Key Points
- Xiaomi’s third-quarter revenue increased by 22.3% to 113.1 billion yuan. This was slightly below analysts’ expectations.
- The company’s adjusted net profit soared by 80.9% to 11.3 billion yuan, beating estimates.
- Xiaomi is the world’s third-largest smartphone maker and is making a significant push into the electric vehicle market.
- Despite the strong profit, the company’s stock closed down 2.81% on Tuesday.
The Chinese tech giant Xiaomi reported a 22.3% increase in its third-quarter revenue on Tuesday, a period in which the world’s third-largest smartphone maker also deepened its commitment to entering the electric vehicle market.
For the quarter ending September 30, the company’s revenue reached 113.1 billion yuan ($15.90 billion). This figure, however, was slightly below the 116.5 billion yuan analysts had predicted, according to LSEG data.
On a more positive note, Xiaomi’s adjusted net profit jumped 80.9% year over year to 11.3 billion yuan. This was well above the average analyst estimate of 10.3 billion yuan.
Despite the strong profit growth, Xiaomi’s Hong Kong-listed shares closed down 2.81% at 41 Hong Kong dollars on Tuesday. So far this year, the company’s stock has risen 18.2%.
Xiaomi, well-known for its smartphones and a wide range of home appliances, is making a major strategic shift into the competitive electric vehicle market. This move into a completely new and capital-intensive industry is a big bet for the company, and investors are closely watching how it will impact both its revenue and profitability in the long run.
The latest earnings report shows that while the company is still growing, it also faces challenges in meeting market expectations.
