CFP

AsianFin -- Huawei reported on Monday a significant year-over-year increase of 22.4% in 2024 revenue and the highest growth rate in five years, after a few years in the “survival mode.”

The 2024 revenue hit 862.1 billion yuan ($118.2 billion), representing the company's second-highest revenue to date, just shy of its record 891.4 billion yuan in 2020.

Despite the revenue boost, net profit fell by 28% to 62.6 billion yuan due to growing investments in research and development. The company continues to navigate the challenges posed by U.S. sanctions, which have restricted its access to crucial technologies like semiconductors.

“In 2024, Huawei's team united to overcome external challenges while improving product quality, operations, and efficiency,” said Huawei's rotating chairwoman, Meng Wanzhou, in the annual report.

Huawei's R&D expenditure reached 179.7 billion yuan, making up 20.8% of its revenue and representing an increase from 2023's R&D investment of 164.7 billion yuan.

Huawei, headquartered in the southern city of Shenzhen, attributed its profit decline to two key factors: "We continued to boost investments focused on the future, and there were no proceeds from business divestitures."