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| Huawei aims to survive with lower revenue |
The Huawei chief said the Chinese tech company's goal is to survive due to a nearly 30% sales drop in the first half of the year.
The Shenzhen-based company was founded in 2019 by the United States. The trade was blacklisted and reported sales of 320.4 billion Chinese yuan ($49.6 billion) for the first half of 2021.
This is a sharp drop from Huawei's 454 billion yuan in the first half of 2020.
The company said its profit margin rose 0.6% to 9.8%. She added that this is mainly due to increased efficiency, and overall performance as expected.
Eric Shaw, the company's rotating chairman, said in a statement that the company has set strategic goals for the next five years.
"Our goal is to survive and survive sustainably," he added.
Former US President Donald Trump put the Chinese company on an export blacklist in 2019. This prevents US companies from doing business with it.
For example, Google is no longer allowed to license the Android mobile operating system to Chinese companies.
The blacklist prevents US companies from selling or transferring technology to Huawei unless they obtain special permission.
As a result, it hinders the company's ability to develop its own chips and purchase other components.
Shaw said in April that the company had increased its investment in research and development as part of its efforts to keep the company going, address the ongoing delivery challenges posed by the US embargo, and pursue sustainability.
Huawei is going through tough times
The company's activities are divided into three areas: communication, business, and consumers. Huawei said its retail sales fell from 255.8 billion yuan to 135.7 billion yuan year on year, and blamed the sale of its popular business in late 2020 for the decline.
Revenue from 5G and other communications infrastructure revenue increased from 159.6 billion yuan in the first half of 2020 to 136.9 billion yuan in the first half of the year.
The company said the telecom business outside of China grew steadily in the first half of this year. However, in China, its largest market by far, the company has been affected by the delay in rolling out its 5G network.
She added that she expects the telecommunications sector to continue to grow steadily over the next six months. Thank you China Mobile, China Radio and Television, China Telecom and China Unicom for their 5G efforts.
Enterprise division revenue rose to 42.9 billion yuan in the first half of the year from 36.3 billion yuan in the first half of 2020.
In addition, the company stated that its business activities outside China have grown faster than the domestic market. This is still a very promising growth driver for the company this year.
In addition, Xu said, although our business income has declined due to external factors. We are confident that the company's activities and communications activities will continue to grow steadily.