On August 26, Lyon released a report stating that Xiaomi's second quarter performance exceeded expectations in all business sectors. The total revenue for the period increased by 32% YoY to 89 billion yuan, surpassing the bank's expectations by 2%; adjusted net income increased by 20% YoY to 6.2 billion yuan, 20% higher than the bank's expectations. Driven by the global increase in shipments and the continuous growth of market share in China's high-end market, Xiaomi's smart phone business revenue increased by 27% YoY. Internet of Things (IoT) business revenue increased by 20% YoY, mainly due to the promotion of large household appliances, tablets, and wearable devices. The delivery of electric vehicles reached 0.027 million units, and the company expects it to reach 0.12 million units by December. Excluding the electric vehicle business, Xiaomi's core profit in the second quarter reached 8 billion yuan. The bank expects Xiaomi's third-quarter revenue to increase by 20% YoY due to the sale of electric vehicles. The bank also raised its adjusted net income forecast for Xiaomi by 15% and 12% in the next two years, and raised Xiaomi's target price from HKD 23.5 to HKD 24.5, maintaining a "outperform" rating.