Huawei blamed increased investments in business continuity, new business segments and software for a decline in profit margin during Q1, as overall revenue was again hit by its troubled consumer business.
In its earnings release, rotating chair Ken Hu (pictured) claimed the figures were in line with forecasts. Revenue dropped 13.9 per cent year-on-year to CNY131 billion ($19.8 billion), with its net profit margin down from 11.1 per cent in Q1 2021 to 4.3 per cent.
Hu noted Huawei’s ICT infrastructure business experienced steady growth, while its consumer business was “heavily impacted” by trade sanctions.
In an unusually brief statement, Hu cited a complicated business environment as he noted Huawei again increased investment in R&D “to harness the momentum of our innovation and create new value for customers”.
Huawei didn’t reveal net profit or revenue by business group.
Earlier this week Hu told Huawei’s Global Analyst Summit the vendor faced increased challenges in 2022, which it would respond to through higher R&D outlay, a greater focus on operational efficiency and diversification of its product portfolio.Subscribe to our daily newsletter Back