Xiaomi’s Earnings Expand as EV Endeavors Excel
China’s Xiaomi has posted strong earnings for the third quarter, with profit surging nearly 81 percent year-on-year to 11.3 billion yuan. According to LSEG data, analysts had expected an average of 10.3 billion yuan—an estimate Xiaomi surpassed, Reuters reports.
The world’s third-largest smartphone maker has in recent years shifted heavily toward the electric vehicle (EV) business, a move that has now become a key driver of its revenue growth.
The company stated that EVs, artificial intelligence, and other new initiatives made a significant contribution in the third quarter, enabling it to achieve positive operating income within a single quarter. Total revenue for the quarter ending in September rose to 113.1 billion yuan, though this was slightly below analysts’ average forecast of 116.5 billion yuan.
Xiaomi’s Hong Kong-listed shares closed on Tuesday down 2.81 percent at 41 Hong Kong dollars. However, the stock remains up more than 18 percent so far this year. Xiaomi’s EV business generated 28.3 billion yuan in revenue last quarter—substantially higher than 20.6 billion yuan in the second quarter and 18.1 billion yuan in the first quarter.
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