XIAOMI(HK:01810) Nan Fang Du Shi Bao·2025-11-18 16:04Core Viewpoint - Xiaomi's automotive division has finally turned profitable after more than a year of selling cars, achieving a significant milestone in its business development [1][6]. Financial Performance - In Q3 2025, Xiaomi reported total revenue of RMB 113.1 billion, a year-on-year increase of 22.3% but a quarter-on-quarter decrease of 2.4% [2][4]. - Adjusted net profit for the same period was RMB 11.3 billion, reflecting an 80.9% year-on-year growth and a 4.4% quarter-on-quarter increase [2][3]. - The gross profit margin for the overall business was 22.9%, with a notable increase in operating profit by 150.1% year-on-year [2][3]. Automotive Business - The automotive segment generated RMB 29 billion in revenue, marking a historical high with a year-on-year growth of 199.2%, and accounted for 25.6% of total revenue [6][8]. - For the first time, the automotive division achieved an operating profit of RMB 700 million in Q3 [1][6]. - Xiaomi delivered 108,796 vehicles in Q3, and is on track to meet its annual delivery target of 350,000 vehicles [1][8]. Smartphone and AIoT Business - The smartphone and AIoT segment generated RMB 84.1 billion in revenue, representing 74.4% of total revenue, with a slight year-on-year increase of 1.6% [3][4]. - The gross margin for the smartphone and AIoT business was 22.1%, up 1.3% year-on-year [3][4]. - Xiaomi's smartphone sales ranked second in the domestic market, with a market share of 18.9% in the RMB 4,000-6,000 price range, an increase of 5.6% year-on-year [4][5]. Research and Development - Xiaomi's R&D investment reached RMB 235 billion in the first three quarters, with a record high of 24,871 R&D personnel [8][10]. - The company is focusing on AI development, with significant outputs from its AI team within a year of formation [8][10]. Future Outlook - The company anticipates challenges in 2026, particularly regarding automotive gross margins due to potential changes in tax policies and increased competition in the automotive sector [1][8]. - Xiaomi aims to expand its presence in the high-end smartphone market, particularly in the RMB 6,000+ segment, leveraging the success of its Xiaomi 17 series [5][8].