Chinese tech giant Xiaomi posted a 30.5 per cent increase in revenue for the second quarter, driven by strong demand for electric vehicles (EVs), even though its core smartphone business experienced flat sales.
The Beijing-based company on Tuesday reported revenue of 116 billion yuan (US$16.1 billion) for the three months ended June, a record high that beat analysts’ estimates of 114.94 billion yuan.
Net profit for the period also reached a record at 10.8 billion yuan, a 75.4 per cent year-on-year increase, exceeding the 8.88 billion yuan forecast by analysts.
Xiaomi’s Hong Kong-listed shares closed down 1.23 per cent to HK$52.40 on Tuesday ahead of the earnings release.
With smartphone sales stagnating, EVs were the primary source of growth for Xiaomi, according to Dan Baker, a senior equity analyst at investment consultancy Morningstar.
Revenue from Xiaomi’s smart EV, artificial intelligence (AI) and other new initiatives business segment reached 21.3 billion yuan in the second quarter.
