(Yicai) Nov. 1 -- Huawei Technologies posted higher revenue for the first three quarters of this year, but profit slid as a result of the Chinese tech giant completing the sales of budget phone brand Honor and server business xFusion.

Revenue jumped 28 percent to CNY585.9 billion (USD82.3 billion) in the nine months ended Sept. 30, almost as high as in the same period of 2019, Huawei’s earnings statement to the Shanghai Clearing House showed yesterday. The privately held company has not posted the results on its website.

The gain was driven by the Shenzhen-based firm’s smartphone division, automotive business, and computing systems powered by its Ascend processors, according to market researchers. Its third-quarter phone sales surged 42 percent in China, placing the company third with a market share of 15.3 percent, according to IDC data.

Nine-month net profit fell 14 percent to CNY62.9 billion (USD8.8 billion), with the decrease partially due to the completed sales of Honor and xFusion, according to analysts.

Last year’s earnings report showed that part of Huawei’s profit had come from fair-value gains associated with the two asset sales, which were finalized at the end of the year. The gains stood at CNY55.3 billion a year ago, compared with a CNY450 million (USD63.2 million) loss for the period just reported.

The firm’s automotive business, led by its subsidiary Yinwang Intelligent Technology, had a first-half net profit of CNY2.2 billion (USD308.8 million), marking a turnaround from losses in 2022 and 2023. Its full-year profit is expected to hit CNY3.4 billion.

But Huawei’s smartphone sales have yet to recover overseas. In the second quarter, Huawei’s global shipments rose 49 percent to 11.6 million units, with China accounting for 89 percent of that, according to a TechInsights report. In the domestic market, the company continues to face intense competition from other brands.

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

Editor: Emmi Laine