Date
19 May 2019
Huawei said its net profit margin is around 8 percent for the first quarter, slightly higher than the same period last year. Photo: AFP
Huawei said its net profit margin is around 8 percent for the first quarter, slightly higher than the same period last year. Photo: AFP

Huawei revenue up 39% in first quarter

Huawei Technologies said its first-quarter revenue jumped 39 percent to 179.7 billion yuan (US$26.81 billion), Reuters reports.

The world’s biggest telecoms equipment maker, also said its net profit margin was around 8 percent for the quarter, which it added was slightly higher than the same period last year. Huawei did not disclose its actual net profit.

The limited results announcement comes at a time when Washington has intensified a campaign against the Shenzhen-based firm, alleging its equipment could be used for espionage and urging US allies to ban it from building next-generation 5G mobile networks.

Huawei has repeatedly denied the allegations and launched an unprecedented media blitz by opening up its campus to journalists and making its typically low-key founder, Ren Zhengfei, available for media interviews.

The Chinese firm, which is also the world’s No. 3 smartphone maker, said last week the number of contracts it has won to provide 5G telecoms gear increased further despite the US campaign.

By the end of March, Huawei said it had signed 40 commercial 5G contracts with carriers, shipped more than 70,000 5G base stations to markets around the world and expects to have shipped 100,000 by May.

Huawei’s network business saw its first drop in revenue in two years in 2018. But Ren Zhengfei said in an interview with CNBC earlier this month that network equipment sales rose 15 percent while sales of the consumer business increased by more than 70 percent in the first quarter.

“These figures show that we are still growing, not declining,” Ren said. 

Guo Ping, rotating chairman of the company, has said he expects all three business groups – consumer, carrier and enterprise to post double-digit growth this year.

Huawei also said it had shipped 59 million smartphones in the first quarter. It did not disclose year-ago comparable figures, but according to market research firm Strategy Analytics, Huawei shipped 39.3 million smartphones in the first quarter of 2018.

Meanwhile, the company launched what it said was the world’s first 5G communications hardware for the automotive industry.

Huawei said in a statement that the so-called MH5000 module is based on the Balong 5000 5G chip which it launched in January. “Based on this chip, Huawei has developed the world’s first 5G car module with high speed and high quality,” it said.

It launched the module at the Shanghai Autoshow, which began last week and runs until Thursday.

“As an important communication product for future intelligent car transportation, this 5G car module will promote the automotive industry to move towards the 5G era,” Huawei said.

It said the module will aid its plans to start commercializing 5G network technology for the automotive sector in the second half of this year.

Huawei has in recent years been testing technology for intelligent connected cars in Chinese cities such as Shanghai, Shenzhen and Wuxi and has signed cooperation deals with a swathe of car makers including FAW, Dongfeng and Changan.

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