Huawei posts 13.1% revenue growth amid pandemic and sanctions

Huawei posts 13.1% revenue growth amid pandemic and sanctions

Huawei Technologies has reported that its revenue grew 13.1% in the first half of the year compared with a year earlier, despite sanctions from the US and challenges from the coronavirus pandemic.

Revenue rose to 454 billion yuan (£51.8 billion) in January-June compared to 401.3 billion yuan during the same period last year.

The company said its profit margin was 9.2%, compared to 8.7% last year.

The telecommunications equipment firm, based in the southern commercial hub of Shenzhen, is facing efforts by the US government to restrict Huawei’s ability to procure technology and components from American suppliers.

US officials say Huawei is a security risk. The company denies that.

13.1% Huawei revenue growth in first half of year

In May last year, Washington put Huawei on a blacklist that forbids US companies from doing business with it without permission from the government.

That has hindered Huawei’s access to components like computer chips and software such as Google’s Android mobile operating system.

In May, officials imposed even tighter rules aimed at limiting Huawei’s access to semiconductors by barring chipmakers that use US technology in chip design from shipping to Huawei without obtaining a licence.

The US has also been applying pressure on countries to exclude Huawei from upcoming, ultrafast 5G mobile networks.

On Tuesday, Britain’s government backtracked on plans to give Huawei a limited role in the UK’s new high-speed mobile phone network.

Culture Secretary Oliver Dowden gave telecoms operators until 2027 to remove Huawei equipment already in Britain’s 5G network.

Before the decision, Huawei announced that its UK chairman would step down early.

Lord Browne’s term was due to end in March but the ex-boss of energy company BP is now expected to depart in September.

The company is also expecting decisions by Germany later this year.

Meng Wanzhou, the company’s chief financial officer and daughter of Huawei founder Ren Zhengfei, is currently under house arrest in Canada, in an extradition trial that could result in her being sent to the US to face charges that include bank fraud and a violation of trade sanctions.

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