At the end of the first half year, China's Huawei Technologies Co., which occupies the third place in the world by sales of smartphones, increased its revenue by 40% compared with the same period last year - from 175.9 billion Yuan to 245.5 billion Yuan ($ 36.67 billion), the company said.
The company did not disclose net profit for the half year, but the press release implies that the profitability of operating profit in January-June decreased to 12% from 18% a year earlier.
Huawei, which is the China's largest maker of networking equipment, explains the decrease in profitability with the increase in investment in the smartphone production division.
"The moderate decline in the profitability of operating profit during the reporting period is mainly the result of increased investments to support future growth", - the report says.
Huawei CFO Sabrina Meng expressed confidence that the company will be able to maintain the current growth rate. In the first half of 2015, Huawei's revenues increased by 30%.
According to estimates of analyst firm – Gartner, in the first quarter of 2016, the sales of Huawei smartphones jumped 59% and exceeded 28 million units. The company's share in the world market increased from 5.4% to 8.3%. The market leader has remained South Korean Samsung (23%), while the second place was occupied by the US Apple (NASDAQ: AAPL) (15%).
Huawei was founded in 1987 by former Chinese military Zhenem Chzhenfeem, whose biography was one of the reasons for limiting the company's activities in a number of developed countries, including the United States. Currently, he and three other top managers take on the CEO post by rotation, replacing each other every six months.
Today Huawei operates in more than 140 countries around the world.