Chinese vendor Xiaomi recorded brisk growth across all segments in Q2 2024, led by its smartphone and new electric vehicle (EV) units, booking a third consecutive quarter of double-digit year-on-year revenue growth.

Net profit jumped 38 per cent to CNY5.1 billion ($715 million), supported by a one-off investment gain of about CNY550 million. Its EV unit reported a loss of CNY1.8 billion.

Total revenue grew 32 per cent to CNY88.9 billion, with domestic sales accounting for 57.2 per cent of the total.

On the company’s earnings call group VP Lu Weibing noted its global smartphone share increased by 1.8 percentage points to 14.6 per cent. In Southeast Asia it returned to second place, while moving to second in Latin America for the first time.

Smartphone revenue rose 27.1 per cent to CNY46.5 billion, with shipments up by a similar rate to 42.2 million units.

Its IoT and lifestyle products business improved 20.3 per cent to CNY26.8 billion, while internet service revenue increased 11 per cent to CNY8.3 billion. Its EV business generated CNY6.4 billion in revenue.

Lu stated its gross profit margin was stable at 20.7 per cent, with the company “continuing to maintain a healthy level above 20 per cent”.

He warned it still faces major challenges in the macroeconomic environment, with competition intensifying and many costs increasing.

Monthly active users globally increased 11.5 per cent to 675.8 million, while domestic MAUs were up 10.1 per cent to 164.4 million, both hitting record highs.

R&D spending in the quarter increased 20.7 per cent to CNY5.5 billion, with the full-year outlay forecast to rise 25.7 per cent to CNY24 billion.