Investment Rating - The investment rating for the company is "Buy" and it is maintained [7]. Core Views - The company reported a significant improvement in Q2, with a focus on expanding into emerging markets [5][11]. - In H1 2025, the company achieved revenue of 29.077 billion yuan, a year-on-year decline of 15.86%, and a net profit attributable to shareholders of 1.213 billion yuan, down 57.48% year-on-year [2][5]. - The gross margin was 20.09%, a decrease of 1.44 percentage points year-on-year, while the net profit margin was 4.17%, down 4.08 percentage points year-on-year [2][5]. Summary by Sections Q2 Performance - In Q2, the company achieved revenue of 16.074 billion yuan, a year-on-year decline of 6.08% but a quarter-on-quarter increase of 23.61% [11]. - The net profit attributable to shareholders was 723 million yuan, down 41.03% year-on-year but up 47.55% quarter-on-quarter [11]. - The gross margin for Q2 was 20.76%, a year-on-year decline of 0.13 percentage points but a quarter-on-quarter increase of 1.49 percentage points [11]. Market Position - The company maintained its leading position in Africa with a market share of 51%, selling 9.7 million units in Q2, a year-on-year increase of 6% [11]. - In South Asia, the company ranked first in market share in Pakistan and Bangladesh, and eighth in India [11]. Business Expansion - The company is advancing its AIoT smart ecosystem and continues to deepen its mobile internet business [11]. - It is exploring a multi-brand strategy in digital accessories and home appliances, aiming to meet the needs of consumers in emerging markets [11]. Profit Forecast - The company is expected to achieve net profits attributable to shareholders of 5.438 billion yuan, 6.389 billion yuan, and 7.330 billion yuan for the years 2025, 2026, and 2027, respectively [11].