Q1: How is Xiaomi addressing the slowdown in smartphone market growth and changes in memory costs?

- Market Outlook: Global smartphone market growth is below initial expectations, with China potentially growing 3% and global market flat to slightly negative.
- Xiaomi's Strategy: Focusing more on improving product mix rather than pure volume growth. Aiming for 180 million units in 2025, up from about 170 million in 2024.
- Cost Structure: Memory costs are expected to transition from declining to rising in Q2 2025. However, Xiaomi does not anticipate significant impact on margins due to product mix improvements and other cost optimizations.

Q2: How is Xiaomi's IoT business performing amid increased competition?

- Strong Growth: IoT revenue grew 113% year-over-year in Q1, with shipments up 65%, indicating significant ASP growth.
- Product Range: Growth seen across multiple categories including large home appliances, tablets, and wearables.
- Competitive Position: Xiaomi is not overly concerned about increased competition, as demand still outstrips supply in many categories. The company is focused on expanding production capacity and improving product offerings.

Q3: What are Xiaomi's plans for smartphone premium segment expansion?

- Progress: High-end smartphones (priced above 4000 RMB) accounted for 25% of Xiaomi's China smartphone sales in Q1, up from 22% a year ago.
- Future Focus: Aim to establish a stronger presence in the ultra-premium segment (above 6000 RMB), where Xiaomi currently has about 5% market share.
- Global Expansion: Plans to apply premium segment strategies developed in China to overseas markets.

Q4: Can you provide an update on Xiaomi's AI and chip development efforts?

- AI Investment: About 25% of Xiaomi's planned 30 billion RMB R&D expenditure for 2025 will be focused on AI.
- Chip Strategy: Currently focused on flagship smartphone SoCs and modems. The company views chip development as a platform capability that can be extended to other products in the future.
- AI Applications: Developing AI capabilities to enhance user experiences across Xiaomi's product ecosystem, with a particular focus on smartphones and MIUI operating system integration.

Q5: How sustainable is the high gross margin in the electric vehicle segment, and what is Xiaomi's position in the EV market consolidation?

- Margin Improvement: EV gross margin has improved steadily over the past four quarters, reaching 23.2% in Q1 2025. This is attributed to strong product competitiveness, production efficiency improvements, and increasing scale.
- Market Position: Xiaomi is still in supply shortage for its EV models, indicating strong demand. The company is focused on ramping up production and maintaining its competitive edge through technology and product innovation.
- Future Outlook: Management believes there is still significant room for improvement in efficiency and profitability as the EV business scales up.

Overall, Xiaomi reported strong performance across its smartphone, IoT, and EV segments in Q1 2025, with a focus on premium products, AI development, and maintaining profitability amid changing market conditions.

Disclaimer: This earnings call summary is generated by AI and is for informational purposes only. Due to technical limitations, inaccuracies may exist. It does not constitute investment advice or commitments.