Me and My Father: Jason Wu galloped on horseback, and Riding the Wind rose.


Special feature of 1905 film network The film jointly directed by,,, and will be released until September 30. At present, the film releases previews of all chapters, which are directed by Xú Zhēng and based on the first commercial advertisement of China, Duck Prophet. Directed by Zhang Ziyi, Poem with the background of developing the Long March-1 rocket and launching China’s first artificial satellite; Directed by Jason Wu, based on the Ride of the Wind by Jizhong Cavalry Corps in War of Resistance against Japanese Aggression period; And "A Boys’ Journey" directed by Shen Teng, which is full of sci-fi comedy.



The story of this chapter "Riding the Wind", with Ma Renxing, the head of the regiment, and his son, riding the wind as the main line, describes the story of Jizhong Cavalry Corps, an iron cavalry team with outstanding achievements in War of Resistance against Japanese Aggression, who fought to the death to defend the people’s evacuation. The Jizhong cavalry regiment in the film is real in history, and its nickname is the second independent cavalry regiment of Jinchaji Military Region. Because it has been fighting in Jizhong for a long time, it is usually called Jizhong Cavalry Corps. "Riding the Wind" presents the story of this heroic iron riding team to the audience in the form of movies.



According to General Lv Zhengcao’s description in his memoirs, the cavalry regiment in the history of Jizhong fought in the Jizhong plain, interspersed between Pinghan railway lines, and used long-distance raids, circuitous outflanking and other tactics to attack the invading Japanese army, fighting for more than 50 times, of which the more successful outstanding fighting force attacked Anping County at night. Jizhong cavalry regiment died for the country and made great achievements in the battle.



Bai Mengchen, a military commentator, said: "During the May 1 sweeping in 1942, the Jizhong Cavalry Corps rushed to some relevant intersections heavily guarded by the Japanese army in the most critical time with the help of its rapid mobility. Many times, a pedestrian dike was pulled out between the Japanese puppet army and the people we needed to transfer, so the loss was great. At that time, the entire Cavalry Corps immediately dismounted and counted more than 2,000 people, and finally it was built.



When restoring this period of history, some fragments of the chapter "Riding the Wind" were questioned by netizens. Some people think that riding against enemy planes is artistic processing, which is not true enough. In this regard, Bai Mengchen explained: "This paragraph is to block the shooting in the air. During the Anti-Japanese War, the Eighth Route Army and the New Fourth Army used light weapons to shoot down 14 enemy planes. Jason Wu’s purpose in riding a horse and setting up an air-to-air shooting team on the hill is not to fight enemy planes, but to interfere with the plane’s entry into the dive bombing route by blocking shooting. At that time, when the plane wanted to shoot at the ground, it had to enter a route. The nose was pointed at the target, and the left and right range could not be too large. By shooting, the other side was separated from the route, and the plane had to come back in a big circle, which bought time. Jason Wu shouted in the film that he wanted to enter the condom, that is, he must go to the relevant position and attack again, which is more in line with the situation on the battlefield at that time. "



The real war is far more cruel than that reflected in the film. "Riding the Wind" just hopes to let the audience know the cruelty of war, the hardships of our parents’ struggle in that year and their unshakable beliefs through this chapter. Bai Mengchen said: "For our generation of audiences, our military industry has now improved, providing the PLA with iron horses, steel horses and so on that will never tire. However, we will still remember that in the past, during the Anti-Japanese War, the road was blue and blue, because that time was the basis for us to see the strength of the People’s Liberation Army and the strong national strength of China. "



The "most dangerous time" sung in our national anthem is precisely to warn us to be prepared for danger in times of peace. China filmmakers use one film after another to commemorate the ancestors of the Anti-Japanese War, and their struggle has brought us today’s stability. We should realize that it is hard to live a happy life now, inherit the aspirations of our fathers, work hard to build China and create a better tomorrow for the next generation — — Just as the last generation made contributions to us.


Director’s observation of Today’s Film Review: The chapter "Riding the Wind" is a part I look forward to in the film "My Father and I". Compared with other chapters, this part is more burning and cruel. In fact, it is not the purpose to see the tragic war. Just as the guest said, "Forgetting the war will be dangerous". Only by remembering the past, will we cherish the present. (Yuan Danyang, director of Today’s Film Review) 


Letter from Chinese Wushu Association of Wushu Center of General Administration of Sport on Printing and Distributing the Guide for Running Wushu Sanda Events (Trial)

eachWushu sports management centers and Wushu associations of provinces, autonomous regions and municipalities directly under the Central Government:

In order to further strengthen the safety supervision service of martial arts fighting events, standardize the organization and management of various martial arts Sanda events in China, improve the service level of running competitions, and protect people’s life safety and health, According to the spirit of the documents such as Measures for the Administration of Sports Events (Order No.25 of the General Administration of Sport), Several Opinions on Strengthening the Safety Management of Fighting Events (No.3 of Tigui Zi [2020]) and Opinions on Further Strengthening the Safety Supervision Service of Sports Events (No.3 of Tigui Zi [2021]), the Martial Arts Management Center of the General Administration of Sport and the Chinese Wushu Association have developed. The original documents "Guide to Running Martial Arts Events" (No.136 [2019] of Wushu) and "Guide to Running Martial Arts Fighting Events (Trial)" (No.69 [2020] of Wushu) shall be invalidated.

I am writing to inform you.

 

Wushu Center of General Administration of Sport China Wushu Association

                   August 30, 2021        

 

 

Guide to running Wushu Sanda events

(Trial)

 

Chapter I General Principles

 

the first  In order to implement the Measures for the Administration of Sports Events (Order No.25 of the General Administration of Sports), Several Opinions on Strengthening the Safety Management of Fighting Events (No.3 [2020]) and Opinions on Further Strengthening the Safety Supervision Service of Sports Events (No.3 [2020])2021threenumber), further strengthen the safety supervision service of Wushu Sanda events, improve the level of Wushu Sanda events, and formulate this guide.

the second  The Wushu Sanda events mentioned in this guide refer to those in China.(excluding Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Province Province, the same below) Wushu Sanda events and related activities (hereinafter referred to as Wushu Sanda events). The nature of the competition is divided into amateur competition, professional competition and professional competition.

Amateur competition refers to youth events and mass events organized by various organizations at all levels.

Professional competition refers to the periodic Wushu Sanda events with high competitive level, such as championships, championship matches and national games, in which excellent sports teams from all provinces (autonomous regions and municipalities) participate.

Professional competition refers to all kinds of commercial Wushu Sanda events at all levels with high competitive level, which are oriented by market demand, operated by market and aimed at achieving economic and social benefits.

Article  Wushu Sanda competition should adhere to the principle of combining government supervision with industry self-discipline, and implement classified management according to the requirements of "who approves (records), who is responsible", "who sponsors, who is responsible" and "who is in charge, who is responsible", strengthen supervision after the event, and combine supervision with service. Sports departments at all levels shall bear the responsibility for safety supervision of Wushu Sanda events within their jurisdiction, and the relevant departments of the people’s governments at or above the county level shall bear corresponding responsibilities for safety supervision of Wushu Sanda events according to their duties. Wushu sports management centers (institutions) and Wushu associations at all levels are responsible for the project management of the safety of Wushu Sanda events, and are responsible for the service, guidance and standardization of Wushu Sanda events within their jurisdiction.

 

Chapter II Conditions and Requirements of Event Organizers

 

Article 4  The organizers of Wushu Sanda events should be government departments or enterprises, institutions and social organizations with independent legal personality.

Article 5  Organizers should have the ability and qualification to organize Wushu Sanda events, including but not limited to the following conditions:

(1)It should be an institution with the qualification of an independent legal person with the license to hold sports activities;

(2)Should have the professional ability to undertake the operation of the event in terms of personnel, venue, equipment and funds;

(3)Should ensure the ability to provide qualified venues, equipment, etc.

(4)Should be able to coordinate the arrangement of transportation, accommodation, venue and other conditions suitable for the scale of the event;

(5)It has a good financial situation in the past three years and has enough funds to undertake the operation of the event;

(6)No record of any violation of laws and regulations.

Article 6  Organizers such as organizers, contractors and co-organizers are directly responsible for the safety of Wushu Sanda events, and a written agreement should be signed before the competition to clarify the division of responsibilities. The organizer shall establish the organizing mechanism of the Games such as the Organizing Committee, make overall coordination, do a good job in overall organization, and bear the main responsibility; The organizer should do a good job in various safeguards to ensure the safety of the event; The co-organizers shall ensure that the products, facilities or services they provide meet the quality and safety standards.

Article 7  The space provider of Wushu Sanda competition venue should fulfill the obligation of safety guarantee, and assist in undertaking emergency rescue and other rescue tasks within the scope of its ability.

Article 8  The organizer of Wushu Sanda competition should take the initiative to contact the local Wushu sports management center (institution) and Wushu Association before the competition to seekBusiness guidance, technical support and services, and take the initiative to accept supervision.

 

Chapter III Conditions and Standards for Hosting Events

 

Article 9  Hosting Wushu Sanda events should follow the principles of legality, safety, openness, fairness, justice, honesty, civilization and green, advocate good moral habits, abide by the sportsmanship of fair competition, and abide by the relevant provisions in the competition rules of Wushu Sanda events. Competitions should not be limited to events, gender, age and weight levels.

Article 10  Event bidding procedure

(1)The bid for the international Wushu Sanda competition shall be submitted for approval in accordance with the procedures, and no bid shall be made without approval.

The following international events need to be included in the annual foreign affairs activity plan of the General Administration of Sport, and reported to the General Administration of Sport or the State Council for approval in accordance with relevant regulations and examination and approval authority: important international events sponsored or co-sponsored by the General Administration of Sport, world championships, world cups, Asian championships and Asian cups organized by international sports organizations, events involving Asian Games qualifications or points, and international events organized by the Wushu Sports Management Center of the General Administration of Sport and the Chinese Wushu Association across provinces (autonomous regions and municipalities).

International competitions sponsored by the Wushu Sports Management Center of the General Administration of Sport and the Chinese Wushu Association, or co-sponsored with local governments but led by the Wushu Sports Management Center of the General Administration of Sport and the Chinese Wushu Association, need to be included in the foreign affairs activity plan of the General Administration of Sport, and in principle, they shall be examined and approved by the local people’s government or its relevant departments that have the power to examine and approve foreign affairs.

Local self-sponsored, or jointly sponsored by the Wushu Sports Management Center of the General Administration of Sport and the Chinese Wushu Association, but led by local authorities, shall be examined and approved by the local people’s government or its relevant departments with the right to examine and approve foreign affairs, and shall not be included in the foreign affairs activity plan of the General Administration of Sport, but shall be uniformly filed with the General Administration of Sport.

Other commercial and mass international competitions shall be handled in accordance with the principle of territorial management and relevant local regulations.

The invitation letter and reception notice of the participants in the above-mentioned events in China and other related foreign affairs procedures shall be handled in accordance with the principle of "whoever approves the invitation".

(2)Wushu Sanda events held by overseas Wushu organizations in China shall be approved by the sports department of the provincial people’s government and reported to the public security organs at the same level for the record.

To represent China in the corresponding international individual sports organizations, and any organization or individual that hosts or undertakes the Wushu Sanda events of the corresponding international individual sports organizations in China shall reach an agreement through consultation with the Chinese Wushu Association.

(3)In addition to the above provisions, the sports department will not approve Wushu Sanda events. If there are other provisions in the public security, market supervision, health and health, foreign affairs and other departments, the organizer or organizer shall handle them according to the provisions. Organs, enterprises, institutions and social organizations can organize and hold competitions according to law. Organs, institutions and sports associations shall openly, fairly and justly select the organizers when holding Wushu Sanda competitions, and encourage and support the extensive participation of the society.

