Core Viewpoint - Xiaomi's Q2 financial report shows significant growth in revenue and profit, indicating strong performance and potential for future profitability in its automotive segment [1][4][6]. Financial Performance - Xiaomi's Q2 revenue reached RMB 115.96 billion, a 30% year-on-year increase, surpassing the forecast of RMB 114.94 billion [1][4]. - The net profit for Q2 was RMB 11.9 billion, exceeding the expected RMB 8.88 billion, with an adjusted net profit of RMB 10.8 billion, marking a historical high and a 75.4% increase year-on-year [1][4][5]. - Daily revenue averaged RMB 1.27 billion, with a daily net profit of RMB 119 million [1]. Segment Analysis - The smartphone business generated RMB 45.5 billion in revenue with a gross margin of 11.5%, while global smartphone shipments reached 42.4 million units, a 0.6% increase year-on-year [4]. - The IoT and lifestyle products segment achieved record revenue of RMB 38.7 billion, a 44.7% year-on-year increase, with a gross margin of 22.5%, up 2.8 percentage points [4]. Automotive Business Insights - The automotive segment reported revenue of RMB 21.3 billion, with electric vehicle sales contributing RMB 20.6 billion and a gross margin of 26.4% [6]. - Average selling price for Xiaomi vehicles was RMB 253,300, with an average loss of RMB 3,690 per vehicle sold, indicating a narrowing loss trend [6][8]. - The automotive business is expected to achieve profitability in Q3 or Q4 of this year, as losses are decreasing [8][9]. Regulatory Environment - The automotive industry is facing increased regulatory scrutiny aimed at ensuring fair competition and preventing misleading advertising practices [10].