Huawei on Friday reported a 32% year-on-year decline in first-half net profit, despite modest revenue growth, as rising costs and investment pressures weighed on earnings. The company posted revenue of RMB 427.04 billion ($58.5 billion) for the six months ended June, up 3.95% from a year earlier. Net profit came in at RMB 37.195 billion ($5.1 billion). R&D spending rose 9.04% to RMB 96.95 billion ($13.3 billion), representing 22.7% of revenue, as Huawei increased investment in AI computing, foldable devices, and smart vehicles. Consumer business showed signs of recovery, with HarmonyOS 5 devices exceeding 12 million units and smart vehicle deliveries reaching nearly 900,000. However, operating costs climbed 9.33%, while fair value losses widened to RMB 5.84 billion ($0.8 billion). Higher costs for advanced chips further pressured profitability. [Yicai, in Chinese]
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