Huawei Reports Record Breaking Profit Despite US Sanctions

Huawei, a Chinese technology giant under U.S. sanctions due to suspected military ties, has defied expectations with a strong first-half performance.

According to the Chinese Business Network, the company’s revenue surged by 34.3% to CNY 417.5 billion, and net profit climbed 18.2% to CNY 55.1 billion. This marks Huawei’s most profitable first half ever, a testament to its resilience in the face of trade restrictions.

Before the U.S. imposed sanctions in mid-2020, Huawei’s best financial results were in the first half of that year. However, the sanctions dealt a significant blow to the company’s business. The record-breaking figures in 2024’s first half demonstrate Huawei’s remarkable recovery.

Huawei’s revenue for the first half of 2024 surpassed its previous high of CNY 454 billion set in 2020, falling just short of that record. Additionally, the company’s net profit reached a new milestone of CNY 55.1 billion, exceeding the CNY 50 billion mark for the first time. This represents a profit margin of 13.2%.

Huawei’s five main businesses are ICT Infrastructure, Consumer Business, Cloud Computing, Digital Power, and Intelligent Automotive Solutions. Although the company doesn’t share exact revenue figures for each, consumer products like its high-end Mate and P-series smartphones remain a major source of income. However, Huawei Cloud is growing the fastest.

These smartphones use Kirin and Ascend processors made by SMIC, a Chinese chipmaker. While this technology is considered a loss for SMIC, Huawei seems to have negotiated a deal where its contractor covers the costs.