Question: How does Lenovo capture opportunities in hybrid AI infrastructure? - Lenovo's hybrid AI strategy focuses on agility and flexibility, with a strong emphasis on AI services to accelerate customer AI journeys [36][37] Question: Can Lenovo sustain strong growth and margins in SSG? - Management is confident in the growth of SSG, driven by demand for AI services and a focus on sustainability [39][43] Question: What is Lenovo's strategy for AI servers? - Lenovo aims to capture growth in AI inferencing by enhancing its infrastructure capabilities and focusing on customer needs [52][53]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 rose by 14.2% year-over-year to RMB 35.6 billion [5][32] - Adjusted net profit increased by 26.3% year-over-year to RMB 5 billion, with an adjusted net margin of 14% [5][36] - Operating profit surged by 69.9% year-over-year to RMB 5.3 billion [36] Business Line Data and Key Metrics Changes - Revenue from online marketing services reached RMB 20.1 billion, up 14% year-over-year [14][33] - E-commerce GMV grew by 15.2% year-over-year to RMB 385 billion [18] - Live streaming revenue increased by 2.5% year-over-year to RMB 9.6 billion [26][34] Market Data and Key Metrics Changes - Average Daily Active Users (DAUs) on the Kuaishou app surpassed 416 million, marking the third consecutive quarter of record highs [5][12] - Monthly Active Users (MAUs) reached 731 million [11] Company Strategy and Development Direction - The company continues to advance its AI strategy, focusing on scenario-based applications and innovative use cases [5][30] - Kling AI has been positioned as a key technology for video generation, with a focus on empowering creators and expanding its use cases [8][43] - The company aims to transform its organizational structure and product design to enhance its competitive edge in the AI era [30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects of Kuaishou, emphasizing the importance of AI in driving operational efficiency and business value [36][37] - The company anticipates continued investment in AI technologies to unlock further value across its content and business ecosystems [30][76] Other Important Information - The company declared a special dividend of HKD 2 billion in Q3, reflecting its solid financial position [36] - Total marketing spending from Omni Domain Platform marketing solutions accounted for over 65% of closed-loop marketing spending [15] Q&A Session Summary Question: Competitive landscape of video generation AI and Kling AI's strategy - Management acknowledged the growing competition in the video generation market and emphasized the importance of continuous innovation to meet user needs [40][42] Question: AI-powered business and operational efficiency - Management highlighted the integration of AI across Kuaishou's operations, improving content understanding, generation, and recommendations [48][51] Question: Online marketing services revenue acceleration - Management attributed the growth in online marketing services to increased impressions and higher CPM driven by AI technologies [55][57] Question: CapEx and profit margins related to AI investments - Management expects total CapEx for 2025 to increase in the mid to high double digits year-over-year, driven by investments in AI initiatives [74][76]

Financial Data and Key Metrics Changes - In Q3 2025, Kingsoft's total revenue was RMB 2.419 billion, a year-on-year decrease of 17% but a quarter-on-quarter increase of 5% [6][13] - Revenue from the office software and services business increased by 26% year-on-year and 12% quarter-on-quarter to RMB 1.521 billion [13][14] - Revenue from online games and other businesses decreased by 47% year-on-year and 6% quarter-on-quarter to RMB 898 million [14] - Gross profit decreased by 21% year-on-year but increased by 5% quarter-on-quarter to RMB 1.944 billion, with a gross profit margin decrease of 4% year-on-year [15] - Profit attributable to owners of the parent was RMB 213 million, down from RMB 413 million year-on-year [18] Business Line Data and Key Metrics Changes - WPS individual business revenue reached RMB 899 million, up 11% year-on-year, with global monthly active devices for WPS Office at 669 million, a 9% increase [7][8] - WPS 365 business revenue was RMB 201 million, a significant increase of 17% year-on-year [8] - Revenue for the WPS software business was RMB 391 million, up 15% year-on-year, driven by localization projects and AI-enabled products [9] Market Data and Key Metrics Changes - The online game business saw a decline in revenue primarily due to low contributions from certain existing games, although new games are in development [6][10] - The flagship game Jian Wang 3 Online celebrated its 16th anniversary, with new content updates planned [10] Company Strategy and Development Direction - Kingsoft continues to prioritize AI collaboration and internationalization, aiming to meet the needs of individual users and enterprises [4][12] - The online games business will focus on high-quality content development and global publishing [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in the office software segment, driven by increased membership and AI product enhancements [24][25] - The company is optimistic about the overseas market potential for WPS Office and 365, particularly in competition with Microsoft [31][32] Other Important Information - As of September 30, 2025, Kingsoft had cash resources of RMB 