Huawei (HUAWEI) H2 2024 earnings summary

Executive summary

• 2024 revenue reached CNY862.1 billion, up 22.4% year-over-year, with net profit at CNY62.6 billion, down 28% year-over-year.

• All major business segments grew, with Consumer, Cloud Computing, Digital Power, and Intelligent Automotive showing strong momentum.

• R&D investment hit CNY179.7 billion, 20.8% of revenue, supporting innovation in AI, cloud, and intelligent automotive.

• HarmonyOS ecosystem surpassed 1 billion devices, and intelligent automotive solutions turned profitable for the first time.

• Performance was in line with forecasts, despite global economic and geopolitical challenges.

Financial highlights

• Revenue: CNY862,072 million (+22.4% YoY); Net profit: CNY62,574 million (-28% YoY); Operating profit: CNY79,361 million (-24% YoY).

• Gross margin: 44.4% (down 1.8pp YoY); Operating margin: 9.2% (down 5.6pp YoY).

• Cash flow from operating activities: CNY88,417 million (+26.7% YoY).

• R&D expenses: CNY179,687 million (+9.1% YoY), 20.8% of revenue.

• Total assets: CNY1,290,149 million (+2.1% YoY); Equity: CNY544,619 million (+7.3% YoY).

Outlook and guidance

• Continued focus on high-quality growth, innovation, and ecosystem development across all business lines.

• Strategic investment in AI, cloud, and foundational technologies to drive future competitiveness.

• Expectation of ongoing global economic headwinds, but confident in resilience and long-term growth.