Article 11  Use of event names

The name of the event shall meet the following requirements:

(1)Consistent with the hosting area and project content;

(2)Consistent with the industry field and population range of the organizer’s activities;

(3)It is substantially different from the name of the event held by others or other organizations;

(4)Shall not infringe upon the legitimate rights and interests of others or other organizations;

(5)Do not contain words that deceive or may cause public misunderstanding;

(6)Do not use words with religious meaning;

(7)Use words with political, diplomatic and national defense attributes such as "Belt and Road", "BRICS" and "SCO" in accordance with national laws, regulations and policies;

(8)Other provisions of relevant laws, regulations and rules.

The words "world", "international", "Asia", "China" and "country" or words with similar meanings may be used in the names of international and national sports events sponsored or undertaken by the central and state organs, their institutions and national social organizations, and other sports events may not use the same or similar names.

Article 12  rules of a contest/competition

To hold a Wushu Sanda competition, the Rules and Referee Law of Wushu Sanda Competition approved by the Chinese Wushu Association must be adopted, which can be downloaded from the Wushu Sports Management Center of the State Sports General Administration and the official website of the Chinese Wushu Association http ://www.wushu.com.cnView the download.

Article 13  Site facilities, equipment and protective gear

(1)The infield space of the competition venue is at least 400 square meters; A flat and empty space should be reserved at least 200 cm around the periphery of the protective cushion around the competition ring, and the vertical barrier-free space on the ground should be not less than 700 cm; Have the necessary competition function rooms and related facilities such as warm-up rooms before the competition. The illumination of the competition venue is 1000-2000 lux.

(2)The infield area of the training (warm-up) room should be equipped with 1-2 soft cushions with an area of not less than 800 cm× 800 cm and a thickness of 3-5 cm according to the competition scale, and there are no hard objects with prominent edges and corners within 200 cm around the soft cushions.

(3)Wushu Sanda competition venues are divided into Wushu Sanda competition standard ring or ring with ropes:

1.Wushu Sanda Competition Standard Platform: 80cm in height, 800cm in length and 800cm in width. The table top is covered with a soft cushion with a thickness of 5cm, and the soft cushion is covered with an anti-sliding cover sheet. For specific conditions and technical requirements, please refer to the Wushu Sanda Competition Rules newly approved by the Chinese Wushu Association. The ring should be solid, level and safe. If two rings are set, the distance between them should be not less than 800 cm.

2.Wushu Sanda professional competition rope ring: the ring area (including rope) is 600×600-700×700 square centimeters, and the outer table of rope extends 40-90 centimeters; The height of the table top from the ground is not more than 120 cm. The table top is paved with a cushion with a thickness of not less than 5 cm, and the cushion is covered with an anti-skid cover sheet. There must be five ropes with a diameter of 3-5cm around the ring, which are fixed on the columns at the four corners and wrapped with soft materials. The whole ring should be solid, flat and safe.

(four) according to the needs of the competition, it is equipped with one set of electronic scoring system, two high-definition digital cameras (including tripods), one TV (or computer) for arbitration, supporting audio, headsets, trunking telephones (walkie-talkies) and other equipment.

(5) Athletes in amateur and professional Wushu Sanda competitions must wear head protectors, teeth protectors, chest protectors, gloves, hand-bound belts and crotch protectors, and teenagers must also wear instep protectors. In professional competitions, you should at least wear tooth protectors, gloves, hand-wrapped belts and crotch protectors, and wear instep protectors as needed, and head protectors and chest protectors if necessary. For the relevant technical requirements of protective gear, please refer to the Rules of Wushu Sanda Competition newly approved by Chinese Wushu Association.

 

Chapter IV Competition Organization

 

Article 14  Competition organizing Committee

The organizer of the event shall set up an event organizing committee (hereinafter referred to as the organizing committee) to perform the main responsibilities of the event. The organizing committee is generally composed of the leaders of the organizers and contractors of the games and relevant personnel to lead and implement the preparations for the games in a unified way.

The organizing committee consists of several working institutions, including office, competition department, venue and equipment department, logistics reception department, news and publicity department, security department, medical and health department and doping control department.Under the direct leadership and management of the Organizing Committee, the working organizations perform their respective duties, covering comprehensive affairs, competitions, venue equipment, information technology, media operation, individual association services, athletes’ services, technical officials’ services, timing and scoring and performance processing, sports exhibition, award ceremony, transportation services, medical services, audience services, safety and security, doping control, financial audit and volunteer work.

The setting of the working organization depends on the specifications and scale of the competition. Generally speaking, high-standard and large-scale events need to set up more working institutions, and smaller events can merge some work contents and working institutions, but all work contents should be reflected in the working institutions.

Article 15  Competition rules

Competition regulations are programmatic documents of the organizing committee for organizing the competition, which mainly include the name of the competition, the organizer, the organizer, the co-organizer, the holding time, the holding place, the competition items, the competition methods, the entry methods, the reward methods, and other requirements of the organizers. Competition rules are generally before the game.oneIt will be announced next month, so that participants can arrange training reasonably according to the rules and actively prepare for the competition.

Article 16  The Organizing Committee is responsible for reviewing the qualifications of various personnel (including athletes, coaches, referees and medical personnel) participating in the competition. The qualification of personnel shall meet the relevant provisions of the competition rules and the following requirements:

(1) Athletes

1.Athletes participating in amateur competitions must meet the following conditions:

(1) The age of athletes should meet the requirements of the competition rules of this project. For those who have no or limited capacity for civil conduct to participate in Wushu Sanda competition, the organizer or organizer shall inform their guardians of the relevant risks and the guardian shall sign a letter of commitment;

(2) Participate in systematic training of this project for at least one year.

2.Athletes participating in professional competitions must meet the following conditions:

(1) The age of athletes should meet the requirements of the competition rules of this project;

(2) Participate in systematic training of this project for at least 3 years.

3.Athletes participating in professional competitions must meet the following conditions:

(1) At least 20 years old and no more than 40 years old;

(2) Participate in systematic training of this project for at least 6 years;

(3) Take part in the national professional competition of this project and get the top 16 or the top 8 results in the national amateur competition, or get the top 3 results in the provincial amateur competition (subject to the admission ranking in the score book).

(2) Coaches

1.Coaches must meet one of the following conditions to guide amateur and professional competitions:

(1) coaches with junior and above titles in this project;

(2) Have 3 years or above teaching experience in this project.

2.Coaches must meet one of the following conditions to guide professional competitions:

(1) coaches with intermediate or above titles in this project;

(2) Have 5 years or above teaching experience in related projects.

(3) Referees

The qualification of competition referees must comply with the relevant provisions of the Measures for the Administration of Sports Competition Referees promulgated by the State Sports General Administration. The events judged by the referee should be consistent with the referee’s certificate.

1.Referee amateur competitions and professional competitions:

Must hold the referee certificate issued or recognized by Chinese Wushu Association.

2.To adjudicate a professional competition, the following conditions must be met:

(1) Must hold a referee certificate issued or recognized by the Chinese Wushu Association;

(2) The referee on the stage of the competition should have independent professional competition judging ability and rich practical experience.

(4) Medical supervision and emergency medical personnel during the Games

All medical personnel participating in the Wushu Sanda competition must hold a qualification certificate registered in the medical and health system within the validity period. At the same time, the medical supervisor of the referee needs to know the characteristics of this project, and have independent medical ability and rich experience in on-the-spot first aid.

 

Chapter V Competition Guarantee

 

Article 17  Event organizers should formulate and implement the "safety risk prevention and control plan, emergency treatment plan, epidemic prevention and control plan and event organization plan", and take the initiative to report to the local Wushu Sports Management Center and Wushu Association for business guidance, technical support and services before the game. Those who do not meet the prescribed conditions, standards and rules and involve safety issues should be rectified in time to ensure the legal, safe and standardized running of the event.

Article 18  The organizers of the games should be equipped with professional and technical personnel with corresponding qualifications, equipped with venues, equipment and facilities that meet relevant standards and requirements, strictly implement safety measures such as communication, safety, transportation, hygiene, food, emergency rescue and fire fighting, and increase compulsory measures such as equipment inspection and insurance purchase to ensure that emergencies can be dealt with decisively.

Article 19  Physical examination and insurance

Athletes must produce physical examination certificates issued by hospitals at or above the county level within 15 days before the registration date, including at least EEG, ECG, blood pressure, pulse and other indicators, which are suitable for participating in the competition; If the head CT diagnosis certificate is required, it should also be provided.

All participating athletes must take out personal accident insurance in sports competitions, and the exemption clause of the insurance does not include participation in Wushu Sanda events. Encourage the event organizer to purchase public liability insurance for the event.

The organizing committee shall, in accordance with the relevant provisions of the state, clarify the economic responsibility for the expenses incurred in medical treatment, physical examination, insurance purchase and other services.

Article 20  Medical supervision and medical first aid

According to the scale of the competition, there should be at least one medical supervisor, 1-2 emergency doctors and 1-2 nurses. In the case of uneven medical supervision and medical emergency personnel, the competition must be suspended.

1-2 ambulances with life support system should be equipped on site. If there is no ambulance waiting, the game must be suspended.

The site should be equipped with cardiac defibrillator, wheeled stretcher and other emergency medical facilities and corresponding drugs, and the infirmary should be set up nearby.

Before the competition, at least one medical first-aid institution at or above the county level with good first-aid conditions and rich first-aid experience should be determined, and a green first-aid channel should be opened in consultation with the public security, medical and traffic management departments. Drivers of ambulance vehicles must be familiar with the green first-aid passage and alternate route from the stadium to the designated medical institutions before the competition.

Article 21  Related protective measures for athletes

(1)Athletes who stop the competition due to a heavy blow to the head during the competition shall stop the competition for 30 days; If the competition is terminated due to shock caused by a heavy blow to the head, the competition will be suspended for 90 days; If the competition is suspended twice in one year due to shock caused by a blow to the head, the competition will be suspended for 365 days.

(2)If the above situation occurs, it is necessary to arrange for athletes to receive brain CT examination.

(3)The date of suspension is calculated from the date of injury, and the medical supervisor will record it truthfully.

Article 22  Accommodation and transportation security

(1)In principle, sports teams and referees are arranged in two places, which must meet the conditions of safety, cleanliness, complete infrastructure and convenient transportation.

(2)Strengthen food safety, strictly control food supply and procurement channels, and resolutely put an end to the occurrence of food-borne stimulants.

(3)Encourage the arrangement of special personnel to be responsible for the transportation security of sports teams and referees to ensure the safety of travel.

Article 23  Security of public security, fire fighting and meteorology.

Professional personnel must be responsible for it.Public security, fire fighting, meteorology, etc.Security work to ensure the order during the competition and the safety of all participants.

Article 24  circuit breaker mechanism

The organizer of the competition should pay close attention to the progress of the competition and make corresponding adjustments in time when the conditions for hosting the competition change; Terminate the competition in time when the conditions for continuing the competition are not met.

 

Chapter vi  Supplementary rules

 

Article 25  The right to interpret this guide belongs to the Wushu Sports Management Center of the State Sports General Administration and the Chinese Wushu Association.

Article 26  This guide shall be implemented as of the date of promulgation.

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Lantiu FREE officially dropped 66,000, and Aouita 11 launched the HarmonyOS version. This wave of new forces has changed a bit.

In the past, there was a saying: the mid-term modified model is the most worth buying!

This is because the newly replaced models may have various minor problems, and the mid-term change will correct these problems. At the end of the product life of a car, although there is no need to worry about stability, it often lags behind the models of the same period in technology and configuration.

What needs to be pointed out here is that the mid-term change refers to the change of a car in the middle of the product life, usually in the third and fourth years. The annual change in selling price and allocation is generally called "annual change".

However, the renewal speed of the involuted new power cars has become increasingly blurred the boundary between the mid-term change and the annual change. For example, Aouita listed the Aouita 11 HarmonyOS version on August 24, and the new car adopted Huawei’s brand-new HarmonyOS system, which made a qualitative leap in product strength.

