I. Current Outlook (Bearish)

Reasons: Clear pressure on earnings expectations: Market consensus expects Q4 revenue to grow slightly, with adjusted net profit down -23% year-on-year. Gross margin for the smartphone business is declining with significant cost pressures. Short-term headwinds concentrated: Soaring memory costs, declining smartphone shipments, phase-out of auto subsidies, and intensifying price wars are suppressing profitability. Unfavorable macro and liquidity conditions: Tightening Hong Kong stock market liquidity, foreign capital reduction, high short-selling ratio, weak short-term rebound momentum.

II. AI Investment: A burden short-term, an ecosystem-level opportunity long-term. 16 billion in a single year 2026 (over 40% of R&D), 60 billion over three years, directed towards large models, on-device AI, intelligent driving, and agents. Directly erodes current profits, so 2026 should be the (cash-burning stage)!!!

​AI is the neural center for the "Human-Vehicle-Home Full Ecosystem", with device-cloud synergy and full-scenario implementation, capable of enhancing premiums for smartphones/cars/IoT and generating AI service revenue. The SU7 remains hot-selling even after a 4,000 yuan price increase; AI empowerment has begun translating into product strength and pricing power. 2025 net profit +80%, high investment and high growth proceed in parallel, with a positive cycle emerging. Therefore, after 2027, it will enter the (output stage)!!!$XIAOMI-W(01810.HK)