As we enter 2026, the global capital market's investment logic for the AI industry is undergoing a quiet shift from "visionary narratives" to "practical validation." Compared to the ample imagination of a grand future in 2024-2025, the current market is more focused on clear pathways for technology implementation, commercial viability, and financial returns. Against this backdrop, XIAOMI-W (01810) consistently attracts concentrated market scrutiny due to its rare, strategically advantageous position within China's AI ecosystem—featuring a full-stack layout spanning the technology layer (large models, chips, operating systems), application layer (Miclaw/Miloco), hardware layer (smartphones/IoT/cars/robots), and manufacturing layer (own factories). XIAOMI-W's deep integration across key industrial chain segments positions it not merely as a consumer electronics or automotive company, but as a critical case study for observing whether the "deep integration of AI with the real economy" can achieve a viable business model. The company's performance now transcends simple financial metrics, serving as a litmus test for the commercial viability of the full-stack AI approach.

On March 24th, XIAOMI-W released its 2025 performance report, delivering a powerful response to the market's demand for tangible results with its strongest-ever financial figures. The report revealed that XIAOMI-W's total revenue for 2025 reached 457.3 billion yuan, a year-on-year increase of 25.0%, while adjusted net profit surged 43.8% to 39.2 billion yuan. This record-breaking revenue and profit stem from a fundamental shift in the company's growth drivers: automotive and AI have transitioned from strategic investments into substantial new growth engines. Crucially, entering 2026, XIAOMI-W's accelerated progress across multiple fronts—including the MiMo large model, Miloco whole-home smart solution, and CyberOne humanoid robot—signals that its AI strategy has entered a new phase, moving "from vision narrative to scalable application." The message to the market is clear: driven by automotive and AI as new growth engines, and with continued R&D investment and accelerated deployment of AI into the physical world, XIAOMI-W, with its strategic ecosystem positioning, is poised for accelerated intrinsic value creation.

Based on the robust fundamentals demonstrated in XIAOMI-W's impressive financial report and the company's future growth potential within the new Physical AI cycle, several brokerages and investment banks have issued research reports expressing optimism. Firms including Goldman Sachs, Citigroup, and Hualin Securities have all assigned XIAOMI-W a "Buy" rating, with target prices of HK$41, HK$42, and HK$44, respectively. Compared to its opening price on the Hong Kong stock market on March 26th, this implies an upside potential of over 20% for XIAOMI-W's share price.

A comprehensive shift in growth drivers is evident, with the premiumization strategy achieving new breakthroughs. Examining XIAOMI-W's 2025 report, synergistic development across business segments collectively propelled overall performance to new heights. The IoT and lifestyle products segment, along with internet services, demonstrated stable performance, continuing to act as stabilizing forces by contributing steady cash flow and profits, thereby enhancing the group's risk resilience. During the reporting period, the number of connected devices on the AIoT platform increased by 19.3% year-on-year to 10.79 billion units, driving full-year revenue for the IoT and lifestyle products business to 123.2 billion yuan, up 18.3%. Internet services revenue reached 37.4 billion yuan, a 9.7% increase, benefiting from strong overseas performance and a global monthly active user base that grew to 754 million.

While these two segments solidify XIAOMI-W's stable growth foundation, the innovative businesses—smartphones, automotive, and AI—were the standout performers driving the record results, highlighting the continued significant success of the company's premiumization strategy and the substantial strengthening of its brand perception. In 2025, China's smartphone shipment volume was approximately 285 million units, down 3.3% year-on-year, indicating a slightly contracting market with intensifying competition. Despite this challenging backdrop, XIAOMI-W's smartphone premiumization strategy achieved breakthrough growth. Data shows that in 2025, smartphones priced above 3000 yuan accounted for 27.1% of XIAOMI-W's sales in mainland China, a record high. The share of phones in the 4000-6000 yuan range also continued to rise to 17.3%. Overseas premium sales also reached a new level: in Western Europe, sales of XIAOMI-W's premium models grew about 40% in 2025, with the Pro version of the Xiaomi T series accounting for over 55% of sales. The Xiaomi 17 Ultra Leica edition, launched in Europe at a starting price higher than the 1TB version of the iPhone 17 Pro Max, remained highly popular. Global recognition of its premium products helped the smartphone business achieve steady progress, with full-year 2025 revenue of 186.4 billion yuan and shipment volume maintaining a top-three global ranking for the fifth consecutive year.

