This article was added by the user . TheWorldNews is not responsible for the content of the platform.

China's Huawei says sales are declining but new venture is growing

Article Author:

The Associated Press

Associated Press

Joe McDonald

FILE - A man wearing a face mask walks past a billboard advertising Chinese technology firm Huawei at the PT Expo in Beijing, Oct. 14, 2020. Chinese tech giant Huawei said Friday, Aug. 12, 2022 its revenue fell in the first half of 2022 but new ventures in autos and other industries helped to offset a decline in smartphone sales under U.S. sanctions.
File - Male wearing face mask walks past a billboard promoting Chinese technology company Huawei at the PT Expo in Beijing on October 14, 2020. and other industries helped offset declines in smartphone sales under U.S. sanctions. Photo credit: Mark Schiefelbein /THE ASSOCIATED PRESS

Revenues declined in the first half of 2022, but new business in automotive and other industries should offset lower smartphone sales under US sanctions. was helpful.

Revenue for the six months to June 30 fell 5.9% year-on-year to 301.6 billion yuan, according to the company, the largest manufacturer of phone and network equipment. ($44.8 billion). internet career. It didn't turn a profit, but the profit margin, he said, was 5%, about 15 billion yuan ($2.2 billion).

Huawei Technologies, China's first global technology brand, has been out since then-President Donald Trump blocked his US processor access to his chips and other technology in 2019. , has been struggling. Chinese spy.

Huawei, headquartered in Shenzhen, near Hong Kong, is stepping up development of network technology for the automotive, hospital, mining and manufacturing industries. It is said to be less susceptible to US sanctions.

"While our device business was significantly impacted, our ICT infrastructure business maintained steady growth," said three executives serving as rotating chairman. Ken Hu, one of his, said in a statement.

The sales decline in the first half was an improvement over his 14% decline reported in his first three months of the year. The margin is wider than it was in the first quarter at 4.3%.

Huawei's device segment revenue, which includes smartphones, fell 25.3% year-on-year to 101.3 billion yuan ($15 billion). Sales of network equipment for telecommunications carriers and enterprises increased.

Huawei reported a profit of 113.7 billion yuan ($17.8 billion) last year, but said its revenue plunged 28.6% from 2020.

The company's automotive ventures have played a role in his five models released by three Chinese automakers. Huawei provides components and software for navigation, dashboard display, vehicle system management, and other services.

Founded in 1987, Huawei says it is owned by Chinese citizens, who make up half of its 195,000 global workforce. To allay Western security concerns about the company, the company began reporting earnings a decade ahead of him.

Also on Friday, Huawei expressed concern about the new US law, the CHIPS and Science Act. The law promises support for companies investing in the production of processor chips in the United States. This is intended to reduce the U.S. dependence on Taiwan, which produces most of the world's high-end chips, and China, which assembles most smartphones and other electronic devices.

Huawei said in a statement that any action that curtails global industry cooperation would "greatly impede scientific and technological innovation."

Posted Newsletter logo

Sign up to receive daily top his stories from National Post, a division of Postmedia Network Inc.

By clicking the Sign Up button, you agree to receive the above newsletter from Postmedia Network Inc. You can unsubscribe at any time by clicking the unsubscribe link at the bottom of the email. Post Media Networks Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300