Recently, Xiaomi group (hereinafter referred to as "Xiaomi") released the results of the second quarter of 2022. The financial report shows that the revenue in the second quarter of this year was 70.17 billion yuan, down 20.1% year-on-year and 4.3% month on month; The adjusted net profit was 2.08 billion yuan, down 67.1% year-on-year and 27.2% month on month. Overall, in the first half of 2022, Xiaomi's revenue was 143.52 billion yuan, a year-on-year decrease of 12.8%; The adjusted profit was 4.94 billion yuan, a year-on-year decrease of 60.1%. As for the performance decline, Xiaomi group president Wang Xiang explained that the performance fluctuation was mainly due to inflation in many markets around the world and weak consumption, which affected the income. Lin Shiwei, CFO of Xiaomi group, added that Xiaomi's profit fluctuation was also affected by new business investment. He introduced that Xiaomi's new business investment this quarter reached 611 million yuan. In the smartphone business alone, Xiaomi's gross profit margin fell by more than 3% year-on-year, from 11.8% in the same period of last year to 8.7%, down from 9.9% in the first quarter of last year to 8.7%, mainly due to strengthening promotion efforts to clear inventory. Wang Xiang said that Xiaomi has carried out price reduction promotion activities to clear the inventory, which will have an impact on the gross profit rate. (news agency)