(Yicai) May 24 -- Xiaomi Automobile, the Chinese smartphone giant's electric vehicle unit, has set a goal to deliver between 100,000 and 120,000 units this year and is also developing new models, according to the parent firm's president.

Xiaomi will firmly invest in intelligent driving in 2024, with a budget of about CNY1.5 billion (USD207 million), Lu Weibing said on an earnings conference call yesterday. It is also planning further store expansion and raising its shopping centers' outlet area to over 500 square meters, he added.

Xiaomi Auto has received 88,063 irrevocable orders for its first model, the SU7, as of April 30. By the end of this year, it plans to expand its sales and service network to 219 stores covering 46 Chinese cities and 143 service centers across 86 cities.

The Beijing-based company's smart driving team has over 1,000 workers, with its intelligent driving program Xiaomi Pilot Max scheduled to launch the Navigate on Autopilot function in 10 cities by the end of this month and fully cover the Chinese mainland by the end of August. The SU7, with built-in Xiaomi HyperOS, will make interconnectivity possible across vehicles, smartphones, and the firm's intelligent devices.

Xiaomi's net profit fell 1 percent to CNY4.2 billion (USD590.6 million) in the three months ended March 31 from a year earlier, while its revenue jumped 27 percent to CNY75.5 billion (USD10.4 billion), its earnings report showed yesterday. Its adjusted net profit more than doubled to a record CNY6.5 billion.

Xiaomi's income from its smartphone business rose 33 percent to CNY46.5 billion, with global handset shipments jumping 34 percent to 40.6 million units.

The phone business growth this quarter will hopefully keep pace with the previous one, Lu noted. Based on a conservative estimate, Xiaomi's smartphone shipments may exceed 160 million units in the first half, up over 15 million units from a year earlier, Lu said, adding that the company has confidence in annual shipments and business growth.

Xiaomi's research and development spending rose 27 percent to CNY5.2 billion in the first quarter from a year ago, mainly due to higher expenditure in innovative businesses such as its smart EV segment.

Shares of Xiaomi [HKG: 1810] dropped 3.5 percent to HKD18.28 (USD2.34) apiece as of 10.35 a.m. in Hong Kong today.

Editor: Martin Kadiev