Huawei Reports 28% Drop in Net Profit for 2024
The Chinese technology giant cites increased future-oriented investments and lack of business sales gains as key factors.
Chinese technology conglomerate Huawei reported a net profit of 62.574 billion Chinese yuan (approximately 7.952 billion euros) for the year 2024, marking a 28% decline compared to its performance in 2023. The company's financial statement released on Monday attributes the drop in profits to heightened investments aimed at future growth and the absence of gains from the sale of business segments.
Revenue for 2024 saw a slight decrease from levels recorded in 2020, where Huawei achieved 891.368 billion yuan (about 122.912 billion dollars or 113.523 billion euros) right before the significant impact of U.S. sanctions, which limited the company's access to critical components and technologies over alleged ties to Chinese intelligence.
In terms of business segments, Huawei's infrastructure segment reported revenues of 369.903 billion yuan (47.010 billion euros), reflecting a 4.9% increase.
The terminal sales division recorded revenues of 339.006 billion yuan (43.084 billion euros), up 38.5%.
The cloud business generated 38.523 billion yuan (4.896 billion euros), marking an 8.5% increase, while the digital sector reached 68.678 billion yuan (8.728 billion euros), a 24.4% rise.
Notably, the smart automotive division experienced a staggering 474% increase in its revenue, totaling 26.353 billion yuan (3.349 billion euros).
Geographically, the revenue distribution shows that sales in Europe, the Middle East, and Africa (EMEA) amounted to 148.355 billion yuan (18.854 billion euros), a 2.1% increase.
Sales within China rose by 30.5% to 615.264 billion yuan (78.193 billion euros), while the Asia-Pacific region reported revenues of 43.306 billion yuan (5.503 billion euros), an increase of 5.5%.
Sales in the Americas totaled 36.301 billion yuan (4.613 billion euros), up 2.7%.
For the year 2024, Huawei allocated 179.700 billion yuan (22.834 billion euros) to research and development, representing 20.8% of its annual revenue.
This brings the total investment in R&D over the last decade to 1.24 trillion yuan (157.590 billion euros).
Meng Wanzhou, Huawei's rotating chairwoman, stated that operational results met expectations.
Looking ahead to 2025, the company plans to continue applying the principle of "winning by quality" across its management systems and business activities, aiming to adhere to quality objectives and enhance competitiveness in quality.
Revenue for 2024 saw a slight decrease from levels recorded in 2020, where Huawei achieved 891.368 billion yuan (about 122.912 billion dollars or 113.523 billion euros) right before the significant impact of U.S. sanctions, which limited the company's access to critical components and technologies over alleged ties to Chinese intelligence.
In terms of business segments, Huawei's infrastructure segment reported revenues of 369.903 billion yuan (47.010 billion euros), reflecting a 4.9% increase.
The terminal sales division recorded revenues of 339.006 billion yuan (43.084 billion euros), up 38.5%.
The cloud business generated 38.523 billion yuan (4.896 billion euros), marking an 8.5% increase, while the digital sector reached 68.678 billion yuan (8.728 billion euros), a 24.4% rise.
Notably, the smart automotive division experienced a staggering 474% increase in its revenue, totaling 26.353 billion yuan (3.349 billion euros).
Geographically, the revenue distribution shows that sales in Europe, the Middle East, and Africa (EMEA) amounted to 148.355 billion yuan (18.854 billion euros), a 2.1% increase.
Sales within China rose by 30.5% to 615.264 billion yuan (78.193 billion euros), while the Asia-Pacific region reported revenues of 43.306 billion yuan (5.503 billion euros), an increase of 5.5%.
Sales in the Americas totaled 36.301 billion yuan (4.613 billion euros), up 2.7%.
For the year 2024, Huawei allocated 179.700 billion yuan (22.834 billion euros) to research and development, representing 20.8% of its annual revenue.
This brings the total investment in R&D over the last decade to 1.24 trillion yuan (157.590 billion euros).
Meng Wanzhou, Huawei's rotating chairwoman, stated that operational results met expectations.
Looking ahead to 2025, the company plans to continue applying the principle of "winning by quality" across its management systems and business activities, aiming to adhere to quality objectives and enhance competitiveness in quality.
Translation:
Translated by AI
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
