(Yicai) May 28 -- Xiaomi, a Chinese maker of consumer electronics and electric vehicles, has reported record high earnings for the first quarter of the year, following strong sales of autos and smartphones.

Adjusted net profit surged 65 percent to CNY10.7 billion (USD1.5 billion) in the three months ended March 31 from a year earlier, the Beijing-based company said in an earnings report published yesterday. Revenue jumped 47 percent to CNY111.3 billion (USD15.4 billion).

Income from the EV, artificial intelligence, and other new initiatives segment reached CNY18.6 billion, with EVs accounting for over 97 percent. Despite logging a loss of CNY500 million (USD69.4 million), the segment's gross profit margin rose to 23.2 percent from 12.6 percent.

The SU7, the first car model Xiaomi launched in March last year, had income of CNY605.2 million in its debut quarter and deliveries reached 75,869 units last quarter. Total shipments have exceeded 258,000.

On May 22, Xiaomi unveiled its second model, the YU7, a high-performance sport utility vehicle. The car will go on sale in July and will be more expensive than Tesla's Model Y, which starts from CNY263,500 (USD36,575), because of its superior configurations, Chairman Lei Jun said previously.

The launch of the YU7 will not affect SU7 sales, so there will be no need to cut the latter's price, President Lu Weibing said on Xiaomi’s earnings conference call yesterday. The SU7’s production capacity remains severely limited, resulting in prolonged delivery times, he noted, adding that once both reach full output, their sales are expected to rival those of the Model 3 and Model Y.

Revenue from the smartphone and AI of Things segment rose 23 percent to CNY92.7 billion (USD12.9 billion). Xiaomi’s global phone shipments rose for a seventh straight quarter, climbing 4 percent to 41.8 million and maintaining its place as the world's third-largest maker with a 14.1 percent market share.

The average selling price of Xiaomi’s handsets rose 5.8 percent to CNY1,211 (USD168), Lu noted. Xiaomi's premium phone sales account for 25 percent of the total, while those priced between CNY4,000 and CNY6,000 make up 17 percent to 18 percent, with the firm targeting expansion in the ultra-premium segment above CNY6,000, where its market share is about 5 percent, Lu added.

Internet services revenue jumped 12.8 percent to CNY9.1 billion (USD1.3 billion) in the quarter, while that business’ gross profit margin topped 76.9 percent. 

Xiaomi's global monthly active users reached a record 718.8 million in March. Connected IoT devices on the AIoT platform increased 20 percent to 943.7 million units, excluding smartphones, tablets, and laptops.

Financial targets have not been set on self-developed chips, executives pointed out. Around five to 10 years are likely needed before achieving a reasonable financial model, with the focus remaining on building product capabilities rather than immediate returns, they added.

Xiaomi’s stock price [HKG: 1810] added 0.4 percent to close at HKD51.75 (USD6.60) in Hong Kong, after jumping by as much as 3.4 percent earlier today.

Editor: Martin Kadiev