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#XiaomiQ2Earnings Xiaomi’s latest results highlighted the growing importance of its electric-vehicle business. Second-quarter revenue was approximately RMB99.1 billion, while smartphone revenue was around RMB44.3 billion. Smart EV, AI and other new initiatives generated almost RMB19.9 billion. Continued vehicle deliveries helped offset pressure from smartphone competition, higher component costs and weaker profitability in Xiaomi’s traditional hardware operation. Xiaomi’s advantage is its ability to connect smartphones, home devices and vehicles within one ecosystem. That could reduce customer-acquisition costs and create cross-selling opportunities unavailable to many standalone automakers. However, manufacturing vehicles requires substantial investment, and Xiaomi faces aggressive competition from BYD, Tesla and other Chinese brands. Investors should look beyond delivery growth and monitor vehicle gross margins, factory utilization and research spending. The EV operation is becoming large enough to reshape Xiaomi’s valuation, but it must eventually demonstrate that rapid expansion can produce sustainable profits.