At the same time, AITO M7, which cooperates with Huawei, has greatly upgraded the car body safety and lowered the price of M5. Lantu FREE, which is quite related to AITO, is not installed, and the price is directly reduced by 60,000!

Manufacturer’s guide price: 300,000-389,900 yuan.

Body wheelbase: 2975mm

Powertrain 1: 230 kW rear motor+90/116kWh battery

Powertrain 2: 425 kW dual motor+90/116kWh battery

Cruising range: 600/630/705/730 /580/700 km

Aouita’s predecessor was Changan Weilai, a joint venture project between Changan and Weilai. After Weilai withdrew, this project became a long-term project led by Changan, with Contemporary Amperex Technology Co., Limited and Huawei cooperating.

However, compared with the AITO series of Celeste and the HI version of Alpha S Huawei of Polar Fox, you can’t even see Huawei’s mark on Aouita 11. Only after in-depth understanding did I know that this car used Huawei’s ADS intelligent driving operating system and VOS intelligent car control operating system.

As we know, HUAWEI has a strong appeal among domestic consumers, which is also the reason why the AITO series tries its best to be related to the "Huawei" logo.

The 2023 Aouita 11, which went on the market on August 24th, has undergone a major upgrade, and its model name has been changed to "Aouita 11 HarmonyOS".

Just kidding, the 2023 Aouita 11 has two upgrades. First, it is equipped with a brand-new HarmonyOS cockpit released in early August. Compared with the past car system, it has more processes and simpler operation logic, as well as the flow between three screens and seamless links with mobile phones.

Second, the assisted driving system has been upgraded to Huawei’s advanced intelligent driving system ADS 2.0, which has a self-learning function. The more you drive the same route, the stronger your ability will be. According to the previous plan, in the fourth quarter of this year, 40 cities will be able to use the urban NCA (Intelligent Driving Navigation Assistant) function of ADS2.0, even if these cities do not have high-precision maps.

More importantly, Aouita 11 also launched a single motor version, which lowered the price of the entry version from 349,900 yuan to 300,000 yuan. At the same time, the price of the entry-level version of dual motors has also been reduced to 325,000 yuan.

Manufacturer’s pre-sale price: 258,000 yuan

Body wheelbase: 2820mm

At the end of last year, China Insurance Research released the crash test results of the M7. Although the score of the driver’s frontal 25% offset crash was "G" (excellent), in the crash video, the A-pillar was suspected to be bent. Two small projects: the vehicle structure and the intrusion of the upper part of the passenger compartment only got "A" (good), so many netizens questioned the safety of this car.

At Chengdu Auto Show, AITO released and opened the pre-sale of the 2024 M7, with the pre-sale price of 258,000 yuan, while the cash price was 289,800-379,800 yuan.

In addition to the price reduction, the M7 also brought a lot of updates, after Yu Chengdong said that the upgrade cost 500 million yuan.

First of all, in terms of safety, the body structural parts have been redesigned, the welding production line has been rebuilt, and submarine-grade high-strength steel has been used in some structural parts.

Secondly, the M7 also launched a five-seat version. As an SUV with a wheelbase of only 2.82 meters, five seats are more suitable for this car. However, the five-seat version does not simply cut off the third row of seats, but redevelops the front and second rows of seats, so both comfort and space utilization have been greatly improved.

In addition, the driver assistance system was upgraded to Huawei’s advanced intelligent driving system ADS 2.0, and a new HarmonyOS cockpit was installed. Tell me the easiest way to tell the difference between the old model and the new model: the one with laser radar on the roof is the new model.

Manufacturer’s guide price: 266,900 yuan

Body wheelbase: 2960mm

Powertrain: 1.5T(150Ps)+360kW dual motor+39.2kWh battery.

Cruising range: 210 kilometers

Last year, before the end of the new energy state subsidy, Lantu pushed an official subsidy of 30,000 yuan, which was called "Lantu FREE’s most powerful supplement", as of December 31.

At that time, we said that according to the sales volume of this car, this "time-limited subsidy" was afraid to become a permanent subsidy. Finally, Lantu really extended it to March this year.

Although I know that Lantu FREE has been offering a lot of discounts this year, and even a number of stock cars have been given a lot of discounts in the first half of the year, it is still shocking that Lantu listed 2024 Lantu FREE on August 19, streamlining the configuration into one and lowering the price to 266,900 yuan.

For this configuration currently on sale, the guide price of the 2023 model is 333,600 yuan, and the 2024 model is equivalent to an official reduction of 66,700 yuan.

In addition to adjusting the configuration and price, Lantu FREE also replaced the front face with a design similar to the previous "DNA" version.

Another important upgrade is the addition of the Apollo Highway Driving Pro pilot-assisted intelligent driving optional package provided by Baidu.

To tell the truth, this car is very competitive in both the extended range system and the chassis handling. Now it is really worth a try when it is reduced to this price.

Kaiyi is serious, stylish and steady.

In the competition with the same class models, it is worth mentioning in terms of space performance. Not much to say, let’s take a look.

First of all, from the appearance, the front of Xuanjie Pro gives people a feeling of being very individual and simple. Combined with personalized headlights, the visual effect is still good. The car is equipped with LED daytime running lights, automatic opening and closing, delayed closing and so on. Come to the side of the car, the car body size is 4400MM*1831MM*1653MM, the car uses simple lines, the side looks very delicate, with large-sized thick-walled tires, giving people a very full feeling. In the design of the rear of the car, the overall shape of the rear of Xuanjie Pro echoes the front of the car, and the taillights look very sharp. Coupled with the unique exhaust pipe, the overall layout is impressive.

Coming into the car, Xuanjie Pro interior enhances the visual sense of individuality and gives people a very unique feeling. The steering wheel of the car is very in line with the interior style, and it is made of leather, which makes people love it. From the central control point of view, the car is decorated with a clean touch-sensitive LCD central control screen, which makes the interior design quite layered and fashionable. Let Xiaobian introduce the dashboard and seats. The dashboard of this car presents a fashionable design style, which is very eye-catching. The car uses a leather-like seat, the seat is wrapped in place, and the overall ride feels soft and comfortable.

Xuanjie Pro is matched with CVT gearbox, with maximum power of 115KW and maximum torque of 230N.m, and its power performance is good.

The back row space of Xuanjie Pro is good, and it is no problem to meet the daily travel needs. In addition, the car is equipped with anti-lock braking (ABS), LED daytime running lights, brake assist (EBA/BAS, etc.), braking force distribution (EBD), traction control (ASR/TCS, etc.), main driver airbag, co-pilot airbag, front side airbag and other safety configurations.

I wonder if you are excited about this car introduced today? If you have plans to buy a car now, then today’s car is worth learning about.

Jietu finally shows its trump card, which is highly matched and exquisite.

For pragmatists, low fuel consumption is a good thing. After all, fuel cost is a big part of the daily car cost. As a medium-sized suv, there are many highlights. Next, let’s take a look with Xiaobian.

Let’s take a look at the appearance of the Jetway X90. The front face of the Jetway X90 has improved the grade of the whole vehicle, and the air intake grille has a multi-spoke design, which is very sporty. The front headlights are fashionable and generous, which looks quite classy. The car is equipped with LED daytime running lights, automatic opening and closing, delayed closing and so on. Come to the side of the car, the car body size is 4858MM*1925MM*1780MM, the car uses comfortable lines, the car side looks very dignified, with large thick-walled tires, eye-catching shape. In the design of the rear end, the overall shape of Jetway X90′ s rear end echoes the front end, and the taillights are very individual. The layout of the exhaust pipe uses a bilateral single-row shape, and the overall shape is still very attractive.

In terms of interior, the interior of Jietu X90 is full of publicity and meets the aesthetic standards of young people. The steering wheel of the car is very cold, made of leather and full of design. Take a look at the central control, which is decorated with a 12.3-inch central control screen, which makes the interior design quite layered and meets the aesthetic standards of most consumers. Let’s take a look at the dashboard and seats again. The car is equipped with angular dashboard, and the trendy design elements make people remember it at a glance. The car uses leather-like seats, equipped with functions such as seat proportion down, and the overall comfort and wrapping are not bad.

The Jetway X90 is matched with a wet dual clutch (DCT) gearbox, with a maximum power of 145KW and a maximum torque of 290N.m, with good power performance.

The performance of Jetway X90 trunk space is relatively good, the opening size is in line with its positioning, and the family’s storage needs can be met. At the same time, the car is equipped with anti-lock braking system (ABS), LED daytime running lights, brake assist (EBA/BAS, etc.), braking force distribution (EBD), traction control (ASR/TCS, etc.), main driver airbag and co-pilot airbag.

After reading the above introduction, let’s make a summary. This class of cars is usually the first choice for most people. First of all, the price is not expensive, and secondly, all the configurations are quite complete, which is still very worth starting with.

In-depth report of Xiaomi Group (01810): Overseas market becomes a new engine of growth, and mobile phone ×AIoT creates an ecological moat.

Xiaomi Group is an Internet company with mobile phones, intelligent hardware and AIoT platform as its core. Starting from smart phones, Xiaomi has continuously expanded its business to all kinds of intelligent hardware, creating the world’s largest AIoT Internet of Things ecosystem. With its excellent intelligent hardware products, Xiaomi has gained a huge user traffic base. In 2021Q3, Xiaomi’s smartphone market accounted for the third place in the world, and the monthly activity of MIUI exceeded 500 million in November 2021. Based on the perfect product ecology and strong user growth, we expect Xiaomi to maintain a good growth momentum, and the EPS of 2021e/2022e/2023e is 0.80/0.88/1.04 yuan. We gave Xiaomi 2022E 21 times PE, corresponding to the target price of HK$ 23.09, and gave a buy rating for the first time.

Key points of investment

1. Grasp the rapid rise of the times, and excellent business strategies promote healthy growth.

Since its establishment in April 2010, Xiaomi has grasped the windfall dividend in the era of smart phones, and has developed into a smart phone manufacturer with the third market share in the world. In 2021Q2, its market share once surpassed Apple and jumped to the second place in the world. Xiaomi’s "triathlon" model continues to boost the company’s healthy growth through the coordinated growth of businesses: 1) the hardware ecology with smart phones as the core; 2) Internet service with MIUI as the core; 3) The new retail with the combination of online and offline represented by Xiaomi Mall Xiaomi Home.

2. Give full play to its own resource endowment and Xiaomi will enter the electric vehicle industry.

In March 2021, Xiaomi announced its entry into the electric vehicle industry. We think there are two main reasons: 1) looking for new business growth points in the future; 2) Give full play to its own advantages and improve the business ecosystem. The global smartphone market has entered the stock game, while the electric vehicle industry is in an explosive period, which is expected to become a new business growth engine of Xiaomi in the future; Electric vehicles will become an important part of Xiaomi’s hardware ecology, and its software and hardware research and development also overlap with smart phones in technology, which can make good use of Xiaomi’s technology and ecological resources.

3. "Mobile phone ×AIoT" is the core strategy to build an ecological moat.

Intelligent hardware business is the main way for companies to attract customers. Compared with traditional Internet companies, the high customer acquisition cost has achieved a "negative" customer acquisition cost. Then through the "1+4+X" hardware ecology, the user’s stickiness is greatly improved. Smartphone business in 2021Q2 exceeded expectations, and its market share surpassed that of Apple, ranking second in the world. However, in 2021Q3, affected by the supply chain, the performance of smartphones was under pressure. Xiaomi’s AIoT business has established the world’s largest AIoT Internet of Things platform through advanced layout. In 2021Q3, due to factors such as overseas shipping and logistics, the revenue of IoT and consumer products reached 20.9 billion yuan, and the growth rate slowed down. Internet services are realized by the traffic brought by hardware business, and the revenue in 2021Q3 was 7.34 billion yuan (+27% YoY), among which the advertising business grew against the trend and exceeded expectations.

Risk warning

Competition in the global smartphone market has intensified; The company’s high-end progress is less than expected; Overseas market expansion faces policy risks; The construction of offline channels is less than expected.

