On April 30th, Huawei disclosed its operating performance for the first quarter of 2024. During the period, the company achieved operating revenue of approximately CNY 178.45 billion, a year-on-year increase of 36.66%; net profit attributable to shareholders was approximately CNY 19.65 billion, a year-on-year increase of approximately 564%, with a net profit margin of 11%.
According to the previously announced 2023 annual report data, the recovery of the terminal business has become an important driver of performance improvement. Due to the outstanding performance of the Mate 60 series smartphones and the HarmonyOS ecosystem, Huawei's terminal business revenue in 2023 was CNY 251.5 billion, a year-on-year increase of 17.3%, returning to a growth trajectory.
The significant increase of 564% in net profit is largely related to the poor performance in the first quarter of 2023 when it reached a ten-year low with revenue of CNY 132.1 billion and a net profit margin of only 2.3%，but it is worth noting that the smart car business solutions are expected to turn losses into profits. In March, Richard Yu stated that Huawei's car business unit (BU) recorded losses of CNY 10 billion in the past year, then CNY 8 billion, and CNY 6 billion last year. Currently, the car BU is close to breaking even, and it is expected to turn losses into profits from April onwards, achieving positive and sustainable development. By the first three months, the intelligent selection vehicle business has already turned profitable.
