Xiaomi Corp reported a 13.6% rise in first-quarter revenue on Wednesday as the Chinese smartphone maker sold more phones and benefited from sales of its higher-priced 5G models.

In the first quarter of 2020, Xiaomi achieved solid growth across all business segments. Its total revenue amounted to RMB49.7 billion, representing an increase of 13.6% year-on-year (“YoY”). Adjusted net profit was RMB2.3 billion, increasing by 10.6% YoY.

According to Canalys, a market research firm, Xiaomi successfully navigated the market downturn and were able to achieve the highest YoY growth in shipments among the top five smartphone companies worldwide. Meanwhile, Xiaomi’s smartphone 5G penetration rate in China was 25.9%, surpassing the industry average.

Q1 2020 Financial Highlights:

• Total revenue was approximately RMB49.7billion, up 13.6% YoY, beating market consensus
• Gross profit was approximately RMB7.56 billion, up 44.9% YoY
• Non-IFRS adjusted net profit was RMB2.3 billion, up 10.6% YoY, beating market consensus
• R&D expenses was RMB1.9billion, up 13.4% YoY

Xiaomi Founder, Chairman and CEO Mr. Lei Jun said, “Although the industry is facing severe challenges, the Group still experienced growth in all segments despite the market downturn, which fully reflects the flexibility, resilience and competitiveness of Xiaomi’s business model. In the first quarter of 2020, we successfully issued the first U.S. dollar bond, which was 7.5 times oversubscribed; we also featured on the ‘Forbes’ Global 2000 list’ again this year, which highlights the international capital market’s recognition of Xiaomi. We believe a crisis is the ultimate litmus test for a company’s value, business model and growth potential. As the impact of the pandemic starts to ease, we will continue to focus on the ‘5G + AIoT’ strategy and strengthen our scale of investment, in order to let everyone in the world enjoy a better life through innovative technology.”

In the first quarter of 2020, Xiaomi’s revenue in the smartphones segment reached RMB30.3 billion, an increase of 12.3% YoY; its shipment of smartphones reached 29.2 million units in the same period, an increase of 4.7% YoY. According to Canalys, in the first quarter of 2020, Xiaomi ranked 4th globally in terms of smartphone shipments, and its market share rose to 11.1%, making Xiaomi one of only two of the top five smartphone companies worldwide to maintain YoY growth in shipments.

Xiaomi said that shipments of Mi 10 and Mi 10 Pro exceeded 1 million units two months after their launch in February 2020. The Redmi brand continued to introduce highly competitive products at different price points. Redmi launched its flagship K series Redmi K30 Pro and Redmi K30 Pro Zoom Edition. On the back of the highly popular Redmi Note 8 series, the second best-selling smartphone model globally in the first quarter of 2020 according to Canalys, Xiaomi launched Redmi Note 9S and Redmi Note 9 Pro in overseas markets.

Boosted by the premium smartphone models, the average selling price (ASP) of Xiaomi’s smartphones increased by 7.2% YoY in the first quarter of 2020, and the ASP of its smartphones in mainland China and overseas markets increased by 18.7% and 13.7% respectively.

In the first quarter of 2020, Xiaomi’s revenue of the IoT and lifestyle products segment was RMB13.0 billion. Due to Xiaomi’s diversified IoT product offerings and solid business foundation, the Group achieved a YoY increase of 7.8% in revenue despite the pandemic.

In the first quarter of 2020, despite the overall decline in TV shipments globally due to the pandemic, Xiaomi’s global shipments of smart TVs still increased by 3% YoY to 2.7 million units, and its smart TV business continued to maintain its leading position in both mainland China and overseas markets.

Xiaomi’s overseas revenue increased by 47.8% YoY to RMB24.8 billion in the first quarter of 2020, accounting for 50.0% of its total revenue. Overseas revenue contributed to half of its total revenue for the first time.

In the first quarter of 2020, Xiaomi’s smartphone captured a market share of approximately 31.2% of shipments in India, and ranked 1st for the 11th consecutive quarter, according to IDC. According to Canalys, in the first quarter of 2020, its smartphone shipments grew by 58.3% YoY in the European market, accounting for 14.3% market share and ranking among the top four. Xiaomi also ranked among the top four in Italy, France and Germany. According to Canalys, Xiaomi’s smartphone shipments in Western Europe increased by 79.3% YoY. In Spain, it became the No. 1 smartphone company by shipments with a 28.0% market share. In Latin America, its market share ranked 5th following a 236.1% YoY increase in smartphone shipments, against a decline for the overall market. In addition, its smartphone shipments in the Middle East and Africa grew by 55.2% and 284.9% respectively.

In mainland China, as the impact of the pandemic began to ease, the sales of Xiaomi’s major products experienced solid recoveries. The group proactively worked with its supply chain partners to help them ramp up production capacities. Its production in mainland China has mostly resumed, and smartphone demand has rebounded quickly.