Xiaomi's third-quarter revenue increased by 30.5% year-on-year, with cash reserves reaching RMB 151.6 billion, capable of covering losses from electric vehicle manufacturing

On November 18, Xiaomi Group released its third-quarter financial report. According to the report, revenue in the third quarter was RMB 92.51 billion, a year-on-year increase of 30.5%. Adjusted net profit was RMB 6.3 billion, a year-on-year increase of 4.4%, including an adjusted net loss of RMB 1.5 billion for innovative businesses such as smart electric vehicles.

By business segment, third-quarter revenue for the Mobile x AIoT division was RMB 82.8 billion, a year-on-year increase of 16.8%, and revenue for innovative business segments such as smart electric vehicles was RMB 9.7 billion.

Despite continued investment in electric vehicle manufacturing, Xiaomi's cash reserves continued to rise rather than fall. As of September 30, 2024, cash reserves reached RMB 151.6 billion, setting a new record, with the asset-liability ratio maintained at a low level of 49%.

Regarding electric vehicle manufacturing, which has attracted the most attention, Xiaomi delivered 39,790 new SU7 series vehicles in the third quarter. As of September 30, 2024, Xiaomi had delivered 67,157 new vehicles. Additionally, according to Xiaomi Auto's announcement on November 1, Xiaomi delivered over 20,000 SU7 vehicles in October, marking the first time monthly deliveries exceeded 20,000 units.

[No information provided on the time and level of the conference call] During the conference call, Lu Weibing stated that the three major business lines of mobile phones, IoT products, and automobiles can help Xiaomi meet the diverse needs of users worldwide. He also specifically mentioned the development of AI, saying, "We hope to better integrate AI with vehicles, home appliances, and other categories, allowing newer and better experiences to permeate users' daily lives. I believe this is the ultimate direction of progress."

Regarding whether Xiaomi's high-priced products can succeed overseas, Xiaomi expressed confidence in the competitiveness of its products. Although pursuing premiumization in certain markets may encounter some pressure, Xiaomi will further explore its feasibility.

Editor: Ding Li