Xiaomi Corp. reported a 3.1 percent increase in its June quarter sales to $7.8 billion even as smartphone revenues from overseas fell as a result of the virus pandemic.
The China smartphone maker - which appointed Alain Lam as its new chief financial officer this week - expects a big rebound in most international markets. Lam is a former Credit Suisse senior executive for Asia-Pacific operations.
Xiaomi increased its net income to almost $716 million in the quarter - exceeding analysts' best projections. Revenues from smartphones, a large chunk of the company's sales, have hit pre-crisis figures, acting CFO Wang Xiang said Wednesday.
Its average number of smartphone activations on a daily basis from its international business were 120 percent of those before the coronavirus, the company said. Xiaomi said that number didn't include sales from India. Based on figures by Refinitiv, the company had an adjusted net profit of $490 million compared with an average analyst projection of $325 million.
Xiaomi anticipates a robust gain in share price in the second half of the year as it takes advantage of favorable market conditions, a strong push for revenue links and extensive research and development programs, according to a report from financial service company Bocom International Holdings.
The company's concentration on 5G technology in China and Europe makes it more competitive, Bocom said. Xiaomi's high-end smartphone units saw impressive growth in Europe where orders for the gadgets rose 65 percent and steered the company to No. 3 in the region, Xiaomi said quoting Singapore-based Canalys data.
The China electronics company has depended on overseas markets like India - its most important market outside of China - to spur growth as it faces competition from multinational technology company Huawei. Xiaomi's total sales from international markets is 51 percent to date this year.
Xiaomi joins the Hong Kong share index from September - an event that is expected to stimulate the company's stock price, Bloomberg News reported.
