Chinese tech giant Xiaomi reported a 30.5% rise in second-quarter revenue, buoyed by strong smartphone sales in Southeast Asia despite a sluggish global market.

Revenue for the three months ended June 30 climbed to 116 billion yuan ($16.16 billion), ahead of analysts’ expectations of 114.7 billion yuan, according to LSEG data. Adjusted net profit jumped 75.4% year-on-year to 10.8 billion yuan, also beating forecasts.

Xiaomi, the world’s third-largest smartphone maker, became the top brand in Southeast Asia during the quarter and ranked second in Europe, while maintaining third place globally with a 14.7% market share, research firm Canalys reported. Shipments rose slightly to 42.4 million units, but smartphone revenue fell 2.1% to 45.5 billion yuan due to lower average selling prices.

Despite the strong performance, President Lu Weibing revised the company’s full-year smartphone shipment target to 175 million units, down from 180 million. “We expect the overall smartphone market to see little to no growth this year,” Lu told reporters.

Xiaomi’s electric vehicle (EV) business also gained momentum, posting 20.6 billion yuan in revenue, up from 18.1 billion yuan in the previous quarter. The company delivered 81,302 EVs in the period, compared with 75,869 in the first quarter, and has now sold 300,000 units since launching its EV arm in March 2024. Its new YU7 model, unveiled in June, will begin contributing to results later this year.

Although its EV and AI ventures reported a net loss of 0.3 billion yuan, the figure narrowed from 0.5 billion yuan in the first quarter. Lu said Xiaomi expects its EV division to achieve monthly or quarterly profitability in the second half, though cumulative losses remain high after investing more than 30 billion yuan in research and development.

Xiaomi is also advancing its in-house chip development, with work underway on the next version of its XRINGO1 processor.

Shares in Xiaomi closed 1.2% lower at HK$52.40 on Tuesday but remain up 52% so far this year.