Xiaomi posts record earnings in first quarter amid push into EVs, chips
Revenue from Xiaomi’s smartphone and smart devices segment reached US$13.2 billion, up 22.8 per cent from the same period a year ago
Xiaomi’s first-quarter revenue surged nearly 50 per cent, as the Chinese smartphone giant doubled down on new initiatives, including electric vehicles (EVs) and semiconductors.
Revenue for the three months ended March 31 reached 111.2 billion yuan (US$16.46 billion), up 47.4 per cent year on year, the company said on Tuesday. Adjusted net profit reached a record high of 10.68 billion yuan, up 64.5 per cent from the year-earlier period.
The results came in slightly above analysts’ expectations of 109 billion yuan in revenue, according to Bloomberg data.
Revenue from Xiaomi’s smartphone and smart devices segment came in at 94.7 billion yuan, up 22.8 per cent from the same period a year ago. First-quarter revenue from its smart EV, artificial intelligence (AI) and other new initiatives totalled 18.6 billion yuan, with 97 per cent – or 18.1 billion yuan – coming from EVs. However, these new initiatives, including EVs, generated 500 million yuan of losses in the quarter, according to the company.
The numbers represent the strongest-ever quarterly results for Xiaomi, partner and president Lu Weibing said during an earnings call on Tuesday.
The growth came amid increased research and development (R&D) spending despite the pressure it has placed on earnings in recent years, Lu said. Xiaomi will spend around 30 billion yuan on R&D this year, and roughly a quarter of that would be devoted to AI, Lu added.