Huawei Shrugs Off Sales Slump, Earnings Rise

Chinese telecom giant Huawei on Monday reported a first-half revenue rise of 13.1 percent year-on-year as it appeared to emerge from a sales slump seen at the start of the year.

Also reporting a net profit margin of 9.2 percent, Huawei said communications technologies were both a tool for combatting the coronavirus and an engine for economic recovery.

Huawei is the world's top supplier of telecom networking equipment and number-two smartphone maker behind Samsung.

The 454 billion yuan (HK$502.9 billion) first half revenue figure points to a sharp uptick in sales for the second quarter, after first-quarter revenue came in at just 182.2 billion yuan, a mere 1.4 percent increase year-on-year.

Analysts blamed the downturn in the three months to end-March on the coronavirus and international efforts to contain the company's involvement in foreign telecom networks.

The pandemic emerged in China in December before spreading globally.

The second-quarter net profit margin also marked an improvement over the first, when it had been 7.3 percent.

Washington has lobbied allies to shun Huawei over suspicions that its telecoms gear could contain security loopholes that allow China to spy on global communications traffic. (AFP)