Core Insights - Xiaomi's automotive business achieved a record gross margin of 26.4% in Q2, driven by cost reductions and increased sales of high-end models [2][4] - The company reported revenue of 20.6 billion yuan from its smart electric vehicle segment, with a significant reduction in operating losses to 300 million yuan [2][4] - Xiaomi aims to achieve quarterly profitability in the second half of the year, although the timeline remains uncertain [2][4] Revenue and Profitability - In Q2, Xiaomi's revenue from the smart electric vehicle and AI innovation segment reached 21.3 billion yuan, up 14.4% from 18.6 billion yuan in Q1 [2][4] - The gross margin for the smart electric vehicle segment increased from 23.2% in Q1 to 26.4% in Q2, and from 15.4% in Q2 2024 [2][4] - The average selling price of Xiaomi's vehicles is approximately 250,000 yuan, contributing to higher gross margins [4] Product Development and Technology - Xiaomi launched the YU7 SUV series in June, achieving over 240,000 pre-orders within 18 hours [5] - The YU7 series features advanced technology, including an 800V silicon carbide high-voltage platform and a maximum range of 835 km [5] - The company is continuously updating its autonomous driving technology, with the SU7 series receiving significant performance upgrades [7] Brand Expansion and Market Strategy - Xiaomi plans to enter the European market by 2027, focusing on increasing brand awareness for its automotive division [8] - The brand has high recognition in Europe, with awareness levels exceeding 95%, particularly in countries like Spain [8] - The company is confident in building its automotive brand, drawing from its successful history in China [8] Robotics and Future Outlook - Xiaomi has invested in robotics for four to five years, particularly in humanoid robots for factory applications [9] - The company is currently working on achieving a business closure in its own factories, although it acknowledges the challenges ahead [10]