26 billion, indicating a strong cash position [19] - Research and development costs increased by 4% year-on-year, reflecting higher investment in AI and collaboration products [15][16] Q&A Session Summary Question: Regarding the gaming business, could management elaborate on operational strategies and the update progress of Metal Brick? - Management indicated that they are focusing on long-term upgrades and new content for existing games, with ongoing improvements for Metal Brick [22][23] Question: What are the main drivers behind the accelerated growth in the office business, and will this momentum be sustainable? - Management highlighted three growth factors: personnel growth, AI enhancements, and positive user feedback, indicating confidence in sustainability [24][25] Question: How does the company view opportunities for WPS Office and 365 in international markets? - Management noted strong growth in overseas markets and emphasized their competitive advantages against Microsoft, particularly in mobile and AI capabilities [31][32][33] Question: What is the progress of the AI business and its commercialization pace? - Management stated that the AI business is in early stages but is developing various applications across industries, with plans to establish an AI product center [42][43] Question: Will sales and marketing expenses return to normal levels in the near future? - Management expects that as the business stabilizes, marketing expenses will normalize, with a focus on long-term sustainable development [44][45]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue reached RMB 2.419 billion, a year-on-year decrease of 17% but a quarter-on-quarter increase of 5% [6][13] - Gross profit decreased by 21% year-on-year but increased by 5% quarter-on-quarter to RMB 1.944 billion, with a gross profit margin decrease of 4% year-on-year [15] - Profit attributable to owners of the parent was RMB 213 million, down from RMB 413 million year-on-year [17] Business Line Data and Key Metrics Changes - Revenue from the office software and services business increased by 26% year-on-year to RMB 1.521 billion, driven by growth in WPS software and WPS 365 [13][14] - WPS individual business revenue reached RMB 899 million, up 11% year-on-year, with global monthly active devices reaching 669 million, a 9% increase [7] - Online games and other businesses saw revenue decrease by 47% year-on-year to RMB 898 million, primarily due to lower contributions from existing games [14] Market Data and Key Metrics Changes - WPS 365 business revenue reached RMB 201 million, a significant increase of 17% year-on-year, reflecting enhanced collaboration and AI product offerings [8] - The online game business is focusing on developing high-quality content and expanding global publishing, with new titles expected to launch in the coming years [10][12] Company Strategy and Development Direction - The company is prioritizing AI collaboration and internationalization as strategic focuses, aiming to meet the needs of individual users and enterprises [4][12] - Kingsoft Office Group is committed to strengthening its brand and ecosystem development while enhancing AI application scenarios [4] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in the office software segment, driven by increased membership and AI product enhancements [22][25] - The online gaming segment is expected to improve with the launch of new games and ongoing content updates for existing titles [10][12] Other Important Information - As of September 30, 2025, the company had cash resources of RMB 26 billion, indicating a strong cash position [18] - Research and development costs increased by 4% year-on-year, reflecting higher investment in AI and collaboration products [15] Q&A Session Summary Question: Regarding the gaming business, could management elaborate on operational strategies and the update progress of Metal Brick? - Management indicated that they are focusing on long-term upgrades and new content for existing games while continuing to optimize gameplay for new titles like Metal Brick [21] Question: What are the main drivers behind the accelerated growth in the office business, and will this momentum be sustainable? - Management highlighted three growth factors: personnel growth, AI product enhancements, and positive user feedback, indicating confidence in sustainable growth [22][25] Question: How does the company view opportunities for WPS Office and 365 in international markets? - Management noted that they have increased overseas R&D investment and are focusing on competition with Microsoft, emphasizing their advantages in mobile and AI capabilities [31][34] Question: What is the progress of the AI business and its commercialization pace? - Management stated that the AI business is in an early stage, with ongoing development in various industries, and plans to establish an AI product center [42][43] Question: Will sales and marketing expenses return to normal in the upcoming quarters? - Management expects that as the business stabilizes, marketing expenses will normalize, with a focus on long-term sustainable development [44]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 rose by 14.2% year over year to RMB 35.6 billion, driven by growth across all business segments [3][29][30] - Adjusted net profit increased by 26.3% year over year to RMB 5 billion, with an adjusted net margin of 14% [3][33] - Operating profit surged by 69.9% year over