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A mobile phone displays the interface of the Huawei application. Huawei unveiled HarmonyOS, its own operating system in 2019. In June 2021, the company first released the operating system on a smartphone.
Costphoto | Barcroft Media | Getty Images
The Huawei chairman said that “the Chinese tech company’s goal is to survive” as revenues fell nearly 30% in the first half of the year.
The Shenzhen-based company, which was blacklisted for U.S. commerce in 2019, said on Friday it generated 320.4 billion yuan ($ 49.6 billion) in revenue in the first half of 2021. That’s a significant drop from the 454 billion yuan recorded by Huawei. in the first half of 2020.
Huawei said its profit margin increased from 0.6 percent to 9.8 percent, largely due to efficiency improvements, and added that overall performance was as expected.
Eric Xu, Huawei’s rotating chairman, said in a statement that the company has set its strategic goals for the next five years.
“Our goal is to survive and to do so in a sustainable way,” he said.
Former US President Donald Trump put Huawei on an export blacklist in 2019, a move that prevents US companies from doing business with it. For example, Google was no longer allowed to license its Android mobile operating system to Huawei.
The blacklist prevents US companies from selling or transferring technology to Huawei, unless they are granted a special license. This hampered Huawei’s ability to design its own chips and source other components.
Xu said in April that Huawei had stepped up its investment in research and development as part of its efforts to “keep the business afloat, to meet the continuity of supply challenges caused by the U.S. bans, and to continue the long-term sustainability “.
“Difficult times”
Huawei’s business is divided into three subdivisions: operator, business and consumer.
Huawei said annual revenue from the consumer business fell from 255.8 billion yuan to 135.7 billion yuan, blaming the decline on the sale of its Honor business at the end of 2020.
Its carrier business, which sells 5G and other telecommunications infrastructure, saw its first-half revenue drop to 136.9 billion yuan, from 159.6 billion yuan in the first half of 2020.
Huawei said carrier activity grew steadily outside of China during the first half of the year. However, in China, which is by far its largest market, the company said it was affected by delays in rolling out the 5G network. Huawei said it expects operator activity to continue to grow steadily over the next six months thanks to the 5G efforts of China Mobile, China Broadcasting Network, China Telecom and China Unicom.
The Enterprise division’s first-half revenue rose to 42.9 billion yuan, from 36.3 billion yuan in the first half of 2020, Huawei said.
Business activity has grown higher outside of China than in its domestic market, Huawei said, adding that it will remain the “most promising growth engine” for the company this year.
“Despite a decline in revenues from our consumer business caused by external factors, we are confident that our operator and enterprise businesses will continue to grow steadily,” said Xu.
He added, “These are difficult times, and all of our employees have moved forward with extraordinary determination and strength. I want to thank every member of the Huawei team for their incredible efforts.”
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