By Li Panpan

(JW Insights) Oct 31 -- China's technology giant Huawei achieved sales revenue of RMB456.6 billion ($62.40 billion) and a net profit margin of 16.0% year on year in the first three quarters of 2023, said the company in a briefing on its operating performance during the period.

Its net profit performance exceeded expectations. Huawei's net profit in the first three quarters of 2023 reached RMB73.056 billion ($9.98 billion), a year-on-year increase of 168.6%, and has exceeded twice the net profit of RMB35.6 billion ($4.86 billion) in 2022. Ken Hu, Huawei's rotating chairman, described the results as "in line with forecast."

In the first quarter of 2023, Huawei hit a net profit margin of 2.3% - the lowest level in the past five years. It achieved a sharp surge in the second quarter of 24.38%, and maintained a relatively high net profit margin in the third quarter of 18.13%.

Despite the geopolitical situation, industry competition, and business strategy changes, Huawei has continued increasing investment in research and development, causing its net profit margin to drop from 8.2% in 2018 to 5.5% in 2022. But in 2021, benefiting from the sale of Honor mobile phones and X86 server business, Huawei earned a net profit of RMB113.7 billion ($15.54 billion) with a net profit margin of 17.85%.

The firm "will continue to increase our investment in R&D to make the most of our business portfolio and take the competitiveness of our products and services to new heights," Ken Hu added.

Huawei's advantages in product competitiveness, services, and industrial portfolio are strengthening.

In mobile phones, the Huawei Mate 60 series has been a big booster for it. China's smartphone sales fell by 3% year-on-year in the third quarter, while Huawei's mobile phone sales increased by 37% year-on-year thanks to the newly launched Mate 60 series, according to research firm Counterpoint.

Huawei released a variety of new full-scenario products on September 25 such as the new MatePad Pro 13.2-inch, Huawei WATCH ULTIMATE DESIGN, Huawei Smart Screen V5 Pro, Huawei FreeBuds Pro 3, Huawei Smart Glasses 2, and Huawei WATCH GT 4, showcasing its extensive layout.

It also released the world's first complete series of 5G-A product solutions during the Global Mobile Broadband Forum 2023, held in Dubai, UAE, from October 10th to 11th, continuing to innovate and help operators efficiently build 5G-A networks.