a The company’s website Huawei’s sales reached 320.4 billion yuan in the first six months of the year, according to data released on Friday,
That’s 29 percent below the previous year’s base.
Business volume in the residential appliance sector fell the most in the first six months, dropping 47 percent to 135.7 billion yuan. Huawei’s revenue in the mobile network equipment business was 136.9 billion yuan, down 14.2 percent from the previous year. The decline is partly due to the slowing pace of 5G network development in China.
On the other hand, the company’s sales in enterprise equipment and services rose 17.2 percent to 42.9 billion yuan. Due to pandemic restrictions, companies’ demand for IT products and services has increased.
In addition to Huawei
Even with lower revenues, it succeeded in increasing its operational efficiency and improving its profitability in the first six months of the year.
On an annual basis, they rose 0.6 percentage points to 9.8 percent in that regard. It should be noted, however, that the profit-to-revenue ratio was 11.1 percent in the first quarter.
Eric Xu, CEO of Huawei Announcement of results He admitted that a difficult period was behind them. He added that they have defined their strategy for the next five years.
Our goal is to survive the next period in a sustainable way
Xu also thanked their staff for their recent work with “exceptional determination and strength.”
The decline in Huawei’s retail sales is primarily due to US sanctions. In 2019, President Donald Trump blacklisted the Chinese technology group, banning the use of US parts and intellectual property in its products. As a result, Huawei sold 6.4 million smartphones in China in the first half of this year, compared to 27.4 million in the second half of 2020. The figure does not include sales of the lower-priced Honor brand. The brand was sold by Huawei last November.
Huawei began commercial sales of its Harmony operating system along with its products in June. With its own operating system, Huawei is independent of Google’s Android operating system.
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