Chinese telecommunications giant Huawei released figures on Friday showing its first quarterly increase in revenue since 2020. Pictured here on July 8, 2022 is a Huawei flagship store in Shenzhen, Guangdong province of China.
Jade Gao | Afp | Getty Images
BEIJING – Chinese telecommunications giant Huawei released figures on Friday that showed its first quarterly increase in revenue since 2020.
Huawei has come under pressure in the past few years from US sanctions. Last year, Huawei reported its first annual decline in revenue.
However, the company’s latest numbers showed second-quarter revenue of 170.6 billion yuan ($25.5 billion), up 1.4% from a year ago, according to CNBC calculations.
That’s after a nearly 14% year-over-year drop in revenue in the first quarter, and double-digit declines for every quarter going back to the third quarter of 2020. Revenue rose 3.7% from the same period in 2019 to 217 .3 billion yuan, the results showed.
But in the first six months of 2022, revenue still fell – albeit at a slower pace of 5.9%.
Of the three main business segments, Huawei’s enterprise unit – which includes cloud and business services – had the biggest revenue growth, up about 28% to 54.7 billion yuan in the first half.
Huawei did not disclose a quarterly breakdown of revenue by business segment.
The company’s transportation business remained by far the largest, with year-on-year growth of 4% to 142.7 billion yuan in the first six months of 2022.
The device business continued to suffer from declining smartphone sales. Segment revenue fell 25% in the first half of the year to 101.3 billion yuan.
Huawei’s EV venture mostly falls under the device business unit, according to the company.
More investments in car technology
Notably, Huawei has partnered with automaker Seres — a Silicon Valley-based subsidiary of Chongqing-based automaker Sokon — to provide the operating system for a new car brand called Aito.
The brand’s first car, the M5, was launched at the end of last year. The vehicle runs on both electricity and gas. By the end of July, more than 26,000 M5 cars had been delivered, Huawei said.
The company announced that another vehicle, the M7, is set to begin deliveries this month.
Huawei said it plans to increase investment in its auto-related business this year with 2,000 more engineers than last year and $500 million more in investment.
That brings this year’s expected total to $1.5 billion in research and development investment in the automotive business and a staff of 7,000 engineers.