Chinese tech company Huawei has announced its financial performance in the first three quarters of 2020. According to the company, the business results met their expectations.
The company posted revenue of CNY671.3 billion (about $100.5 billion) in the period, up 9.9% from the same period last year. Net profit margin stood at 8.0%.
Despite the impressive results, the company’s global supply chain is still under intense pressure. Besides, Huawei says it’s also facing “significant challenges” in operations and production.
“The company continues to do its best to find solutions, survive and forge forward, and fulfill its obligations to customers and suppliers,” wrote Huawei in a blog post.
Both Huawei’s smartphone and telecom equipment businesses are still facing challenges. For their smartphone business, the company was denied access to Google’s apps, a key component of every phone in most parts of the world.
The May sanctions also forced the company to close its chip-making arm, HiSilicon, thus stopping production of high-end Kirin chips. Current Kirin 9000 chips in Huawei Mate 40 series could be the last generation.
As for its telecom equipment business, Huawei is still the market leader, but it faces a rough future over the US sanctions. The US government has continuously expressed fears that the company’s telco equipment could be used by China to spy on its citizens.
Although no hard evidence has been provided, these sanctions have made numerous countries reject Huawei from taking part in their 5G network.
Now that its smartphone and telecom business is still facing pressure, the company will, moving forward, focus on its strengths in different ICT technologies like AI, cloud, 5G, and computing.
They hope to “help enterprises grow their business and help governments boost domestic industry, benefit constituents, and improve overall governance.”
“ICT has become a cornerstone of modern society and the main driver behind sustainable social, economic, and environmental development,” the company says.
“Huawei believes that rapid and healthy development within the ICT industry will rely on open collaboration and mutual trust across the global industry, so it will continue working closely with its global partners and using its innovative ICT technologies to create greater value for customers despite the complex situation it is currently facing.”