Huawei Investment & Holding Co. reported first-half 2026 revenue of 467.82 billion yuan (about $69.8 billion), up 9.6%, while net profit fell about 36% to 23.81 billion yuan (about $3.55 billion) and net profit attributable to the parent dropped roughly 36.8% to 23.43 billion yuan. The earnings slide was steeper than the 32% decline in the year-earlier half, as operating costs rose faster than sales, operating profit fell 26.82% and the operating margin narrowed to 7.01% from 10.49%. Research and development spending climbed about 25% to a same-period record of 121.38 billion yuan, or roughly 25.9% of revenue, mainly for artificial intelligence, chips, communications, smart terminals and smart automotive solutions as the company builds a domestic technology stack under U.S. export controls. Net operating cash flow swung to a 39.88 billion yuan outflow, inventory jumped 42.3% to 277.49 billion yuan and the asset-liability ratio rose to 58.31%. Huawei said the half was in line with expectations and that every business unit posted year-over-year revenue growth, but higher memory-chip and other input costs, elevated R&D and business-mix adjustments continue to pressure margins, leaving the full-year outlook under evaluation after 2025 revenue of 880.9 billion yuan, the second-highest on record.