XIAOMI(HK:01810) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-20 04:53Core Insights - Xiaomi Group reported a total revenue of 113.1 billion yuan for Q3 2025, representing a year-on-year growth of 22.3%, with adjusted net profit reaching 11.3 billion yuan, up 81%, marking a historical high [1][4] - The company successfully transitioned between old and new growth engines, with innovative businesses like smart electric vehicles and AI achieving profitability for the first time in a single quarter, while the traditional smartphone business faced pressure due to rising memory costs [1][4] Financial Performance - The automotive business delivered 108,796 vehicles in Q3, with a total of 265,967 vehicles delivered in the first three quarters, and a monthly delivery of over 40,000 units in October, achieving profitability with a net profit of 6,434 yuan per vehicle sold [4][6] - The smartphone business faced challenges, with global shipments of 43.3 million units and revenue of 45.969 billion yuan, leading to a decline in gross margin to 11.1% due to rising costs of core components [6][5] Business Segmentation - Internet services generated revenue of 9.4 billion yuan in Q3, a 10.8% increase, primarily driven by strong advertising performance [7] - IoT business revenue reached 27.6 billion yuan, maintaining year-on-year growth for seven consecutive quarters, with a gross margin of 23.9% [9][8] R&D and Long-term Strategy - R&D expenditure in Q3 amounted to 9.1 billion yuan, a 52.1% increase, with total R&D investment for the first three quarters nearing last year's total, expected to exceed 30 billion yuan for the year [11][12] - The company is focusing on core technologies and frontier fields, with capital expenditure for the first three quarters at 13 billion yuan, reflecting long-term strategic investments [12][10] Market Outlook and Challenges - Despite achieving profitability in the automotive sector, the company anticipates challenges in 2026 due to reduced purchase tax subsidies and intensified competition [12] - The smartphone business continues to face long-term pressure from rising memory costs, while the IoT sector is experiencing a transitional phase in the domestic appliance market [12][6]