Xiaomi Reports Increase in Third Quarter Revenue and Reveals Progress in Car Manufacturing
On November 20, Xiaomi released its third-quarter financial report, revealing a year-on-year increase in revenue for the first time in the past six quarters. The company achieved revenue of 70.9 billion yuan in the third quarter, with an adjusted net profit of 6 billion yuan, representing a year-on-year increase of 182.9%.
During the financial report meeting, Lu Weibing, partner and president of Xiaomi Group, also disclosed progress in the company’s car manufacturing plans. He stated that the target for mass production of cars in the first half of next year remains unchanged and that the overall progress is in line with expectations. Weibing also highlighted Xiaomi’s commitment to investing more in automobiles, with approximately 3,000 R&D personnel dedicated to this initiative.
Xiaomi’s financial report showed steady growth, driven by the company’s high-end strategy. The gross profit margin in the third quarter reached 22.7%, with the smartphone business and IoT and consumer products business achieving record-high gross profit margins. Additionally, Xiaomi continued to demonstrate strong performance in the global smartphone market, ranking among the top three in global smartphone shipments for the 13th consecutive quarter.
Furthermore, the report provided insights into Xiaomi’s plans to meticulously manage inventory and invest in research and development, with a planned investment of more than 100 billion yuan over the next five years. Additionally, Xiaomi’s recent strategy upgrade to “Full Ecosystem for People, Cars, and Homes” and the development of a new operating system, “Xiaomi Thermal OS,” demonstrate the company’s commitment to innovation and expansion.
In the earnings conference call, Lu Weibing provided an update on Xiaomi’s progress in car manufacturing, reaffirming the company’s commitment to achieving its production goals. Xiaomi’s car manufacturing efforts were also acknowledged by Lei Jun, who emphasized that making cars is one of the most critical decisions in Xiaomi’s development history.
Furthermore, it was revealed that Xiaomi Auto has submitted two product models for approval, indicating the company’s preparations for entering the electric vehicle market. Analysts predict that Xiaomi’s first car is expected to be released in 2024, and it is anticipated to feature autonomous driving capabilities, a software ecosystem, and fast-charging technology.
In his expectations for the first car, Lei Jun emphasized the importance of ensuring a high-quality product that can compete with existing offerings in the market.
Overall, Xiaomi’s third-quarter financial report and updates on car manufacturing reflect the company’s continued growth and commitment to innovation in the technology and automotive sectors.
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