$XIAOMI-W(01810.HK)423 Xiaomi Corporation Investment Day Summary

1. Order Status: As of last Saturday, locked orders reached 70,000 units, with continuous daily increases. The current proportion is 43.16% for the Max version, 28.3% for the Pro, and 28.57% for the Standard version. The Standard and Max versions have started delivery since late April. The Xiaomi SU7 has successfully proven that the pure electric sedan market is viable and has vast potential.

2. Color Distribution: Gray 34%, Aurora Purple 23%, Gulf Blue 14.5%, Olive Green 12.7%. The success of the optional Aurora Purple shows that "beauty" has value. Gulf Blue, as a high-saturation color, is rare in family cars. Every color from Xiaomi serves as an advertisement—selling cars is advertising. Female buyers account for 28%, with female car owners making up 40-50%.

3. Xiaomi's Customer Base: Apple iPhone users account for 46%. Apple doesn’t make cars, so Apple users turn to Xiaomi. Xiaomi offers the best Apple ecosystem compatibility. After undergoing "strict selection by millions of netizens," it passed rigorous tests, including range tests (achieving 615km), track performance comparable to M-power, and sun protection/heat insulation tests. The first group includes Tesla customers, while the second consists of tech-savvy, tasteful customers from third- and fourth-tier cities looking for a non-SUV personal car.

4. Autonomous Driving: The autonomous driving activation rate is 79%, with NOA (Navigate on Autopilot) launching in 10 cities starting May. Last year, Xiaomi invested 1.5 billion yuan with 1,000 engineers; this year, it will expand to 1,500, and next year to 2,000, ensuring continuous in-house R&D iteration.

5. Channels, Production Capacity, and Profitability: Innovation investment is 11-12 billion yuan. By year-end, Xiaomi plans to have 219 stores in 46 cities and 139 service centers in 82 cities. Early efforts in location selection and team-building lay the foundation for future expansion to thousands of channels. The June delivery target is 10,000 units, with 100,000 units planned for the first year (2024). Current gross margins are estimated at 5-10%, with break-even expected at 300,000-400,000 units.

6. Strategy: Leveraging the "Human-Car-Home" ecosystem, the Xiaomi SU7 significantly aids the company’s high-end strategy and female user expansion, proving the success of Xiaomi’s culture. It integrates traditional automakers and Xiaomi employees to achieve cultural synergy and execution—from marketing to production to delivery. The next three years will focus 100% on the domestic market; overseas expansion will follow naturally after success, utilizing existing channels and influence.