A：Xiaomi achieved several breakthroughs in core technology, including the release of the X Ring processor, which is a first for the company, and progress in the AI big model. The X Ring processor, using a 3nm process with 19 billion transistors, has a performance and experience in the first echelon of the global industry, featuring an An two core that reached more than 3 million points. Additionally, the company released the first long-lasting 4G Watch Chip, X Ring T1, integrating their first self-research 4G baseband. These developments signify the company's progress in AI and chip technology.

A：The highlights of the Q1 2025 Results announcement include the return to the number one position in smartphone shipments in mainland China, an increase in market share to 18.8%, and a year-on-year growth in sales of 40% in the first quarter. Additionally, the company's average selling price (ASP) for smartphones rose to 1211 RMB, and the share of high-end smartphone shipments in mainland China increased to 20.25%, with sales of the flagship phone, Xiaomi 15 Ultra, more than doubling compared to the predecessor. The company's total revenue reached a record high of 111.3 billion RMB, with core business revenue and adjusted net profit also setting records.

A：In Q1 2025, the cell phone business of Xiaomi achieved a total revenue of 92.7 billion RMB, up 23% year on year. The adjusted net profit for the cell phone business exceeded 10 billion RMB for the first time, recording a 64% year-on-year increase. This financial performance was supported by a 40% year-on-year growth in the shipment volume, which was the highest among the top five vendors in the broad smartphone market.

A：In the first quarter, after a decade, Xiaomi returned to the number one position in smartphone shipments in mainland China, increasing its market share by 4.7 percentage points year on year to reach 18.8%. The company grew its market share by 3.2 percentage points year on year, and the growth rate of 40% year on year in the first quarter was the highest among the top five vendors. This growth was attributed to the continuous improvement in brand and product strength and the solid foundation of the new retail system that the company has established over the past few years.

A：The company aims to be one of the top two in China mainland open market sales by 2030 in the large home appliances business.

A：The company's wearable wristband achieved the number one global position in Q1.

A：The smart EV and related innovative business segment has been renamed as smart Eev and AI, innovative businesses.

A：The company has set two goals for the smartphone business: first, by 2030, suppliers' annual average carbon emission should not be lower than 5% compared to 2024, and the usage of green power should not be lower than 25%. Second, by 2050, the green power utilization ratio should reach 100%.

A：The company successfully included itself in the list of green supply chain management enterprises published by the Ministry of Industry and Information in 2024, indicating recognition for efforts in promoting industrial chain green transformation and achieving carbon targets.

A：The company believes that it is still in a high growth stage and there are many products currently out of stock, which has not allowed competitors to significantly impact them. They view the attention from competitors as positive for the industry. The company aims to ensure that they provide the same product and price to all channels and seeks to be a value creator and promoter of industrial improvement. Although the large appliance business has not reached a satisfactory level, strategies are in place to improve and expand in this area. For the overseas market, the company plans to use similar tactics as in China but recognizes differences in competitive landscapes and purchasing power leading to changes in product demand.

A：The company is not worried about the impact on one of the models, as they have high capacity replication capabilities. The exact ratio between the two models is not known yet, but it will become clear after the situation normalizes. There is a high level of capacity replication for the second model, and the biggest advantage is its high capacity for capacity replication. The impact of the price reduction on one model will affect sales of the other model, but the company is confident in their strategies for both models.

A：The company's plans include discussing the efficiency and profitability enhancement of a smart appliance factory and a smart电动车工厂 in addition to the product plan. The expected benefits and contribution of these plans to efficiency and profitability are currently under discussion, and the exact impact is not specified in the provided text.

A：The potential impact of standard equipment configuration on pricing strategy and profitability is also under review. While the exact effects are not detailed in the transcript, the company is cognizant of the profitability implications associated with standard configurations.

A：The commonalities found among different product categories include the overall logic and methodology for smart production or manufacturing. The differences were also identified during the process of standardizing across various products.

A：Profitability is a result and not a goal in itself. A strong product with good capability and standard configurations is necessary to ensure profitability. Good product strength also enables companies to have a strong bargaining and pricing power, which is crucial for maintaining a reasonable profit margin.

A：The company's products are very strong with a long-range and functionality, providing a solid market position. No competitor has been able to catch up, even after 14 months of product launch, with some competitors not even reaching 25% of the company's success. A strong product position leads to bargaining power and pricing power, which in turn allows the company to maintain a reasonable profit margin.

