Earlier today (29th October 2021), Huawei shared a new financial report that showcased its earning for the first three quarters of this year. In the report, the company revealed its overall sales revenue and net profit margin for the three quarters.

Looking at this report, the Chinese tech giant managed to rake in a total of 455.8 billion yuan (roughly 71.3 billion US Dollars) in sales revenue during the 9 month period. Similarly, it also recorded a 10.2 percent net profit margin as well. The company’s rotating chairman Guo Ping stated that the overall performance during this period was in line with Huawei’s expectations. He added that the consumer side of the brand’s operations did take a significant hit, but its business operations remained stable.

The senior official also said that the company will continue to strengthen its technological innovation, with more investment into research and development and talent attraction to continue to improve its operational efficiency. In the financial report, Guo Ping also expressed gratitude towards the company’s loyal customer base and its partners. However, while the report ended in a positive note it isn’t all smooth sailing for the company.

The 455.8 billion yuan total sales revenue marks a sizeable 32 percent decline year on year over 2020. Last year, the company’s first three quarters brought in 671.3 billion Yuan (roughly 1.04 trillion US Dollars). This decline can be primarily attributed to the US trade ban that it faces, with newer reports suggesting even tighter restrictions being on the way. Another major factor in the decline is also it selling off its budget smartphone subsidiary, Honor, last year to help ensuring the brand’s survival.

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The post Huawei revenue declines by 32% in the first three quarters of 2021, but sales still hit $71 billion appeared first on Gizmochina.

Chinese tech powerhouse Huawei was the global leader in 5G technology before the US blacklist began in 2019. The company endured a turbulent period subsequently, as it grappled with a stiffer US sanction. The impact of the US blacklist is reflected in the financials of the company, as it released its mid-year report showing a 29.4% decline in its overall revenue of CNY 320.4 billion ($49.5 billion) from last year. The consumer electronics arm of the company was the most affected with revenue plummeting by 47% from 2020. This was due to the chip challenges and software blockade that resulted from the US blacklist. Significantly, Huawei had to sell its Honor brand as a survival strategy.

However, the half-year results also reflect the new focus of Huawei in the pursuit of its ambition as a software hub. The revenue from enterprise activities grew by about 18.2% from last year, and this is predicted to continue in an upward movement. Huawei’s resilience is reflected in its expanding ecosystem which includes cloud-based solutions. The HarmonyOS operating system which rivals Google’s Android OS is Huawei’s perfect response to the US blacklist. Currently, there are over 15 million devices using HarmonyOS, and this is bound to increase by the year’s end.

Recent months have seen a great number of product launches by Huawei, and the outlook remains bright for the rest of the year. The full-year results may show a strong rebound going by the raft of products and software solutions already in place. Hence the company may have just seen its worst year yet.

Huawei’s President Eric Xu says survival is paramount, as it seeks to balance itself and prevent future shocks with its software pivot. The company is building resilience through diversification and is pursuing a sustainable survival plan within the next 5 years.

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(source)

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