(Yicai) Nov. 1 -- Huawei Technologies' net profit dropped 14 percent but its revenue increased by 28 percent during the first three quarters of this year following divestments of the Chinese telecoms giant's budget brand Honor and server business xFusion.

From January to September, revenue jumped CNY585.9 billion (USD82.3 billion) while net profit slid to CNY62.9 billion (USD8.8 billion), according to data released by the Shanghai Clearing House yesterday. The Shenzhen-based company has not posted these results on its website.

A financial professional told Yicai that the decline in profit is linked to the asset transfers of Honor and xFusion.

Huawei’s 2023 annual report also highlights fair value adjustments tied to these sales. Huawei recorded a gain of CNY55.3 billion in fair value adjustments in the first three quarters of 2023, contrasting with a loss of CNY450 million (USD63.2 million) over the same period of this year.

Revenue was almost as high as that of the same period in 2019 as handsets, automotive, and computing systems relying on Ascend processors support Huawei's recovery, according to market research firms.

From July to September, Huawei’s smartphone shipments surged 42 percent year-over-year, with its market share reaching 15.3 percent, according to IDC data.

Yinwang Intelligent Technology, the primary entity for Huawei’s automotive segment, reported CNY2.2 billion (USD308.8 million) in net profit in the first half, turning losses into gains. For the full year, net profit is expected to rise to CNY3.4 billion.

However, overseas sales remain subdued. In the second quarter, Huawei’s global smartphone shipments rose 49 percent to 11.6 million units, with China accounting for 89 percent of the total, according to a TechInsights report.

Huawei insiders noted that the external environment is challenging, underscoring the need to strengthen the company’s supply chain resilience to ensure business continuity and product competitiveness amid complex market conditions.

Editor: Emmi Laine