Recently, Xiaomi Group (01810. HK) announced its first quarter results. According to the financial report, Xiaomi Group's total revenue in the first quarter was 59.5 billion yuan, with an adjusted net profit of 3.2 billion yuan; The gross profit was 11.6 billion yuan, a year-on-year decrease of 8.8%. R&D expenditure was 4.1 billion yuan, a year-on-year increase of 17.7%; The cost of innovative businesses such as intelligent electric vehicles is 1.1 billion yuan.

　　During a media conference call, Lu Weibing, a partner and president of Xiaomi Group, stated that Xiaomi's car manufacturing is progressing smoothly and has entered the research and development acceleration stage. This summer and winter will be tested separately, and Xiaomi Motors will be launched in the first half of next year according to the original plan.

　　In February of this year, Lei Jun, the founder, chairman, and CEO of Xiaomi Group, stated at an investor conference that he spent half of his time focusing on Xiaomi Motors. "If you want to become a great company, you must follow the wind. At this moment, the wind is on smart electric vehicles." Currently, Xiaomi Motors has a research and development team of over 2300 people. In August of last year, Xiaomi Autonomous Driving made its first public appearance. According to the plan, Xiaomi Motors will launch its first model in 2024, with plans to sell 100000 units in the first year and a cumulative sales of 900000 units in the following three years.

　　In order to further develop intelligent electric vehicles and existing businesses, Xiaomi Group has spared no effort in research and development investment. It is expected that the total research and development expenditure for the entire year of 2023 will exceed 20 billion yuan. As of March 31, 2023, Xiaomi Group has 16458 R&D personnel, accounting for over 50% of the total number of employees, and has obtained over 32000 patents worldwide.

　　In the field of artificial intelligence, in April of this year, Xiaomi Group officially established an AI laboratory large model team, with over 1200 relevant personnel. Xiaomi Group stated that it will continue to explore AI related user scenarios, leverage its technological advantages, and explore more opportunities with partners with an open attitude.

　　Lu Weibing stated that Xiaomi will adhere to the business strategy of "balancing scale and profit", promote refined management, and pursue high-quality development. At the same time, we will continue to invest in the future, constantly pursuing technology, quality, and innovation, and continuously upgrading our management system to continuously reduce costs and increase efficiency.

　　Thanks to the optimization of operational efficiency and the emergence of cost advantages, Xiaomi Group's gross profit margin reached a historic high of 19.5% in the first quarter of 2023. Among them, the gross profit margin of the smartphone business was 11.2%, an increase of 3.1% month on month. The overall cost was 9.4 billion yuan, a year-on-year decrease of 6.4%. Inventory has also improved, with an overall inventory amount of RMB 42.6 billion, a year-on-year decrease of 24.1%, the lowest in nearly nine quarters. Lu Weibing stated that the inventory level of Xiaomi mobile phones in the first quarter was very healthy, and the overall supply chain is still in a downward trend. The decrease in inventory is beneficial for controlling costs.

　　In terms of environmental protection, Xiaomi Group is committed to improving climate change through technological innovation and pursuing higher operational efficiency, incorporating climate awareness into the products delivered to users, and accelerating the global transition to a zero emission economy. According to the plan of Xiaomi Group, the main business emissions will be reduced to 30% of the base year emissions by 2030, and the main business emissions will be reduced to 2% of the base year emissions by 2040, meeting the conditions for net zero emissions.