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Huawei H1 net profit drops 36% as costs rise and R&D accelerates
First-half net profit fell to 23.81 billion yuan, while revenue grew 9.6% to 467.82 billion yuan as R&D spending climbed 25% to 121.38 billion yuan.
Huawei Technologies reported a 36% plunge in first-half net profit, driven by higher input costs and increased research and development spending that more than offset revenue growth, according to Reuters.
For January to June, net profit fell to 23.81 billion yuan, accelerating from a 32% decline in the same period a year earlier, while revenue rose 9.6% to 467.82 billion yuan as the company continued recovering from the impact of U.S. sanctions.
Huawei said R&D spending increased 25% to 121.38 billion yuan, reaching 25.9% of revenue, as it stepped up investment in AI, communications technology, smart devices, and intelligent automotive solutions.
The company also said memory chip price increases weighed on profitability in its consumer business, and that its full-year outlook remained under review due to external uncertainty and higher input costs.