Financial Performance - Huawei achieved revenue of 427.04 billion yuan in the first half of the year, a year-on-year increase of 3.95%, while net profit decreased by 32% to 37.195 billion yuan [1] - R&D investment reached 96.95 billion yuan, up 9.04% year-on-year, accounting for 22.7% of total revenue [1] - Despite revenue growth, Huawei's profitability is under pressure due to a complex competitive environment [1] Market Position - Huawei regained the top position in the Chinese smartphone market after four years, with a shipment of 12.5 million units, despite a 4.1% decline in the overall market [1] - The company's consumer business, smart automotive, and Huawei Cloud are identified as key performance drivers [1] Automotive Sector - Huawei's automotive division, Hongmeng Zhixing, aims to deliver over 900,000 vehicles by August 2025, with a projected revenue growth of 4.7 times in 2024 and achieving profitability in its first year [1] - The automotive sector faces increasing competition from companies like Li Auto and Xpeng, which are launching high-cost-performance models [2] Cloud Computing and AI - Huawei is focusing on cloud computing and AI as critical future growth areas, building an ecosystem around Ascend processors and MindSpore framework [2] - The launch of CloudMatrix384 super node, featuring 384 Ascend NPUs and 192 Kunpeng CPUs, aims to enhance AI computing capabilities, achieving a performance scale of 300 PFlops [2] - Huawei Cloud's overall computing power has increased by nearly 250% year-on-year, with the number of clients using Ascend AI cloud services rising from 321 to 1,714 [3]

Core Industry Insights - The ultra-high-definition video display industry is one of the ten strategic pillar industries in Guangdong, with Guangzhou projected to achieve an output value exceeding 200 billion yuan in 2024, reflecting a nearly 8% year-on-year growth [1] - The production capacity for ultra-high-definition panels, display modules, polarizers, and ultra-high-definition TV boards ranks among the top in the country [1] Application and Market Reach - Smart screens have a wide range of applications beyond traditional devices like TVs and tablets, including interactive blackboards in classrooms and smart appliances [6] - The core components of these smart screens are in high demand globally, indicating a robust market presence [2] Manufacturing and Technology - A major smart manufacturing facility produces 10 million display motherboards annually, with one in three televisions globally using its motherboards [7] - Each motherboard contains over 1,700 components, with more complex displays having up to 2,000 components [7] Quality Control and Efficiency - The manufacturing process employs AI and machine vision for quality control, achieving micron-level precision in component inspection, significantly improving efficiency by over two times [9] - The facility has established a pilot line for testing new technologies and materials in production, contributing to a 16.8% growth in overseas business in 2024 [10] Industry Cluster Development - The new display industry chain is rapidly clustering, with over 130 large-scale enterprises in the Guangzhou Development Zone, covering the complete industry chain [11] - The ultra-high-definition industry cluster is expected to surpass 900 billion yuan in revenue in 2024, moving towards a trillion-yuan industry cluster, thus injecting new momentum for high-quality development [11]

Group 1: Market Overview - In 2024, the expected shipment of Mini LED TVs is 8.2 million units, with a penetration rate of 3.8%. By 2025, shipments are projected to reach 11.56 million units, representing a year-on-year growth of approximately 50% [2][3] - The global market share of the company's backlight modules in 2024 is estimated to exceed 10% based on shipment volume [3][4] - The combined market share of major brands like Hisense, TCL, and Xiaomi in the Mini LED TV segment is 64%, indicating a dominant position of Chinese solutions in this hot category [3][4] Group 2: Financial Performance and Projections - The company's Mini LED backlight module revenue in Q1 2025 has increased by over 100% year-on-year [4][5] - For 2025, the revenue target for display modules is set between 1.2 billion to 1.5 billion CNY, while the revenue from automotive display business is projected at 50 million CNY. The net profit target for achieving stock incentive goals is approximately 170 million CNY [5][6] Group 3: Industry Trends and Policies - Recent government policies promoting consumption through subsidies for replacing old products have significantly boosted demand, although the core demand for high-quality display parameters remains unchanged [3][4] - The display industry is experiencing stable global shipment volumes of around 200 million units, with a clear trend towards smart screens and technology-driven demand [4][5] Group 4: Strategic Focus and M&A Outlook - The company maintains an open attitude towards mergers and acquisitions within the industry, focusing on next-generation display technologies and applications in AI and health [6] - The strategic focus for 2025 is on core module development, accelerating automotive display business, and actively engaging in MicroLED material applications [5][6]

Core Viewpoint - Huawei's Spring Service Event offers multiple benefits to consumers, enhancing user experience through various services and discounts [1][4][9] Group 1: Event Details - The event runs from May 6 to May 15, providing discounts such as 8.8% off on certain spare parts and a 9.9 yuan shell replacement for select devices [1][5] - Users can enjoy free screen protection film application for mobile and wearable devices, including foldable screens, enhancing user experience [4][5] - Free basic cleaning and UV disinfection services for wearable devices are also included, addressing user concerns about device maintenance [4][5] Group 2: Service Accessibility - Huawei has established over 2,100 service stores and more than 20,000 service pickup points, covering 99% of prefecture-level cities and 92% of counties [7] - The company offers 24/7 customer service through various online platforms, ensuring easy access to service information and support [7] Group 3: Professionalism and Differentiation - All repairs utilize official original parts, conducted by professional service engineers with automated tools, ensuring precision and efficiency [7][9] - The event reflects Huawei's commitment to consumer-centric service, transforming technical capabilities into tangible user care [9]

Core Viewpoint - Huawei is leveraging its HarmonyOS ecosystem and service upgrades to enhance consumer experience and stimulate market demand during the Spring season through its "Spring Service Benefits" campaign [1][2]. Group 1: Service Offerings - Huawei is offering various service benefits from April 15 to May 15, including an 8.8% discount on certain spare parts and low-cost maintenance options such as a 9.9 yuan shell replacement for specific models [1][2]. - The campaign includes free screen protection film and screen testing services, allowing users to refresh their devices at minimal costs [2]. Group 2: Service Network - Huawei has established over 2,100 official service stores and more than 20,000 pickup points across 99% of prefecture-level cities and 92% of counties in China, creating a comprehensive service network [2]. - The service centers are equipped with nearly 200 specialized repair tools and 100% automated disassembly/assembly tools, achieving a disassembly success rate of 99% [2]. Group 3: Consumer Privacy and Engagement - Huawei has introduced a repair mode to protect consumer privacy, ensuring that personal data is isolated during the repair process [3]. - The company has initiated various community engagement activities, such as the "Love Station" program, which has provided care to over 400,000 outdoor workers since 2020, enhancing brand trust and consumer relationships [3]. Group 4: Brand Strategy - Huawei is redefining the temperature of technology companies by combining "hardcore technology" with "flexible services," aiming to create a deep connection with users through detailed service touchpoints [3].