Huawei's First-Half Revenue Outpaces Year Earlier on China Phone Sales, 5G Deals
Xu Wei
DATE:  Jul 31 2019
/ SOURCE:  yicai
Huawei's First-Half Revenue Outpaces Year Earlier on China Phone Sales, 5G Deals Huawei's First-Half Revenue Outpaces Year Earlier on China Phone Sales, 5G Deals

(Yicai Global) July 30 -- Huawei Technologies' revenue gained at a faster pace in the first half of this year than a year earlier, rising over 23 percent, as robust smartphone sales in China and new fifth-generation carrier contracts helped to offset a US trade ban.

Despite Huawei being subject to US export controls since May, revenue came in at CNY401 billion (USD58.3 billion) in the first six months, the Shenzhen-based private company said in a statement today. It grew at a 15 percent clip a year earlier. The firm's net profit margin was 8.7 percent in this January to June.

Huawei expanded its share of the domestic smartphone market to 38.2 percent in the second quarter, the most achieved by an individual brand in eight years, according to Canalys. It won 50 commercial 5G contracts in the first half, shipped more than 150,000 5G base stations, and logged a 24 percent gain in phone shipments to 118 million units.

The US trade blacklisting caused some disruption, but the scope and extent of the impact on the company is controllable, with its main products basically unaffected, Chairman Liang Hua said at a press briefing.

On May 17, the US Department of Commerce announced that its Bureau of Industry and Security would add Huawei to a so-called Entity List. American firms are banned from buying products from companies on the list but subsequently they may also be prohibited from selling products to these companies. After being added to the list, Huawei's revenue continued to grow because of market inertia, it said.

Huawei generated CNY220.8 billion in revenue from consumer sales in the first half, accounting for 55 percent of the total, and those from its operator and corporate businesses came in at CNY146.5 billion and CNY31.6 billion, making up 36.5 percent and 7.9 percent, respectively. It did not give specific net profit figures.

The company plans to invest CNY120 billion in research and development this year, Liang said.

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Keywords:   Huawei,Revenue