China's Xiaomi posts sales bump as EV deliveries speed up
by AFP Staff Writers
Beijing (AFP) Nov 18, 2024

Chinese consumer tech giant Xiaomi on Monday announced a surge in sales during the third quarter, propelled in part by accelerating electric vehicle deliveries after it entered the highly competitive sector this year.

Xiaomi built its name on a wide range of affordable products including smartphones, tablets and home appliances, only expanding into the crowded EV field with its own model earlier this year.

The Beijing-based firm announced revenue of 92.5 billion yuan ($12.8 billion) during the three months leading up to September 30, up 30.5 percent from the previous year, a filing at the Hong Kong Stock Exchange showed.

Deliveries of its SU7 EV -- launched in March this year -- reached 39,790 during the period, up from 27,307 in the second quarter and bringing in revenue of 9.5 billion yuan ($1.3 billion).

"In the third quarter of 2024... we continued to ramp up production and achieved our goal of cumulative production of 100,000 vehicles on November 13," the statement said.

Revenue from Xiaomi's vital smartphone business stood at 47.5 billion yuan ($6.6 billion), up 13.9 percent year-on-year but slowing from the 27.1 percent growth recorded in the second quarter.

The firm's overall profit during the third quarter reached 5.3 billion yuan ($730 million), up 9.7 percent year-on-year, the filing showed.

Xiaomi's latest results come amid signs of rebounding consumption in China, where household spending has yet to fully recover from the pandemic.

Gloomy consumer sentiment has been one of several woes facing policymakers this year in the world's second-largest economy, with sluggish spending raising fears of deflation.

But recent indicators suggest that efforts by Beijing to boost consumption -- including mortgage rate cuts and easing of home purchasing restrictions -- are having an impact.

Retail sales in China grew at 4.8 percent year-on-year in October, their fastest rate since the start of the year, official statistics showed on Friday.

Last week also saw two of the country's top e-commerce giants -- JD.com and Alibaba -- post revenue growth in their latest quarters, in further signs of a gradual recovery in domestic consumption.

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