Chinese Telecom giant Huawei posted revenue of 132 billion yuan in Q1, up by 0.8 percent year on year. Its net profit margin hit a five-year-low at 2.3 percent. Huawei’s net profit in Q1 fell 46.1 percent to 3 billion yuan.
Huawei said that its results were in line with expectations, and the company continues to increase investment in R&D.
Huawei's decline in net profit may be due to investment in R&D for basic software and hardware. This led to Huawei's net profit to a historic low in 2022 when revenue grew by less than 1 percent. However, at the same time, Huawei's total R&D expenses amounted to 161 billion yuan.
Non-market factors continue to affect the company's operations and will continue to. To ensure the business survives, high-intensity investment in R&D will continue.
On April 17, Huawei launched its advanced driving system, however, the automotive business also met setbacks in Q1. Despite this, Huawei's automotive business, cloud services, and other businesses continue to grow.
