Huawei generated $61.8 billion in revenue in the first three quarters of the year, down 2.2% y-o-y
Chinese vendors Huawei and ZTE have reported their financial results for the first nine months of the year.
Huawei said it generated CNY445.8 billion ($61.8 billion) in revenue in the first three quarter of the year, a 2.2% decline compared to the year-on-year period, while its profit margin declined to 6.1% from 10.2%
Huawei’s earnings release did not report the firm’s net profit for the period.
“Overall performance was in line with forecast,” said Eric Xu, Huawei’s rotating chairman. “The decline in our device business continued to slow down, and our ICT infrastructure business maintained steady growth. Going forward, we will keep bringing in top-notch talent and investing in R&D to take the competitiveness of our products to a new level,” the executive added.
Huawei also noted that its business is performing in line with expectations and despite the uncertainty of external factors the firm remain confident that its business targets for the full year can be achieved.
The vendor also highlighted that the downward trend of the device business continues to slow down, while the ICT infrastructure business has maintained steady growth during the period.
In August, Huawei’s founder Ren Zhengfei had said that the company needed to adopt a “survival mode” for at least the next three years chiefly due to the global recession perspectives, according to previous reports published by Chinese media.
The executive also said that Huawei would shut down marginal business units. He also urged employees to focus on profits and cash flows instead of revenue, to ensure the company’s survival over the next years.
Meanwhile, ZTE Corporation reported operating revenues of CNY92.56 billion ($12.8 billion) in the January-September period, increasing by 10.4% compared with the same period last year. During the period, net profit attributable to holders of ordinary shares of the listed company reached CNY6.82 billion, a year-on-year increase of 16.5%
ZTE also reported that net profit after extraordinary items attributable to holders of ordinary shares of the listed company amounted to CNY5.55 billion, representing a year-on-year increase of 55.3%.
“In the first three quarters, ZTE, despite the challenges of the complex external environment, strove for steady progress by collaborating with its industry partners,” the company said in its earnings statement. During the period, the company strengthened its key technology and product competitiveness, with R&D expense reaching CNY16.11 billion, which accounted for 17.4% of the vendor’s operating revenue in the period.
“With the wave of global digitalization and low-carbon development, ZTE achieved year-on-year growth with its operating revenue in both domestic and international markets and the three major businesses (carriers’ networks, government and enterprise, and consumer business) as well. Moving forward, ZTE, confronted with the complex external environment, will stay committed to continuous innovations for its high-quality growth.”
