Huawei Technologies reported a 37% year-over-year drop in attributable net profit in the first half to 23.4 billion yuan from 37.1 billion yuan a year earlier.

Revenue, however, rose 9.5% to 467.8 billion yuan from 427 billion yuan, the Chinese tech giant said in a Monday filing with the Shanghai Clearing House.

The drop in profit came as overhead costs ballooned 24% to 30.1 billion yuan, while R&D spending widened 25% to 121.4 billion yuan.