What’s new: Embattled telecom giant Huawei Technologies Co. Ltd. reported Friday its revenue growth and net profit margin fell sharply in the third quarter.
The company’s third quarter revenue grew 3.8% year-on-year to 217.3 billion yuan, down from 13.1% growth in the first half of the year, according to Caixin’s calculations using new company data. The company’s profit margin during the first three quarters of 2020 fell to 8.0% from 9.2% for the first six months of the year.
“Throughout the first three quarters of 2020, Huawei's business results basically met expectations,” the company said in a brief statement with the results.
Background: As a private company, Huawei is not required to disclose any of its financial data and only releases limited amounts on a voluntary basis.
The company, one of China’s biggest high-tech success stories, has come under intense pressure over the last two years as it grapples with a U.S.-led assault that has seen it lose access to some of its key suppliers. A growing number of countries are also refusing to buy its 5G networking equipment.
In the latest development on that front, Sweden announced earlier this week it was banning Huawei and Chinese peer ZTE Corp. from its 5G network.
Related: Sweden Bans Huawei, ZTE From New 5G Infrastructure
Contact reporter Yang Ge (geyang@caixin.com) and editor Gavin Cross (gavincross@caixin.com)
