Xiaomi shares hit two-year high after revenue tops expectations

Xiaomi Corp saw a decline in second-quarter profits due to pressure on smartphone sales amid the pandemic and global uncertainties, the HK-listed company said on Thursday.

Xiaomi’s net profit was 3.37 billion yuan (US$481.4 million) during the quarter, down 7.2 percent year on year. Revenue was 53.5 billion yuan, slightly higher than the previous year’s level and beating expectations of 51.4 billion yuan.

The better-than-expected results lifted Xiaomi’s share price by over 11 percent to close at 21.35 Hong Kong dollars (US$2.70) on Thursday, the highest point since July of 2018. 

COVID-19 outbreak and lockdown measures around the world “dampened” Xiaomi’s global smartphone sales. For the quarter, revenue for the company's smartphones business was 31.6 billion yuan, a decrease of 1.2 percent from a year ago, Xiaomi said.

Xiaomi remains the world’s No. 4 smartphone vendor with many best-selling models worldwide, the company said citing researcher Canalys.