Chinese vendor Huawei recorded revenues of CNY 401.3 billion ($ 58.3 billion) in the first half of the year, climbing 23.3% compared to the same period the previous year, the company said in its earnings statement.
Huawei’s net profit margin for the first six months of the year was 8.7%
In the company’s carrier business, H1 sales amounted to CNY 146.5 billion, with growth in production and shipment of equipment for wireless networks, optical transmission, data communications, IT and related products. Huawei said it has already secured 50 commercial 5G contracts and has shipped more than 150,000 base stations globally.
In the enterprise business, revenues reached CNY 31.6 billion, while revenues in its consumer business totaled CNY 220.8 billion. Huawei’s smartphone shipments reached 118 million units in the period, up 24% year-on-year, the vendor said.
“Revenue grew fast up through May (…) Given the foundation we laid in the first half of the year, we continue to see growth even after we were added to the entity list. That’s not to say we don’t have difficulties ahead. We do, and they may affect the pace of our growth in the short term,” Huawei Chairman Liang Hua said during a press conference at the company’s headquarters in Shenzhen, China.
“But we will stay the course. We are fully confident in what the future holds, and we will continue investing as planned – including a total of CNY120 billion in R&D this year. We’ll get through these challenges, and we’re confident that Huawei will enter a new stage of growth after the worst of this is behind us.”
In May, the Trump administration confirmed that 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 will need a U.S. government license to buy components from U.S. suppliers.
At that time, firms including Google, Intel, Qualcomm and Microm had halted shipments due to the restrictions. Huawei relies heavily on computer chips imported from U.S. companies. Out of $70 billion that Huawei spent buying components in 2018, some $11 billion went to U.S. firms including Qualcomm, Intel and Micron Technology
Earlier this month, President Donald Trump has agreed to grant “timely” licensing decisions to U.S. technology firms that want to sell components and services to Chinese vendor Huawei, following a meeting between the U.S President and the CEOs of Google, Cisco, Intel, Western Digital Corporation, Micron, Qualcomm and Broadcom.
Following a recent bilateral meeting with Chinese President Xi Jinping in Osaka, Japan, President Donald Trump said that U.S. companies can sell their equipment to Chinese vendor Huawei as long as the transactions won’t present a “great, national emergency problem.”
“Our suppliers and partners continue to place great trust in Huawei. They have given us fantastic support, helping us ensure a stable supply chain and timely delivery to our customers. Our approach to business continuity management and supply diversity has withstood the test of the market. Neither production nor shipment has been interrupted – not for a single day,” Liang said.
“We have also found that when organizations are placed under incredible pressure, it often coincides with incredible growth potential. In a way, the US government’s foray against Huawei has helped us understand our objectives better. It has enhanced collaboration and has galvanized our people. This pressure has brought us together and reinvigorated the company,” the executive added.