In contrast to the steady progress in smartphones, XIAOMI-W's automotive performance in 2025 can be described as "phenomenal." It rapidly ascended from an industry newcomer to a mainstream player, demonstrating formidable product definition, ecosystem synergy, and operational efficiency through its "dual hit models + rapid profitability" approach, successfully entering a new phase of "scalable growth." In 2025, XIAOMI-W delivered over 410,000 vehicles, a surge of 200.4% year-on-year. While the average selling price increased to 250,000 yuan, this drove revenue from smart EVs and innovation businesses to exceed 100 billion yuan for the first time, reaching 106.1 billion yuan, a 223.8% increase, and achieving positive annual operating profit. By the fourth quarter, this segment's contribution to total revenue had risen to 32%, approaching that of the smartphone business and becoming the group's strongest growth driver. Alongside this scale breakthrough, XIAOMI-W's automotive premium momentum was fully unleashed: the new SU7 secured over 30,000 orders within three days of launch, and its first supercar concept captivated global attention. The collaboration with Gran Turismo to launch the Xiaomi Vision Gran Turismo and its prominent display at the World Mobile Congress garnered extremely high visibility. As the first Chinese brand invited by the renowned simulation platform Gran Turismo to design a concept car, this signifies that XIAOMI-W's automotive arm is not only established in terms of sales volume but is also beginning to compete on innovation and brand momentum with top international players, earning global recognition for its premium automotive capabilities.

Adherence to a long-term philosophy with steadfast investment is accelerating the deployment of AI into the physical world across multiple dimensions. If the comprehensive shift in growth engines was the standout feature of the 2025 report, then continuous R&D investment serves as the strategic cornerstone for building long-term competitive moats and the core foundation supporting stable fundamentals and sustained growth. In 2025, XIAOMI-W's R&D expenditure reached 33.1 billion yuan, nearly equivalent to its annual profit, representing a 37.8% year-on-year increase. The total number of R&D personnel grew 20.1% to 25,457. According to the latest disclosures, over the past five years (2021-2025), XIAOMI-W has cumulatively invested 105.5 billion yuan in R&D. Looking forward, the company will continue its long-term commitment, planning to invest a total of 200 billion yuan over the next five years starting in 2026, including at least 60 billion yuan dedicated to AI over the next three years.

This sustained R&D investment is driving the comprehensive acceleration and application of XIAOMI-W's AI achievements, transforming the AI narrative from conception into demonstrable, mass-producible products, a trend that has become particularly evident since the beginning of 2026. The most prominent example is XIAOMI-W's AI foundation model capabilities advancing into the global top tier. Recently, the company launched three self-developed large models tailored for the Agent era, including the Xiaomi MiMo-V2-Pro. This model is XIAOMI-W's first trillion-parameter Mixture-of-Experts model, specifically designed for the Agent era. During early testing, the Xiaomi MiMo-V2-Pro claimed the top spot on the weekly usage ranking of the global API platform OpenRouter within a week of its launch.

Bolstered by this strong AI foundation, XIAOMI-W's "Human-Vehicle-Home Full Ecosystem" is demonstrating unique competitive advantages, injecting stronger growth momentum across all business lines. The system-level AI agent, Miclaw, integrated into smartphones, is poised to become a key differentiator in the AI smartphone competition. In March, XIAOMI-W officially launched its mobile agent product, Xiaomi miclaw, initiating a limited closed beta test. XIAOMI-W's approach with Miclaw is fundamentally different from other AI execution solutions in the market. Whether it's the "Doubao AI Phone" explored as independent hardware or the "OpenClaw" open-source framework, their development has been constrained by ecosystem conflicts or security/compliance challenges. The Doubao AI Phone faced restrictions due to directly accessing system permissions and performing cross-app automated operations, which encroached on super-apps' traffic and business models. "OpenClaw," as an open-source tool, primarily faces issues of fragmentation and security risks. XIAOMI-W's unique advantage lies in Miclaw operating as a native system application, allowing deep access to the smartphone's underlying capabilities and permissions. This enables genuine exploration of large models transitioning from "conversational interaction" to "system-level execution." Operationally, XIAOMI-W has encapsulated over 50 system-level capabilities into structured tools, dynamically called and orchestrated by the MiMo large model based on user intent. This represents a paradigm shift for AI from "answering questions" to "completing tasks," creating a fundamental barrier rooted in XIAOMI-W's full-stack capabilities spanning "chip-system-AI-ecosystem" that cannot be replicated by any third-party application or partnership.

Market expectations are high that Miclaw's unique native system application advantage will deliver impressive results upon public release, potentially redefining standards for AI smartphones and consolidating XIAOMI-W's leading position in the next-generation smart ecosystem competition. Huaxing Securities anticipates that the commercial deployment of miclaw on flagship models like the Xiaomi 17 series will significantly boost product mix optimization and average selling price, partially offsetting memory cost pressures. They forecast that XIAOMI-W's smartphone gross margin will bottom out in Q3-Q4 2026 and accelerate recovery in 2027. Considering operating leverage effects not yet fully priced in by investors, this could translate into significant profit upside and substantial margin restoration potential.