year to RMB 5.3 billion, reflecting improved operating efficiency [29][31] Business Line Data and Key Metrics Changes - Revenue from online marketing services reached RMB 20.1 billion, up 14% year over year, with growth attributed to AI-driven enhancements in marketing solutions [12][30][46] - E-commerce GMV grew by 15.2% year over year to RMB 385 billion, supported by merchant incentives and traffic optimization [17][18] - Live streaming revenue increased by 2.5% year over year to RMB 9.6 billion, driven by high-quality content and AI innovations [24][31] Market Data and Key Metrics Changes - Average Daily Active Users (DAUs) on the Kuaishou app reached 416 million, marking the third consecutive quarter of record highs [3][10] - Monthly Active Users (MAUs) reached 731 million, reflecting sustained user growth and engagement [9][10] - Total spending from online marketing services driven by AI-generated marketing materials exceeded RMB 3 billion in Q3 [9] Company Strategy and Development Direction - The company continues to advance its AI strategy, focusing on scenario-based applications and innovative use cases to enhance operational efficiency and profitability [3][4] - Kuaishou aims to empower creators through its Kling AI platform, which has achieved significant advancements in video generation capabilities [5][6] - The strategic focus is on AI-powered film and television production, with plans to expand applications beyond traditional media [36][37] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth prospects, emphasizing the importance of AI in driving innovation and operational efficiency [33][34] - The competitive landscape for video generation AI is expected to evolve rapidly, with Kuaishou positioning itself to leverage its technological advancements [35][36] - Future investments will prioritize user needs and AI capabilities to enhance the overall business ecosystem [28][34] Other Important Information - The company declared a special dividend of HKD 2 billion in Q3, reflecting confidence in its financial position [33] - Total cash and cash equivalents amounted to RMB 106.6 billion as of September 30, 2025, indicating a robust balance sheet [33] Q&A Session Summary Question: Insights on Kling AI's competitive strategy - Management highlighted the attractiveness of the video generation market and the ongoing innovation driven by increasing competition [35] - The focus remains on empowering creators and enhancing technology for film and television production [36] Question: AI's role in content ecosystem and operational efficiency - AI technologies have been integrated across Kuaishou's operations, improving content understanding, generation, and recommendations [41][43] - The company is leveraging AI to enhance customer service efficiency, with over 70% of inquiries handled by AI systems [43] Question: Online marketing services revenue acceleration - Online marketing services revenue grew by 14% year over year, driven by increased impressions and higher CPM due to AI enhancements [46] - The company continues to optimize its marketing solutions to improve conversion rates and client spending [49]

Financial Data and Key Metrics Changes - In Q3 2025, Kingsoft's total revenue reached RMB 2.419 billion, representing a year-on-year decrease of 17% and a quarter-on-quarter increase of 5% [5][13] - Revenue from the office software and services business increased by 26% year-on-year and 12% quarter-on-quarter to RMB 1.521 billion [13] - Revenue from online games and other businesses decreased by 47% year-on-year and 6% quarter-on-quarter to RMB 898 million [14] - Gross profit decreased by 21% year-on-year but increased by 5% quarter-on-quarter to RMB 1.944 billion, with a gross profit margin of 8% [15] - Profit attributable to owners of the parent was RMB 213 million, down from RMB 413 million year-on-year [17] Business Line Data and Key Metrics Changes - WPS individual business revenue reached RMB 899 million, up 11% year-on-year, with global monthly active devices reaching 669 million, a 9% increase [7] - WPS 365 business revenue reached RMB 201 million, a significant increase of 17% year-on-year [8] - Revenue for the WPS software business was RMB 391 million, up 15% year-on-year, driven by localization projects and AI-enabled products [9] - Online game revenue decreased primarily due to low contributions from certain existing games, despite new game launches [14] Market Data and Key Metrics Changes - The company reported a strong cash position with cash resources of RMB 26 billion as of September 30, 2025 [18] - Net cash generated from operating activities was RMB 494 million for the quarter [19] Company Strategy and Development Direction - Kingsoft continues to prioritize AI collaboration and internationalization as strategic priorities, focusing on enhancing core product offerings [4][11] - The online games business aims to develop high-quality content and expand global publishing, while also optimizing gameplay for existing titles [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in the office software segment, driven by increased enterprise memberships and AI product enhancements [26] - The company is optimistic about the overseas market opportunities for WPS Office and 365, particularly in competing with Microsoft [32][34] Other Important Information - Research and development costs increased by 4% year-on-year, reflecting higher investment in AI and collaboration