Xiaomi's Q3 adjusted net profit increased by 80.9% year-on-year, reaching a record high, with electric vehicles and AI and other innovative businesses achieving operating profit for the first time in a single quarter | Financial Report Insights

Xiaomi Corporation's third-quarter performance exceeded market expectations, with net profit significantly increasing year-on-year, and innovative businesses such as electric vehicles and AI achieving operational profitability for the first time in a single quarter.

Financial Performance:

Q3 total revenue was 113.1 billion yuan, a year-on-year increase of 22.3%, and a quarter-on-quarter decrease of 2.4%;

Adjusted net profit was 11.31 billion yuan, a record high, with a year-on-year increase of 80.9%;

Gross margin was 22.9%, an increase of 2.5 percentage points year-on-year;

Cumulative revenue for the first three quarters was 340.4 billion yuan, a year-on-year increase of 32.5%.

On November 18, Xiaomi's latest financial report showed that total revenue for the third quarter reached 113.12 billion yuan, slightly above the market estimate of 112.5 billion yuan. Adjusted net profit was 11.31 billion yuan, also exceeding the expected 10.05 billion yuan. Operating profit was 15.11 billion yuan, far higher than the estimated 10.72 billion yuan.

Notably, Xiaomi's smart electric vehicles and AI innovation business segment achieved operational income of 700 million yuan, marking the first time this business recorded a profit.

Core Business Progress:

Smartphone shipments reached 43.3 million units, growing year-on-year for nine consecutive quarters; global market share was 13.6%, ranking in the top three for 21 consecutive quarters;

The electric vehicle and AI innovation business achieved operational profitability for the first time in a single quarter (700 million yuan), with a delivery volume of 108,800 units, a new high;

The AIoT platform connected devices surpassed 1 billion for the first time, reaching 1.036 billion; monthly active users were 742 million;

Internet service revenue reached a record high of 9.4 billion yuan, a year-on-year increase of 10.8%.

Automotive Business: A Key Turning Point from Cash Burn to Profit Generation

The financial report showed that revenue from Xiaomi's smart electric vehicles and AI innovation business reached 29.01 billion yuan, exceeding the market estimate of 28.02 billion yuan.

Automotive business revenue for Q3 was 28.3 billion yuan, a year-on-year increase of 197.9%, with a delivery volume of 108,800 units, up 33.8% from Q2, setting a new historical high.

More importantly, Xiaomi's smart electric vehicles and AI innovation business segment achieved operational income of 700 million yuan, marking a shift from losses to profitability for Xiaomi's automotive business.

Additionally, the automotive gross margin of 25.5% is leading among new force car manufacturers. Management disclosed that the increase in gross margin was mainly due to:

1. Decrease in core component costs; 2) Reduction in unit manufacturing costs (economies of scale); 3) Increased delivery proportion of the Xiaomi YU7 series (higher ASP). The automotive ASP increased from 253,700 yuan to 260,100 yuan, confirming the logic of product structure upgrading

Increase R&D Investment

In Q3, R&D investment reached 9.1 billion yuan, a year-on-year increase of 52.1%. The cumulative investment for the first three quarters was 23.5 billion yuan, with a record high of 24,871 R&D personnel. Capital expenditure was 5.38 billion yuan, far exceeding the estimated 2 billion yuan.

Xiaomi's layout in the AI field is gradually becoming clear: the Xiaomi-MiMo-Audio voice large model has completed a full series of foundational model matrices for language, vision, and voice, while the Xiaomi Miloco solution is the first to explore whole-home intelligence driven by large models.

The company's substantial investments in R&D and capital reflect its long-term commitment to innovative businesses such as smart electric vehicles and AI, accumulating resources for future technological competitiveness