The revenue from Xiaomi's automotive and AI businesses has skyrocketed by nearly 200%, achieving operating profit for the first time in a single quarter.

Image source: Jiemian Image Library

On November 18th, Xiaomi Group released a rather impressive financial report for the third quarter of 2025. Data shows that in this quarter, Xiaomi Group's total revenue reached 113.1 billion yuan, a year-on-year increase of 22.3%, breaking through the 100-billion mark for four consecutive quarters; the adjusted net profit was 11.3 billion yuan, a year-on-year surge of 80.9%, hitting a record high.

Core performance data of Xiaomi's Q3 financial report

Xiaomi's automotive business and innovative businesses such as AI have become a major highlight in the financial report. The revenue of this business segment soared to 29 billion yuan in the third quarter, a year-on-year increase of 199.2%, hitting a record high. Among them, the revenue from intelligent electric vehicles increased by 197.9% from 9.5 billion yuan in the third quarter of last year to 28.3 billion yuan in the third quarter of this year, mainly due to the increase in both vehicle delivery volume and ASP (average selling price).

Particularly crucial is that Xiaomi's automotive and innovative business segments such as AI achieved single-quarter operating profit for the first time, with a single-quarter operating income of 700 million yuan.

Looking at the reasons for the growth, the decline in the cost of core components may be one of the important factors. With the continuous improvement of the supply chain system and the deepening of cooperation with suppliers, Xiaomi has obtained more advantageous prices in the procurement of key components. At the same time, the unit manufacturing cost has decreased due to the scale effect.

In the third quarter, Xiaomi delivered a total of 108,796 new vehicles, a record high. Mass production has reduced the manufacturing cost per vehicle through cost sharing. In addition, from the perspective of product structure, the Xiaomi SU7 Ultra started delivery in March 2025. The increase in the proportion of high-value-added product deliveries has boosted the overall revenue and profit levels. The ASP of vehicles has increased from 253,700 yuan to 260,100 yuan.

Lu Weibing, a partner of Xiaomi Group and the president of the group, revealed at the earnings conference call that Xiaomi's cars are expected to achieve the annual delivery target of 350,000 units this week.

As of September 30, 2025, Xiaomi has opened 402 car sales stores in 119 cities in the Chinese mainland.

Other business segments of Xiaomi also generally showed a growth trend. The revenue of the "Smartphone × AIoT" segment was 84.1 billion yuan, a year-on-year increase of 1.6%, still accounting for the majority of the revenue, with a proportion of about 74.4%. The shipment volume of smartphones was 43.3 million units, a year-on-year increase of 0.5%, achieving year-on-year growth for nine consecutive quarters. According to Omdia data, Xiaomi's global smartphone shipment volume ranked among the top three in this quarter, with a market share of 13.6%. This is also the 21st consecutive quarter that Xiaomi has ranked among the top three globally.

In the financial report, Xiaomi specifically mentioned the implementation effect of its high-end strategy. According to third-party data, in the third quarter, the sales volume of Xiaomi's high-end smartphones in the Chinese mainland accounted for 24.1% of the total smartphone sales volume, a year-on-year increase of 4.1 percentage points. Among them, Xiaomi's market share in the sales volume of smartphones in the price range of 4,000 - 6,000 yuan reached 18.9%, a year-on-year increase of 5.6 percentage points.

In September this year, Xiaomi released the new-generation flagship smartphone, the Xiaomi 17 series. This model is equipped with the fifth-generation Snapdragon 8 Extreme Edition mobile platform and comes with the Xiaomi HyperOS 3 system. Among them, the Xiaomi 17 Pro series includes two models, the Xiaomi 17 Pro and the Xiaomi 17 Pro Max, and is equipped with the back screen function for the first time. According to the data released by Xiaomi, in the first month of sales, the sales volume of the Xiaomi 17 series increased by about 30% year-on-year compared with the previous-generation Xiaomi 15 series. Among them, the sales volume of the Xiaomi 17 Pro and Xiaomi 17 Pro Max accounted for more than 80%.

The number of connected devices on the AIoT platform exceeded 1 billion for the first time in the third quarter, and the monthly active users reached 742 million. The revenue from Internet services reached a new high of 9.4 billion yuan, a year-on-year increase of 10.8%.

During the reporting period, the number of Xiaomi Homes in the Chinese mainland exceeded 18,000. Among them, the number of large stores with an area of more than 500 square meters reached about 210, and the number of new retail stores in overseas regions reached about 300, covering Southeast Asia, Europe, East Asia, and Latin America.

In terms of R & D investment, the company's R & D investment in the third quarter was 9.1 billion yuan, a year-on-year increase of 52.1%. The cumulative R & D investment in the first three quarters reached 23.5 billion yuan, and the number of R & D personnel reached a new high of 24,871.

In the first three quarters, Xiaomi's cumulative capital expenditure reached about 13 billion yuan, a year-on-year increase of 86.7%. Since the beginning of this year, the company's stock repurchase amount has been about HK$1.54 billion, that is, about 34.1 million shares.

This article is from Jiemian News, reporter: Song Jianan. It is published by 36Kr with authorization.