1. The rapidly rising upstart in science and technology has become an industry giant.

2. Build an ecological moat with the core strategy of "mobile phone ×AIoT"

3. Internet service is the core of ecological realization and profit.

4. The strategy drives the success of the enterprise, and there is much to be done in the short term.

5. Profit expectation and valuation

6. Financial statements

1. The rapidly rising upstart in science and technology has become an industry giant.

Xiaomi Group is an Internet company with mobile phone, intelligent hardware and AIoT platform as its core. With its smart phone as the core, the company has continuously expanded to all kinds of intelligent hardware, including tablet computers, notebook computers, smart bracelets and various household appliances, and built the ecosystem of Xiaomi AIoT Internet of Things platform.

Since Xiaomi was formally established in April 2010, the company has achieved amazing high-speed growth. In the third year of its establishment, its smartphone share has entered the top three in China. In the seventh year, the revenue has exceeded 100 billion yuan, and it has become the world’s largest intelligent hardware IoT platform; In the eighth year, it became the youngest enterprise in the world’s top 500, and it has been on the list for three consecutive years, and its ranking has been rising. In the second quarter of 2021, the company’s global smartphone sales surpassed Apple, and it was promoted to the second place in the world for the first time, with a global market share of 17%.

Chart 1: Milestones of Xiaomi Group

Source: Company official website, Zheshang International.

1.1. The company grew strongly in the first half of the year, and Q3 performance was constrained by the shortage of upstream supply.

By the first half of 2021, the overall performance of Xiaomi Group’s 21H1 had a strong growth, benefiting from the substantial increase in smartphone shipments (+78% YoY) and the steady and progressive overall gross profit margin (+3 ppts YoY). The company achieved a total revenue of 164.7 billion yuan (+59.5% YoY) in 21H1, with a total profit of 16.1 billion yuan (+141.3% YoY) and an adjusted net profit of 12.4 billion yuan (+118.4% YoY). In the same period, 21Q2′ s total revenue, interim profit and adjusted net profit all reached record highs in a single quarter, reaching 87.8 billion yuan (+64.0% YoY), 8.3 billion yuan (+83.9% YoY) and 6.3 billion yuan (+87.4% YoY) respectively.

In 2021Q3, Xiaomi achieved a single-season revenue of 78.1 billion yuan (+8% YoY), with a year-on-year growth rate declining. The decline in revenue growth in 2021Q3 is mainly due to the tight supply of upstream core components, resulting in the pressure on mobile phone and intelligent hardware shipments. In 2021Q3, the shipment of smartphones was only 43.9 million units, a decrease (-5.8% YoY) compared with the same period last year. However, the overall gross profit margin of the company (18.3%) exceeded expectations, and the adjusted net profit reached 5.2 billion yuan (+25% YoY).

Chart 2: Xiaomi Group’s total quarterly revenue

Source: Company Financial Report, Zheshang International.

Chart 3: Xiaomi Group’s quarterly adjusted net profit

Source: Company Financial Report, Zheshang International.

1.2. Xiaomi Group’s products and businesses are diversified, and the "triathlon" grows together.

Xiaomi Group has diversified its products and businesses through its own business and investment layout. Up to 21H1, the company has invested in more than 330 eco-chain companies, and has built the world’s largest consumer AIoT Internet of Things platform, combining smart phones and Internet services, weaving a diversified product business structure.

1) The hardware ecosystem starts from the core smart phone, and the products extend to the peripheral products of the mobile phone (including headphones, mobile power supplies, routers and stereos, etc.), and then further involve all kinds of intelligent hardware (including water purifiers, rice cookers, balance cars and air purifiers, etc.), and finally even extend to all kinds of household consumables (including towels, toothbrushes, ornaments and clothing, etc.).

2) The product ecology of the Internet mainly takes MIUI operating system installed on Xiaomi mobile phone and various hardware as the entrance, and expands the company’s products and business to various Internet value-added services such as advertising, games and financial technology. In addition, it also includes e-commerce platforms independent of the MIUI system.

Chart 4: Xiaomi’s diversified business matrix

Source: Notes on Xiaomi Ecological Chain Battlefield, Zheshang International.

By combing and integrating Xiaomi’s business lines, we can divide it into three categories: 1) hardware ecology with smart phones as the core; 2) Internet service with MIUI as the core; 3) The new retail with the combination of online and offline represented by Xiaomi Mall Xiaomi Home.

These three categories are also defined by the company as the "triathlon" business model: using highly cost-effective hardware equipment to get customer drainage and guide traffic to Xiaomi’s Internet service; Internet services realize traffic realization by providing various Internet value-added services to hardware users; New retail plays the role of a catalyst for drainage efficiency, and realizes the development and retention of user traffic through the development of online and offline retail channels.

Chart 5: Xiaomi’s triathlon business model

Source: Prospectus, Zheshang International

The business model of "triathlon" hardware ecological drainage Internet service realization can also be seen from the company’s profit structure. In the total revenue structure of Xiaomi in 2021Q3, the total revenue of smartphones, loT and consumer products accounted for 88%, while the total gross profit only accounted for 60% of the company’s total gross profit level; On the other hand, the revenue from Internet services only accounts for 9% of the total revenue, but it contributes nearly 38% of the company’s gross profit. This profit structure intuitively reflects the company’s low gross profit margin level in hardware business, which is also in line with Xiaomi’s long-standing cost-effective route and the commitment that the comprehensive net profit margin of hardware business does not exceed 5%, and the user traffic is obtained by price exchange.

Xiaomi has positioned itself as an internet company rather than a hardware company, and its efficiency is extremely high compared with that of ordinary internet companies by means of hardware ecological drainage. At a time when Internet traffic resources are precious and the cost of obtaining customers is rising, attracting traffic through the cost-effective hardware ecology not only makes profits while draining, but also greatly strengthens the user’s stickiness.

Chart 6: Proportion of Xiaomi’s business income to total income in 6:2021Q3

Source: Company Financial Report, Zheshang International.

Chart 7: Gross profit ratio of Xiaomi’s businesses to total gross profit in 7:2021Q3

Source: Company Financial Report, Zheshang International.

However, Xiaomi does not stop at the price/performance ratio. After occupying the target customers who pay attention to the price/performance ratio and price sensitivity, in order to expand the target customer market and enhance the brand positioning of Xiaomi, the company started its own high-end road.

In 2019, the company announced that Redmi Redmi series mobile phones will be independent as a brand new brand, continuing the past cost-effective strategy, focusing on the thousand yuan machine market, and the brand label of "extreme cost-effective" is deeply rooted in the hearts of the people; The Xiaomi brand is positioned in the middle and high end, focusing on the price range of 2,000 yuan to 3,000 yuan or more, and positioning different customer groups through different series to expand the market scale and realize the overall high-end and differentiation. For example, the Mix series, the Civi series and the G series, etc.

Among them, the Civi series released in the second half of 2021 accounted for more than 60% of the new users of Xiaomi by 2021Q3, and the female users accounted for more than half, which well penetrated into the customers who prefer fashion; Gaming mobile phones contribute to the internet business by covering the corresponding population, and their users’ game income is three to four times that of mobile phones at the same price segment.

Xiaomi’s high-end strategy has been steadily advanced. In the first three quarters of 2021, Xiaomi shipped nearly 18 million smartphones priced at 3,000 yuan in the mainland and 300 euros or more overseas, accounting for more than 12% of the total global shipments. In addition to the domestic market, Xiaomi is also promoting the high-end overseas market. In 2021Q3, Xiaomi’s overseas smartphone shipments with a price of 300 euros and above increased by over 180% year-on-year. Benefiting from the increase in the proportion of high-end mobile phone shipments, the average selling price (ASP) of the company’s smart phones has stabilized above 1000 in the past two years.

Chart 8: Average selling price of Xiaomi smartphone

Source: Company Financial Report, Zheshang International.

Chart 9: Xiaomi Smartphone Product Matrix

Source: Company official website, Zheshang International.

1.3. Xiaomi officially entered the smart electric vehicle industry.

Xiaomi’s business extension does not stop at the moment. In March this year, Xiaomi Group announced that Xiaomi’s smart car business was officially established and officially entered the electric vehicle industry. And plans to set up a wholly-owned subsidiary, with Lei Jun as the CEO of smart car business. The initial investment is 10 billion yuan, and the estimated investment in the next 10 years will reach 100 billion yuan.

In September this year, Xiaomi Automobile was officially registered with a capital injection of 10 billion yuan, with Lei Jun as the legal representative, and the first automobile manufacturing factory settled in Yizhuang, Beijing. The company said on the investor’s day in October that all processes of the electric vehicle business far exceeded expectations, and it is expected that Xiaomi Automobile will be officially mass-produced in the first half of 2024.

1.3.1. Why should we enter the electric vehicle industry?

Regarding why Xiaomi wants to enter the electric vehicle industry, we think it can be explained from two aspects: 1) looking for new business growth points in the future; 2) Give full play to its own advantages and improve the business ecosystem.

1) Looking for new business growth points in the future.

The global smart phone market has entered the stock game, while the smart electric vehicle industry is in an explosive period. According to IDC data, global smartphone shipments have recorded negative growth for four consecutive years since reaching a high point in 2016. Driven by the strong recovery in several emerging markets, shipments rebounded (+4.8% YoY) in 2021, and the compound annual growth rate in the next two years is expected to be only about 3%-4%.

However, the smart electric vehicle industry is another scene. After experiencing the decline of the automobile industry in 2019 and 2020, the new energy automobile industry ushered in an outbreak this year. According to the statistics of China Automobile Association, the sales volume of new energy vehicles in China in 2021 exceeded 3.52 million, a year-on-year increase of more than 160%, far exceeding industry expectations. And this achievement was completed under the circumstance that the automobile industry was generally "lack of core" this year. In addition, the market penetration rate of new energy vehicles in China will be 13.4% in 2021, and according to "New Energy Vehicle Industry Plan 2021-2035" issued by the State Council, the sales penetration rate of new energy vehicles in China will reach at least 20% by 2025, and the market space to be tapped is huge.

In addition, we compare the market size of smart phones and new energy vehicles, and we can find that the difference between the two markets is more obvious. According to Gartner’s calculation, in 2019, the size of China’s automobile and automobile aftermarket is about 10 times that of the mobile phone market. The smart electric vehicle business is expected to become a new performance growth point of the company in the future.

Chart 10: Global smartphone shipments

Source: IDC, Zheshang International

Chart 11: Sales of New Energy Vehicles in China

Source: China Automobile Association, Zheshang International.

2) Give full play to its own advantages and improve the business ecosystem.

Under the wave of intelligent electric vehicles, the automobile industry is transforming from machinery industry to information industry and consumer electronics industry. More than half of the bill of materials of the whole vehicle is electronic parts, and this proportion will be higher and higher, and the research and development costs will also focus on electronic parts in the future. As the global leader in smart phones and IoT intelligent hardware, Xiaomi has its inherent advantages in software and hardware ecology, supply chain resources and sales channels.

Based on the "1+4+X" IoT category strategy, Xiaomi has built the world’s largest intelligent hardware IoT platform. In "1+4+X", "1" refers to mobile phones, "4" refers to televisions, smart speakers, routers and notebooks, and "X" refers to various IoT products provided by eco-chain enterprises and cooperative enterprises. As the intelligent single product with the highest single value, the intelligent electric vehicle is expected to become a new important part of the IoT strategy, realize ecological synergy with other intelligent hardware, and give play to Xiaomi’s huge ecological user resource advantages.

Smart phones and smart cars have a certain overlap in communication, software and architecture, which is conducive to Xiaomi’s advantages in intelligent software and hardware accumulated over the years. In terms of software, for example, Xiao Ai’s students enter the car human-computer interaction system, MIUI’s in-vehicle service, etc., in terms of hardware, Xiaomi can give full play to the supply chain management advantages of intelligent hardware for many years, including supplier resources such as foundry companies and chip manufacturers. Considering the current shortage of automotive software technicians in the talent market, Xiaomi’s mobile phone department is also conducting regular technical exchanges with the automotive team, and even directly exporting software technicians to the automotive team.

