Chinese vendor Huawei reported revenues of CNY182.2 billion ($25.75 billion) in the first quarter of 2020, up only 1.4% year-on-year, the company said in a release.
Huawei also said its net profit margin for the quarter was 7.3%, down from 8% in Q1 2019.
In the first quarter of 2019, Huawei revenue’s had climbed 39G to CNY179.7 billion.
Huawei claimed that its operations are continuing as usual and flat revenue growth in the period is in line with expectations given the significant impact of COVID-19.
The Chinese vendor didn’t reveal net profit or breakout revenue by business group for the first quarter of the year.
“As COVID-19 continues to spread around the world, Huawei is taking proactive measures to ensure the safety of its employees. The company and its supplier network are working together to address the tough challenges facing production and resume operations. Huawei’s business is continuing as usual and its overall business results in Q1 2020 are in line with expectations,” Huawei said.
In late March, the vendor’s CEO and founder Ren Zhengfei said more than 90% of its 150,000 domestic employees were back at work, with some of its operations resuming in early February, after the Chinese government allowed certain industries to resume activities during the COVID-19 pandemic.
At the end of March, Huawei reported in its annual report that the firm had recorded revenues of CNY858.8 billion ($123 billion) in 2019, up 19.1% year-on-year. The vendor’s net profit reached CNY62.7 billion, up 5. 6% versus 2018.
Revenue from China increased 36.2% to CNY506.7 billion, accounting for 59% of Huawei’s total revenues, with EMEA (24% of the total) flat at CNY206 billion. Revenues in Asia Pacific (8.2 %) declined 13.9% to CNY70.5 billion, while revenues in the Americas (6.1%) increased 9.6% to CNY52.5 billion.
In 2019, sales revenue from Huawei’s carrier business reached CNY296.7 billion, up 3.8% year-on-year.
Eric Xu, Huawei’s rotating chairman said 5G revenue represented a small percentage of its carrier business last year, noting 2019 brought the introduction of 5G services in some markets, but large-scale rollouts have yet to happen.
In a previous event with partners and media in London, Huawei said it has 91 commercial 5G contracts to date. The company added that it has already shipped over 600,000 5G Massive MIMO active antenna units (AAUs).