XIAOMI-W's exploration of AI at the system level extends beyond smartphones. In February, at the Mobile World Congress, the company showcased its smart home future exploration solution, Xiaomi Miloco, internationally for the first time. As the first system-level application of the MiMo large model in real living spaces, Miloco aims to extend AI from the phone screen to the entire living environment, achieving a transition from "individual intelligence" to "ambient intelligence." Its deployment signifies XIAOMI-W's AI capabilities becoming fully integrated into users' physical life scenarios. This development holds strategic importance for the IoT business. The launch of Miloco indicates that the core competitiveness of XIAOMI-W's IoT business is evolving from "the scale and cost of connected devices" to "the intelligence to understand scenarios and provide proactive services." This is not merely a product iteration but an evolution of the business model. As AI truly integrates into living spaces via Miloco, the IoT business can break away from the linear growth logic of hardware sales, shifting towards exponential value revaluation by increasing per-user ecosystem value, developing software services, and strengthening full-stack technology barriers.

The intelligent evolution of the IoT business does not occur in isolation; it relies on XIAOMI-W's vast user ecosystem and interaction portals. The Xiao Ai assistant, with over 160 million monthly active users, represents one of XIAOMI-W's most critical strategic assets in the Agent era. This massive, highly engaged user base provides XIAOMI-W with a core resource integrating data, scenarios, user habits, and commercialization capabilities. As industry competition shifts from model parameter races to practical application deployment and ecosystem building, XIAOMI-W, leveraging this asset, has already secured a vantage point for converting technology into scalable commercial value. It not only validates the success of XIAOMI-W's past AIoT strategy but also serves as the most solid foundation for ushering in a new era of "Ecosystem Agents."

Simultaneously, XIAOMI-W's AI capabilities are systematically accelerating their extension into mobile spaces. At the Spring New Product Launch on March 19th, XIAOMI-W's automotive end-to-end assisted driving underwent an architecture-level revolution powered by large models—the official release of the Xiaomi XLA cognitive large model. With core characteristics of "more modalities, higher efficiency, and greater controllability," it propels intelligent driving from the traditional "data-driven" paradigm towards a new "cognition-driven" paradigm. This transformation will fundamentally reshape the human-vehicle relationship. The core idea is to evolve the car from a complex tool requiring user learning and adaptation into an "intelligent partner" capable of proactively understanding the environment, anticipating needs, and seamlessly integrating into the user's life flow. Technology recedes into the background while experience comes to the forefront, truly achieving a dimensional upgrade from "humans adapting to cars" to "cars adapting to humans." This is not just a technical iteration but a key move for XIAOMI-W to build long-term differentiated barriers in the smart automotive sector.

Furthermore, XIAOMI-W has achieved substantive breakthroughs in its humanoid robot business. In March, the Xiaomi humanoid robot officially entered a XIAOMI-W automotive factory, commencing an "internship" on a real production line—autonomously operating for three consecutive hours at a self-tapping screw installation station, achieving a bilateral installation success rate of 90.2%, and fully meeting the production line's 76-second cycle time requirement. This marks a critical step towards scalable application. It represents not just a qualitative leap from "technology demonstration" to "productivity validation," but also a concentrated display of XIAOMI-W's full-stack capabilities in "AI + hardware + manufacturing." Real production line data proves that the humanoid robot already possesses preliminary industrial utility value. As scaled deployment progresses, XIAOMI-W is poised to be among the first to establish a viable commercial loop for humanoid robots in industrial settings, accumulating indispensable practical experience and data barriers for future entry into more complex scenarios like homes and services.

With the imminent explosion of Physical AI, XIAOMI-W is positioned to become an unavoidable core player in the new cycle. The competitive landscape for AI applications is undergoing a fundamental shift. The majority of existing applications remain confined to the digital realm of processing text, images, and code. However, genuine industrial transformation and value explosion will occur in the new phase where AI perceives, understands, and directly manipulates the physical world—encompassing everything from robotics and autonomous driving to intelligent environments with autonomous execution capabilities. In this transition from the virtual to the physical, pure technical parameter superiority is not the decisive factor in consumer markets. The true moat lies in the scale of ecosystem access points and the depth of accumulated data. Only platforms that enable AI capabilities to be used frequently by massive user bases and continuously learn within rich scenarios can convert technology into sustainable commercial value.

From this perspective, XIAOMI-W exhibits a unique strategic positioning. Its layout transcends single hardware categories, constructing a complete "perception-decision-execution" closed loop. This full-stack integration across the technology layer (large models, chips, OS), application layer (Miclaw/Miloco), hardware layer (smartphones/IoT/cars/robots), and manufacturing layer (own factories) means its AI development is rooted from the outset in the real physical world and users' life flows, forming a solid, strategic-level competitive barrier. A consensus is gradually forming in the market that the leaders of the AI era may not be new entrants but established "incumbent giants" that have already built deep, frequent, and trusted relationships with users through mature ecosystems. Because the future competition in AI will not merely be an algorithmic race but a comprehensive contest involving ecosystem scale, scenario data, and commercialization pathways. XIAOMI-W, with its profound ecosystem access points, possesses the potential to nurture the most powerful applied AI in the future, positioning it as a core player that cannot be overlooked in the emerging Physical AI cycle.