The advantage of Xiaomi’s sales channel will be an important guarantee for the development of its smart electric vehicle business. Xiaomi Home will become an important scene for users to experience Xiaomi Automobile and assume an important role in the sales and service of Xiaomi Automobile. By October 2021, the number of Xiaomi Home’s stores had reached 10,000 (only 3,200 by the end of 2020), covering 95% of cities, 80% of counties and 4% of towns, and it is planned to reach 30,000 in the next three years. It is worth mentioning that in the future, in addition to the rapid spread of Xiaomi House in quantity, its high leveling effect is far superior to that of domestic peers.

Chart 12: Number of Xiaomi’s stores in Chinese mainland.

Source: Company Announcement, Zheshang International.

Chart 13: The store coverage of Xiaomi in Chinese mainland.

Source: Company Announcement, Zheshang International.

Consumer recognition of Xiaomi’s entry into the smart electric vehicle industry is also the basic disk for future business development. Before the official announcement of building the car, Xiaomi launched a poll in Weibo, and nearly 87% of the users who participated in the poll expressed their willingness to buy.

Chart 14: User Survey of Xiaomi Smart Electric Vehicle in Weibo

Source: Sina Weibo, Zheshang International.

2. Build an ecological moat with the core strategy of "mobile phone ×AIoT"

2.1. "Mobile phone ×AIoT" is Xiaomi’s strategic highland.

We mentioned above that in Xiaomi’s triathlon model, hardware business is regarded as the main way for the company to attract customers. Xiaomi promises that the comprehensive net profit rate of hardware business will not exceed 5%. Although the hardware profit level is lower than that of traditional hardware enterprises, such a strategy has unique advantages from the perspective of the company’s own positioning of Internet enterprises.

At present, Internet users in China have entered the era of stock competition, and the customer acquisition cost of Internet companies is increasing year by year. Taking the e-commerce industry with fierce competition in China as an example, we can see that the penetration rate of online shopping users has gradually peaked in recent years, and the growth of the number of online shopping users is under pressure. In addition, there are more and more newcomers in the industry, which has led to the increase in customer acquisition costs of major Internet e-commerce platforms year by year. Xiaomi’s model is another way. Relying on its cost-effective hardware, it not only attracts a lot of user traffic, but also achieves a "negative" customer acquisition cost, and then greatly improves user stickiness through its "1+4+X" hardware ecosystem. As an ecological strategy of Xiaomi’s hardware, "mobile phone ×AIoT" will be the core strategy of Xiaomi in the next decade, and its importance is equivalent to that of WeChat to Tencent.

Chart 15: The customer acquisition cost of major e-commerce platforms is increasing year by year.

Source: Iresearch, Zheshang International

Chart 16: The penetration rate of online shopping users has gradually peaked.

Source: Wind, Zheshang International

From the evolution of Xiaomi’s hardware ecological strategy, we can see the company’s vision of its hardware ecology in the future. From "All in IoT" in 2018 to "mobile phone+AIOT" in 2019, and then to "mobile phone ×AIoT" in 2020. We can see from these two strategic changes: 1) the strategic complementarity between smartphone as the core and AIoT; 2) Eco-chemical reaction from "mobile phone plus AIoT" to "mobile phone with AIoT". That is to say, with smart phones as the core, we will continue to make efforts to form a hardware ecosystem with AIoT, and with a variety of hardware devices and a massive user base, we will realize further data precipitation and ecological chain development, which in turn will feed back the virtuous circle of smart phones and AIoT services and take the lead in the future Internet of Everything era. At present, Xiaomi’s "mobile phone ×AIoT" strategy has achieved remarkable results, and it still maintains a strong growth momentum.

2.2. Smartphone business 21H1 exceeded expectations, and the upstream supply of Q3 was under pressure.

Xiaomi’s smartphone business revenue in 2021H1 reached RMB 110.6 billion (+78.5% YoY), and the strong growth of revenue was mainly due to the substantial increase of Xiaomi’s mobile phone shipments in the first half of the year (+77.9% YoY). Especially in 21Q2, the company’s smartphone revenue and global mobile phone shipments reached record highs, reaching 59.09 billion yuan (+86.8% YoY) and 52.9 million units (+86.9% YoY). According to Canalys data, with the global mobile phone shipments of 21Q2, the company’s global smartphone market share reached 16.7%, surpassing Apple’s first promotion to the second place in the world; The market share in the domestic smartphone market ranked third, rising to 16.8%(+6.5 ppts YoY).

In 2021Q3, due to the shortage of upstream core components, the global shipment of Xiaomi smartphones dropped from a high level to 43.9 million units (-5.8% YoY). Affected by this, Xiaomi’s smartphone business revenue in 2021Q3 only increased by 0.5% year-on-year to 47.8 billion yuan. In the same period, with the strong sales of iphone 13 series, Apple replaced Xiaomi and returned to the second place in the global smartphone market. In the domestic market, the surge of glory shipments in 2021Q3 also made Xiaomi’s market share in China drop to the fourth place. Although the shortage of upstream supply is difficult to completely improve in the short term, we still believe that the shipment of Xiaomi smartphone 2021Q4 is expected to pick up with the help of domestic and international promotion activities in the fourth quarter.

Chart 17: Quarterly Revenue of Xiaomi’s Smartphone Business

Source: Company Financial Report, Zheshang International.

Chart 18: Global shipments of Xiaomi smartphones

Source: Company Financial Report, Zheshang International.

2.2.1. Xiaomi’s globalization strategy has achieved remarkable results.

With the negative growth of domestic smartphone shipments year by year, it is inevitable for Xiaomi to accelerate the pace of globalization. We counted the changes of domestic mobile phone shipments from 2012 to 2020, and found that domestic mobile phone shipments reached a high point in 2013, and the annual shipments in 2014 shrank by nearly 22% year-on-year. After a slight rebound in 2015 and 2016, domestic mobile phone shipments have maintained a decreasing trend year by year. Xiaomi reached the top of the domestic smart phone market in 2014Q2, and started globalization in the same year, which just echoed the trend change of the domestic mobile phone market at the time point.

Chart 19: Domestic Mobile Phone Shipments

Source: Wind, Zheshang International

At present, the globalization of the company has achieved remarkable results. The company’s 21H1 revenue in overseas markets reached 81 billion yuan, maintaining a strong growth (+65.9% YoY), accounting for 49.2% of the total revenue. Among them, 21Q2′ s overseas income reached a record high, reaching 43.6 billion yuan (+81.6% YoY), accounting for 49.7% of the total income (+1.05 ppts qoq). According to Canalys data, in 2021Q2, Xiaomi ranked in the top five in 65 markets around the world, among which it ranked first in 22 markets. Moreover, 10 of them ranked first for the first time, showing the strong growth of Xiaomi in overseas markets.

In 2021Q3, the proportion of Xiaomi’s overseas income continued to increase, and the proportion of Xiaomi’s total income increased to 52.4%. Affected by the decline in global smartphone shipments, Xiaomi’s smartphone market share has declined in some parts of the world. In 2021Q3, Xiaomi ranked first in 11 countries and regions around the world, and ranked in the top five in 59 countries and regions around the world. In some overseas countries and regions, the carrier channel is the mainstream of mobile phone sales. In 2021Q3, the shipment of Xiaomi smartphones in overseas carrier channels exceeded 6.8 million units, a year-on-year increase of over 130% (excluding the Indian market).

It is worth mentioning that as the first stop for Xiaomi to go to sea in 2014, the success of the Indian market can be said to be the epitome of Xiaomi’s success in overseas markets. In 2017Q4, it only took Xiaomi more than three years in India to achieve the first shipment in the Indian smartphone market, with a market share of 26.8%. Since then, as of 2021Q3, Xiaomi has maintained the first market share in the Indian smartphone market for 16 consecutive quarters.

With the continuous expansion of Xiaomi in overseas markets, the company aims to hit the throne with the largest global market share in the next five years.

Chart 20: Regional proportion of Xiaomi smartphone shipments

Source: Company Financial Report, Zheshang International.

Chart 21: Regional Structure of Xiaomi Group’s Total Revenue

Source: Company Financial Report, Zheshang International.

2.3. AIoT builds the era of Internet of Everything, and Xiaomi has taken the lead.

Xiaomi’s AIoT is the artificial intelligence Internet of Things, which is the technical integration of AI (artificial intelligence) and IoT (Internet of Things). We believe that the essence of AIoT is a data-based ecosystem. The IoT of the Internet of Everything promotes the development of AI through its huge data precipitation, which in turn realizes a smarter IoT Internet of Everything and realizes a virtuous circle.

The AIoT industry is currently in a period of rapid development. According to the data of IoT Analytics, the global market size of the AIoT industry is expected to reach a compound growth rate of 29% from 2020 to 2023. In view of the huge market scale and sustained strong growth momentum of the AIoT industry, new players are constantly pouring in, especially mobile phone manufacturers with Internet of Things portals, which have launched their own IoT strategies, such as Huawei’s "1+8+N" strategy, the IoT open ecological alliance established by vivo through Jovi IOT, and OPPO’s "Building a Three-Circle Model".

Chart 22: Global AIoT Industry Market Size

Source: IoT Analytics, Zheshang International

Xiaomi, as the early layout of the AIoT track, has already taken the absolute lead. Since the layout began in 2013, it has built the world’s largest consumer AIoT Internet of Things platform company. By the end of Q3, 2021, the number of IoT devices connected by Xiaomi has exceeded 400 million, and it can still maintain a high growth rate of 33% year-on-year, among which the number of users with five or more devices is as high as 8 million, with a year-on-year growth rate of 43%. In addition, in 2021Q3, the monthly users of Xiaoai classmate and Mijia APP reached 110 million and 60 million respectively, up by 34% and 39% respectively.

Chart 23: Connection number of Xiaomi IoT devices

Source: Company Financial Report, Zheshang International.

Chart 24: Number of users with 5 or more devices

Source: Company Financial Report, Zheshang International.

Chart 25: Xiao Ai classmate MAU

Source: Company Financial Report, Zheshang International.

Chart 26: Mijia APP MAU

Source: Company Financial Report, Zheshang International.

Benefiting from the hot sales of various IoT products, the company’s IoT and Consumer Products Division 2021H1 achieved revenue of 39 billion yuan (+38% YoY), of which Q2 reached 20.74 billion yuan (+36% YoY). It is worth mentioning that Xiaomi’s IoT business has grown strongly overseas. In 2021Q2, the revenue of overseas IoT and consumer products increased by 93.8% year-on-year, and the growth rate was significantly higher than the domestic market. Among them, electric scooters, smart bracelets and other categories have become popular explosions in overseas markets. In 2021Q3, affected by panel price increase and overseas shipping logistics, the business growth rate slowed down to 15.5% year-on-year, and the revenue was 20.9 billion yuan. The company expects that the problem will be alleviated in 2022 and has confidence in restoring the previous strong growth momentum.

Chart 27: Quarterly Revenue of Xiaomi IoT and Life Service Products Business

Source: Company Financial Report, Zheshang International.

As an important eco-portal hardware, Xiaomi TV, Xiaoai speaker, Xiaomi notebook and Xiaomi router are all in an important position in the industry.

According to the statistics of Aowei Cloud, by the end of 2021Q3, the shipments of Xiaomi TV in Chinese mainland ranked first for 11 consecutive quarters, and the global smart TV shipments ranked in the top five. In terms of smart speakers, according to IDC data, the domestic smart speaker industry is highly concentrated. In 2020, the industry Top3 accounted for nearly 96% of the total, and Xiaomi ranked in the top three, with a market share of 27%.

