Chinese tech firms post business growth in third-quarter numbers

Chinese tech firms, including Xiaomi, Kuaishou, Dada and Unisoc, posted business growth in the third quarter, thanks to an increased user base, technology development and a booming digital economy.

But they are also facing challenges like fierce competition and chip shortage.

In the third quarter, Xiaomi's adjusted net profit reached 5.18 billion yuan (US$809.3 million), a 25.4-percent growth from a year ago. Revenue grew 8.2 percent to 78.1 billion yuan, the HK-listed Xiaomi said.

By September, it was the first time for Xiaomi to reach a total of 500 million users of MIUI, an operating system connecting smartphones and IoT, or the Internet of Things devices.

Social media and video platform Kuaishou posted a revenue growth of 33.4 percent to hit 20.5 billion yuan in the third quarter, higher than market expectations, according to the HK-listed Kuaishou.

The business growth comes from "record-high" daily and monthly active user bases and average daily time spent on their platforms by netizens, said Cheng Yixiao, co-founder and chief executive of Kuaishou.

The Nasdaq-listed Dada, an on-demand delivery and retail platform, posted a revenue of 1.69 billion yuan in the third quarter, representing 86.4 percent growth year on year.

Dot-com firms like Kuaishou and Dada benefit from economic transformation and digital construction, creating booming digital economy opportunities.

In the third quarter, chip designer Unisoc posted revenue growth of 89 percent thanks to booming 5G smartphone demands.

The Shanghai-based Unisoc offers 5G chips and devices. It is the only commercial mobile chip designer on the Chinese mainland.

Unisoc now has 702 patents including 107 overseas patents or PCT or the Patent Cooperation Treaty. It has over 20 core 5G related patents covering base station, mobile end and system, said PatSnap, a patent analysis and consulting firm.

However, chip shortage is still a challenge. Xiaomi expects that the shortage situation may improve by the second half of 2022.