Lu Weibing: The automotive business is expected to become profitable in the second half of the year.

On August 20th, Lu Weibing, the president of Xiaomi Group, posted on Weibo stating that the second quarter revenue from innovative businesses such as smart electric cars and AI reached 21.3 billion yuan, an increase of 234% year-on-year. The operating loss for these businesses was reduced to 300 million yuan, with a potential for profitability in the second half of the year. However, the cumulative investment in smart electric cars and AI innovation businesses from 2022 to the first half of 2025 is expected to exceed 30 billion yuan, resulting in a significant overall loss. He also mentioned that Xiaomi's car business will not participate in any price wars and will maintain a healthy level of business without engaging in unhealthy competition. The target for Xiaomi's car to go international in 2027 remains unchanged, with preliminary research and preparations already underway.