Huawei has reported its financial results for the first quarter of 2021
In the first quarter, the company’s revenue amounted to 152.2 billion yuan, which is 16.5% less compared to the same period last year. While revenue from Huawei’s network product segment continued to grow steadily, revenue in the consumer business segment declined. This was partly due to the sale of the Honor smart device brand in November 2020.
During this period, Huawei’s net profit margin reached 11.1%, which is 3.8 percentage points higher than in the same period last year. The company achieved these results thanks to its ongoing efforts to optimize business processes and increased focus on management efficiency. Revenue from licensing royalties also played a role, totaling $600 million.
According to Eric Xu, current chairman of the board, 2021 will be no less challenging, but during this period the company’s development strategy will begin to take shape. He also thanked customers and partners for their trust and added that, despite any difficulties, the company will continue to ensure operational stability. “This is necessary not just to survive, but to conduct sustainable business. As before, we will continue to focus on our customers’ needs and creating practical value for their business,” Eric Xu emphasized.
Huawei is actively working to unlock the full potential of 5G. The company helps operators around the world deploy 5G networks according to the needs of customers and industries, increasing the efficiency of delivering its products and solutions. Huawei also continues to improve its software development processes and increase investment in this area, aiming to gradually grow the share of software and services in its overall revenue structure.
“We remain firmly committed to technological innovation and significant investment in R&D, as we strive to ensure supply chain stability under trade restrictions,” notes Eric Xu. “The company’s plans include new groundbreaking discoveries in fundamental science and expanding technological capabilities.”
*The above are unaudited figures prepared in accordance with International Financial Reporting Standards; exchange rate at the end of March 2021: USD 1 = 6.567 yuan (source: external agencies).