As per the latest reports, the Huawei chairman has made a statement in regards to the reputation and growth of the company. According to the chairman, the company is facing a hard time and things could turn even worse in the coming years.
The chairman has stated that they are currently trying their best to survive and that is exactly the strategy they have adopted. The chairman stated that the revenue of the company is facing a constant drop. From the beginning of January 2021 until the end of June 2021, the firm has experienced a significant drop in revenue.
As per the reports, the company has ended up facing a 30% loss in revenue for the said period. Therefore, the company is trying really hard to survive and make a difference. For now, the strategy for the company is to make it through a hard time and survive in a harsh environment.
It was back in 2019 when Huawei was put on the United States trade blacklist. Huawei shared the revenue it generated in the first half of the year 2021. In the announcement, the Shenzhen-headquartered company revealed that it had successfully generated 320.4 billion yuan for the particular period.
At the time of writing, the 320.4 billion yuan figure translates to $49.6 billion. The company has expressed that it is a significant fall it has incurred for the particular period. The company has made this comment because the revenue it had generated in the first half of 2020 was very high.
The company has revealed that in the year 2020, the first half managed to bring in 454 billion yuan for the company. At the time of writing, the 454 billion yuan figure translates to $70 billion. This means that as compared to the year 2020, the first half of 2021 has brought in $20.4 billion less revenue. This is a really alarming situation for the Chinese Telecommunication giant.
Furthermore, Huawei revealed that its profit margin ended up experiencing a rise. The firm revealed that its profit margin has increased from 0.6% to 9.8% in the first half of 2021. The firm has revealed that it managed to achieve this with the help of introducing improvements in the efficiency sector.
Huawei has also revealed that that the performance it has demonstrated is in line with the analysts that made the predictions and forecasts.
The rotating chairman of Huawei, Eric Xu also commented about the performance of the company and its goals for the next five years. He stated that the planning and strategies they have come up with are for the next five years.
However, the shortage of revenue for the company despite it being in line with the forecast may result in the company losing value for its stocks.