Xiaomi (OTC:XIACF) Corp reported a significant increase in third-quarter revenue, driven by strong consumer demand for its inaugural electric vehicle, the SU7 sedan.
The revenue for the quarter ending September 30 reached 92.5 billion yuan ($12.77 billion), surpassing the 91.1 billion yuan consensus estimate from analysts.
Despite the strong sales figures, Xiaomi’s auto division is still not profitable, posting an adjusted loss of 1.5 billion yuan for the quarter, even as it achieved a gross profit margin of 17.1%.
In response to the higher-than-expected demand, Xiaomi has revised its sales target upwards, now aiming to sell 130,000 units in the current year, a substantial increase from the initial target of 76,000.
Adjusted net profit increased 4.4% to 6.25 billion yuan, which also beat the consensus estimate of 5.92 billion yuan.
Looking ahead, Huatai Securities projects that Xiaomi will deliver 400,000 EVs by 2025, with the electric car segment expected to contribute around a fifth of the company’s revenue, up from 8% this year.
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