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Aug. 23 (NBD) -- Xiaomi Corp (01810.HK), the world’s fourth-largest smartphone maker by shipments, posted its first earnings report since going public last month.

In the second quarter of 2018, the company reaped 45.2 billion yuan (6.6 billion U.S. dollars) in revenue, representing growth of 68.3 percent year-on-year. Adjusted profit grew 25.1 percent to 2.1 billion yuan (307.2 million U.S. dollars) year-on-year. All business segments achieved strong revenue growth, with the fastest growth seen in Internet of Things (IoT) and lifestyle products segment.

However, it is noted that administrative expenses increased by 4,469.6 percent to 10.46 billion yuan (1.5 billion U.S. dollars) in this quarter compared with the same period a year earlier.

Xiaomi CFO Zhou Shouzi explained that the surge is primary due to one-off share-based compensation of 9.9 billion yuan (1.4 billion U.S. dollars) in this quarter.

NBD later confirmed with a source at Xiaomi that the recipient of the 9.9-billion-yuan share-based compensation is Xiaomi's CEO Lei Jun.

In the second quarter of 2018, Xiaomi smartphone shipments totaled 32 million units, up 43.9 percent year on year. Smartphone sales remains a major source of revenue for the company, which accounts for 67.4 percent of Xiaomi’s total revenue. Increasing revenue from smartphones in this quarter is fueled by growing shipments and deprecation of the Indian rupee.

In addition, Xiaomi has been expanding footprints in India and Europe. International revenue increased 151.7 percent to 16.4 billion yuan (2.4 billion U.S. dollars), accounting for 36.3 percent of the total revenue in this quarter.

Xiaomi is accepted by a growing amount of Indian users and has rolled out video services there. In the second quarter of 2018, smartphone shipments in Western Europe grew over 2,700 percent year-on-year, added Zhou.

The IoT and lifestyle products segment grew 104.3 percent year-on-year in revenue to 10.4 billion yuan (1.5 billion U.S. dollars) for the second quarter of 2018. Zhou told NBD in an interview that Xiaomi will offer more large home appliances in the future. 

With regard to the question whether Xiaomi will consider to further open its IoT platform, Zhou said in addition to enterprises within the same ecology, many third party companies such as Philip have joined the platform and the platform is open to and welcomes all companies.

Email: tanyuhan@nbd.com. cn