Chinese smartphone behemoth Xiaomi reported a year-on-year revenue dip of 4%, equivalent to RMB 67.35 billion ($9.25 billion) for the second quarter of 2023, on Tuesday. However, its adjusted net profit soared, up 147% on an annual basis to reach RMB 5.14 billion. Included in this figure was an expense of RMB 1.4 billion related to Xiaomi’s new ventures, including its electric vehicle business.

As of June 2023, MIUI, Xiaomi’s mobile device OS, had an impressive 606 million global monthly active users. This marks a notable 10.8% increase from the previous year. Despite this, smartphone revenue fell to RMB 36.6 billion, a 13.4% reduction compared to the same period last year.

Xiaomi attributes this profit dip chiefly to a decrease in smartphone shipments, but it was somewhat offset by a rise in the average selling price of their smartphones.

The tech giant saw significant growth in its AIoT platform, with the number of connected IoT devices increasing by 24.2% year-over-year to reach 654.5 million as of June 30, 2023. This figure excludes smartphones, tablets and laptops. Revenue from IoT and lifestyle products reached RMB 22.3 billion, up 12.3% compared to the previous year.

Driven chiefly by augmented revenue from sizeable smart home appliances, tablets, and select lifestyle products, partially counterbalanced by a decrease in revenue from smart TVs and laptops.

During the reported quarter, Xiaomi’s smartphone shipments secured a spot in the top three across 51 nations and regions around the world. They also found themselves in the top five across 61 countries and regions, as stated by data from Canalys.