Huawei, with an eye on self-reliance, ploughs 25% of revenue into R&D at expense of profits

In its operations in the first half of 2026, Huawei will allocate more than one-fourth of its first-half revenue to research and development activities. Research and development expenses increased by 25% year-on-year, reaching 121.4 billion yuan (about 18 billion US dollars), accounting for over 25% of total revenue during that period. This high level of R&D investment led to a 36% decline in first-half profits. Huawei stated that this move is aimed at prioritizing long-term technical independence. Relevant financial data was disclosed to the Shanghai Clearing House on Monday.