The Chinese giant Huawei Technologies had to survive in the conditions of the most severe US sanctions for the fourth year, so the company proudly presents even the most modest achievements in the dynamics of financial performance. For the first time in three years, Huawei’s quarterly revenue grew, albeit by just 0.8%, but net income should have halved to $434 million, according to released official data.
Officially press release on the subject was generally extremely succinct, containing literally four lines, talking about a 0.8% year-over-year increase in sales and achieving a 2.3% net profit margin. These results were in line with the company’s own expectations, while at the same time spending on research and development was increased “for the sake of the future”.
Representative Bloomberg using only the value of the yield, they were able to approximate the company’s net income for the first quarter — it didn’t top $434 million and was down 46% year over year. Last year, Huawei had to spend almost a quarter of its annual revenue on research and development. It has not been determined how high the profile costs will be this year. Most of the company’s efforts in this area are now focused on import substitution to reduce reliance on technology and equipment to which access is restricted due to US sanctions. According to company representatives, the current year should be vital for Huawei.