Huawei business remains resilient in the first quarter of 2021

Huawei announced its business results for the first quarter of 2021 recently, which were in line with forecast.

In Q1, Huawei generated CNY 152.2 billion in revenue, a 16.5% decrease year-on-year. Its network business maintained steady growth, while consumer business revenue declined, in part as a result of selling the Honor smart device brand in November 2020. Huaweiโ€™s net profit margin was up 3.8 percentage points[1] year-on-year at 11.1% โ€“ the result of the companyโ€™s ongoing efforts to improve quality of operations and management efficiency, as well as a patent royalty income of US $ 600 million.

โ€œ2021 will be another challenging year for us, but itโ€™s also the year that our future development strategy will begin to take shape,โ€ said Eric Xu, Huaweiโ€™s Rotating Chairman. โ€œWe thank our customers and partners for their ongoing trust. No matter what challenges come our way, we will continue to maintain our business resilience. Not just to survive, but do so sustainably. As always, we will remain focused on the needs of our customers and keep delivering practical business value.โ€

Huawei is driving efforts to fully unleash the value of 5G. It is helping carriers around the world roll out their 5G networks, meeting the demands of consumers and industries alike, while boosting its own delivery efficiency. It continues to improve its software engineering capabilities and ramp up investment in the software sector to gradually increase the proportion of software and services in its total revenue mix.

โ€œAs always, we remain committed to technological innovation and investing heavily in R&D as we work to address supply continuity challenges caused by restrictions in the marketโ€, stressed Xu. โ€œWe will continue making breakthroughs in basic science and pushing the frontiers of technology.โ€

[1] The financial data disclosed here are unaudited figures compiled in compliance with the International Financial Reporting Standards; exchange rate at the end of March 2021: US$1 = CNY6.5670 (source: external agencies)

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