Vertical Integration

**Midea Chairman’s Strategic Assessment of Xiaomi’s Ambitions**
In a *LatePost* interview, Midea Chairman Fang Hongbo analyzed Xiaomi’s aggressive growth strategy, targeting global smartphone leadership in 3 years, Top 5 automotive status in 10 years, and domestic appliance dominance by 2025. Highlighting tensions between industry incumbents and disruptors, Fang noted Xiaomi’s multi-front appliance expansion as both a threat and catalyst for innovation. Midea has compiled 100,000-word reports studying Xiaomi’s business model while focusing on irreplicable capabilities. As Xiaomi accelerates production at its Wuhan smart appliance complex—achieved 30 days early—the clash between traditional scale and tech-driven agility intensifies, with experts debating whether Xiaomi’s cross-sector integration will redefine or destabilize China’s $400 billion home appliance market.

On May 18, 20 Xiaomi SU7 Ultra owners created a vinyl record capturing driving sounds to celebrate the company’s 15th anniversary. CEO Lei Jun and VP Xiao Shuang Li expressed appreciation for the collaborative tribute. Ahead of Xiaomi’s May 25 product launch event featuring the Civi 5 Pro and flagship 15S Pro with its 3nm Xuanjie O1 in-house chip, analysts highlight the strategic shift toward vertical integration to mitigate semiconductor supply risks. The dual-launch approach, balancing mainstream and premium offerings, draws parallels to Apple’s transitional tactics, positioning the 15S Pro as Xiaomi’s definitive demonstration of hardware-software synergy.

Revolve Group, Inc. (NYSE: RVLV) will present at the Baird Global Consumer Conference (June 3), TD Cowen Future of the Consumer Conference (June 4), and William Blair Growth Stock Conference (June 5), highlighting its evolution from a Gen Z flash-sales platform to a $1.6 billion tech-driven e-commerce leader. The company emphasizes its dual marketplace-media model, leveraging 25M+ social media followers and analytics to convert influencer content into sales. With 2024 revenue reaching $874 million and gross/operating margins at 50.3% and 20%, Revolve’s vertical integration and trend-driven strategy aim to address investor concerns on scalability amid digital retail competition. Live webcasts and archives will be available via its investor relations portal.

American Battery Technology Company (ABAT) reported strong Q3 FY25 financials, with battery recycling revenue tripling to $1.0M while cash cost rose 9% to $2.3M. Throughput surged 120% via 24/7 operations. Its Nevada lithium hydroxide pilot plant, targeting a 30,000-tonne commercial project, achieved milestones using domestic claystone. A $900M Ex-Im Bank LOI boosts confidence in ABAT’s U.S.-centric lithium strategy to counter Asian dominance. Liquidity stands at $7.8M plus $11.45M from divestitures, avoiding dilution. Increasing government grants ($2.0M vs. $1.3M YoY) ease R&D strain. Investors assess if federal backing sustains growth without cash burn.