Huawei Q3 sales reached 144.2 bn yuan, fell 15.5% from previous quarter

 

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Huawei Technologies on Thursday reported that it made 445.8 billion yuan in revenue during the first three quarters of the year, a drop of 2.2% from the same period last year.

According to calculations based on the company’s data, Huawei’s revenue for the third quarter alone was 144.2 billion yuan, a rise of 6.5% from the 135.4 billion yuan in the same period last year, but sliding 15.5% from the 170.6 billion yuan in the second quarter of this year.

Profits fell 42.45% in the same period to 26.75 billion yuan, showed the calculations.

“Overall performance was in line with forecast,” said Eric Xu, Huawei’s rotating chairman, in a statement on Thursday. “The decline in our device business continued to slow down, and our ICT infrastructure business maintained steady growth.”

The company also said that its profit margin for its main business during the first nine months stood at 6.1%, without revealing its net profit margin.

Earlier data had shown that Huawei’s revenue in the first quarter of the year amounted to 131 billion yuan, with net profit margin at 4.3%.

For the first half of the year, Huawei’s sales reached 301.6 billion yuan, with net profit margin at 5%. In breakdown, revenue from carrier business reached 142.7 billion yuan, enterprises business 54.7 billion yuan and consumer business was 101.3 billion yuan.

The US placed Huawei on an export blacklist in 2019, banning the telecom giant from buying components and technology from US companies without US government approval.

The move led to sharp contraction in Huawei’s handset business which commanded 42% of the China market in 2019. Huawei is pushing to develop other businesses that are less dependent on US technology, including smart car components, energy efficiency systems and cloud services.