By Jiahui Huang

Xiaomi reported better-than-expected net profit in the third quarter on strong sales across its business segments, including smartphones, internet services and electric vehicles.

The Chinese maker of smartphones and other consumer electronics has witnessed robust sales in its new EV business since it launched its first car in late March. In a Weibo post on Monday, Chief Executive Lei Jun said the Xiaomi SU7 series exceeded the delivery target of 100,000 units and the company will focus on hitting its annual target of 130,000 cars.

Xiaomi's Hong Kong-listed shares have reflected the EV segment's promising growth, soaring more than 80% this year to eclipse the benchmark Hang Seng Index's 15% gain. The company's stock has also been buoyed by the solid performance of its Internet-of-Things segment at home and abroad. Its smartphone sales, meanwhile, grew healthily in the third quarter, with shipments rising 3.3% to 42.8 million units, helping it maintain its position as the No. 3 seller of smartphones worldwide, according to preliminary data from IDC, a closely watched industry tracker.

Xiaomi on Monday reported a 9.9% increase in net profit to 5.35 billion yuan, equivalent to $740 million, better than the 4.47 billion yuan estimated by analysts in a Visible Alpha poll. After adjusting for share-based compensation and other items, its quarterly profit was 6.25 billion yuan, up 4.3% from a year earlier.

The Beijing-based company's revenue rose 30% to 92.51 billion yuan, it said.

Sales from its smartphone business, its biggest revenue driver, climbed 14% to 47.5 billion yuan. Revenue from its IOT and lifestyle product segment, which includes tablets, television sets and laptops, jumped 26% to 26.1 billion yuan. The segment's gross profit margin reached a record high of 20.8%.

Revenue from internet services increased 9.1% to a record 8.5 billion yuan as monthly active user numbers rose to all-time highs in its domestic and overseas markets.

Xiaomi generated 9.7 billion yuan in revenue from its EV business in the third quarter, with the segment's gross profit margin improving to 17.1% from 15.4% in the second quarter.

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

(END) Dow Jones Newswires

November 18, 2024 06:39 ET (11:39 GMT)

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