By Yifan Wang

Xiaomi Corp. swung to a loss in the third quarter as higher investments to develop electric cars dragged profitability at a time of falling smartphone sales.

The Chinese smartphone maker posted net loss of 1.47 billion yuan ($205.9 million), compared with profit of CNY788.6 million a year earlier.

Revenue fell 9.7% to CNY70.47 billion, dragged by an 11% sales drop in its smartphone business, which makes up more than 50% of Xiaomi's top line.

"In the third quarter of 2022, global macroeconomic turbulence continued to weigh on global smartphone market demand," the company said.

Xiaomi's research and development expenses jumped 26%, as the company stepped up investment spending in a bid to expand into China's booming electric-car market.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

11-23-22 0514ET