Chinese phonemaker Xiaomi delivers 68% growth in first financial results

Xiaomi Corp. delivered a 68 per cent revenue jump and quarterly profit in its maiden financial results, as the Chinese smartphone giant made strides overseas while fending off a challenge from local rivals such as Oppo.

The results -- its first since raising $5.4 billion in an initial public offering -- could help Xiaomi get past an anti-climactic July debut. Net income came to 14.7 billion yuan ($2.1 billion) in the three months ended June, versus a 12 billion yuan loss a year earlier. Revenue climbed to 45.2 billion yuan, it reported, but at a pace that decelerated from the first quarter’s 86 per cent.

The dramatic reversal in the bottom line came about when Xiaomi booked a one-time gain of 22.5 billion yuan, after revaluing a swath of preferred stock in the aftermath of its Hong Kong IPO. Without that, its operating loss came to 7.6 billion yuan.