By Jiahui Huang


Xiaomi's third-quarter net profit more than doubled on higher revenue from its Internet-of-Things business and fast-growing electric-vehicle division.

The Beijing-based company said Tuesday that its net profit surged to 12.27 billion yuan, equivalent to $1.73 billion, from 5.35 billion yuan a year earlier. Revenue rose 22% to 113.12 billion yuan, buoyed by significant growth in the EV and IoT segments, though its smartphone business performance slipped.

Both its top and bottom lines exceeded market estimates. Analysts had expected the Chinese smartphone and electronics maker to post profit of 9.69 billion yuan on revenue of 112.89 billion yuan, according to a Visible Alpha consensus.

Xiaomi's smartphone segment, its biggest revenue driver, generated 46.0 billion yuan in revenue, down from 47.5 billion yuan a year earlier. The decline was largely due to lower selling prices, which were partially offset by increased shipments, the company said.

Revenue from the Internet-of-Things and lifestyle products segment rose 5.6% to 27.6 billion yuan, with Xiaomi attributing the increase to sales of certain lifestyle products and wearables in the global market. Revenue from large home appliances in China fell during the period, it said.

Xiaomi's EV business--its newest and fastest-growing division--did well during the quarter despite headwinds in China's auto market. Revenue from smart EVs almost tripled to 28.3 billion yuan, thanks to higher vehicle deliveries and selling prices, the company said.

Xiaomi delivered a record 108,796 vehicles in the third quarter. Margins for the division improved to 25.5% due to lower costs of key components and manufacturing cost per unit, as well as higher margins for other related businesses, the company said.

That contributed to an overall gross margin of 22.9% for the period, up from 20.4% a year earlier.

While the results were encouraging, the outlook for the coming quarters is less certain, according to analysts. Concerns about EV production capacity and smartphone margins have plagued the company in recent months. Xiaomi's shares have lost 23% since September.

Analysts said rising prices of memory chips amid a global shortage driven by surging AI demand may weigh on Xiaomi's smartphone sales potential in the near future. Late last month, Xiaomi rolled out an introductory offer for a newly launched smartphone after customers expressed disappointment over its higher-than-expected starting price.

Revenue growth in its IoT segment is also expected to moderate significantly due to government subsidies tapering off and a high base last year, when China introduced its nationwide trade-in program for consumer goods.


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

11-18-25 0650ET