BEIJING (Reuters) – First-quarter net profit rose 564% to 19.65 billion, according to a regulatory filing on Tuesday by Huawei Technologies Co.’s parent company, which continues to recover from U.S. sanctions. yuan ($2.71 billion).
Huawei’s revenue rose 37% to 178.5 billion yuan in the quarter ended March, according to a filing with the China State Interbank Funding Center. A breakdown of results for business units such as consumer components and smart car components was not provided.
A Huawei spokesperson said “digitization, intelligence, and decarbonization” drove the revenue growth.
“The industry and global markets will remain uncertain until the end of 2024. Nevertheless, we continue to develop mechanisms for global business continuity and operational agility,” the company said. Stated.
“We are confident that we will achieve our annual business targets and achieve sustainable growth.”
Last year, Huawei posted its fastest revenue growth in four years as a recovery in the consumer sector and income from new businesses such as smart car parts accelerated its recovery from U.S. sanctions.
The company’s smartphone business has seen a revival since being hit by repeated U.S. sanctions since 2019, after Huawei launched a new high-end smartphone equipped with domestically produced chips last year and stole Chinese market share from Apple. ing.
Apple’s share of the world’s largest smartphone market fell to 15.7% in the first quarter from 19.7% a year earlier. This puts the company on par with Huawei, which has seen a 70% increase in sales, research firm Counterpoint announced last week.
Huawei also began selling its long-awaited high-end smartphone “Pura 70” series this month.
China is also a strong player in smart car technology, with at least seven automakers promoting their driver assistance systems at the Beijing Motor Show.
(Reporting by Brenda Goh; Additional reporting by David Kirton; Editing by Jason Neely and Mark Potter)
