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Huawei’s 9-month revenue grows 9.9% despite trade war, pandemic

Bich Phuong Monday | 10/26/2020 14:00

Shoppers try Huawei's Mate 40 series smartphones in Shanghai. ZHAI HUIYONG/FOR CHINA DAILY

Chinese tech giant Huawei's year-on-year revenue growth rate in the third quarter slowed to 9.9 percent as the US government's intensified crackdown on the company crippled its supply chain.

However, the tech giant said it generated 671.3 billion yuan ($100.6 billion) in revenue for the first nine months of this year, reflecting the company's resilience and technological prowess amid intense pressure of trade war and the Covid-19 pandemic.

The company's net profit margin in the reported period was 8 percent. Throughout the first three quarters of 2020, Huawei's business results basically met expectations, the firm said in a statement. But it did not break down the detailed figures for its individual business groups as the company had done for the past quarters.

Huawei has not announced results for the third quarter, but a calculation based on its previous quarterly data showed that revenue for the period rose by 3.7 percent, marking a slowdown in growth from the second quarter, when revenue grew about 23 percent, according to China Daily.

"As the world grapples with Covid-19, Huawei's global supply chain is being put under intense pressure and its production and operations face significant challenges. The company continues to do its best to find solutions, survive and forge forward, and fulfill its obligations to customers and suppliers," the company said in a statement.

Huawei is facing one of the darkest moments in its history after the US government hit the company with several rounds of intensified restrictions on its access to US technologies, including semiconductor components and equipment. The latest round of curbs is aimed at destroying Huawei's in-house chip design unit Hisilicon.

"Huawei believes that rapid and healthy development within the ICT industry will rely on open collaboration and mutual trust across the global industry, so it will continue working closely with its global partners and using its innovative ICT technologies to create greater value for customers despite the complex situation it is currently facing," the company said.

Moving forward, Huawei will leverage its strengths in ICT technologies such as AI, cloud, 5G, and computing to provide scenario-based solutions, develop industry applications, and unleash the value of 5G networks along with its partners.

Its stated goal is to help enterprises grow their business and help governments boost domestic industry, benefit constituents, and improve overall governance.

ICT has become a cornerstone of modern society and the main driver behind sustainable social, economic, and environmental development.

Huawei believes that rapid and healthy development within the ICT industry will rely on open collaboration and mutual trust across the global industry, so it will continue working closely with its global partners and using its innovative ICT technologies to create greater value for customers despite the complex situation it is currently facing. The company will continue contributing to pandemic responses, economic growth, and social progress.

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