Phone maker Xiaomi has released its H1 reports, exceeding revenue and profit expectations.
Q2 revenue stood at 67.4 billion yuan (US$9.2 billion), against an estimate of 65.8 billion yuan and a 4-percent drop. Net profit for the quarter reached 3.7 billion yuan, a 168.5-percent year on year increase, compared to the anticipated 3.2 billion yuan. Adjusted net profit reached 5.14 billion yuan, 147-percent year on year growth.
For H1, revenue was 127 billion yuan, an 11.6-percent decline. However, adjusted net profit was nine times greater than at this time last year. The success is attributed to targeting the high-end market and cutting costs. Despite eight consecutive quarters of declining phone shipments, Xiaomi managed to increase its phone business gross profit margin by 4.7 percentage points.
The report also highlighted Xiaomi’s in the automotive sector, with R&D expenses rising by 21 percent year on year, largely attributed to EV development.
