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Xiaomi posts 87 per cent drop in quarterly net profit

Xiaomi Corp, the world’s fourth largest smartphone maker, reported an 87 per cent drop in net profit in the quarter ended June 30, as the global smartphone market continued to slow down.

The Beijing-based company’s net profit for the second quarter was 1.96 billion yuan (US$278 million), down from 14.63 billion yuan a year earlier.

Total revenue reached 51.9 billion yuan, up from 45.2 billion yuan a year ago, boosted by a rise in the average selling price of Xiaomi smartphones.

Despite the industry, Xiaomi said its smartphone revenue increased by 5 per cent last quarter to 30.5 billion yuan.

Its shares were up 3.17 per cent to close at HK$9.43 in Hong Kong on Tuesday.