As the core of intelligent hardware data transmission, router plays an important role in Xiaomi’s AIoT ecology. In 2020, the global shipment of Xiaomi router exceeded 15 million units, and in 2020Q4, it was the second in Chinese mainland, with a market share of 20.6%. In 2021, the sales volume of Xiaomi router exceeded 20 million. In addition, according to ZDC’s statistical survey, in 2021, the brand attention of Xiaomi router in the domestic wireless router market was second only to Huawei and TP-LINK, ranking third in the industry.

In addition to the basic functions of the router, Xiaomi constantly strengthens the position of the router as the data transmission hub of intelligent hardware. By developing various new functions related to Xiaomi’s intelligent devices, it enhances the synergy effect of Xiaomi’s AIoT ecology, the user experience of hardware devices and the user’s stickiness to the ecology. For example, the router with the function of "Xiaomi carefree connection" is equipped with an independent AIoT antenna. With Mijia APP, you can automatically find Xiaomi intelligent hardware devices that are not connected to the network. You can configure the network with one button without entering a password or complicated settings, which greatly reduces the learning cost of configuring Xiaomi AIoT ecology, and it is easy for the elderly and children at home to operate. There is also the "WiFi encryption synchronization" function of the router. After the router modifies the WiFi password, it will synchronize the new password to all Xiaomi smart devices, and the devices will automatically connect to the router with the new password without resetting the distribution network one by one. This is a great improvement in the user experience at the moment when there are more and more types of Xiaomi AIoT ecological hardware devices.

Chart 28: Xiaomi carefree company

Source: Xiaomi Mall, Zheshang International.

Chart 29: WiFi encryption synchronization

Source: Xiaomi Mall, Zheshang International.

Compared with the saturation of the global smart phone market and the uncertain smart electric vehicles, we believe that Xiaomi AIoT will be an important driving force for the future growth of Xiaomi’s performance. According to the company’s estimation, the volume of the company’s overseas IoT market is expected to reach three to four times that of the China market in the future. At present, the revenue of the company’s AIoT business accounts for about 25%-30%. With the further development of the AIoT business overseas, its revenue share is expected to increase in the future. This also echoes Lei Jun’s prediction that "in the next decade, the proportion of IoT business of Xiaomi Company is expected to reach 40%-50%" at the Xiaomi IPO meeting in 2018. In addition, the gross profit margin of the company’s overseas IoT business is higher than that of China, which is conducive to promoting the overall gross profit margin of the company.

2.3.1. "Bamboo Forest" effect breeds AIoT ecology.

Xiaomi has built the world’s largest AIoT platform ecosystem, and its current number of device connections and monthly users of software can still maintain a strong growth of at least 30%, which is inseparable from Xiaomi’s continuous investment and cultivation in the AIoT ecological chain. Its investment and cooperation mode with the "millet ecological chain" enterprises is also talked about, which is called "bamboo forest effect".

In Xiaomi’s official work "Notes on Xiaomi Ecological Chain Battlefield", it is mentioned that the "evergreen foundation" of traditional enterprises is more like a century-old pine tree, which not only needs years of accumulation, but may be uprooted once it encounters strong winds and waves; In the rapidly changing Internet era, just a few years may determine the fate of a company, just like a bamboo, its life cycle is very short. However, bamboo is transformed into a bamboo forest by the way of "ecological chain". Although the life cycle of each bamboo is not long, this bamboo forest is constantly growing through continuous incubation and renewal iteration.

When Xiaomi built its own ecological chain, it followed this thinking. Through the mode of investment and cooperation, a large number of intelligent hardware companies entered the "Xiaomi Ecological Chain" and quickly occupied their respective sub-segments by making explosions. By the end of 2021Q2, Xiaomi had invested in more than 330 companies, among which many early eco-chain enterprises had become the industry leaders and listed on the capital market, such as Huami Technology, which focuses on smart wearable devices, Yunmi Technology, which is the manufacturing and research of small household appliances, and No.9 robot of robot products.

Specific to the mode of cooperation and incubation with eco-chain enterprises, Xiaomi generally shares in eco-chain enterprises through the investment principle of "holding shares but not holding shares", regards the investment enterprises as "brother companies", conducts business in a cooperative way, and helps eco-chain enterprises to create explosives and quickly occupy their respective sub-tracks through Xiaomi’s own advantages in supply chain, products and brand channels.

1) in the supply chainWith its advantages in sales volume, Xiaomi has a strong bargaining power in the supply chain, which may help eco-chain companies reduce procurement costs in terms of common parts;

2) In terms of productsXiaomi will deeply participate in the early product definition and design to ensure the overall harmony of the tonality of the ecological chain products. Some intelligent hardware products can also access the Xiaomi smart home ecology through Mijia APP;

3) In terms of brand channelsThe products of eco-chain enterprises can not only save a lot of brand marketing expenses with the help of Xiaomi’s brand advantages, but also enter various sales channels of Xiaomi. Online channels include Xiaomi official website, Xiaomi Youpin and third-party e-commerce platforms, while offline channels include Xiaomi Home with over 10,000 households.

In recent years, with the continuous growth of eco-chain enterprises, some excellent enterprises, such as Roborock, have been listed on the capital market. In order to strengthen the control of their own supply chain and get rid of the cost-effective positioning of products from Xiaomi, some eco-chain companies that have successfully grown or even listed have begun to appear the voice of "going to Xiaomi".

However, considering that Xiaomi invested in shares as a "brother company" from the very beginning, and Xiaomi is still an important shareholder, we believe that "de-Xiaomi" is only a move towards high-end branding in the later development process, and the continuous integration with Xiaomi’s AIoT ecology will continue, and Xiaomi will also benefit from the investment income brought by the long-term growth of eco-chain companies. In this process, eco-chain enterprises have met consumers’ demand for high-end intelligent hardware and completed the high-end of their own brands, which in turn is conducive to Xiaomi’s gradual getting rid of the label of "cost performance" and boosting the high-end of Xiaomi in terms of ecology and channels.

3. Internet service is the core of ecological realization and profit.

As mentioned in Xiaomi’s triathlon model above, Xiaomi’s Internet service business undertakes the huge traffic brought by "hardware+new retail", and provides various Internet value-added services such as user advertisements, games and financial technology with MIUI operating system as the carrier.

The reason why the Internet service business is the core of Xiaomi’s ecological realization and profitability is that although the income of the Internet service business is relatively small compared with other business segments, it benefits from the high gross profit level of the Internet service business, and its gross profit level plays a very important role in the overall gross profit of the company, which has improved the profitability of the whole company. Taking the latest 2021Q3 performance as an example, the company’s Internet service business revenue only accounts for 9.4% of the total revenue, while gross profit accounts for 37.8% of the company’s total gross profit. This is due to the fact that the gross profit margin of the Internet service sector far exceeds that of other sectors. The gross profit margin of the Internet service sector is as high as 74%, while the gross profit margins of smartphones, IoT and life service products and other sectors are only 13%, 12% and 18%. The lower hardware gross profit margin is also in line with the positioning of cost-effective drainage.

Chart 30: Revenue proportion of each business segment in 2021Q3

Source: Company Financial Report, Zheshang International.

Chart 31: Gross profit ratio of each business segment in 2021Q3

Source: Company Financial Report, Zheshang International.

Internet service business is an important point in Xiaomi’s recent performance. With the continuous growth of the number of MIUI users at home and abroad, the revenue of Xiaomi Internet service in 2021Q3 reached 7.34 billion yuan, a substantial increase of 27% year-on-year and a continuous increase of 4% quarter-on-quarter. The revenue of the segment kept hitting record highs in the first three quarters of 2021. Among them, overseas revenue reached a new high, with a year-on-year growth of over 110% in 2021Q3, accounting for nearly 20% of the sector revenue. In addition, with the strong growth of Xiaomi’s advertising business against the trend, the structural changes in Internet service revenue have made its gross profit margin stand at a new level of more than 70% this year.

Chart 32: Quarterly Revenue of Xiaomi’s Internet Service

Source: Company Financial Report, Zheshang International.

From the perspective of the relationship between quantity and price of Internet services, the strong growth of Internet services is mainly attributed to the strong growth of the number of MIUI users. Corresponding to the strong growth of smartphone shipments since 2020Q3, the number of monthly accounts of MIUI has also rebounded in the same period. By 2021Q3, the number of monthly active users of MIUI reached 486 million (+32% YoY), a record high. And on November 22, 2021, MIUI’s global monthly activity exceeded 500 million, which became another important milestone for Xiaomi.

In contrast, the ARPU of Internet services in 2021Q3 decreased slightly by 4% year-on-year to 15.1 yuan. Mainly due to the rapid increase in the proportion of Xiaomi’s overseas business, the growth of overseas MIUI users is strong. However, the ARPU of overseas markets is still significantly smaller than that of domestic users, so the change of user structure leads to a decline in the overall ARPU. However, with the continuous deepening of Xiaomi in overseas markets in the future, we believe that the overall ARPU is expected to pick up in the future.

Chart 33: Number of monthly active accounts of MIUI

Source: Company Financial Report, Zheshang International.

Chart 34: ARPU of Internet Service Quarterly

Source: Company Financial Report, Zheshang International.

Dismantle Xiaomi’s Internet service business, which is mainly divided into three parts: advertising revenue, game revenue and other value-added service revenue (mainly composed of Internet finance and the income of the product e-commerce platform). Internet service revenue is mainly contributed by advertising business. In 2021Q3, advertising business realized revenue of 4.8 billion yuan, accounting for nearly 65%, while the revenue from games and other value-added services accounted for 14% and 21% respectively.

Chart 35: Revenue Ratio of Internet Services

Source: Company Financial Report, Zheshang International.

1) Advertising businessAdvertising business includes effect and brand advertising, search advertising and pre-installed advertising. As the business with the largest proportion of revenue in Internet services, relying on the huge hardware ecosystem, Xiaomi firmly grasps the traffic portal. Massive user data and complete ecology make advertising marketing more scene-oriented, intelligent and accurate, and its gross profit margin is as high as 80%. In the context of weak macro consumption and the stall of Internet advertising business of giants such as Ali Tencent, Xiaomi’s advertising business continued to maintain strong growth in 2021. In Q3 2021, Xiaomi’s advertising revenue was 4.8 billion yuan, a record high, with a strong year-on-year growth of 45%. The increasing proportion of advertising revenue has also raised the gross profit margin level of the entire Internet service sector.

2) Game businessGame business income mainly comes from mobile game distribution channels and svip system of Xiaomi Game Center. In 2021Q3, the revenue of Xiaomi’s game business increased by 25% year-on-year to 1 billion yuan, mainly due to the excellent performance of fine new games and the higher average game revenue per user brought by the growth of high-end mobile phones and game mobile phone users. According to the company’s disclosure, the average game revenue of high-end and gaming mobile phone users reached 4 times and 5 times of the average level respectively. With the steady progress of Xiaomi’s high-end mobile phone strategy, the game business revenue is expected to usher in further growth.

3) Other value-added servicesOther value-added services are mainly composed of Internet finance and quality e-commerce platforms. In 2021Q3, the revenue was 1.6 billion yuan, a slight decrease of 4.3% year-on-year. Mainly because the company continues to actively control the scale of financial technology business and strengthen its risk control capabilities. In terms of products, Xiaomi launched a new consumer brand "Daily Elements" around daily life scenes in 2020Q2, and launched the UP paid membership system in November to continuously improve users’ online consumption experience.

4. The strategy drives the success of the enterprise, and there is much to be done in the short term.

To sum up, we think Xiaomi is an excellent enterprise driven by strategy. From the macro-advanced layout of the high-quality potential track (betting on the smart phone track at the beginning of its establishment, laying out the loT industry one step ahead in 2013, and announcing its entry into new energy vehicles in 2021); Strategic planning of the company’s ecology (including the core strategy of "mobile phone ×AIoT", the category strategy of "1+4+X" and the "bamboo forest strategy" in investment) from the enterprise level; From microcosmic concrete to the "explosive product strategy" of products, the methodology is summarized from the aspects of products, design and marketing, which makes "explosive products" reproducible.

