The Chinese tech giant has ‘yet again increased investment in R&D’ to make up for technology losses
The first quarter of 2023 wasn’t an easy one for Chinese tech giant Huawei, which saw its profits continue to plunge in the face of sanctions with sales largely stagnant, growing just 0.8 percent compared to the same quarter last year.
Huawei is a private company but has long reported basic financials. This quarter it only shared the metrics mentioned above, along with saying it had a profit margin of 2.3 percent on 132.1 billion Chinese yuan in revenue. That equates to around 3 billion yuan in profit, or around $434 million.
When compared against Huawei’s 2022 year end report, the picture becomes even more bleak: profits dropped by 46 percent in the first quarter of 2023 compared to year-end statistics.
Looking at companies’ topline and bottom from quarter to quarter is accepted practice when an organization is deemed to be struggling.
Huawei said little else in its Q1 statement, only sharing that the results were in line with its forecasts, and that the company is again increasing investment in R&D “to keep innovating for the future,” or perhaps more accurately, innovating around US sanctions.
Earlier this year, the United States halted all American technology exports to Huawei as part of its ban on the sales of US goods to Chinese companies.
