Huawei's first half revenue dropped an annual 29.4 per cent as the company's consumer business slowed due to mounting pressure from US authorities and concerns about the security of its 5G equipment.
The Shenzhen-based telecoms manufacturer earned 320.4 billion Chinese yuan ($49.6bn) in revenue in the first six months of this year, almost 133.6bn yuan less than the prior year period, the company announced on Friday.
The company did not disclose a profit figure, but said its net profit margin for the period was 9.8 per cent of sales.
“Despite a decline in revenue from our consumer business caused by external factors, we are confident that our carrier and enterprise businesses will continue to grow steadily," Huawei's rotating chairman Eric Xu said.
"Our aim is to survive and to do so sustainably ... we will do this by creating practical value for our customers and partners,” he added.
Huawei's consumer business contributed 135.7bn yuan to the unlisted company's revenue in the first half. However, it was down 120.1bn yuan, or 46.9 per cent on an annual basis.
In November, Huawei sold its Honor smartphone business to a Chinese government-backed consortium for an undisclosed amount. This led to a big drop in its consumer business segment's revenue, industry analysts said.
Sales in the company’s carrier business reached 136.9bn yuan in the first half, an annual drop of more than 14 per cent. Its enterprise business surged 18.1 per cent yearly to 42.9bn yuan.
The company, which employs nearly 200,000 people, has been engaged in a trade dispute with the US administration, which considers the company to be a national security threat. However, Huawei has repeatedly refuted claims that its products could be a threat.
“These have been challenging times and all of our employees have been pushing forward with extraordinary determination and strength,” said Mr Xu.
“We have set our strategic goals for the next five years … we will keep on innovating to help build a low-carbon, intelligent world," he added.
Huawei, which was among the top three smartphone manufacturers in the first half of last year, was the world's sixth-biggest phone maker with an 8 per cent market share in the first quarter of this year, according to Counterpoint Research.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.