Huawei financial report predicts revenue growth of 9% in 2023

2023-12-29 13:06:00

A Huawei, one of the largest companies in the world, predicts a 9% growth in its revenue in 2023, despite the sanctions imposed by the United States and the slowdown in the global economy. The Chinese company announced this Friday (29) that it expects to earn 98.5 billion dollars this year, an increase of 9% compared to 2022, which earned 642.3 billion yuan.

According to Huawei’s rotating president, Ken Hu, growth will be driven mainly by the consumer business segment, which includes cell phones, tablets, notebooks and other products. This segment recorded a 2.2% increase in revenue in the first half of 2023, reaching 103.5 billion yuan (around R$70 billion).

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The infrastructure segment for telecommunications operators also performed well, earning 167.2 billion yuan (around R$113 billion) in the first half of 2023. Huawei is the world leader in 5G technology and has invested in computing solutions cloud and energy efficiency for companies.

The net profit margin in the first six months of 2023 was 15%, a significant improvement compared to 5% in the same period last year. The company attributed this result to increased spending on research and development and the recovery of the Chinese market, where Huawei grew 76% in the cell phone segment.

In October, the Asian giant recorded an increase of 83% compared to the same period in 2022. The company’s revenue expectations were leaked in an internal letter sent to employees and intercepted by Archyde.com.

However, Huawei also faces major challenges in maintaining its growth. Since 2019, the company has been blacklisted by the United States, which accuses it of espionage and violating sanctions on Iran. This prevents Huawei from accessing technology and components of American origin, harming its ability to design chips and supply devices to other countries .

Furthermore, the global economy is expected to slow down in 2023, according to projections by the Central Bank of Brazil and the International Monetary Fund. This might affect demand for Huawei’s products and services, especially in emerging markets.

“The global industry and markets will remain fraught with uncertainty for the rest of 2023,” Hu said. “However, we continue to build our mechanisms for global business continuity management and an agile operations management system, [e] We are confident we can meet our annual targets.”

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