Huawei Technologies, the telecoms firm and No.2 smartphone maker, on Monday reported a 13.1 percent rise in revenue in the first half of the year, showing slower growth as US officials continue to pressure the company's suppliers and customers.
Revenue rose 13.1 percent to 454 billion yuan ($64.90 billion) in the first half of the year, compared to 401.3 billion yuan the year before. However, the company's growth rate was down from 23.2 percent in the first half 2019. Huawei said net profit margins were 9.2 percent, up from 8.7 percent in the first half 2019.
The Chinese technology company posted the report a day before United Kingdom officials are expected to order the removal of Huawei gear from the nation's telecommunications networks.
Huawei's rise in sales comes after more than a year of pressure from American officials on the company's suppliers and customers. The company sells 5G networking equipment to carriers and smart phones and laptops to consumers.
American officials placed Huawei on a blacklist in May of last year, restricting sales to the company of US-made goods such as semiconductors. Huawei built up inventories and also continued to design its own chips and have them manufactured by Taiwan Semiconductor Manufacturing and others.
"Huawei has promised to continue fulfilling its obligations to customers and suppliers, and to survive, forge ahead, and contribute to the global digital economy and technological development, no matter what future challenges the company faces," the company said in a statement on Monday.
In May, US officials announced new rules aimed at constricting Huawei's ability to self-supply chips, an ability that is critical to its efforts to sell 5G networking gear.
The first half results showed faster growth than Huawei's first quarter results released in April. For the first quarter, revenues rose by about 1 percent to 182.2 billion yuan, versus 39 percent growth posted a year previous. Net profit margin in the first quarter narrowed to 7.3 percent from about 8 percent a year earlier.
Huawei did not report unit shipments of phones. Research firm IDC reported Huawei was the second largest phone maker in the first quarter of 2020, with 17.8 percent market share, behind No. 1 Samsung Electronics and ahead of No.3 Apple Inc .
(Reporting by Stephen Nellis from San Fransisco; Editing by Arun Koyyur and Chris Reese)