A：The expectations for smartphone shipment and pricing in Q1 of the global market are not explicitly detailed in the transcript. However, the discussion indicates that the overall performance in the smartphone business is subject to variance and requires updated strategies, particularly in the wake of the ongoing global challenges.

A：The strategies and expectations for the EEV AI and new business involve analyzing the growth margin, particularly with the current 23% growth, and understanding the reasons behind it. The transcript does not provide detailed future outlooks but suggests a focus on improving product structure rather than solely enhancing sales volume.

A：In the Chinese market, the company plans to adjust its strategy by focusing on improving product structure. This includes reducing or stopping the production of low-end products and concentrating more on the higher-end business. The goal is to achieve a market share of 20% in Africa, given the company's product and brand strength.

A：The company expects its growth margin to steadily improve, referencing past quarterly results that show a consistent increase. This improvement is attributed to strong product strength, the elimination of inefficient models, internal management efficiency, and a focus on channel efficiency. The company also anticipates benefits from the phase-in of fixed costs, price adjustments for farmers, delivery of Ultra products, and higher revenue from peripheral products contributing to the growth margin.

A：The strategies that have contributed to the premiumization of smartphones include adhering to the premiumization approach for the past five years, using the existing Xiaomi brand for premiumization instead of starting a new brand, and focusing on smartphones before extending to other categories. The company also plans to adopt these strategies to other markets following successful implementation in China.

A：In the next five years, the company plans to coordinate and establish a rhythm for premiumization in each country, focusing on smartphone price segments of 4000 to 6000 yuan and above, aiming for a 10% market share instead of the current 5%. Furthermore, they aim to extend this strategy to all other product categories and move from the Chinese market to海外市场.

A：The company plans to invest significantly in large model technology for AI to improve user experience. They aim to leverage their large user base, numerous user scenarios, and data for developing and integrating AI solutions that enhance the overall user experience.

A：While the exact sustainability of a 25% gross margin in the coming quarters was not confirmed, it is mentioned that the company is in the early stages of focusing on AI, which will involve significant investment. The trajectory of revenue growth and shipment increases in the high-end smartphone market were also discussed, which could influence gross margins.

A：The pricing strategy for the upcoming June event was not explicitly stated as 'very intense price competition.' The company's approach is to ensure that their flagship chips meet their expectations before considering applications in other areas.

A：While the company's focus is primarily on developing flagship chips for smartphones, the platform capability of the X ring chip could potentially be used for other chips in the non-flagship series, including chips for other smart devices within the Mi ecosystem.

A：The company adheres to a strategy of maintaining a 20% GP margin and does not expect much volatility from competition. While concerns are noted regarding large appliances and the potential impact of competition on these categories, growth and profitability are indicated in other categories such as IoT products, which includes TV tablets, wearables, and ecosystem products.

A：The company anticipates some adjustments in the cost structure for smartphones but does not foresee significant cost impacts on profit. There is mention of other memory vendors adjusting capacity which will affect the overall supply situation, but the company's previous view is affirmed as the cost impact is not expected to be substantial.

A：The company views the performance of its current products, such as the X ring chip and related products, as a turning point. It believes that while there may be a small decline in certain categories in Q2, Q3 and Q4 will show an upward trend without being very drastic. The company has strong product capabilities and is competitive in the market. It also has the ability to build factories, indicating comprehensive capabilities.

A：The company's outlook on competition is that it is part of market competition and does not foresee a strong impact on the business in the short term. The company aims to deliver existing orders and continue to provide users with products.

A：The company's strategy for the chip business includes multiple brand offerings for chips, with a focus on high-end chips. This strategy is part of the company's long-term plan and is expected to continue growing, with an annual increase of a few million pieces. The company is working on self-developed chips for flagship products and has good communication with Qualcomm. The overall impact on gross margin is considered too early to discuss, but the company's financial focus is on making products well without much consideration for cost in the short term.

A：In India, the company acknowledges a decline as reasonable and identifies the market as quite special with unresolved issues. For Africa, the company has shifted focus from ultra-low and low-end products to mid to high-end ones, improving product structure amidst an overall industrial decline. Market shares have varied across different regions, with improvements noted in Africa, Southeast Asia, and Latin America, indicating the company's strategic approach to manage risks in different markets.