Group 1 - The core viewpoint of the report indicates that Xiaomi Group-W (01810) reported second-quarter revenue and adjusted earnings that were broadly in line with market expectations [1] - The gross margin for Xiaomi's electric vehicle segment reached 26.4% in the second quarter, driven by higher average selling prices and economies of scale, with expectations for further increase to 28% in the third quarter [1] - The potential for Xiaomi's automotive business to achieve breakeven on a quarterly or monthly basis in the second half of the year is highlighted [1] Group 2 - Based on the revised gross margin forecasts for electric vehicles, the earnings per share estimates for Xiaomi for 2025 to 2027 have been raised by 2% to 9% [1] - The rating remains "Buy," with the target price increased from HKD 72 to HKD 76 [1] - In the smartphone segment, due to a limited number of product launches, the outlook for Xiaomi's third-quarter shipment volume has become more cautious, with an expected shipment of 42.2 million units and an annual total of 172 million units, compared to the company's target of 170 to 175 million units [1]