Xiaomi’s net loss in the third quarter was 1.48 billion management: car manufacturing will not be affected and will be mass-produced next year

On the evening of November 23, Xiaomi disclosed its results for the third quarter of 2022. The financial report shows that in the third quarter of this year, Xiaomi’s total revenue was 70.47 billion yuan, a year-on-year decrease of 9.7%; the net profit attributable to the parent was -1.476 billion yuan, and the adjusted net profit was 2.117 billion yuan, a year-on-year decrease of 59.1%.

In the subsequent conference call, Xiaomi’s management stated that the main reason for the decline in revenue and net profit was that the fair value of the listed companies invested by Xiaomi has declined due to the impact of the stock market downturn, but this is not the case. Xiaomi’s actual performance is not Xiaomi’s operating loss.

From the perspective of segmented business, in the third quarter, Xiaomi’s smartphone business revenue fell by 11.1% year-on-year to 42.5 billion yuan, mainly due to the decline in smartphone shipments and ASP. The revenue of IoT and consumer products decreased by 9.0% from RMB 20.9 billion in the third quarter of 2021 to RMB 19.1 billion in the third quarter of 2022. Internet service revenue decreased by 3.7% year-on-year to RMB 7.1 billion.

For the car-making business that the industry is concerned about, Xiaomi’s management is optimistic and said that there are currently more than 1,800 R&D personnel, and it is expected to be officially mass-produced in the first half of 2024. It is reported that the investment in smart electric vehicles was 830 million in the third quarter, and the total investment in the first three quarters was 1.86 billion. The current investment efficiency and investment scale will not have a major impact on the operation of the entire group.