Although the performance of Xiaomi in 2021Q3 is under pressure due to various short-term factors such as supply chain and logistics, we are still strongly optimistic about the company’s long-term development in the future. We can see that although the temporary growth of hardware shipments is under pressure, the number of users in Xiaomi Ecology (such as the number of MIUI users, the number of students living in Xiaoai and the number of people living in Mijia APP) still maintains a fairly steady and rapid growth, which can show the stickiness of Xiaomi Ecology to users, and the unexpected growth of Internet services as the core of profit is a good proof of this view. In the future, with the further expansion of Internet service business overseas and the improvement of overseas ARPU level, the Internet service sector will usher in further growth, which is expected to further highlight Xiaomi’s Internet enterprise attributes and consolidate its valuation foundation.

However, it is undeniable that the engine of Xiaomi Ecology is still at the hardware level, and the product strength of mobile phone products will still be the focus of the company itself and market investors in the future. At the moment when products in the industry are homogeneous, we think that product strength can be summarized as follows: 1) product differentiation and quality, 2) excellent brand influence and 3) complete hardware ecology. These points can also be used for investors to focus on when observing the performance of Xiaomi market for a long time.

1) product differentiation and quality.In terms of differentiation, Xiaomi’s mobile phone technology is abundant. In the past, the first generation of Mix led the industry’s comprehensive screen boom. In 2021, Mix4 equipped with an off-screen camera earned the public’s attention. In terms of quality, we believe that it is important to "make no mistakes". In the development of domestic mobile phones, there are many precedents that failed because of defects in design, quality and performance. With the continuous growth of mobile phone shipments, Xiaomi is expected to further enhance its voice in the supply chain and is expected to do better in design and quality control.

2) Excellent brand influenceBrand is not only the label of product characteristics for users (such as Xiaomi’s "cost performance"), but also an important consideration for users to find value recognition and their own social labels. Xiaomi’s cost-effective label in the past has won most people’s love, but the dual-brand and high-end strategy in the future is an important point of view. We have seen that Xiaomi mobile phone has now stabilized the mid-to high-end market and further launched an offensive to the higher price segment.

3) Complete hardware ecologyA complete hardware ecosystem not only gives users a complete user experience through the interconnection between hardware, but also greatly enhances the user’s stickiness. Xiaomi has the largest AIoT hardware ecosystem in the world, which is undoubtedly an important strength of Xiaomi, and the subsequent polishing in experience will be the focus.

5. Profit expectation and valuation

5.1. Profit expectation

We predict that the revenue of Xiaomi Group in the next three years (2021E, 2022E and 2023E) will increase by 32%, 22% and 20% respectively, reaching RMB 325.6 billion, RMB 396.8 billion and RMB 476.2 billion. The company’s 2021Q3 results have been announced. Combined with the strong performance growth in the first half of this year, we expect the annual revenue growth in 2021 to be as high as 32% year-on-year. In the next two years, combined with many uncertain factors such as epidemic situation, supply chain and market competition, and taking into account Xiaomi’s future high-end promotion and potential in overseas markets, we believe that the overall revenue growth level of the company will decline in 2022 and 2023, but it can still maintain steady revenue growth.

Chart 36: Xiaomi’s revenue is expected to maintain rapid growth in the next three years.

Source: Company Financial Report, Zheshang International Forecast.

In terms of business segments, it is estimated that the overall revenue structure of the company in 2021E/2022E/2023E will not change much compared with that in 2020. Among them, the smart phone business will still be the main source of the company’s revenue (estimated to account for 64%/63%/62% respectively). With the rapid growth of loT and consumer products business, the revenue share of smart phone business is expected to decrease slightly.

1) Smart phone business: We predict that in 2021E/2022E/2023E, the smartphone business will achieve revenue of 2077/2508/2963 billion yuan respectively, with year-on-year growth rates of 36%/21%/18% respectively. In the future, the growth of smartphone shipments and the promotion of ASP will still be the main driving forces for revenue growth. Shipments will benefit from the high growth in the first half of 2021, and the growth rate will slow down in the next two years under uncertain factors such as upstream supply pressure, epidemic situation and market competition; We expect ASP to continue to grow steadily under Xiaomi’s high-end strategy, and it is expected to continue to raise the gross profit margin of the sector.

2)loT and consumer products: We estimate that the revenue of LOT and consumer products business in 2021e/2022e/2023e will reach 848/1081/135.1 billion yuan respectively, with a year-on-year growth rate of 26%/28%/25% respectively. It is expected that the hardware products of Xiaomi AIoT will continue to be under the pressure of upstream supply shortage and overseas logistics in the early 2022, but considering the huge overseas market and the good user stickiness of Xiaomi’s ecology, we expect the sector to maintain steady and rapid growth in the future.

3) Internet servicesInternet business is expected to remain the most important profit point of the company. We expect that the revenue of 2021E/2022E/2023E loT and consumer products business will reach 281/33.4/39.5 billion yuan respectively, with year-on-year growth rates of 18%/19%/18% respectively, and the gross profit margin will remain above 70%. Although the company’s advertising business has performed strongly in recent performance, considering the overall macroeconomic downturn in China, we expect the growth rate of the company’s advertising business to slow down in 2022. Combined with the recovery of the game business, the gross profit margin level may fall back, but the overall sector revenue will still maintain a steady growth of around 20%.

4) Others: We estimate that other income in 2021E/2022E/2023E will be 5/45/54 billion yuan, with year-on-year growth rates of 98%/-10%/20% respectively. Other income of the company increased by 194% in 2021Q3, mainly due to the sale of office buildings and materials, and it is expected that there will still be similar one-time income in 2021Q4. Therefore, considering the high base of the previous year, it is expected that the plate revenue will decline in 2022.

Chart 37: The revenue scale forecast of Xiaomi’s business segments in the next three years.

Source: Company Financial Report, Zheshang International Forecast.

Regarding the company’s 2021E/2022E/2023E expenses, we expect that the company’s sales expense ratio will continue to increase slightly in the future, in line with the company’s high-end and new product marketing; In terms of administrative expenses, we expect that the expense ratio will basically maintain the current level; In terms of R&D expenses, it is expected that the company will continue to increase R&D investment in the future, and the R&D expense ratio will rise steadily in the future.

To sum up, we predict that the net profit of the company in 2021E/2022E/2023E will reach 206/225/268 million yuan respectively, and the EPS of the corresponding company in 2021E/2022E/2023E will reach 0.80/0.88/1.04 yuan.

Chart 38: Expense Rate Level of Xiaomi Group

Source: Company Financial Report, Zheshang International Forecast.

Chart 39: Net profit level of Xiaomi Group’s homecoming

Source: Company Financial Report, Zheshang International Forecast.

5.2. Valuation and investment suggestions

In terms of valuation, we selected nine comparable companies at home and abroad, among which Samsung, Apple and Chuanyin are well-known smart phone companies at home and abroad, Roborock and Cobos are intelligent hardware companies, and Tencent, Ali, Baidu and Google are typical Internet companies at home and abroad. We use P/E to value Xiaomi Group. According to the current average price-earnings ratio of 21.2 times that of comparable companies in 2022E, the target price of Xiaomi Group is HK$ 23.09. The target price is 78% higher than the current share price of HK$ 12.94, so we give Xiaomi Group a buy rating for the first time.

Chart 40: Comparison of Valuation of Related Comparable Companies

Note: Data as of March 8, 2022.

Source: Bloomberg, Zheshang International

6. Financial statements

Chart 41: Income Statement

Source: Company Financial Report, Zheshang International Forecast.

Chart 42: Balance Sheet

Source: Company Financial Report, Zheshang International Forecast.

Chart 43: Cash Flow Statement

Source: Company Financial Report, Zheshang International Forecast.

This article comes from "Zheshang International Financial Holdings Co., Ltd." WeChat WeChat official account; Zhitong Finance Editor: Wenwen.

Huang Xiaoming "strongly kissed" Fox’s 30,000 suits were "trampled"

Huang Xiaoming and Fox "Passionate Kiss"

CCTV-6 is in full swing this week. After intense "big waves scouring the sand", 12 Cinderella finally stood out and continued their dream-chasing journey. However, the war will continue, and this week, 12 Cinderella will accept a new round of tests — — Challenge fear and complete thrilling tests such as "bungee jumping", "line interpretation" and "blockbuster shooting". Through the cruel examination, the "Top Ten in China" was finally born. More exciting, please watch this Sunday evening (January 18th) at 20:15, CCTV-6 "Come on! Cinderella.

Huang Xiaoming asked the teacher Cui Xinqin to come out of the mountain "bungee jumping" in shock and "line test" was tongue-tied.

Last week, "Come on! Cinderella, 12 girls successfully advanced to the top 12 in China. They are Ni Xue, Yang Bingxin, Chen Qiuling and Eunice of Huang Xiaoming Team; Cao Shengwei, Long Mengrou, Luo Xiuxiu and Shen Yao of Huang Jianxin Team; Wu Runli, Xun Meng, Yu Zixuan and Harriet of Ceng Zhiwei Team. This week, they will have their first test — — Challenge fear and compete for the top ten seats. This test is divided into three rounds. The first round is "bungee jumping" and "line deduction". The students first complete the exciting "free fall" in the air. After coming up, they must recite the lines word for word within three minutes. The winning team is temporarily safe, and the other two teams continue to challenge the next round of tasks — — Shoot a blockbuster; In the blockbuster shooting, the students will draw lots to decide their friends, and complete the intimate blockbuster photo with them, and the worst student will be eliminated; In the third round, the "performance ability" was investigated. The three teams were given questions by their tutors and performed one by one. The tutor selected one of the teams to eliminate the students to be determined, and finally three students were eliminated. The public jury voted, and the student with the lowest number of votes would be eliminated.

In this "Devil Training", the program specially invited Huang Xiaoming’s teacher, Cui Xinqin, a famous professor of Beijing Film Academy, as the "examiner". "She is the best performance teacher in China." Huang Xiaoming said proudly. The first challenge to bungee jumping at high altitude, 12 Cinderella’s flowers were all pale and exclaimed, and their legs trembled or they cried into tears. The exciting "free fall" was accompanied by bursts of "ghosts crying and wolves howling". After watching the girls’ bungee VCR, Huang Xiaoming couldn’t help but ridicule: "What they looked like after bungee jumping was not so chic at all, and each one was worse." However, the task has not been completed yet. After the girls came up, they had to accept the test of teacher Cui Xinqin’s lines and recite all the lines they had recited before. Unfortunately, Xun Meng drew the most difficult lines: "Say you don’t listen, listen and don’t understand, understand and don’t do, do and do wrong, admit and don’t change, change and refuse to accept, and serve and don’t say." What do you want me to do? " A line can’t be said fluently, and her tongue is tied.

Huang Xiaoming "kisses" little foxes, spiders, snakes and lizards too much to steal the camera.

Being a mentor means good welfare. After the second phase of "Touching Tiger’s Ass", Huang Xiaoming is going to go on stage to "kiss" Fox again. In the second challenge of "Shooting a blockbuster", Cinderella drew lots to choose their friends and took intimate blockbuster photos. At the scene of the program, a large number of protagonists appeared one by one. They were rabbits, foxes, lizards and spiders. Compared with the latter, the little fox captured people’s hearts in an instant. It was white all over, and its eyes were gurgling, not to mention how cute it was, but on one side, Haria was sad. "I held it when I first started shooting, which was so comfortable and cute, but when it came over and bit me, my face was bitten."

Huang Xiaoming, who has always loved small animals very much, was not scared at all. He had long been eager to go on stage. Ceng Zhiwei took the opportunity to encourage him: "Xiaoming is not afraid, he even dares to touch the tiger’s ass." However, the little fox in the cage is obviously in a bad mood and is anxiously circling. The host Jingwei can’t help but remind him "Don’t underestimate the enemy": "You should be careful, it is really restless today." Huang Xiaoming took it out without fear and "ravaged" it. He shook hands with the little fox for a while and pinched its body for a while. The little fox seemed to feel Huang Xiaoming’s enthusiasm and looked up close to his face. Ceng Zhiwei shouted with fear: "Be careful of being bitten!" Huang Xiaoming lowered his head, gave a "affectionate kiss" to the little fox, and then proudly said, "The tiger’s ass has been touched, is it still a fox?" Can I take it home? " I can’t help but say, "It feels very, very good."

