- This could be seen as Xiaomi EV achieving its first quarterly profit, as the EV business contributed 97.6 percent of Xiaomi's innovative business revenue.
- In the third quarter, Xiaomi's innovative business revenue reached a record high of RMB 29 billion.
Xiaomi (HKG: 1810, OTCMKTS: XIACY) saw its innovative businesses, including EV and AI, turn profitable last quarter as its EV segment continued robust growth, despite a slight quarter-on-quarter decline in gross margin.
The smartphone giant's innovative businesses generated a net income of RMB 700 million ($98.4 million) in the third quarter, marking its first-ever quarterly profit, according to unaudited financial results released today.
Xiaomi's innovative business revenue reached a record high of RMB 29 billion in the third quarter.
EVs were the primary revenue driver, contributing RMB 28.3 billion, or 97.6 percent. Other business revenue totaled RMB 700 million.
EV business revenue surged 197.89 percent year-on-year and grew 37.38 percent quarter-on-quarter.
Xiaomi delivered a record 108,796 vehicles in the third quarter, a 173.43 percent year-on-year increase and a 32.59 percent rise from the second quarter, according to data compiled by CnEVPost.
The gross margin for innovative businesses, including EVs and AI, came in at 25.50 percent in the third quarter, up from 17.10 percent in the same period last year but slightly below the second quarter's 26.40 percent.
As of September 30, Xiaomi operated 402 auto sales outlets across 119 Chinese cities and maintained 209 service centers covering 125 cities.
In October, Xiaomi EV delivered a record 48,654 vehicles, marking the second consecutive month exceeding 40,000 units and approaching the 50,000-unit threshold.
Xiaomi president Lu Weibing said during today's earnings conference call that Xiaomi EV is expected to complete its annual delivery target of 350,000 units this week.
From January to October, Xiaomi EV has delivered 315,376 vehicles, nearing its annual target, according to data compiled by CnEVPost.
($1 = RMB 7.1113)
