Huawei expects to enter new growth stage

Huawei Technologies posted revenue growth of 23.2 percent in the first half, despite US tech sanctions and being added to the US Entity List, the Shenzhen-based technology giant said on Tuesday.

Huawei’s chairman Liang Jun also announced it would spend 120 billion yuan (US$17.6 billion) on research and development this year to “invest in future.”

It is the first time Huawei has released a half-year report. As a private firm, Huawei normally releases an annual report. 

“We continue to see growth even after we were added to the entity list," said Liang. "That's not to say we don't have difficulties ahead. We do, and they may affect the pace of our growth in the short term."

Liang called Huawei’s operations “smooth” and the organization “as sound as ever.”

“We'll get through these challenges, and we're confident that Huawei will enter a new stage of growth after the worst of this is behind us,” Liang said.

In the first half, Huawei’s revenue reached 401.3 billion yuan, a 23.2 percent growth from a year ago. The company's net profit margin for the period was 8.7 percent.

In the carrier business, Huawei has secured 50 commercial 5G contracts and has shipped more than 150,000 base stations to markets around the world.

Huawei's smartphone sales, including Honor phones, reached 118 million units, up 24 percent year on year. Huawei is beginning to scale its device ecosystem to deliver a more seamless intelligent experience across all major user scenarios, Liang added.

In the second quarter, Huawei took a record 38 percent share of the market in China, despite a softening market demand before the launch of 5G, said research firm Canalys.

“Huawei surged ahead in China to achieve the highest market share for any vendor in eight years,” said Canalys in a report on Tuesday.

Huawei will continue increasing investment in research into 5G and other technologies, Liang added.