Chinese technology giant Huawei reported revenue of $98.6 billion in the first three quarters of 2020, an increase of 9.9% over the same period last year. The company’s net profit margin in this period was 8.0%, according to unaudited figures compiled in compliance with the International Financial Reporting Standards.
Throughout the first three quarters of 2020, Huawei’s business results basically ‘met expectations’. The company’s revenue growth in the third quarter slowed sharply from the previous quarter due to its inability to source crucial high-end semiconductors because of US restrictions and the adverse impact of Covid-19 pandemic on the supply-chain.
The company said that due to Covid-19 pandemic, its global supply chain is being put under intense pressure and its production and operations face significant challenges. The company continues to do its best to find solutions, survive and forge forward, and fulfill its obligations to customers and suppliers.
Chinese telecommunications equipment and smartphone maker stressed that it will leverage its strengths in ICT technologies such as AI, cloud, 5G, and computing to provide scenario-based solutions, develop industry applications, and unleash the value of 5G networks along with its partners.
The company’s net profit margin in the first three quarters was 8.0%, compared with 8.7% in the same period last year. Analysts predict the company’s stockpiles of semiconductors will only last until June 2021.
After three rounds of export restrictions, Huawei has lost nearly all access to semiconductors using US technology—specifically the high-end chips it needs for its carrier and handset businesses.
Like UK and EU nations, US administration has sought to push India to remove Chinese firms Huawei and ZTE from India’s upcoming 5G trials and other Information and Communication Technology (ICT) networks as the US and India explore ways to improve commercial ties in the sector.
Huawei is owned by its Chinese employees who make up about 60% of its global workforce of 194,000. It began reporting financial results a decade ago in an attempt to appear more transparent and mollify foreign security fears.