Huawei sees slower revenue decline in H1
Huawei said that revenues from its Carrier Business Group grew 4.24% to CNY 142.7 billion in the period
Chinese vendor Huawei reported overall revenues of CNY301.6 billion ($44.7 billion) in the first half of the year, down 5.9% year-on-year.
In the first quarter of the year, Huawei’s revenues had declined by 13.9% compared to the year-ago period.
In a release, the vendor said its overall performance in the period “was in line with [its] forecast”.
Huawei also said it reached a net profit margin of 5.0% in the first half of the year.
Revenue from the device business group, which includes smartphone sales, declined 25.4% to CNY101.3 billion in H1.
Meanwhile, Huawei’s Carrier Business Group grew 4.24% to CNY 142.7 billion in the period. In the first half of 2021, revenues from this business division had declined by 14%
The vendor’s enterprise business recorded a 27.5% increase in revenue in H1 to CNY 54.7 billion, chiefly due to higher sales in the cloud segment.
“While our device business was heavily impacted, our ICT infrastructure business maintained steady growth,” said Ken Hu, Huawei’s rotating chairman. “Moving forward, we will harness trends in digitalization and decarbonization to keep creating value for our customers and partners, and secure quality development,’ Hu said.
“Our strategy for operations in 2022 revolves around surviving and doing so sustainably. First, this goal means we will do everything we can to guarantee the quality of the products and solutions we offer to our customers. Second, solid operations are also a must if we are going to survive and do so sustainably. The third layer of ‘surviving sustainably’ is continuously investing in innovation for the future,” Hu had previously said, during Huawei Global Analyst Summit 2022.
Last year, Huawei’s representatives had said that that the company was not expecting the Biden administration to remove the company from the Entity List. In May 2019, the U.S. Department of Commerce added Huawei to its Entity List, a decision that effectively banned the company from buying parts and components from U.S. companies without U.S. government approval. Under the order, Huawei needs a U.S. government license to buy components from U.S. suppliers.
The U.S. government included Huawei in the Department of Commerce’s Entity List due to security concerns, as Washington believes that the Chinese government uses Huawei’s equipment for spying purposes. Huawei has been continuously denying those allegations.
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