Huang Xiaoming, who was intimate with the fox for a while, immediately stepped down. He didn’t even dare to touch the small animal next door. "I am most afraid of spiders. I have been afraid of things with long legs and fur since I was a child." But Xun Meng "tragically" drew a spider again, and even put it on his face. "At first, I thought the photographer would let me put it on my hand. As a result, he had a whim to say, put it on my face. Its claws are barbed and prickly, and it can crawl. The feeling of it digging into my face is also quite good. How to say it, it is quite comfortable. It is called massage." And it’s not easy for Eunice to take a big picture. She wants to wrap the snake in her hand and hold it over her head, posing as a enchanting gesture. What amazing blockbuster photos will Cinderella bring? Let’s wait and see.

Huang Xiaoming took off his clothes and threw his shoes on the spot? Ten thousand suits are "ravaged" and distressed!

I heard that in this program, Huang Xiaoming rolled his sleeves and took off his shoes and fell to the ground. Did he lose his temper at the scene? It turns out that this is "a bloody case caused by a cockroach." In the third round of "performance ability" inspection, the three tutors gave the topic "making things difficult" respectively. Cinderella needed to improvise and play the roles of an aunt who danced in the square dance, a child who flew a kite, an old lady who arrived at the Beijing Railway Station, a foreign friend with high myopia, etc., while Huang Xiaoming asked the girls in her own team to play the role of "being a daughter". "At home, it basically belongs to the type of comparison, No Zuo No Die, you know, so it is done. Chen Qiuling was the first to play and put on a good show of "Woman Man" versus "Xiaoqiang".

However, Huang Xiaoming was not satisfied with Chen Qiuling’s performance. "This woman is too simple, isn’t it? Which place is like a female man? " After that, he taught on the spot, rolled his sleeves, took off his clothes and threw them to the ground. When he took off his shoes, he was about to knock it down. "This has to be clear, understand? You’re such a bad man. You rolled your sleeves and threw your clothes out, and the table just stood up, didn’t you? " Chen Qiuling began her second performance, and Huang Xiaoming kindly lent her her her clothes. I saw Chen Qiuling follow suit, took off her clothes and threw them at Xiaoqiang. She was still not convinced, stepped on her clothes and performed vividly, but Huang Xiaoming on the side was not well, and she cried painfully: "My clothes." Huang Jianxin joked in the audience: "Thirty thousand dollars, go away, go away." After receiving the "props" returned by Chen Qiuling, Huang Xiaoming sighed sadly: "Sorry, I borrowed this."

How much does the full amount cost? Chery Automobile Jetway X90 PLUS car purchase guide.

Buying a car is for sitting, and comfort configuration plays a very important role. The higher the comfort configuration, the better the consumer experience. The configuration performance of is a point that consumers pay more attention to. The following small series will tell you in detail.

Let’s take a look at the appearance of Jietu X90 PLUS. The whole front of Jietu X90 PLUS is sharp and very recognizable. The headlights are very sharp, and many interesting details can be seen from them. The car is equipped with LED daytime running lights, automatic opening and closing, etc. Coming to the side of the car body, the size of the car body is 4858 mm * 1925 mm * 1780 mm. The car adopts avant-garde lines, giving people a very young feeling. With large-sized thick-walled tires, it looks full of sports. Looking back, the overall shape of Jietu X90 PLUS’s tail echoes the front of the car, and the taillights are very fashionable and concise. Together with the unique exhaust pipe, it is still quite domineering overall.

Coming into the Jetway X90 PLUS car, the interior looks very simple and gives people a very dynamic feeling. The steering wheel of the car is eye-catching, made of leather, and the visual effect is good. Take a look at the central control, with the 12.3-inch touch-sensitive LCD central control screen, which makes the interior design quite layered and looks domineering. The dashboard and seats give people a good feeling, too. Let’s take a look. The dashboard design is remarkable and looks strong in science and technology. The car adopts imitation leather seats, which are spacious and thick, with exquisite materials and comfortable ride.

The Jetway X90 PLUS is matched with a wet dual clutch (DCT) gearbox, with a maximum power of 145KW and a maximum torque of 290N.m, with good power performance.

In terms of function configuration, Jetway X90 PLUS is equipped with remote control key, rear wiper, traction control (ASR/TCS, etc.), support for CarLife, Bluetooth /WIFI connection and other configurations.

The Jetway X90 PLUS introduced today is not only eye-catching in space, but also the configuration has reached the mainstream level, and there is nothing to be picky about driving experience and space experience. How to choose depends on your specific needs.

Hitch a ride with Trump! Tesla rose more than 6% to a new high, and analysts sharply raised their target price.

Tesla rose 6.14% to $463.02 on Monday, another record high, with a total market value of $1.49 trillion.

Since the beginning of this year, Tesla’s share price has risen by more than 86%, almost all of which came after Trump won the election at the beginning of last month.

As Tesla’s share price soared, Musk’s worth soared by $19.2 billion overnight. According to the Bloomberg Billionaires Index, as of Monday’s close,Musk’s net worth reached $474 billion, soaring by $245 billion year-to-date.

A few days ago, Dan Ives, an analyst at Wade Bush Securities, raised Tesla’s target price from $400 to $515, making it the highest target price on Wall Street. He also gave a target price of $650 under "optimistic scenario", which would make Tesla’s market value reach about $2.1 trillion.

According to foreign media,The Trump transition team plans to cancel the consumer tax credit for electric vehicles, impose import duties on all battery materials in the world, and withdraw Biden’s support for electric vehicles and charging infrastructure.

Musk said that the impact of canceling subsidies on competitors will be greater than that on Tesla, because he believes that Tesla has dominated the market. In addition, Tesla has recently raised the price of some models.

Mizuho: Tesla will take a ride with Trump in the next four years.

Mizuho Bank said in a recent report that Tesla’s crazy rise is unlikely to cool down soon, because deregulation will promote the autonomous driving business of the electric car manufacturer, and the close relationship between CEO Musk and President-elect Donald Trump will pave the way for further growth in the next four years.

Mizuho analysts said in the report that "the relaxation of the regulatory framework for autonomous driving (AD) provides more room for the valuation of FSD/Robotaxi", which indicates that Tesla’s expansion environment in the field of autonomous driving technology is favorable.

Mizuho upgraded Tesla’s rating to outperform the broader market and raised its target price from $230 to $515.And pointed out that Tesla will face several special favorable factors in the next four years.

Analysts said that Tesla’s fully automatic driving (FSD) technology may obtain level 4 regulatory approval by 2025. They added that this will greatly increase its income potential, and it will generate about $62 billion in income by 2030, a substantial increase from the current less than $1 billion.

Musk strongly supported Trump during the campaign and is expected to exert influence in the White House, which will benefit Tesla.

Analysts said,The Trump administration’s new policies, including the possible cancellation of the consumer electric vehicle tax credit, put Tesla in a favorable position relative to its peers because of the low cost structure of electric vehicles.

They added that with a more profitable roadmap for electric vehicles, Tesla is expected to surpass the global light vehicle production, especially the low-cost Model Q and Cyber cab, which are expected to be launched in 2026-2027.

Wall Street has raised its target price.

At present, Wall Street is increasingly optimistic about Tesla’s prospects.

In the past few days, institutions including Goldman Sachs, Deutsche Bank, Bank of America, Morgan Stanley, etc. have all raised Tesla’s target price on the grounds that Musk has a close relationship with the Trump administration and Tesla’s leading position in the field of driverless driving.

Among them,Morgan StanleyIn the latest report, it reiterated Tesla’s "first choice" rating and raised its target price from $310 to $400;Goldman SachsIt is pointed out that the market is concerned about Tesla’s future potential, especially its opportunities in artificial intelligence, especially its fully autonomous driving (FSD) software and unmanned taxi Cybercab.

In addition, analysts at Wade Bush Securities are more optimistic.

On Sunday,Dan Ives, an analyst at Wade Bush Securities, raised Tesla’s target price from $400 to $515, making it the highest target price on Wall Street.He also gave a target price of $650 under the optimistic scenario, which would make Tesla’s market value reach about $2.1 trillion, while the current new target price corresponds to a market value of about $1.7 trillion.

Guangzhou Chuanqi GS4 price cuts hit! Special 70,000, don’t miss it.

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传祺GS4头图

Chuanqi GS4 is a compact SUV with stylish overall design. The front face is decorated with a large area of chrome, and the air intake grille is designed with a mesh, with sharp headlights and a tough front bumper, which makes the whole car look very dynamic. The side lines of the car body are smooth, and the roof lines are tilted backwards, creating a diving momentum. The tail design is simple and generous, and the LED taillights are connected with chrome-plated decorative strips to make the tail look wider. In terms of interior, Chuanqi GS4 adopts an embracing shape, and the center console adopts a large-size LCD screen and knob shift, which makes the overall style fashionable and simple. The interior space is spacious and comfortable, and the seats are well wrapped, providing a comfortable ride experience.

传祺GS4正侧

Chuanqi GS4 is a compact SUV with a body size of 4545*1856*1700mm and a wheelbase of 2680mm, with well-proportioned body and smooth lines. The front tread is 1584mm and the rear tread is 1570 mm. The vehicle adopts 225/60 R17 front and rear tires with moderate tire width and thick tire wall, providing better grip and comfort. The lines on the side of the car are simple and smooth, showing a fashionable style. The overall design is fashionable and atmospheric, and it is the leader in compact SUV.

传祺GS4中控全图

Chuanqi GS4′ s interior design is fashionable and simple, with black and beige color matching, giving people a sense of luxury and comfort. The steering wheel is made of plastic material, which can be manually adjusted up and down and back and forth, so as to facilitate the driver to find the best driving posture. The central control screen size is 10.25 inches, the display effect is clear and the operation is simple and easy to use. There are two USB/Type-C interfaces in the front row and one in the back row, which is convenient for passengers to charge. The seat is made of imitation leather. The main driver’s seat can be adjusted back and forth, back and height (2-way), the co-pilot seat can be adjusted back and forth, and the second row of seats can be adjusted back. The rear seats can be tilted in proportion, which increases the storage space and flexibility of the vehicle. Generally speaking, the interior design of Chuanqi GS4 pays attention to practicality and comfort, providing passengers with a good driving experience.

传祺GS4发动机舱

Chuanqi GS4 is powered by a 1.5T 177 HP L4 engine with a maximum power of 130kW and a maximum torque of 270 N m.. With a 6-speed automatic transmission, it provides a smoother driving experience for drivers. This engine has excellent power performance and fuel economy, so that drivers can enjoy a comfortable and stable driving experience. Both urban driving and long-distance travel can meet the needs of drivers. At the same time, Chuanqi GS4 also adopted advanced emission control technology to meet the national six emission standards, which is more environmentally friendly.

On the exterior design of Chuanqi GS4, car home car owners think it is reasonable, atmospheric, beautiful and upscale, and it is very eye-catching to drive out. These evaluations not only reflect the success of the design of Chuanqi GS4, but also show the owner’s confidence and pride in the vehicle. As a compact SUV, the design of Chuanqi GS4 not only has a high face value, but also provides a good driving experience for car owners. Its LingYunYi 3.0 family design language not only shows a sense of modernity and technology, but also endows the vehicle with unique brand characteristics. At the same time, Chuanqi GS4 also adopts the design of light and shadow sculpture 3.0, which creates a strong visual impact through the use of lines and curved surfaces, showing the sense of strength and movement of the whole vehicle. It can be said that the design of Chuanqi GS4 is not only the highlight of a model, but also a symbol of the owner’s self and personality.