Huawei, the Shenzhen-based Chinese technology company behind telecoms equipment, smartphones, and AI chips, said on August 31 that first-half net profit fell 36% year on year to 23.8 billion yuan (US$3.54 billion).

Revenue rose 9.6% to 467.8 billion yuan (US$69.6 billion), as higher input costs and research spending weighed on profitability.

Research and development spending climbed 25% to 121.4 billion yuan (US$18.1 billion), or 25.9% of revenue, as Huawei increased investment in AI, communications technology, smart devices, and intelligent automotive solutions.

Huawei said higher memory chip prices and changes in its business mix also hurt profitability. The company added that its full-year outlook remains under review because of external uncertainty and rising costs.

Huawei has been rebuilding after sanctions and export controls imposed by the US restricted its access to advanced chips and Google’s Android operating system.

🔗 Source: Reuters

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