Huawei, the Chinese tech giant, announced strong financial results for the first half of the year. The company reported a net profit of 54.9 billion yuan ($7.7 billion), marking an 18% increase from the same period last year. Revenue also saw a significant rise, climbing 34.3% to 417.5 billion yuan, the highest first-half revenue since 2020.
Huawei’s consumer business, including smartphones and PCs, performed well, along with its smart car components unit. In mainland China, the company shipped 22.2 million smartphones, indicating a 55% increase from the previous year. This growth is attributed to the success of Huawei’s Mate 60 series and high-end P series phones, which have primarily targeted the 5G premium smartphone market in China. Despite U.S. sanctions restricting access to advanced U.S. chips and technology, Huawei has managed to thrive, with the launches of its smartphones being celebrated in China.
The company has faced broadened U.S. sanctions, including export bans on advanced U.S. chips to Chinese firms, stemming from national security concerns. Huawei’s Intelligent Automotive Solution unit has experienced significant growth, aiming to establish itself as a leading supplier of software and components for smart electric vehicles.
The company’s information and communications tech infrastructure, cloud, and digital power divisions also showed consistent performance. It’s worth noting that the first-half profits were not inflated by the sale of businesses or assets, as was the case in the same period last year, according to a Huawei spokesperson.