The Huawei and US drama continues, but it seems the Chinese tech company is still making ends meet. In its first half of the year, Huawei recorded a 13% increase in revenue to 454 billion yuan ($65 billion). But compared to the first half of 2019, the company’s growth rate was down from 23.2%.
Huawei reported a net profit margin of 9.2% in the period, an increase from 8.7% recorded in H1 2019.Advertisement
Huawei’s consumer business continued to rake more cash for the company, with 256 billion yuan in sales. The carrier business contributed 160 billion yuan, and the enterprise business accounted for the remainder.
In Q1 the company’s growth slowed as demand for smartphones and networking gear reduced reporting a 1.4% increase in revenue.
The company continues to face sanctions from the US, who have warned that it presents a security risk and has been lobbying allies to block the use of the company’s telecommunications equipment.
Huawei has continuously denied it. The latest rules imposed in May have threatened Huawei’s supply chain by restricting the company’s ability to procure silicon meant for use in its 5G networking gear and smartphones.
“Huawei has promised to continue fulfilling its obligations to customers and suppliers, and to survive, forge ahead, and contribute to the global digital economy and technological development, no matter what future challenges the company faces,” said the company in a statement.
Currently, Britain’s National Security Council is expected to decide today the fate of the company’s future in its networking equipment. The UK had previously given Huawei a limited role in its 5G networks, but changed mind after new US sanctions, domestic backlash over new rules imposed by Beijing on Hong Kong.
At home, Huawei was awarded the lion’s share in 5G contracts. Another Chinese tech company, ZTE, was also awarded the contract which has been in the same hot soup as Huawei since the beginning but doesn’t get as much bad press.