products [15] - Selling and distribution expenses rose by 55% year-on-year, primarily due to higher promotional expenditures related to online games [15] Q&A Session Summary Question: Regarding the gaming business, could management elaborate on operational strategies and the update progress of Metal Brick? - Management indicated that they are focusing on long-term upgrades and new content for existing games, while the new game Metal Brick is still in the operational improvement phase [22][23] Question: What are the main drivers behind the accelerated growth in the office business, and will this momentum be sustainable? - Management highlighted three growth factors: personnel growth, AI enhancements, and positive user feedback, expressing confidence in sustaining this growth [24][25][26] Question: How does the company view opportunities for WPS Office and 365 in international markets? - Management noted that they have increased overseas R&D investment and are confident in competing with Microsoft, leveraging their mobile platform advantages [32][34] Question: What is the progress of the AI business and its commercialization pace? - Management stated that the AI business is in an early stage, with ongoing development across various industries, and plans to establish an AI product center [41][43] Question: Will sales and marketing expenses return to normal in the upcoming quarters? - Management expects that as the business stabilizes, marketing expenses will normalize, while emphasizing the need for initial high investments in R&D and AI [44][45]

Financial 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 increased to 22.9%, up 2.5 percentage points year-on-year, achieving a new record high [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 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 [17][18] - IoT business revenue was RMB 27.6 billion, with a gross margin of 23.9%, achieving seven consecutive quarters of year-on-year growth [10][19] - The smart EV, AI, and other new initiative segment generated revenue of RMB 29 billion, accounting for 25.6% of total revenue, with smart EV sales reaching RMB 28.3 billion [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%, and achieved year-on-year market share growth in all regions except India [7][18] - In mainland China, smartphone market share reached 14.9%, with a 0.7 percentage point increase year-on-year [18] - The company ranked second in Latin America and the Middle East, with market shares of 17.9% and 16.9%, respectively [7] 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 [8][9] - The launch of Xiaomi HyperOS 3 is expected to improve user experience and drive product competitiveness [9] - 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 and supply-demand dynamics [10] - 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 [30][31] - Management remains optimistic about the growth of the IoT business and the expansion of overseas markets [12][19] Other Important Information - The company achieved a record high of 742 million global MAUs in September 2025, an 8.2% increase year-on-year [20] - The smart home appliance factory commenced operations, with a planned peak annual production 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] Q&A Session Summary Question: Concerns about memory cost impact on smartphone gross margin and EV delivery strategy - Management acknowledged the long cycle of memory cost increases and its impact on gross margins, stating that price increases and product structure optimization will be necessary to mitigate this [27][30] - For EVs, management noted rising delivery volumes and improvements in delivery schedules due to efficiency enhancements [33][34] Question: Future smartphone strategy and EV subsidies impact on gross margin - Management indicated that while smartphone prices may increase, the overall market may experience a downturn, and they aim to maintain a premium strategy [39][41] - Regarding EVs, management expects some impact on gross margin due to subsidies but believes current margins are healthy [42][43] Question: AIoT growth and large appliances strategy - Management highlighted the integration of AI with IoT devices and the importance of maintaining an open ecosystem for future growth [46][66] - For large appliances, management emphasized the importance of innovation and the impact of national subsidies, stating that they will adapt to changes in the market [50][51] Question: Autonomous driving advancements and overseas development - Management confirmed that autonomous driving is a critical focus for future EV development, with significant enhancements in technology and data utilization [56][57] - The company is expanding its overseas presence, particularly in East Asia and Southeast Asia, while maintaining good relationships with traditional distributors [58][59] Question: Inventory management and Miloco ecosystem plans - Management reassured that inventory levels are well-managed and that they will maintain an open ecosystem for Miloco while exploring AI integration [64][66] Question: Smartphone market stability and large appliance factory role - Management noted that the smartphone market is currently stable, with cost increases impacting all players, and emphasized the advanced capabilities of the new large appliance factory [70][73]

Financial 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]

Financial 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]