XIAOMI Group announced its latest results on the Hong Kong Stock Exchange on the evening of August 20th, with revenue of 52 billion yuan in the second quarter, up 14.8 percent over the same period last year, and adjusted net profit up 71.7 percent over the same period last year to 3.6 billion yuan. Gross profit margin increased to 14.0% from 12.5% in the same period last year. As of June 30, the company's total cash reserves had reached 51.1 billion yuan.

As of the close of Hong Kong shares on August 20, the share price of XIAOMI Group was HK $9.430.

In the media conference call, XIAOMI responded to hot issues such as whether it is an investment company, falling share prices and inclusion in the Hong Kong Stock Connect.

Media Q & A:

Media questions:How does XIAOMI respond to the belief that "XIAOMI has become an investment company"?

XIAOMI:As strategic investors, we strengthen our "main business" through investment. We have invested in more than 270 companies in the past, mainly around XIAOMI IoT ecological chain and Internet business ecological chain.

Media questions:How will the company respond to the pressure on smartphone shipments?

XIAOMI:We are currently in the forefront of the 5G outbreak, and we have adopted a sound operational strategy to steadily promote the strategy of combining mobile phones with IoT. We have also maintained rapid growth in the past few years, and the mobile phone business is mainly structural adjustment, not simply pursuing mobile phone shipments.

Media questions:How to implement the "Mobile + AIoT" twin-engine strategy? How to form the effective complementary relationship of business form?

XIAOMI:As of June 30, 2019, the number of global MIUI monthly active users has reached 279 million. The number of connected IoT devices on XIAOMI's IoT platform reached 196 million, excluding smartphones and laptops, representing a year-on-year growth of 69.5%. Xiao Ai already has 49 million monthly active users, and we have a significant advantage in the IoT field. We will combine "Mobile + AIoT" better and better in the future, bringing innovative scenes to users. We think this strategy is becoming more and more important in the 5G era.

Media questions:How much space is reduced for MIUI ads? How to balance the user experience and advertising to reduce the impact of gross margin.

XIAOMI:User experience is XIAOMI's first place, we hope to earn income with high quality and diversification, our Internet revenue keeps growing in the first half of the year, and we maintain confidence in the future.

Media questionsIs the business of large household appliances facing competitive pressure? How does the company respond?

XIAOMI:Last year, we ranked first in the color TV market in China and fifth in the global market. Our advantage is very significant.

Media questions:What is XIAOMI's plan after investing in core technology? please respond to the process of chip research and development.

XIAOMI:We hope to gradually lay out a strong supply chain ecology. XIAOMI is a strategic investment.

Media questions:If XIAOMI is included in the Hong Kong Stock Connect, what impact will it have on the company?

XIAOMI:It is a good thing if it is included in the Hong Kong Stock Exchange.

Media questions:What is the focus of XIAOMI's profit realization?

XIAOMI:We believe that "AIoT" will have more profit opportunities in the future. We have just shared that there are 3 million + paying subscribers in the TV business. The revenue in this area will continue to grow, and there will be more opportunities in the future.

Media questions:Although the performance has risen, the stock price has not performed well. How does the company respond?

XIAOMI:Stock price is affected by external factors, we believe that adhere to bring high-quality service to users, the stock price will be reflected in the future.

Media questions:What actions does XIAOMI have in building the industrial chain in the future?

XIAOMI:Our investment in the supply chain is mainly to strengthen the reserve of advanced technology, in which we will continue to invest.