$XIAOMI-W(01810.HK) At today's Beijing Auto Show, Mr. Hu's first appearance on camera was also very impressive. You'll notice that when others were explaining, CEO Lei would occasionally interrupt and add points, but there were no interruptions during Mr. Hu's presentation. Moreover, Mr. Hu's explanation was very clear, more detailed than CEO Lei's, and informative about the product. Truly a veteran of the industry. The auto show also previewed the YU7 GT to be released at the end of May and the European team, both of which have considerable experience and track records, one step leading to the next. The team's international background is also a form of endorsement for the future.

Recently, a certain automaker in the car circle has also generated a lot of buzz with its launch. To be fair, by domestic standards, it was still a normal launch event with good models and promotional methods. Perhaps the biggest difference with "Mizi" (Xiaomi) is that, although both compete in the domestic market, the market and competitors "Mizi" targets have never been domestic. After all, if you're only selling cars domestically, you don't need to go track testing, sponsor races, or live-stream tests. Everyone can quietly make money following the unspoken rules of the industry. "Mizi" is building its ecosystem using the playbook of the international market, showing you everything from the product to the team, sometimes even seeming a bit like giving a masterclass.

Behind the competition and mutual criticism, you have to admire the bigger picture. First, there are purchase tax incentives and other benefits to increase the size of the industry market. After reaching a certain level, relevant stimulus policies are modified to intensify competition in the red ocean market. When it's hard for everyone to make money, it forces innovation and stimulates going global. That is, they want you to make money, but they want you to make money by going overseas, aligning with a larger strategy.

Compared to last year, "Mizi" has been quite active in AI and going global this year. AI development is progressing very fast, not only having just released a new version of a large model, but also mentioning at the auto show that "Lobster" has entered the vehicle system. In terms of PR, the automotive division is also frequently engaging with overseas KOLs and media for brand groundwork. I believe if mobile phone profits were very good this year and the domestic auto market was relaxed, they probably wouldn't be this active. Even with firm top-level strategy, execution wouldn't be this smooth. In short, both external and internal factors are being set up. The recent contradiction likely lies in the fact that, due to hardware costs and auto market competition, short-term financial report profits are not looking great, but this very situation is also stimulating the accelerated advancement of mid-to-long-term product strength and brand power.