HONG KONG (Reuters) – Huawei Technologies, a unit of business consisting primarily of smartphones, there is an 11 billion yuan ($1.55 billion) profit in the first six months of this year, as much as it deserves-in 2018 – a rare regulatory filing showed.
FILE PHOTO: mobile phone Huawei logo is pictured at the IFA consumer tech trade show in Berlin, Germany, on September 5, 2019 at the latest. REUTERS/Hannibal Hanschke
The Chinese tech giant, was on a trade blacklist by the United States in May, which will be cut off from access to critical U.S. components and technology. The ban stops U.S. companies, such as the Alphabet of Google’s (GOOGL.D) from doing business with Huawei.
Analysts have said that the consumer business is the most vulnerable to Washington’s sanctions, with the main impact likely to be felt in the second half of the year.
Huawei said last month that, while the impact of the rebellion was weaker than previously expected, it would push the smartphone unit sales were lower by about $10 billion this year.
The company has so far disclosed in the annual profit figures for the company as a whole, and the submission of a rare window in to the growing profit contributions of Huawei’s consumer business.
Huawei previously said the smartphone shipments in the first half of the year jumped 24% jump to 118 million units, as demand surged from the patriotic Chinese, the buyers are in the midst of the soaring rhetoric in the local media that Huawei was treated unfairly by the United States of america.
The market share has increased by more than 10 percentage points, to 38% in the last quarter in China, the world’s biggest smartphone market, according to market research firm Canalys showed.
The new income figures have been published in a prospectus for the bonds to be published at the end of September. 11, Huawei’s parent Huawei Investment & Holding Co. Ltd., is looking to raise up to 20 billion yuan for the first time in the offshore yuan bond market.
Profit is on a Huawei Device (Shenzhen) Ltd., as a wholly-owned subsidiary of the parent company, and is a proxy for the behemoth of the smartphone business, it is 11.2 billion yuan in the first half of the year is 2019, while the turnover was € 211 billion yuan.
The unit gained the same amount of money at all, by 2018 the sales of 329 billion yuan, according to the prospectus, which is not in the figures for the first six months.
The filing also revealed Huawei Technologies Limited, which is Huawei’s most important business entity with a net gain of 30.27 billion yuan, with an annual turnover of 353 billion yuan in the first half of the year is 2019.
The group recorded an increase in gross margin in all three of the companies in the carrier network, consumer and enterprise business for the period of time. The revenue contribution from China increased to 58.12% in the first half, up from 52.02% for the full year 2018.
Reporting by Sijia Jiang of Hong Kong; Editing by Sayantani Ghosh and Alex Richardson