Xiaomi, the Chinese electronics company, has reported a strong improvement in profitability in the second quarter, despite a global slump in the smartphone market.
The company’s operating profit more than doubled to CNY 4.0 billion, up from CNY 1.7 billion a year ago.
This increase in profitability comes even as revenues fell by 4.0 percent over the same period to CNY 67.4 billion.
Xiaomi’s focus on reducing inventory and costs has been credited for this strong performance.
The company has been able to weather the challenges of the global smartphone market slump and emerge with improved profitability.
“As a consumer electronics player, Xiaomi has to scale up in global markets,” President Lu Weibing noted.