By Greg Gao

Chinese tech giant Huawei generated RMB445.8 billion(about 61.6 billion) revenue , with a 6.1% profit margin in the first three quarters of 2022, announced the company on October 27.

Eric Xu, Huawei’s Rotating Chairman, said “Overall performance was in line with forecast.” “The decline in our device business continued to slow down, and our ICT infrastructure business maintained steady growth. In the future, we will keep bringing in top-notch talent and investing in R&D to take the competitiveness of our products to a new level,” he added.

Through comparison, it can be found that Huawei’s revenue dropped by nearly RMB20 billion ($2.7 billion) in 2022 so far. Its net profit margin dropped from 9.9% in the first half of 2021 to 5% in the first half of 2022, a year-on-year decrease of nearly 50%, said a JW Insights report.

On August 12, Huawei posted revenue of RMB301.6 billion ($41.6 billion) for the first half of 2022, with a net profit margin of 5.0%. Among them, the carrier network business revenue was RMB142.7 billion($19.7 billion), the enterprise business income was RMB 54.7 billion($7.5 billion), and revenue from consumer business was RMB101.3 billion($14 billion).

Ken Hu, Huawei's rotating chairman at the time said: "Although our consumer business has been greatly affected, the ICT infrastructure business has maintained steady growth. We will actively seize the trend of digitalization and low-carbon development.”

The company generated a revenue of RMB320.4 billion ($44.1 billion) in the first half of 2021 and a net profit margin of 9.8%. Its carrier network business revenue was RMB136.9 billion($18.8 billion), the enterprise business income was RMB 42.9 billion($5.9 billion) and the consumer business revenue was RMB135.7 billion($18.7 billion).

Huawei spends more than 10% of its sales revenue on research and development every year. In 2021, its R&D expenses were RMB 142.7 billion($19.7 billion), accounting for approximately 22.4% of the annual revenue. In the past ten years, Huawei’s accumulated R&D expenditure has exceeded RMB 845 billion($116.8 billion), according to media reports.

Huawei has about 107,000 R&D personnel in 2021, accounting for about 54.8% of the company’s total employees.