Huawei retains growth, mainly on the Chinese market

Huawei, which has re-focused on the Chinese market, continued to repair its operating performance.

On October 27, Huawei announced its operating results for the first three quarters. The revenue from July to September increased by 6% year-on-year to 144.2 billion yuan, and the growth rate turned positive for two consecutive quarters. At the same time, the net profit margin also rose to 8.4% from 5% in the first half of the year.

Xu Zhijun, the rotating chairman of Huawei, said that the downward trend of consumer business (mobile phone and other businesses) continued to slow down. In the first half of the year, revenue from the business fell 25% year-on-year. According to data obtained by LatePost, in the third quarter of this year, Huawei’s mobile phone sales in mainland China increased by 5% year-on-year. Due to the release of the Mate 50 series, the average selling price of Huawei’s mobile phones is also rising.

The auto business has also picked up. In the third quarter, Huawei Askjie sold a total of 27,000 vehicles, the most in the quarter after Huawei entered the auto market. According to the request of Huawei founder Ren Zhengfei, Huawei’s automotive business will “reduce the research budget and strengthen the business closed loop”.

Huawei’s information and communications technology (ICT) business, which sells software services and hardware equipment to companies, has seen “steady growth”. In the first half of the year, Huawei’s carrier business and enterprise services increased by 4% and 28% respectively. In order to gain more revenue in these sectors, Huawei has formed 18 “corps”, combining scientists for basic research and experts in charge of technology, products, engineering, sales, delivery and services into one team to improve business efficiency.

Huawei continues to emphasize “living with quality”. Ren Zhengfei said in an internal document in August this year that Huawei’s business goals should be shifted from “sales revenue” to “cash flow and real profits”. In addition to reducing or closing businesses that cannot generate value and profits in the next few years, it also emphasizes focusing on valuable businesses. market.

Ren Zhengfei said that Huawei used to embrace the ideal of globalization, but now it will abandon some countries and mobilize more personnel to “eat the fat”. In 2018, the Chinese market contributed half of Huawei’s revenue. Last year, the proportion increased to 65%, and this year may be more. (He Qianming)