In the first half of 2020, Huawei achieved sales revenue of RMB 454 billion, an increase of 13.1% year-on-year, Huawei's operating results released on Monday showed.
The growth rate was down from 23.2% in the first half 2019. Huawei said net profit margins were 9.2%, up from 8.7% in the first half 2019.
This is against the backdrop that the U.S. placed Huawei on a blacklist in May of last year, restricting sales to the company of U.S.-made goods such as semiconductors. Huawei built up inventories and also continued to design its own chips and have them manufactured by TSMC and others.
In May, U.S. officials announced new rules aimed at constricting Huawei’s ability to self-supply chips, an ability that is critical to its efforts to sell 5G networking gear.
Huawei did not announce the composition of its revenue in various global markets. From the 2019 annual report, Huawei's high growth in 2019 is mainly supported by the Chinese market. In several overseas markets on the other hand, Huawei is under greater pressure.
In 2019, Huawei achieved sales revenue of 506.733 billion yuan in China, an increase of 36.2% year-on-year, and its share of the market also increased to 59% from 51.6% in 2018. Outside of China, the Americas, EMEA and Asia Pacific all saw declines in revenue share. Among them, Asia Pacific sales revenue was $70.533 billion, down 13.9% year-on-year.
Huawei's growth support in the first half of this year should also come mainly from the Chinese market.
In terms of business composition, consumer business revenue was $255.8 billion, up 15.85% year-on-year. Operator business revenue was 159.6 billion yuan, up 8.94 percent year-on-year. Enterprise business revenue was 36.3 billion yuan, up 14.87% year-on-year.
In recent years, Huawei's consumer business revenue has consistently grown rapidly and overtook operator business for the first time in 2018 to become Huawei's largest source of revenue. The consumer business accounted for more than 50% of revenue in the first half of 2019 for the first time, from 2018's 48.4 percent to 55 percent. For the full year 2019, the business accounted for 54.4 percent of revenue.
In the first half of this year, the contribution of the consumer business to Huawei's revenue grew further to 56.34%.
However, the inability to use Google's GMS in products in overseas markets is a great challenge for Huawei's overseas mobile business.
Huawei has increased its investment in its handset business in the domestic market, with GFK data showing that Huawei (28%) and Honor (14%) have reached 42% of the overall market share in China.
Huawei is also building HMS to replace Google's GMS. Since February this year, Huawei has pre-installed HMS on Huawei and Honor products in overseas markets.
Recently, Huawei also launched HMS Core 5.0 for developers worldwide, bringing services covering seven domains, including application services, graphics, media, artificial intelligence, smart devices, security, and systems.
Huawei said ICT technology not only plays an important role in the fight against epidemics, but also as an engine for economic recovery. Huawei is willing to work with operators and partners from all industries to ensure stable network operation and help countries fight epidemics and recover their economies.
Huawei said that in the face of a complex external environment, open cooperation and mutual trust in the global industry chain is increasingly important. No matter what the difficulties are, Huawei will continue to fulfill its obligations to its customers and suppliers and strive to survive and move forward.
