AsianFin -- Chinese tech giant Huawei reported a 32% decline in net profit for the first half of 2025, as heavy research and development (R&D) investment continued to weigh on earnings, the company said on Friday.

Net profit for January through June fell to 37 billion yuan ($5.17 billion) compared with the same period last year, while revenue rose 4% to 427 billion yuan, marking Huawei’s highest first-half revenue since 2020.

The company spent 96.9 billion yuan on R&D in the first half, up from 88.9 billion yuan in the same period last year, reflecting its ongoing strategy to counter the impact of U.S. sanctions by investing heavily in domestic chip development and advanced technology.

Huawei has faced a U.S. ban on access to advanced chips since 2020, prompting the company to focus on building its own semiconductor capabilities and acquiring chipmaking equipment to reduce dependency on foreign suppliers.

The company also made a comeback in the 5G premium smartphone market in 2023 with its Mate 60 series, primarily sold in China, signaling its continued resilience despite international restrictions.