Huawei’s Q1 Business Results
Huawei announced its business results for the first quarter of 2021 yesterday, and they were in line with forecasts.
In Q1, Huawei generated 152.2 billion yuan (US$23.5 billion – as converted on xe.com April 29, 2021) in revenue, a 16.5% decrease year-on-year. Our network business maintained steady growth, while our consumer business revenue declined, in part as a result of selling the Honor smart device brand in November 2020. Huawei’s net profit margin was up 3.8 percentage points[1] year-on-year at 11.1% – the result of the company’s ongoing efforts to improve quality of operations and management efficiency, as well as a patent royalty income of US$600 million.
“2021 will be another challenging year for us, but it’s also the year that our future development strategy will begin to take shape,” said Eric Xu, Huawei’s Rotating Chairman. “We thank our customers and partners for their ongoing trust. No matter what challenges come our way, we will continue to maintain our business resilience. Not just to survive, but do so sustainably. As always, we will remain focused on the needs of our customers and keep delivering practical business value.”
Huawei is driving efforts to fully unleash the value of 5G. We’re helping carriers around the world roll out their 5G networks, meeting the demands of consumers and industries alike, while boosting its own delivery efficiency. We continue to improve its software engineering capabilities and ramp up investment in the software sector to gradually increase the proportion of software and services in its total revenue mix.
“As always, we remain committed to technological innovation and investing heavily in R&D as we work to address supply continuity challenges caused by restrictions in the market”, said Xu. “We will continue making breakthroughs in basic science and pushing the frontiers of technology.”
[1] The financial data disclosed here are unaudited figures compiled in compliance with the International Financial Reporting Standards; exchange rate at the end of March 2021: US$1 = CNY6.5670 (source: external agencies)
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