Huawei Q1 Revenue Growth Retards Sharply Due to Coronavirus, US Band

Huawei Technologies’ revenue growth slowed sharply in Q1, but the world’s prime telecoms equipment supplier tagged the performance as resilient in light of strain from the U.S. and the influence of the COVID-19 pandemic.

Huawei Q1 Revenue Growth Retards Sharply Due to Coronavirus, US Band

The corporate stated its revenue in the first quarter surged by some 1% to 182.2 billion yuan ($25.72 billion), against a 39% growth posted a year ago. Its internet profit margin over the interval shrank to 7.3% from about 8% a year ago.

Huawei, also the third-largest smartphone maker in the world, didn’t disclose its net revenue. “The growth rate has retarded, but that is a resilient efficiency in the face of both the entity list and the coronavirus we face at this moment,” VP Victor Zhang mentioned in a statement Tuesday.

Washington placed Huawei on a blacklist in May 2019, citing national security concerns, limiting sales of U.S.-made goods to the company. The Chinese tech giant turned in its weakest annual profit growth in three years in 2019.

About impact from the coronavirus pandemic, Zhang stated it was tough to gauge what that may be in the short or long run, as he introduced the results from London rather than Huawei’s Shenzen base to mark two decades of enterprise in Europe.

Zhang ignored criticism for so-called masks diplomacy, saying the company had no ulterior motive behind its donations of hundreds of thousands of protective masks to nations across Europe amid the spike in coronavirus cases.