【Earnings Highlights and Outlook】

- Record Performance: Xiaomi achieved record total revenue of 365.9 billion yuan in 2024, up 35% year-over-year. Q4 revenue hit 109 billion yuan, up 48.8% YoY.
- Smartphone Business: 2024 smartphone revenue reached 191.8 billion yuan, up 21.8% YoY. Global smartphone shipments increased 15.7% to 168.1 million units.
- IoT and Lifestyle Products: Revenue surpassed 100 billion yuan for the first time, reaching 104.1 billion yuan, up 30% YoY.
- Internet Services: Revenue hit a record high of 34.1 billion yuan in 2024, up 13% YoY.
- Electric Vehicle Business: EV sales revenue reached 32.1 billion yuan in 2024. Total deliveries of Xiaomi SU7 reached 136,854 units.
- Profitability: Adjusted net profit reached 27.2 billion yuan, up 41.3% YoY, setting a new record.

【Q&A Highlights】

Q1: What are the long-term goals for the large home appliance business, particularly air conditioners?

A:
1. Strategic Focus: Large home appliances became a strategic business in 2023, with significant investments in technology and manufacturing.
2. Growth Targets: Aim to grow large appliance revenue by over 50% in 2025. For air conditioners, the goal is to rank 3rd in China this year and reach top 1-2 positions by 2030.
3. Technological Edge: Xiaomi leads in smart features, with 70% of users connecting their appliances to the network, far ahead of competitors.
4. Market Expansion: Recently launched central air conditioning systems, which are seeing pre-sales 5-6 times above target. Also beginning international expansion in Southeast Asia.

Q2: Are there synergies between the smartphone and EV businesses?

A:
1. Clear Synergies: Definite synergies exist between smartphone and EV businesses.
2. Sales Boost: During Chinese New Year, when traditional car brands see sales drop, Xiaomi SU7 sales increased due to exposure in shopping malls.
3. Premium Positioning: The simultaneous launch of Xiaomi 15 Pro and SU7 R boosted sales for both products. Xiaomi 15 Pro sales grew 80% compared to the previous generation.
4. Long-term Potential: These synergies are just beginning, with more value expected to be realized over the next 3-5 years across all product categories.

Q3: What are the plans for expanding EV production capacity given the high demand?

A:
1. Current Situation: SU7 has a 13-16 week waiting period, while SU7 series has up to 40 weeks wait time.
2. Capacity Expansion: Actively working on increasing production capacity through:
- Optimizing existing production lines
- Mobilizing suppliers to ensure component supply
- Potential for new production lines (not explicitly confirmed)
3. 2025 Target: Increased the annual delivery target from 300,000 to 350,000 units.

Q4: How is the overseas internet services business developing?

A:
1. Revenue Growth: Overseas internet service revenue grew 30% YoY to 11.1 billion yuan in 2024, accounting for 32.2% of total internet service revenue.
2. Ad-Driven Growth: Advertising remains the primary revenue source for overseas internet services.
3. User Base Expansion: Global monthly active users exceeded 700 million, up 9.5% YoY.
4. Future Focus: Continuing to expand the user base and improve monetization in international markets.

Q5: What are the plans for AI investment and development?

A:
1. Significant Investment: Over 25% of the 30 billion yuan R&D budget is allocated to AI development.
2. Key Focus Areas:
- Building foundational AI infrastructure
- Developing core AI models
- Product integration, especially with Xiaomi's AI assistant
3. Competitive Advantage: Xiaomi's large user base, diverse product ecosystem, and extensive data provide a strong foundation for AI development.

Q6: How is the retail network expansion progressing, especially for showcasing EVs?

A:
1. 2025 Targets:
- Increase total offline stores to 20,000 in mainland China
- Add 400-500 large-format stores (400-500 sq m) combining EVs and consumer electronics
- Expand self-operated delivery centers and service stations
2. Store Quality: Focus on improving store locations, increasing store sizes, and enhancing overall image.
3. EV Integration: The 400-500 large-format stores will showcase both EVs and other Xiaomi products, leveraging brand strength and traffic.

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.