Huawei's revenue jumps 34% in H1

Shenzhen-based Huawei Technologies reported its first-half revenue rose 34% from a year ago thanks to soaring smartphone sales and strong growth in its auto business.

Revenue was 417.5 billion yuan (US$58.9 billion) in the first six months of 2024, the company said last week. Based on the reported net profit margin of 13.2%, it can be calculated that its net profit jumped about 18% to 55.1 billion yuan.

Huawei’s net profit margin reached a record high of 15% last year, 5% in 2022, 9.8% in 2021, 9.2% in 2020, and 8.7% in 2019, showing that the company is moving toward normal operations since getting sanctioned by the United States.

“Our overall performance was in line with forecast,” said Eric Xu, rotating chairman of Huawei, as quoted by yicai.com. “Moving forward, we’ll continue aiming at high quality across all business processes, optimizing our portfolio to enhance business resilience, and building thriving ecosystems.”

Huawei’s consumer, smart vehicles, and cloud businesses were its key pillars, according to data from analysts and partners. However, the company did not disclose its income from each segment as it did last year. A private firm, Huawei’s earnings report followed the International Financial Reporting Standards (IFRS) but was unaudited.

Since releasing the Mate 60 series last August, Huawei’s smartphone market share in China has rebounded. Its domestic phone shipments surged 55.2% to 22.2 million units in the first half from a year ago, data from market researcher Canalys showed. The firm ranked first with a market share of 17.5%, according to International Data Corporation.

Attendees have a close look at Huawei-backed Stelato S9 at the three-day Big Data Expo held in Guiyang, Guizhou Province on Friday. Xinhua

Shenzhen Yinwang Intelligent Technology, Huawei’s smart auto business unit, reported a net profit of 2.2 billion yuan on revenue of 10.4 billion yuan, with the expected net profit attributable to the parent firm to reach 3.4 billion yuan this year, according to a previous report released by Huawei’s car-making partner Seres Group.

Sales of Aito electric vehicles (EVs), co-developed by Huawei and Seres, soared 680% to 181,000 units in the first six months from a year earlier. Sales via the Harmony Intelligent Mobility Alliance, Huawei’s most comprehensive partnership model with carmakers, reached 194,000 units.

China’s cloud infrastructure service market reached US$9.2 billion in the first quarter, according to data from Canalys. Huawei Cloud remained the second-largest cloud service provider, with a 19% market share.

Huawei still faces the challenges posed by the complex external environment, a source from the company said, adding that the core of its future sustainable development lies in a resilient supply chain.