Xiaomi’s reports strong Q2 performance, driven by smartphones and connected devices

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China Xiaomi’s second-quarter revenue soars 68 percent, driven by smartphones, internet devices – Reuters

What happened: Xiaomi’s second-quarter revenue surged 68.3 percent to RMB 45.3 billion from RMB 26.88 billion, lead by smartphone sales and strong performance of connected devices. Xiaomi reported RMB 30.6 billion in revenues from smartphones and RMB 104 billion from connected devices. The company reported a net profit of RMB 14.63 billion, compared with a net loss of RMB 11.97 billion in the same period last year.

Why it’s important: Shares of Xiaomi jumped 3% to HKD18.22 after market opened in Hong Kong Thursday morning, implying that investors are, at least, not disappointed by Xiaomi’s performances. Xiaomi has been trying to pivot from a smartphone seller to an internet-based firm of which the revenues will mainly come from advertising. Xiaomi’s efforts seemed to be paying off as related revenues grew to RMB 4 billion, a 63.6% increase.