Huawei's Auto Unit Posts H1 Profit Amid Revenue Surge
Huawei’s automotive business unit, operating under its subsidiary Shenzhen Yinwang Intelligent Technology (Newcool), achieved a net profit of RMB 2.23 billion ($313 million) in the first half of the year. This marks a significant turnaround from losses of RMB 7.6 billion and RMB 5.6 billion in the previous two years. Revenue more than doubled to exceed RMB 10.4 billion, primarily driven by strong demand for electric vehicles produced by partner Seres. Seres delivered over 222,000 Aito-branded EVs featuring Huawei’s technology between January and July, a substantial increase from the prior year. Consequently, Newcool’s gross margin rose to 55.36%. The financial results were disclosed in a regulatory filing by Seres, which also announced an RMB 11.5 billion investment for a 10% stake in Newcool. This development follows Huawei’s recent agreement with Changan Automobile to spin off its Intelligent Automotive Solution business, aiming for a diversified ownership structure. Seres accounted for more than 60% of Newcool’s revenue during this period, highlighting the critical role of strategic partnerships in Huawei’s successful pivot to profitability in the competitive electric vehicle market.
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Huawei's Auto Unit Posts H1 Profit Amid Revenue Surge
Huawei’s automotive business unit, operating under its subsidiary Shenzhen Yinwang Intelligent Technology (Newcool), achieved a net profit of RMB 2.23 billion ($313 million) in the first half of the year. This marks a significant turnaround from losses of RMB 7.6 billion and RMB 5.6 billion in the previous two years. Revenue more than doubled to exceed RMB 10.4 billion, primarily driven by strong demand for electric vehicles produced by partner Seres. Seres delivered over 222,000 Aito-branded EVs featuring Huawei’s technology between January and July, a substantial increase from the prior year. Consequently, Newcool’s gross margin rose to 55.36%. The financial results were disclosed in a regulatory filing by Seres, which also announced an RMB 11.5 billion investment for a 10% stake in Newcool. This development follows Huawei’s recent agreement with Changan Automobile to spin off its Intelligent Automotive Solution business, aiming for a diversified ownership structure. Seres accounted for more than 60% of Newcool’s revenue during this period, highlighting the critical role of strategic partnerships in Huawei’s successful pivot to profitability in the competitive electric vehicle market.
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