(Yicai Global) Nov. 25 -- Shares of Xiaomi dropped as much as 5.3 percent despite China’s second-biggest smartphone maker posting record third-quarter earnings.

The company’s stock price [HKG: 1810], which has gained 143 percent this year, ended the day 3.7 percent lower at HKD26.15 (USD3.37).

Net profit rose 19 percent to CNY4.1 billion (USD622 million) in the three months ended Sept. 30 from a year earlier, the Beijing-based company said in an earnings report late yesterday. Revenue jumped 35 percent to CNY72.2 billion (USD11 billion) thanks to the brand’s growing popularity overseas.

Xiaomi recovered from the impact of the global pandemic in the third quarter. It was the world’s third-largest smartphone maker by shipment in the period, with a market share of 13.5 percent, according to tech market researcher Canalys. That put it ahead of Apple.

Xiaomi has been expanding its Internet of Things and wearables offering, but smartphones still made up most of the quarter's revenue. Handset sales hit CNY47.6 billion with a volume of 46.6 million units, both historic highs. 

The handset and wearables maker also logged other records. Overseas income jumped 52 percent to CNY39.8 billion as cooperation with distributors in 50 countries is bearing fruit. More than half of Xiaomi’s revenue was generated overseas for the first time.

Active monthly users of its operating system Miui reached 368 million in September, while the number of connected devices on its Artificial Intelligence of Things platform rose 36 percent to 289 million. These were also uniquely high figures.

Xiaomi will increase its investment in research and development to lead the sector in the field of cameras and fast charging, it said. The firm will also explore fifth-generation wireless technologies, it added. 

It did not offer guidance for the current quarter.

Editor: Emmi Laine