A rise in shipments of smartphones, especially in Southeast Asia, helped to boost Xiaomi’s second-quarter revenue by 30.5%, the smartphone and EV company said on Tuesday, against the backdrop of a sluggish global market.

Xiaomi President Lu Weibing, however, slightly lowered the company’s target on smartphone shipments to 175 million from a goal of 180 million set in the first quarter.

“We expect the overall smartphone market to see little to no growth this year,” Lu told a conference call with reporters. “If there is any increase, it might be around 0.1% to 0.2%. That’s somewhat different from the growth we had anticipated at the beginning of the year,” he said.

Revenue for the quarter ended June 30 was 116 billion yuan ($16.16 billion), beating the 114.7 billion yuan average of 15 analyst estimates compiled by LSEG.

Adjusted net profit rose 75.4% year-on-year to 10.8 billion yuan, exceeding the average estimate of 10.1 billion yuan, according to LSEG data.

The world’s third-largest smartphone maker became the bestselling smartphone brand in Southeast Asia in the second quarter and took second place by shipments in Europe, it said.

Globally, it was ranked third, with a market share of 14.7%, the company said, citing data from researcher Canalys.

Xiaomi’s second-quarter global smartphone shipments rose 0.6% from a year earlier to 42.4 million handsets. However, its smartphone revenue decreased 2.1% to 45.5 billion yuan due to a lower average selling price.

Its loss-making EV business generated 20.6 billion yuan in revenue during the second quarter, up from 18.1 billion during the first quarter. It delivered 81,302 EVs in the June quarter, compared with deliveries of 75,869 SU7 cars in January-March. Its second EV model YU7 was launched in late June, with the deliveries only beginning last month, meaning it has yet to be reflected in results.

Together with AI and other new initiatives, EVs delivered a total net loss of 0.3 billion yuan in the June quarter, narrowing from a loss of 0.5 billion in the first quarter. Lu said that Xiaomi is confident it will achieve monthly or quarterly profit in its EV business in the second half, but cumulative losses remain significant after a more than 30 billion yuan investment in research and development.

Xiaomi has sold a total of 300,000 EVs as of July since launching its EV business in March 2024. Lu also said Xiaomi is developing the next iteration of its self-developed mobile chip XRINGO1.

Hong Kong-listed shares in Xiaomi, which also makes home appliances, closed down 1.2% at 52.4 Hong Kong dollars. The stock has risen 52% so far this year.