Sou Hu Cai Jing·2025-09-02 00:48Core Insights - Alibaba's recent financial performance exceeded industry expectations, particularly with a 26% year-on-year growth in cloud business revenue, marking a three-year high [2][3] - Huawei's revenue increased by 3.95% to 427.04 billion yuan in the first half of 2025, but net profit fell by 32% to 37.20 billion yuan, indicating a significant drop in profitability despite revenue growth [2][3] - Both Alibaba and Huawei are heavily investing in R&D, with Alibaba committing over 100 billion yuan in the past four quarters and planning to invest 380 billion yuan over the next three years [2][3][4] Alibaba's Performance - Alibaba's strong performance is seen as a reflection of the resilience and upward trend of the Chinese economy [2] - The company has made substantial investments in AI infrastructure and products, which are beginning to yield positive results [2][4] Huawei's Financials - Huawei's profit decline is attributed to significant R&D expenditures, which reached 96.95 billion yuan in the first half of 2025, accounting for 22.7% of its revenue [3] - The company has maintained a long-term strategy of investing in core technologies, with over 1.25 trillion yuan invested in R&D over the past decade [3][4] Industry Trends - The current international environment, particularly U.S. restrictions on Chinese high-tech development, has prompted Chinese companies to focus on domestic alternatives [4] - The shift towards domestic substitution in technology sectors such as chips, operating systems, and cloud computing is becoming essential for Chinese enterprises [4] - The commitment to innovation and R&D by companies like Alibaba and Huawei is seen as a strategic response to external pressures, indicating a long-term vision for the Chinese tech industry [4]