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Huawei, a leading tech company based in China, has recently announced its first-quarter business report for the year 2021. According to the financial report, Huawei has suffered a massive decline in the company’s revenue in the first quarter. Despite a decline in the revenue, the multinational company has managed to gain profit in the same quarter this year.
According to the Q1 business result of Huawei, it produced a revenue of CNY152.2 billion, which is a 16.5% decrease year-on-year. The network business saw uniform growth, while consumer business revenue dropped.
Huawei’s net profit margin climbed 3.8%, which totals 11.1% year-on-year. The net profit accumulated is the result of the company’s continuous effort in improving the quality of operations and management efficiency. Moreover, the patent royalty income of US$600 million also contributed to the profit.
In the first quarter of 2020, Huawei’s revenue was CNY182.2 billion and the net profit margin was 7.3%. The company lost around 30 billion this year compared to the same quarter last year. Whereas, Huawei garnered a 3.8% increase in net profit this year in comparison to the last year’s Q1 profit. By the end of 2020, the US and UK restrictions had a huge impact on the revenue and profit of Huawei.
In the opinion of Eric Xu, Huawei’s Rotating Chairman, 2021 is going to be another challenging year for Huawei. But it has various plans and future development strategies to operate in 2021.
He is also thankful to Huawei’s customers and partners for their continuous trust. The company is committed to overcome challenges and continue business resilience. He also added that Huawei will persist in concentrating on the customer needs and keep delivering practical business value.
Huawei is dedicated to fully unleashing the value of 5G by helping global carriers roll out their 5G networks. It aims to meet consumer and industrial demands without compromising delivery efficiency. It had declared its willingness to transfer Huawei’s 5G technology for global innovation.
Similarly, Huawei is driving efforts to improve its software engineering capabilities. It helps to ramp up investment in the IT sector. Also, it assists the proportion of software and services in the overall 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.”
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