Smartphone maker Xiaomi Corp posted a forecast-beating jump in third-quarter net income on Monday, while revenue also topped estimates as flat device shipments outperformed the wider market.

The company’s sales for the period totaled 70.9 billion yuan ($9.83 billion), beating an average estimate of 70.2 billion yuan from 13 analysts polled by LSEG.

“While we did not encounter many positive external factors, the achievements we were still able to make demonstrate an improvement in our overall capabilities,” Xiaomi President Lu Weibing said on an earnings call.

Xiaomi, China’s fifth-largest smartphone brand, shipped 9.1 million devices in China during the latest quarter, according to industry research firm Canalys.

Though that was little changed from a year earlier, Xiaomi outperformed peers, with overall industry sales dropping 5% year on year, according to Canalys.

Demand in the world’s biggest smartphone market has long been in decline, with the COVID-19 pandemic and then a weak economy persuading customers to wait longer before upgrading their phones.

But there have long some signs of recovery, including Xiaomi’s sales of more than 1 million units of its latest flagship smartphone in the week since its launch.

Xiaomi investors are also focused on signs of progress for its new electric vehicle division.

Last week, a unit of Beijing-based automaker BAIC Group applied to regulators for approval to manufacture two electric vehicle models under the Xiaomi brand name in a sign that production may start soon.

Xiaomi’s Lu reaffirmed its goal of mass producing vehicles in the first half of 2024 during the earnings call and signalled continued investment in the vehicle business, with car-related R&D personnel reaching 3,000 by the end of September.