Core Insights - Huawei Technologies Co., Ltd. reported a sales revenue of 427 billion yuan for the first half of 2025, representing a year-on-year growth of 3.94%. However, net profit decreased by 32% to 37.1 billion yuan, attributed to increased R&D and strategic investments, as well as changes in the external environment [1][3]. Financial Performance - The company maintained a robust asset structure, with total assets reaching 12.51 trillion yuan and total liabilities at 7.12 trillion yuan, resulting in a debt-to-asset ratio of 56.9% [3]. - Huawei's cash and cash equivalents amounted to 1.81 trillion yuan, with a net cash flow from operating activities of 31.183 billion yuan [3]. - R&D expenditure for the first half of 2025 was 96.9 billion yuan, marking a year-on-year increase of 9.04%, and accounting for 22.7% of total revenue, a record high that significantly exceeds the industry average [3]. Business Performance - Huawei's consumer business showed strong performance, regaining the top position in China's smartphone market with an 18.1% market share in Q2 2025, driven by the popularity of the Pura and nova product series, as well as the continuous improvement of the HarmonyOS ecosystem [3]. - The company plans to launch several key products in September, including the Mate XTs extraordinary master foldable smartphone and the WATCH GT 6 series smartwatches, further enriching its smart terminal product line [3].

Core Viewpoint - Huawei's HarmonyOS is becoming a key factor for the company's market breakthrough, especially with the launch of new devices like the Nova series and HarmonyOS-powered computers, indicating a significant penetration into the mainstream consumer market [3][10]. Group 1: Product Launch and Market Response - The pre-order volume for HarmonyOS computers has reached nearly 140,000, with over 100,000 for the HarmonyOS foldable computer priced from 23,999 yuan [3]. - The inventory for the Nova series smartphones is double that of the previous generation, suggesting optimistic sales prospects [3]. - Huawei's CEO of Terminal BG, He Gang, emphasized the importance of differentiated experiences in attracting users to the new system [4]. Group 2: AI Integration and Development Strategy - Huawei has established a strategic project named "543" to develop competitive flagship smartphones, focusing on integrating AI capabilities into HarmonyOS [5]. - The AI assistant, Xiaoyi, is evolving to become an integral part of HarmonyOS, enhancing user interaction through advanced language models and emotional recognition [6]. - As of the end of last year, over 20,000 native HarmonyOS applications and services have been launched, with a target of reaching 100,000 applications to meet consumer demand [6]. Group 3: Market Position and Future Outlook - Huawei's market share in the Chinese smartphone market reached 19.4% in Q1, driven by strong demand for the Nova 13 and flagship Pura 70 series [10]. - HarmonyOS has surpassed Apple's iOS in market share for four consecutive quarters, reaching 19% in Q4 2024, while Android holds 64% [10]. - The future growth of HarmonyOS will depend on maintaining a production scale of several tens of millions of units annually to support its overseas ecosystem [10].

Group 1 - Huawei's HarmonyOS foldable computer has seen over 90,000 reservations, with total reservations exceeding 120,000 within 48 hours of its launch [1] - The nova series has a stock volume that is double that of the previous generation, indicating optimistic sales prospects [1] - HarmonyOS is viewed as a key strategy for Huawei to penetrate the mainstream consumer market, especially after the launch of the nova series and upcoming flagship phones [1] Group 2 - Huawei's internal project "543" aims to integrate AI into the HarmonyOS ecosystem, enhancing user experience through differentiated features [2] - The AI assistant "Xiao Yi" is evolving to become an integral part of HarmonyOS, showcasing advanced capabilities such as emotional recognition and immersive dialogue [3] - As of the end of last year, over 20,000 native HarmonyOS applications and services have been launched, with a target of reaching 100,000 applications to meet consumer demand [3] Group 3 - Huawei has made significant investments in the HarmonyOS ecosystem, with over 30 system updates and 150 new features since the launch of HarmonyOS 5 [5] - The nova series has played a crucial role in Huawei's market performance, leading the Chinese smartphone market with a 19.4% share in Q1 [5][6] - HarmonyOS has surpassed Apple's iOS in market share for four consecutive quarters, reaching 19% in Q4 2024, indicating a shift towards a "three-horse race" in the global mobile operating system market [6] Group 4 - The success of the nova 14 series will depend on pricing strategies and production capacity, as it aims to penetrate the mid-to-high-end market [6] - Huawei's future success in overseas markets will require maintaining a production scale of several tens of millions of units annually to support the HarmonyOS ecosystem [6]