Catenaa, Monday, March 31, 2025– China’s telecom giant Huawei Technologies net profits fell by 28% in 2024, the company said on Monday, as the company invested 20% of its sales revenue in R&D.
Huawei Technologies reported 62.6 billion yuan or $8.6 billion in net profit last year, down from 87 billion yuan the year before. Its revenue jumped 22% to $118.2 billion in 2024 while over 20% of sales revenue in the last three years were invested in R&D.
The company said it continued to increase investment in future-oriented basic research and innovation in domains such as AI, foundational technologies, and intelligent vehicles and as a result, its R&D expenses rose Year on year.
It said that it also continued to invest in the development of new business domains and ecosystem building, and its operating efficiency increased thanks to ongoing transformation, as a result, its selling and administrative expenses as a percentage of revenue decreased year on year.
One of China’s first global tech brands, Huawei, said its spending on R&D amounted to more than a fifth of its revenues, and more than half its workforce, or 113,000 people, are employed in R&D. Spending on R&D was 179.7 billion yuan (nearly $25 billion).
Citing national security concerns, the U.S. has banned American companies from doing business with Huawei, cutting off its access to advanced computer chips and software such as Google services for its smartphones. It is not allowed to sell its telecommunications gear to U.S. customers.
Its consumer unit, which sells smartphones and other devices, reported a 38.3% jump in revenue last year. Automotive services-related sales more than quadrupled. Revenues from Huawei’s cloud computing business climbed 8.5% and its digital power unit logged a 24.4% increase in sales.
