Business & Economy

Huawei revenue up 9.9% between Jan-Sep despite US ban

Beijing, Oct 23 (efe-epa).- Chinese tech giant Huawei’s revenue increased by 9.9 percent year-on-year under “intense pressure” in the first three quarters of 2020 to 671.3 billion yuan ($100.43 billion), the company announced on Friday.

Huawei, which is not listed on any stock exchange, added that its net profit margin increased by 8 percent during that period.

“Throughout the first three quarters of 2020, Huawei’s business results basically met expectations,” the company said in a statement.

Huawei has been grappling with a decision by the United States Department of Commerce, which announced that from Sep. 15, Huawei’s global suppliers developing or producing components using US technologies would first need to obtain a license from Washington in order to sell to the Chinese company.

Several countries have also banned the use of telecoms equipment from the Chinese company from their 5G networks.

At the end of September, Huawei’s rotating chairman Guo Ping said that “non-stop aggression” from the US had put the Chinese tech giant under “significant pressure” and that the company was assessing the impact and “battling for survival.”

On Friday, the company said that “as the world grapples with COVID-19, Huawei’s 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,” it added.

In the future, Huawei will try to “leverage its strengths” in artificial intelligence, cloud operations, computing and 5G technology “to provide scenario-based solutions, develop industry applications, and unleash the value of 5G networks along with its partners.”

“Its stated goal is to help enterprises grow their business and help governments boost domestic industry, benefit constituents, and improve overall governance,” Huawei added.

In conclusion, the firm said that the “rapid and healthy development within the ICT industry will rely on open collaboration and mutual trust across the global industry” and added that it “will continue working closely with its global partners and using its innovative ICT technologies to create greater value for customers despite the complex situation it is currently facing.”

So far, Washington has shown no sign of easing the restrictions against Huawei, having recently extended them to other Chinese tech companies such as ByteDance, the developer of the massively popular short-form video app TikTok, and Tencent, owner of the WeChat messaging, social media and mobile payment app.

In 2019, the company posted a net profit growth of 5.6 percent despite the conflict between Beijing and Washington, although it was the slowest rate of growth since 2016. EFE-EPA


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