(Yicai) Aug. 20 -- Xiaomi reported the Chinese electronics giant's net profit tumbled about 21 percent in the second quarter of this year from a year earlier because of surging expenses related to memory chips and other core components, as well as a decline in smartphone shipments.

Net profit was CNY9.5 billion (USD1.4 billion) in the three months ended June 30, the Beijing-based firm said in a financial report released on Aug. 18. Revenue fell 6.1 percent to CNY108.9 billion (USD16.2 billion), while the adjusted profit plunged 43 percent to CNY6.2 billion.

Income from the Phone × Artificial Intelligence of Things segment dropped 11 percent to CNY84 billion (USD12.5 billion), Xiaomi said. Phone shipments plunged 27 percent to 31.2 million, their average selling price rose 26 percent to a record high of CNY1,351 (200.90), and revenue from the business fell 7.5 percent to CNY42.1 billion.

The drop in phone revenue stemmed mainly from the decline in shipments, partially offset by the rise in the average price, Xiaomi pointed out. The second-quarter shipment decline was primarily due to fewer mid-to-low-end models and weak global demand amid persistent price increases for core components, it stressed.

Income from Xiaomi's innovative businesses, including smart electric vehicles and AI, jumped 17 percent to CNY24.9 billion last quarter from a year ago. That from smart EVs rose 16 percent to CNY23.9 billion, with deliveries soaring 28 percent to 104,199 new autos.

For the first half of the year, Xiaomi's profit tumbled 38 percent to CNY14.2 billion on revenue falling 8.4 percent to CNY208.1 billion, according to the company.

Shares of Xiaomi [HKG: 1810] rose 3.1 percent to HKD28.30 (USD3.61) apiece as of 11 a.m. in Hong Kong today, adding to a gain of 1.2 percent on Aug. 18 and 4.8 percent yesterday.

Editor: Martin Kadiev