Details
đź“ŠÂ Half-year results: Revenue edged up to CNY 427bn (USD 58.9bn), but net profit fell 32% to CNY 37.2bn (USD 5.2bn).
🧪 R&D in focus: Huawei invested CNY 97bn (USD 13.4bn) in R&D—around 23% of revenue, more than last year.
📱 Smartphones: With 12.5m units shipped, Huawei ranked No. 1 in China in Q2 for the first time in four years. However, total market volume in China shrank by 4%.
🧠 AI & chips: In-house Ascend chips and models like Pangu are gaining traction, while Beijing is urging firms to avoid U.S. tech.
💸 Higher costs: Selling and financing expenses added pressure, further squeezing margins.
Big Picture
Huawei is clearly betting on the future: near term, rising costs and a weak smartphone market weigh on results; longer term, the company is securing a pivotal role in China’s AI and chip strategy. For investors, it’s a wager that heavy R&D spend will convert into technological leadership and steadier profits.
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
