Finance

Huawei’s profit doubled in 2023 as smartphone, autos business picked up

Published

12 months ago

April 3, 2024

Business Finance News

Huawei brought one of the largest displays to Mobile World Congress in Barcelona in February 2024.

Sopa Images | Lightrocket | Getty Images

BEIJING — Chinese telecommunications company Huawei said Friday its net profit for 2023 more than doubled thanks to better product offerings.

The company also attributed the profit gains to revenue growth of 9.6% year-on-year to 704.2 billion yuan ($99.18 billion). Net profit grew by 144.5% year-on-year to 87 billion yuan.

Higher quality operations and sales of some businesses contributed to profitability as well, according to Huawei.

The telecommunications company made a comeback in the smartphone market in 2023 with the quiet release of its Mate 60 Pro in China in late August. Reviews indicated the device offers download speeds associated with 5G — thanks to an advanced semiconductor chip. That’s despite U.S. restrictions since 2019 on Huawei’s ability to access high-end tech from American suppliers.

The Mate 60 Pro helped boost Huawei’s sales in China. In the fourth quarter, Huawei smartphone shipments in the country surged by 47% from a year ago, putting the company in fourth place by market share, ahead of Xiaomi, according to Canalys. Apple maintained first place with 6% year-on-year growth in shipments, the data showed.

Huawei’s revenue grew by 0.9% to 642.3 billion yuan in 2022, as the company stabilized its business in a tough year following a plunge of more than 28% in sales in 2021. Net profit in 2022 fell by 69%, the largest drop on record. The company at the time cited rising commodity prices, China’s pandemic controls and growing research and development spend.

Huawei on Friday also said its intelligent automobile solutions business saw revenue grow by 128.1% from a year ago to 4.7 billion yuan.

The company sells software and other technology to car companies. It has also partnered with an automaker for the Aito electric car brand.

Huawei said its consumer business saw revenue grow by 17.3% year-on-year to 251.5 billion yuan in 2023.

ICT remained by far Huawei’s biggest revenue driver with 362 billion yuan in revenue in 2023, up 2.3% from a year ago.

Cloud revenue grew by nearly 22% to 55.3 billion yuan.

— CNBC’s Arjun Kharpal contributed to this report.

Finance

Conservative cable channel Newsmax shares plunge more than 70% after a dizzying 2-day surge

Published

4 hours ago

April 2, 2025

Business Finance News

A Newsmax booth broadcasts as attendees try out the guns on display at the National Rifle Association (NRA) annual convention in Houston, Texas, U.S. May 29, 2022.

Callaghan O’hare | Reuters

Shares of conservative news channel Newsmax plunged more than 70% on Wednesday as its meteoric rise as a new public company proved to be short-lived.

The stock tumbled a whopping 72% in afternoon trading, following a 2,230% surge in Newsmax’s first two days of trading after debuting on the New York Stock Exchange. At one point, the rally gave the company a market capitalization of nearly $30 billion — surpassing the market cap of legacy media companies like Warner Bros. Discovery and Fox Corp.

Newsmax was listed on the NYSE via a so-called Regulation A offering, instead of a traditional IPO. Such an offering allows small companies to raise capital without undergoing the full SEC registration process. The primary focus is to sell to retail investors, in this case It was sold to approximately 30,000 retail investors.

The public offering indeed garnered the attention from retail traders, some of whom touted the stock as the “New GME” in online chatrooms. GME refers to the meme stock GameStop, which made Wall Street history in 2021 by its speculative trading boom.

Newsmax has a small “float,” or shares available for trading. Less than 6% of Newsmax shares, or 7.5 million shares out of a total of 128 million fully diluted shares, are available for public trading.

The conservative TV news outlet has seen its ratings rise with the election of President Donald Trump and other prominent Republicans — although it still falls behind the dominant Fox News. Overall, Newsmax ranks in the top 20 among cable network average viewership in both prime time and daytime, Nielsen said.