1 min read.Updated: 23 Nov 2021, 07:28 PM ISTYongchang Chin, The Wall Street Journal
The Chinese smartphone maker reported a growing physical-store footprint, with the total number of retail stores in mainland China surpassing 10,000
Xiaomi Corp.’s third-quarter net profit fell steeply from a year earlier, weighed by long-term investments in other companies, the Chinese smartphone maker said.
Xiaomi said Tuesday that the listed companies in which it invested generated total losses of CNY3.5 billion, which had a substantial impact on its net profit. The company posted a third-quarter net profit of CNY788.6 million compared with CNY4.86 billion a year earlier.
The company’s revenue grew 8.2% to CNY78.06 billion.
Xiaomi’s smartphone business improved, with smartphone revenue in the quarter coming in at CNY47.8 billion. It added that gross margins rose 4.4 percentage points to 12.8%. Despite the global shortage of key electronic components, Xiaomi’s global smartphone shipments reached 43.9 million, it said.
It also reported a growing physical-store footprint, with the total number of retail stores in mainland China surpassing 10,000.
Xiaomi also added that it was making progress with its smart electric-vehicle business. It now has a team of 500 people in this business and expects to launch mass production of smart electric vehicles in the first half of 2024.