Huawei has revealed its financial performance for the period, generating CNY310.9 billion in revenue, which represents a year-on-year increase of 3.1%, aligning with its earlier forecasts. The company opted for a concise financial announcement that highlighted a net profit margin of 15%, equivalent to approximately CNY46 billion.
Across various divisions, the revenue distribution was as follows: Huawei’s ICT infrastructure business contributed CNY167.2 billion, the consumer business brought in CNY103.5 billion, the cloud business generated CNY24.1 billion, the digital power business accounted for CNY24.2 billion, and the intelligent automotive solution (IAS) business brought in CNY1 billion.
Sabrina Meng, Huawei’s Rotating Chairwoman, expressed gratitude to customers, partners, and the Huawei team for their unwavering support. Meng stated, “Huawei has been investing heavily in foundational technologies to harness trends in digitalization, intelligence, and decarbonization, focusing on creating value for our customers and partners.”
She continued by highlighting the first half of 2023: “Our ICT infrastructure business remained solid and our consumer business achieved growth. Our digital power and cloud businesses both experienced strong growth, and our new components for intelligent connected vehicles continue to gain competitiveness.”
The repercussions of sanctions initiated during the previous US presidency have significantly impacted Huawei’s operations, cutting access to certain microchip technology, hindering its international phone business due to the removal of the Android Play Store, and rendering its telecoms infrastructure business obsolete in certain markets.
The pressure on Huawei has persisted, as evidenced by the Disruptive Technology Strike Force’s actions earlier this year. These challenges have indeed led to notable financial setbacks since 2020.
Comparing the performance of FY 2022 with 2021, there was a slight increase in revenue, but profit for the year experienced a 69% decline. This decline is somewhat skewed by the fact that in 2021, Huawei executed several one-off disposals, including its server and smartphone business, which led to doubled profits despite a 29% revenue drop.
In light of the recent financial performance, the growth and profitability demonstrated in the first half of the year present a positive outlook for the company. While the reporting lacks extensive details, the divisions highlighted in revenue generation stand out.
Recent reports also indicated Huawei’s plan to introduce new 5G smartphones by year-end, benefiting from a domestically developed chip supply, facilitated by advances in semiconductor design tools and Chinese chip firm Semiconductor Manufacturing International Co (SMIC).
While the broader context of the ongoing tech trade tensions between the US and China remains uncertain, and economic challenges persist, Huawei’s trajectory could be interpreted as a minor success amid adversity.