Huawei sees 23 percent revenue increase in first half of the year despite US trade ban

China’s biggest phone maker doesn’t lose confidence.

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Huawei’s revenue in the first half of the year was RMB 401.3 billion (USD 58.31 billion), up 23.2% from the same period last year, the company announced at a conference in Shenzhen today.

Among the three firm’s three core businesses, telco operations brought in RMB 146.5 billion, the enterprise business achieved RMB 31.6 billion, and the consumer segment RMB 220.8 billion. The net profit margin was 8.7%.

The revenue accounts for H1 overall. While the company published its first-ever quarterly results in April, achieving a 39% increase, this time it did not disclose Q2 results.

The telecommunication giant’s revenue expanded despite the limitations imposed on it ever since Huawei found itself on the US „Entity list“. US suppliers had been ordered to cut ties with Huawei since May.

Huawei chairman Liang Hua at the conference said the overall increase was due to the rapid growth of revenue before the official blacklisting in May as well as “market inertia”.

Production in the information and communication fields is stable, with an increasing shipment of wireless networks, data communication and mainly 5G equipment, the company said.

Huawei smartphones did not lose their popularity either. The world’s second-largest phone maker shipped 118 million items in the first six months of this year which is an increase of 24% year-on-year. According to Liang Hua, Huawei phones are „leading the world in terms of technical functions such as photography, AI, communication, and battery life.“

Although this is only the first half-year performance evaluation, the financial results appear slightly better than anticipated. Last month, Huawei’s founder Ren Zhengfei said that the company was expecting this year’s revenue to drop to around USD 100 billion, down from the USD 107 billion last year.

Today, the company has admitted that external difficulties may “temporarily affect the pace of our progress“ however, it said it is confident to enter a new period of development.

To do so, Huawei has planned an investment of RMB 120 billion into R&D with a focus to expand collaboration with supply chain partners and to strengthen the service in their consumer-focused business.