Huawei's net profits for the first half of 2022 declined by more than half as the vendor blamed the difficult economic backdrop.
Revenue also slumped 5.9 percent year-on-year to RMB 301.6 billion ($44.73 billion). The company's net profit margin shrunk by five percent to RMB 15.08 billion ($2.2bn), while net profit as a whole was down almost 50 percent from the RMB 31.39 billion ($4.6bn) reported during the first half of 2021.
However, Huawei has insisted the performance was in line with expectations.
"While our device business was heavily impacted, our ICT infrastructure business maintained steady growth," said Huawei's Rotating Chairman Ken Hu.
"Moving forward, we will harness trends in digitalization and decarbonization to keep creating value for our customers and partners, and secure quality development."
Supply chain issues, a weaker economy, and the Covid-19 pandemic have contributed to Huawei's challenges.
Sanctions against Huawei bite
The vendor has also suffered since 2019 because of restrictions imposed by the US, ultimately denying Huawei access to Google Mobile Services. Former US President Donald Trump enforced the sanctions on Huawei, deeming the company a national security risk, subsequently putting Huawei on the US Entity List.
This led to Huawei taking hits in other markets, including the UK, where the British government performed a U-turn on allowing Huawei to play a pivotal role in helping to build the UK's 5G networks. This has forced UK operators to remove all Huawei 5G kit from its networks by 2027.