Chinese smartphone maker Xiaomi on Wednesday posted Q3 revenue of 53.6 billion yuan in revenue, and its adjusted net profit hit 3.47 billion yuan, meeting analyst expectations.

During the third quarter of 2019 that ended September 30, the Xiaomi Group’s total revenue increased by 5.5% year-on-year to RMB53.7 billion, making 3Q2019 the quarter with the highest total revenue since founding. Adjusted net profit was RMB3.5 billion, increased by 20.3% YoY. The Group’s total adjusted net profit in the first three quarters totaled RMB9.2 billion, already exceeded the net profit of last year.

Xiaomi Founder, Chairman and CEO Mr. Lei Jun said, “The Group has made continuous progress with the encouraging result of an expanded user base since the adoption of ‘Smartphone + AIoT’ dual-engine strategy. Following making the 2019 Fortune Global 500 List and Forbes Global 2000 List earlier this year, we also made our debut on the 2019 Fortune Future 50 List and Forbes’ Top 100 Digital Companies List, reflecting the international recognition that Xiaomi has gained with regards to its strength in digital economy and its business strategy. In anticipation of the upcoming era of 5G technology in 2020, the Group will continue to stay alert to market trends and operate prudently. With the Company’s healthy and stable cash flow and profitability, we are ready to capture and respond to the huge market opportunities that will arise from the widespread adoption of 5G technology, and plan to launch at least 10 models of 5G smartphone in 2020.”

In 3Q2019, due to the downturn in China’s smartphone market, the Group’s revenue from smartphones segment recorded RMB32.3 billion, down 7.8% YoY. Product profitability has been continuously improved, with the gross profit margin of smartphones segment reaching 9.0% in the third quarter, achieving a sequential growth of two consecutive quarters. The gross profit margins in the first quarter and the second quarter were 3.3% and 8.1% respectively. The Group’s smartphone sales volume reached 32.10 million units, ranked 4th globally in terms of smartphone shipments, according to Canalys.

Following the introduction of the first Xiaomi 5G smartphone Mi MIX 3 5G in Europe in February this year, Xiaomi launched its first 5G smartphone, Mi 9 Pro 5G in mainland China during the period. In September 2019, Xiaomi released its concept smartphone, Mi MIX Alpha, a futuristic 5G smartphone featuring the world’s first surround display and a screen-to-body ratio of 180.6%. The company introduced Mi CC9 Pro in November 2019, which is the first mass-produced smartphone to carry a 108MP penta-camera.

Xiaomi’s smartphones product portfolio has seen continuous optimization. The average selling price (“ASP”) of the Group’s smartphones in mainland China increased by 4.6% YoY.

As of September 30, 2019, the number of connected IoT devices (excluding smartphones and laptops) on Xiaomi’s IoT platform reached approximately 213 million units, increased by 62.0% YoY. The number of users who have five or more devices connected to the company’s IoT platform (excluding smartphones and laptops) increased to 3.5 million, up 78.7% YoY. Xiaomi’s AI assistant, one of the most active AI voice interactive platforms in mainland China, had 57.9 million monthly active users (“MAU”) in September.

In 3Q 2019, revenue of the IoT and lifestyle products business rose by 44.4% YoY to RMB15.6 billion, and the proportion of revenue gradually increased from 21.3% in 3Q2018 to 29.1% in the third quarter this year. Global shipments of Xiaomi’s smart TVs reached 3.1 million units, increased by 59.8% YoY.

At the same time, Xiaomi’s large home appliance business has also been developed. The Group launched 4 Mi Refrigerator in October, sustaining the cost-effective strategy. This means Xiaomi has officially entered the markets of air conditioners, refrigerators and washing machines, further expanded spectrum of products in the large home appliances category.

In the third quarter, revenue from the Group’s internet services segment grew by 12.3% YoY to RMB5.3 billion. In September 2019, MAU of MIUI recorded 292 million, increased 29.9% YoY. The proportion of revenue from newly developed business in Internet services continued to increase. Revenue in the third quarter accounted for 37.2% of total internet services revenue and representing a YoY increase of 87.8%. Newly developed business of Internet services means internet services outside of advertising and gaming from mainland China smartphones, including revenue generated from IoT (TV) internet services, overseas internet services, Youpin e-commerce platform and fintech business.

In recent years, Xiaomi has been committed to expanding its overseas market and the overseas business is quite large at present. The revenue from the overseas markets grew 17.2% YoY to RMB26.1 billion in the third quarter, accounting for 48.7% of total revenue.

Meanwhile, Xiaomi maintained a strong leading edge in India market. According to IDC, Xiaomi’s has ranked 1st in India in terms of smartphone shipments for nine consecutive quarters.