According to the report released by Lyon, Xiaomi's performance in the second quarter exceeded expectations in all business areas. Total revenue for the period increased by 32% year-on-year to 89 billion yuan, exceeding the bank's expectations by 2%. Adjusted net income increased by 20% to 6.2 billion yuan, 20% higher than the bank's expectations. Driven by the growth in global shipments and the continuous increase in market share in China's high-end market, Xiaomi's revenue from its smart phone business grew by 27% year-on-year. Revenue from the IoT (Internet of Things) business grew by 20% year-on-year, mainly due to the promotion of large home appliances, tablets, and wearable devices. Electric vehicle deliveries reached 0.027 million vehicles, and the company expects this number to reach 0.12 million vehicles by December. Excluding the electric vehicle business, Xiaomi's core profit in the second quarter reached 8 billion yuan. The bank expects Xiaomi's revenue forecast for the third quarter to increase by 20% year-on-year with the sales of electric vehicles. As a result, the bank has raised its adjusted net income forecast for Xiaomi in the next two years by 15% and 12% respectively. Lyon has raised Xiaomi's target price from HKD 23.5 to HKD 24.5 and maintains its "outperform" rating.