Q1: What is your outlook for the smartphone market in 2024, especially given Xiaomi's recent market share gains in China?

A1: (Lu Weibing)
- Overall smartphone market growth in 2024 is expected to be very small, around 1-2%.
- Xiaomi aims to increase shipments from 169 million in 2023 to 180 million in 2024, targeting about 1 percentage point market share gain.
- The focus is on improving product mix and average selling price (ASP) rather than just volume growth.
- Xiaomi maintains its goal of reaching 200 million annual smartphone shipments by 2027.
- In China, the high-end segment is benefiting from government subsidies.
- For Western Europe, Xiaomi has strategically reduced entry-level product sales to focus on mid to high-end devices, which is expected to improve market share and profitability in the future.

Q2: What are your plans for expanding the EV business capacity and launching new models?

A2: (Lu Weibing)
- Xiaomi is significantly ramping up production capacity through various measures:
1. Optimizing existing production lines
2. Working closely with suppliers to ensure supply
3. Potentially adding new production lines
- The production capacity target has been increased from 300,000 to 350,000 units for 2025.
- Capacity will be allocated across all EV models, not just focused on the new SU7.
- The company aims to balance supply between different models to meet diverse customer demand.

Q3: How is Xiaomi expanding its international presence, especially in IoT and retail?

A3: (Lu Weibing)
- IoT business overseas accounts for about 1/3 of total IoT revenue, with significant growth potential as the overseas market is twice the size of the domestic market.
- Xiaomi is expanding its retail presence internationally through:
1. Mi.com online stores in multiple countries
2. Mi Home physical stores, with plans to open in more countries, including Southeast Asia and Europe
- The company aims to open 10,000 Mi Home stores globally in the next five years.
- International expansion of retail channels is expected to boost IoT product sales and support the premium product strategy.

Q4: Can you provide more details on Xiaomi's AI investments and strategy?

A4: (Lu Weibing & Alain Lam)
- AI is a core focus for Xiaomi, alongside IoT and chip development.
- The company is investing heavily in AI, with over 25% of its 30 billion RMB R&D budget allocated to AI in 2025.
- Key AI focus areas include:
1. Building foundational AI infrastructure
2. Developing core AI technologies and large language models
3. Product integration, especially with Xiaomi's "Super Xiao AI" assistant
- Xiaomi aims to leverage its large user base, diverse devices, and extensive data to create unique AI applications across its ecosystem.

Q5: How is the home appliance business performing, and what are the long-term goals?

A5: (Lu Weibing)
- Home appliances, particularly air conditioners, have shown strong growth, with revenue increasing over 50% in 2024.
- Xiaomi aims to become a top 3 air conditioner brand in China by 2025 and top 1-2 by 2030.
- The company is investing in R&D, manufacturing facilities, and expanding its product line to include central air conditioning systems.
- Xiaomi's strengths in smart connectivity and OTA updates give it an advantage in the smart home appliance market.
- The company is also beginning to expand its home appliance business internationally, starting with Southeast Asia.

Q6: Are there any synergies between the smartphone and EV businesses?

A6: (Lu Weibing)
- There are significant synergies between Xiaomi's smartphone and EV businesses:
1. Cross-promotion in retail stores, especially during holiday periods
2. Shared brand appeal and customer base
3. Mutual reinforcement of premium brand image
- For example, the simultaneous launch of Xiaomi 15 and SU7 benefited both product lines, with Xiaomi 15 sales growing 80% compared to the previous generation.
- These synergies are expected to strengthen as Xiaomi's ecosystem expands and matures over the next 3-5 years.

Q7: What is the outlook for Xiaomi's internet services business, especially in overseas markets?

A7: (Lu Weibing & Alain Lam)
- Internet services revenue reached a record high in Q4 2024, driven by:
1. Growing user base
2. Improved user mix due to more premium smartphone sales
3. Increased advertising revenue, especially from pre-installations on high-end devices
- Overseas internet services now account for over 1/3 of total internet services revenue.
- The focus in overseas markets is currently on organic growth through increased device shipments and user base expansion.
- Future growth opportunities in overseas markets include:
1. Expanding beyond advertising to include more diverse revenue streams
2. Potentially introducing successful domestic internet service models to international markets

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.