BEIJING (Reuters) -Chinese tech giant Huawei reported a 32% drop in first-half net profit on Friday as it spent heavily on research and development to defy U.S. sanctions.

Net profit for January to June dropped 32% year-on-year to 37 billion yuan ($5.17 billion), according to its filing posted on Beijing Financial Assets Exchange. Its first-half revenue rose 4% to 427 billion yuan. It was the company's highest revenue for a first half since the same period in 2020.

($1 = 7.1529 Chinese yuan renminbi)