Xiaomi Group (1810.HK) climbed over 5% during regular trading to HK$27.50, with turnover reaching HK$9.01 billion. The advance came despite the company reporting a second-quarter revenue decline of 6.1% to RMB 108.92 billion and a 42.6% drop in adjusted net profit to RMB 6.22 billion.

Investors focused on brighter spots beneath the headline numbers. Smartphone gross margin hit 8.5%, beating expectations, while average selling prices reached a record high. Losses in the smart EV and AI innovation segment narrowed to RMB 2.6 billion, with the division growing 17.1% year on year. Management said memory-cost pressures are expected to ease in the third quarter and described the handset business as "under control."

Brokerages echoed the constructive tone. Barclays said Xiaomi's AI strategy is "significantly underestimated" by the market and maintained Overweight with a HK$30 target. Morgan Stanley called smartphone margins a "positive surprise," keeping Overweight at HK$32. Goldman Sachs reiterated Buy but trimmed its target to HK$39.

Separately, Xiaomi is set to unveil its next-generation humanoid robot prototype tonight at the 2026 World Robot Conference. The unit stands about 1.7 meters tall, weighs 66 kilograms and features 66 degrees of freedom. The company also plans to showcase its full "human-car-home" ecosystem at IFA in Berlin in September, marking a push to bring the Mijia brand into the European market at scale.