Chinese manufacturer of consumer electronics and electric vehicles Xiaomi increased net profit in the third quarter by 2.3 times, with all key indicators exceeding market expectations.
The company said in a press release that net profit in the July-September period was 12.26 billion yuan ($1.72 billion), up from 5.34 billion yuan in the same period a year earlier. Profit excluding one-off factors jumped 1.8 times to 11.31 billion yuan.
Xiaomi’s quarterly revenue rose 22.3 per cent to 113.12 billion yuan.
Analysts polled by Visible Alpha had on average forecast the company’s net profit at 9.69 billion yuan on revenue of 112.89 billion yuan. The consensus forecast of experts polled by LSEG for adjusted earnings was 10.3 billion yuan.
Xiaomi’s smartphone revenue in the third quarter fell 3.1 per cent to 46 billion yuan. The company sold a total of 43.3 million smartphones in July-September, up 0.5% from a year earlier. According to analyst firm Omdia (formerly Canalys), Xiaomi’s global smartphone market share was 13.6 per cent in the third quarter. Its market share in mainland China was 16.7 per cent.
The company’s revenue in the internet of things (IoT) and consumer electronics segment rose 5.6% to 27.6 billion yuan, while revenue from internet services increased 10.8% to a record 9.4 billion yuan.
Revenue in the electric vehicles and other advanced technology segment jumped threefold to an all-time high of 29 billion yuan. Deliveries of electric vehicles in the third quarter rose 2.7 times to a record 108,800 units.
Xiaomi shares fell 2.8 per cent in Tuesday trading. The reports were published after the market closed in Hong Kong.
Xiaomi was founded in 2010. The company makes smartphones, tablets, laptops, TVs, smart watches and smart bikes, as well as steamers, water testers and electric cars. The products are represented in more than 100 countries.