China’s telecommunications giant and smartphone maker Huawei Technologies reported a sharp decline in its revenue growth of the first half of 2020 on Monday. The company generated a total revenue of 454 billion yuan ($64.2 billion), representing a 13.1% increase compared with a year ago and the slowest revenue increase in the first half since 2013.
The Shenzhen-based company released the half-year business report earlier than previous years as the U.K. government is scheduled to release the final decision on whether Huawei is allowed to participate in the country’s 5G telecom networks on Tuesday.
The U.K. government announced in January that Huawei could have a minor role as a supplier of 5G networks with a limited market share of 35%, and would be allowed to supply only non-core parts of the network. The government now has to reconsider the decision as the U.S. turned its sanctions against Huawei into a global campaign, prohibiting any American chip maker to collaborate with Huawei and warning allies not to use Huawei as a supplier in their 5G kits. As the White House blacklisted the company due to the accusation that their technology is a threat to U.S. national security, Huawei said it is an independent company and denied its products could pose security risks to any countries.
Britain’s National Security Council (NSC), which is chaired by Boris Johnson, will meet on Tuesday morning to discuss the potential removal of Huawei. The Secretary of State for Digital, Culture, Media and Sport Oliver Dowden is scheduled to address the House of Commons on the issue later in the day.
Previously, Huawei’s founder and CEO Zhengfei Ren said in an interview with the Wall Street Journal in March that he was confident that Huawei could reach its newly adjusted financial goals for 2020 despite the US sanctions and the pandemic.
Huawei reported a net profit margin of 9.2% in the first half of the year, compared with the 8.7% increase in the same period last year.
“Information and communications technologies have become not only a crucial tool for combatting the virus, but also an engine for economic recovery,” the company said in its business report on Monday. “Huawei reiterated its commitment to working with carriers and industry partners to maintain stable network operations, accelerate digital transformation, and support efforts to contain local outbreaks and reopen local economies.”