Chinese tech giant Huawei reported a net loss of 300 million yuan (around US$41.3 million) for the December quarter, which marks its first quarterly loss in several years.

The loss occurred despite an increase in R&D spending in areas such as electric vehicle software and semiconductors amid a slowdown in overall business growth.

Revenue for the quarter rose 9.5% to approximately 276 billion yuan (around US$38 billion), according to Huawei’s annual results.

The company had previously experienced double-digit revenue growth, largely driven by the popularity of its Mate smartphones. These devices gained market share in China at the expense of Apple.

In 2024, Huawei increased its investments in technology development, allocating 179.7 billion yuan (around US$24.76 billion) to R&D. This amount represents a 9.1% increase from 2023 and is equivalent to about 20% of its total revenue.

Despite the quarterly loss, some business divisions reported growth. The smart driving solutions segment became profitable for the first time, benefiting from the rising adoption of electric vehicles in China. Revenue in this division more than quintupling last year.

Additionally, Huawei’s consumer products group, which includes handsets and laptops, saw a 38% revenue increase in 2024.

Huawei’s cloud computing division grew by 8.5% in 2024, aided by rising demand for AI-related services. This growth was also supported by restrictions on American-made Nvidia GPUs due to US sanctions.

Its core telecommunications business, a significant factor in its global expansion, grew by 5% last year. However, it continues to face challenges from US efforts to limit partnerships with European carriers.

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