Islamabad, Sep 2: A great first-half performance, Huawei, a Chinese technology firm under U.S. sanctions because of possible military ties, has exceeded expectations. The company’s net profit increased by 18.2% to CNY 55.1 billion, and its revenue increased by 34.3% to CNY 417.5 billion, according to the Chinese Business Network. As a result of trade restrictions, Huawei has experienced its most profitable first half to date.
The first half of 2020 had Huawei’s greatest financial results prior to the United States imposing penalties in the middle of the year. Nonetheless, the company’s operations suffered a great lot as a result of the sanctions. The first half of 2024’s record-breaking numbers show Huawei’s amazing comeback.
Huawei’s revenue for the first half of 2024 exceeded, but still fell short of, the record of CNY 454 billion set in 2020. Furthermore, the company’s net profit crossed the CNY 50 billion threshold for the first time, reaching a new milestone of CNY 55.1 billion. This amounts to a 13.2% profit margin.
ICT Infrastructure, Consumer Business, Cloud Computing, Digital Power, and Intelligent Automotive Solutions are Huawei’s five core business segments. Consumer goods like the business’s high-end Mate and P-series smartphones continue to be a significant source of revenue, even if the company does not disclose precise revenue data for each. Huawei Cloud is expanding at the fastest rate, nevertheless.Chinese chipmaker SMIC produces the Kirin and Ascend CPUs used in these devices. Although SMIC views this technology as a loss, Huawei appears to have worked out an agreement where the contractor will pay for it.
