The Shenzhen company generated 454 billion yuan (US$64.8 billion) in revenue in the first six months of the year, up from 401.3 billion yuan during the same period in 2019, according to the statement from Huawei released on Monday night.
The net profit margin was 9.2 per cent in the first six months, up from 8.7 per cent in the same period last year. Huawei’s key business segments – consumer, carrier and enterprise – produced revenue of 255.8 billion yuan, 159.6 billion yuan and 36.3 billion yuan respectively with positive growth.
Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.
“As countries around the globe are grappling with the Covid-19 pandemic, information and communications technologies (ICT) have become not only a crucial tool for combating the virus, but also an engine for economic recovery,” Huawei said in the statement.
Huawei also reiterated its commitment to working with carriers and industry partners to maintain stable network operations, accelerate digital transformation, and support efforts to contain local outbreaks and reopen local economies.
The Chinese tech giant’s results came ahead of an expected announcement on Tuesday by UK Prime Minister Boris Johnson on banning Huawei from Britain’s 5G network.
Britain’s National Security Council, chaired by Johnson, will meet on Tuesday morning to discuss Huawei. Media Secretary Oliver Dowden will then announce a decision to the House of Commons later in the day.
In January, the British government approved the limited use of Huawei’s equipment in the country’s roll-out of 5G mobile infrastructure, although placed a 35 per cent cap on what it called “high-risk vendors’” access to the non-sensitive parts of networks.
A fresh review by the UK National Cyber Security Centre (NCSC) – which comes amid deteriorating diplomatic relations since the coronavirus outbreak in January – could lead to a reversal of that decision and see the UK government ban the use of Huawei’s 5G network gear.
“The complex external environment makes open collaboration and trust in global value chains more important than ever,” said Huawei in its statement on Monday night.
“Huawei has promised to continue fulfilling its obligations to customers and suppliers, and to survive, forge ahead, and contribute to the global digital economy and technological development, no matter what future challenges the company faces.”
Purchase the 120+ page China Internet Report 2020 Pro Edition, brought to you by SCMP Research, and enjoy a 30% discount (original price US$400). The report includes deep-dive analysis, trends, and case studies on the 10 most important internet sectors. Now in its 3rd year, this go-to source for understanding China tech also comes with exclusive access to 6+ webinars with C-level executives, including Charles Li, CEO of HKEX, James Peng, CEO/founder of Pony.ai, and senior executives from Alibaba, Huawei, Kuaishou, Pinduoduo, and more. Offer valid until 31 August 2020. To purchase, please click here.
More from South China Morning Post:
- Huawei faces ban in Britain, uncertainty swirls over timing, extent
- Huawei bucks downward trend to unseat Apple and take the lead in China’s tablet market amid pandemic
- Huawei reports meagre revenue growth in first quarter as coronavirus, US sanctions take a toll
- China’s fiscal first quarter revenue declines over 14 per cent, weighed down by coronavirus, tax relief
- Founder Ren Zhengfei says Huawei ‘racing to develop’ new technologies amid coronavirus pandemic
This article Huawei’s revenue rises 13.1 per cent in first half of 2020 despite coronavirus pandemic and US ban first appeared on South China Morning Post