Huawei Reports Growth and Improved Margins

Huawei reported an increased profit margin in the opening nine months. They were attributed to efforts to streamline operations and adjust its product mix.

The company highlighted efforts to optimize management systems, refine its sales set-up, and bolster overall operational efficiency. Rotating chairman Ken Hu said the company continues to increase investment in R&D to make the most of its business portfolio and take the competitiveness of its products and services to new heights.

Huawei highlighted stability in its ICT infrastructure unit and consumer business revenue growth. “Our digital power and cloud businesses both experienced strong growth and our new components for intelligent vehicles continue to gain competitiveness,” it stated.

The Chinese tech giant has attracted renewed attention over the 5G capabilities of its Mate 60 Pro after declining to disclose which chip it uses or list details of compatible connectivity set-ups in sales material. Canalys reported earlier in the week Huawei gained market share in China during Q3 and inched its way towards the top five through the Mate 60 series.

Revenue in the opening nine months increased 2.4% to CNY456.6 billion ($62.5 billion), with its net profit margin up from 6.1% to 16%. The company credited the improvement to gains from the sale of certain businesses. Bloomberg used the figures to estimate Q3 profit of CNY26.4 billion, which it reported is 118% higher than 3Q22 possibly due to strong sales of the Mate 60 series.