Xiaomi's strong Q2 fueled by auto business and smartphone growth

Xiaomi Corp reported record-high revenue in the second quarter, with a 32 percent growth year on year, surpassing analysts' expectations. The company's expansion into the electric vehicle (EV) market, with the launch of its SU7 car in March, contributed significantly to this growth.

Between April and June, Xiaomi's revenue rose to 88.9 billion yuan (US$12.5 billion), beating industry expectations of around 86 billion yuan. Adjusted net profit reached 6.2 billion yuan in the quarter, a 20.1 percent growth year on year.

Revenue included a first-time contribution from its auto business unit at 6.4 billion yuan following Xiaomi's expansion into the booming but crowded EV market to challenge world leaders Tesla and BYD.

The Xiaomi SU7 is a sleek, four-door, C-class sedan, with a range of up to 700 kilometers. Prices start at 215,900 yuan.

Over the period, Xiaomi delivered over 27,000 cars and established a network of 87 outlets in 30 cities on the Chinese mainland.

However, smartphones remain the company's main business and it ranks among the top five in the domestic market alongside Vivo, Oppo, Honor, and Huawei.

China's smartphone sales hit 70 million units in the quarter, with a 10 percent growth from a year ago. Sales rebounded during the "618" e-commerce festival in June.

On Thursday, Xiaomi shares jumped 8.9 percent to close at HK$19.08 (US$2.45), compared with a 1.44 percent increase in the Hang Seng Index.