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on the afternoon of august 29, huawei quietly released its 2024 semi-annual report on its official website. in the first half of this year, the company achieved sales revenue of 417.5 billion yuan, a year-on-year increase of 34.3%, and a net profit margin of 13.2%. the reporter noticed that huawei did not directly announce the net profit amount, which was calculated based on the above data to be 55.1 billion yuan.

regarding its operating performance, huawei said that its overall operations were stable and the results were in line with expectations. huawei's rotating chairman xu zhijun said: "the overall operating conditions of the group are in line with expectations. we will implement the company's 'high quality' strategy throughout the entire process, continue to optimize the industry portfolio, enhance development resilience, build a prosperous industry ecosystem, and contribute more competitive products and solutions to customers." however, huawei did not disclose specific data on its business segments.

the terminal industry stopped its downward trend and huawei's domestic mobile phone shipments reached 22.2 million units in the first half of the year

in the first half of last year, huawei achieved sales revenue of 310.9 billion yuan and a net profit margin of 15%. in contrast, in the first half of this year, huawei's revenue increased by 106.6 billion yuan, but its net profit margin decreased. in fact, the first half of 2023 was the highest level of net profit margin for huawei's semi-annual reports in the past five years. (from 2019 to 2023, huawei's net profit margins in the semi-annual reports of each year were 8.7%, 9.2%, 9.8%, 5.0% and 15.0% respectively.)

as a highly watched business, the terminal has stopped its downward trend since 2023. canalys data shows that huawei's domestic market shipments in 2022 were 22.6 million units, a year-on-year decline of 30.1%; shipments in 2023 were 33.5 million units, a year-on-year increase of 47.9%; in the first half of this year, huawei's domestic smartphone shipments reached 22.2 million units, a year-on-year increase of 55.2%, and has been ranked among the top five in the domestic market for three consecutive quarters.

this reflects that the adverse impact of the supply chain on huawei is gradually weakening. qi yingnan, head of china research at counterpoint research, recently talked to reporters including reporters from the daily economic news about the competitive landscape of the chinese smartphone market. "after the return of the kirin 5g chip, huawei's overall market share has rebounded significantly; in addition to huawei, domestic high-end products such as vivo, oppo, xiaomi, and honor are progressing steadily. among them, vivo's market share in the price range of us$600 to us$800 has exceeded 8%. in the market above 4,000 yuan, domestic brands as a whole have seen a significant increase in share, while apple's mobile phone sales in the first half of this year fell 13% year-on-year." however, through price cuts and promotions, apple ranked third in china with a share of 15.6% in the first half of the year, followed by huawei with 15.4%.

in addition, with the collaboration with mobile phones, huawei shipped 11.2 million wearable wristband devices worldwide in the first half of this year, with a market share of 13.0%, and a shipment increase of 42.7% over the same period last year. on august 28, huawei also released the xuanji perception system, which will be used in smart wearable devices. it is reported that huawei continues to invest in basic research in optics, electricity, materials, etc., so that the system can achieve higher accuracy and speed in vital sign data monitoring, and can overcome the influence of factors such as wrist thickness and weather changes on data monitoring.

as for hongmeng, canalys data shows that in the first half of this year, the shipment of smartphones equipped with hongmeng operating system increased by 66.7% year-on-year, and the market share increased to 17.2%, ranking second among all operating systems. "the growth of hongmeng system installation is expected to attract more third-party developers to join the ecological construction, and it is expected to form a three-legged situation with android and ios."

the vehicle bu turned losses into profits

in the past few years, the car bu was the only loss-making sector of huawei, but this year, the business has turned losses into profits. recently, seres (sh601127, stock price 71.93 yuan, market value 108.6 billion yuan) released several announcements revealing the detailed financial data of huawei's car bu. among them, there is an announcement that it intends to purchase 10% of the equity of shenzhen yinwang intelligent technology co., ltd. (formerly huawei's car bu, which has not yet completed the business loading, hereinafter referred to as "shenzhen yinwang") held by huawei.

according to the announcement of seres, the financial data of shenzhen yinwang in 2022, 2023 and the first half of 2024 showed that the company achieved revenue of 2.098 billion yuan, 4.7 billion yuan and 10.435 billion yuan respectively, and the corresponding net profits were -7.587 billion yuan, -5.597 billion yuan and 2.231 billion yuan respectively. during the same period, the company's main business gross profit margin was 17.73%, 32.13% and 55.36% respectively. in addition, the estimated net profit attributable to the parent company in 2024 is 3.351 billion yuan.

in terms of sales, canalys data shows that in the first half of 2024, the sales volume of huawei hongmeng zhixing (including askjie, zhijie, enjoyjie and zunjie) was 194,000 units, accounting for 2% of the market sales. among them, aito askjie sales reached 181,000 units, and askjie m9 and m7 were the main drivers of sales growth, with the former selling 59,000 units and the latter selling more than 110,000 units. last october, yu chengdong, huawei's executive director and chairman of the intelligent automotive solutions bu, used the phrase "it's not easy to come back to life" to comment on the hot sales of huawei askjie's new m7 (a model). however, the sales volume of the avita brand, which adopts the hi model, was only 18,000 units.

since entering the automotive business in 2019, huawei has mainly adopted three modes to cooperate with car companies: the first is the parts supply model, in which huawei provides arhud, lidar, thermal management, electric drive and other parts; the second is the hi (huawei inside) model, which provides car manufacturers with full-stack smart car solutions such as smart cockpit, smart driving, and smart car cloud. under this model, huawei's former partners include baic arcfox, gac aion, changan avita, etc. at present, under this model, huawei's cooperation with avita is still ongoing; the third is the smart car model (hongmeng zhixing), which is mainly for the smart car business that intervenes in product development and channels. for example, huawei's cooperation with seres, wenjie, and its cooperation with chery both adopt this model.

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