Sales jumped a record 64% in the second quarter from a year earlier, hitting almost $13.6 billion.
The gain comes amid ongoing U.S. sanctions against rival Huawei.
That has allowed Xiaomi to snap up market share.
Over the latest quarter it became the world's second biggest smartphone maker, behind Samsung but ahead of Apple.
That's according to data from research firm Canalys.
Though Xiaomi still lags local rivals Oppo and Vivo in its domestic market.
Now the firm has its eyes on a new challenge.
Xiaomi said Wednesday (August 25) that it would acquire autonomous driving startup Deepmotion.
Earlier in the year it had already announced plans to spend $10 billion entering the electric vehicle sector.
There's no word yet when its first model might appear.
But last week Reuters reported that China Evergrande Group was in talks to sell its EV unit to Xiaomi.
