Huawei Profit Drops 36 Percent in H1

Huawei reported a 36% decline in net profit in the first half of the year, largely due to rising input costs and major investments in research and development. These increased expenditures effectively offset the company's recorded revenue growth during the period.

For the period spanning January to June, net profit fell to 23.81 billion yuan ($3.54 billion), marking a faster decline than the 32% drop seen in the same period last year. At the same time, revenue grew by 9.6% to 467.82 billion yuan, indicating a steady recovery as the company continues to navigate the impact of US trade sanctions.

Huawei noted that its research and development expenditure rose 25.2% to 121.38 billion yuan, representing 25.9% of its total revenue, as the firm deepened its focus on AI, communications tech, and intelligent automotive solutions. Production costs rose by 12.4%, outstripping revenue growth, alongside a sharp rise in administrative expenses. While the company stated its first-half results were consistent with internal forecasts, the full-year outlook remains subject to review due to macroeconomic uncertainties and rising input costs.