(Yicai Global) Aug. 21 -- Xiaomi posted almost CNY52 billion (USD7.4 billion) in second quarter revenue, a 14.8 percent gain but still lower than expectations despite its handsets flying off the shelves.

Its share price [HKG:1810] had slumped 5.3 percent to HKD8.93 (USD1.14) as of 11.02 a.m., but the company is adamant this will rebound as it continues to provide outstanding services to customers. The stock hit a peak 2019 price of HKD12.50 in March, still a far cry from its initial public offering price of HKD17.

The Shenzhen-based firm shifted 32.1 million smartphones from April through June, ranking it fourth in the world for the sixth straight quarter, it said in its earnings report published yesterday. Net profit was up 49.8 percent at CNY5.7 billion.

It shipped a total 60 million smartphones throughout the first half, with income rising 9.8 percent to make up CNY59 billion of its CNY95.7 billion in revenue over the first six months. It also ranked fifth worldwide in terms of television shipments during the period.

The firm has unveiled one smartphone to date capable of connecting to fifth-generation mobile networks, and plans to release another in the second half of this year, Xiaomi added. It has been researching 5G technology since 2016.

The company also plans to keep promoting its strategy of combining smartphones with artificial intelligence and the Internet of Things, and had some 196 million devices connected to its IoT platform as of the end of this year, not including smartphones and laptops, it said.

The figure was up 69.5 percent from a year earlier and its smart speaker Mi AI now has almost 50 million monthly active users.

Editor: James Boynton