Xiaomi Group reported second-quarter 2026 revenue of 108.9 billion yuan, down 6.1% from a year earlier, while adjusted net profit fell 42.6% to 6.22 billion yuan and CLSA said adjusted EBIT excluding other income dropped 69% to 3.2 billion yuan, missing its estimate. President Lu Weibing said a sharp rise in memory prices pushed Xiaomi to change smartphone product mix, launch cadence and pricing, lifting handset average selling price to a record high and helping keep smartphone gross margin at 8.5%, with an interim figure of 9.3%. Lu said memory-cost inflation should moderate in the third quarter and may return to a slow climb in the fourth, though the overall trend remains upward and manageable. CLSA said weak Chinese consumer spending and a September launch for the new SkyNomad electric vehicle could keep the third quarter difficult, forecasting a 1% revenue decline and a 36% drop in adjusted EBIT before more launches potentially restore growth in the fourth quarter.