Xiaomi says revenue soared 68% in first earnings report since its IPO

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Xiaomi founder Lei Jun

• Xiaomi posted a profit of 14.6 billion yuan ($2.1 billion) on 45.2 billion yuan revenue.
• The company's main business - smartphones - saw sales increase 58.7% versus last year.
• Xiaomi smartphone average selling price in mainland China increased over 25%.
• IoT and lifestyle products segment grow fast.

Xiaomi reported its first quarterly results after going public last month in Hong Kong, saying second-quarter revenue jumped to 68.3% year-over-year to 45.2 billion yuan.

The company posted 14.6 billion yuan in earnings, mostly from "fair value changes of convertible redeemable preferred shares." As a result, the diluted earnings per share was negative 0.377 yuan.

"All business segments achieved strong revenue growth, with the fastest growth seen in our IoT and lifestyle products segment," the Chinese smartphone maker wrote in its earnings release.

The company's main business segment - smartphones - contributed RMB30.5 billion in revenue, an increase of 58.7% versus last year. "This growth was driven by an increase in both smartphone sales volume and our average selling price," Xiaomi said.

Xiaomi's average selling price of smartphones on mainland China increased more than 25% year-over-year, but its smartphone gross profit margin decreased to 6.7% in the second quarter, compared to 8.7% a year ago.

The IoT and lifestyle products segment saw sales grow 104.3% YoY. After Xiaomi smart TV was launched in the India market in February, the product's global sales volume increased over 350% YoY for the second quarter. At the end of June, Xiaomi had about 115 million connected Xiaomi IoT devices and 1.7 million users who own more than five devices, the company said.

Shares of Xiaomi are trading 5% over their initial-public-offering price through Tuesday.