Citi stated that XIAOMI-W (01810.HK) +1.200 (+2.337%) Short selling $1.21B; Ratio 16.848% 's operating profit for 2Q25 aligned with the broker's projection, and its adjusted net profit slightly beat expectations due to non-operating income. Notably, propelled by product mix optimization and economics of scale, the 2Q25 GM for EV and AI+ businesses added 3.2 ppts to 26.4% (vs 24% in the original forecast of the broker). The company’s management noted: 1) Smartphone shipments for 2025 were expected to reach 175 million units, with new product launches in 4Q25 likely to drive a rebound in GM; 2) AIoT sales growth in China in 2Q25 benefited from new retail and large home appliance businesses, still showing expansion potential; and 3) Xiaomi upheld view that EV profits will turnaround by quarter or month in 2H25. Related NewsG Sachs Drops XIAOMI-W (01810.HK) TP to $65 as 2Q Results Largely in LineCiti reiterated its Buy rating on XIAOMI-W, adjusting the forecast for adjusted EPS for 2025/ 2026/ 2027 down by 1%/ 4%/ 0% to reflect product mix adjustments and declining GM in the smartphone business. The adjusted forecasts were still 6%/ 2%/ 14% ahead of market consensus. Citi lowered the target price on XIAOMI-W from HKD69 to HKD66. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-08-22 16:25.)