Home Business Huawei’s core supplier of folding machines has a disastrous performance and net profit plummets by 66~100% | HiSilicon | Epoch Times

Huawei’s core supplier of folding machines has a disastrous performance and net profit plummets by 66~100% | HiSilicon | Epoch Times

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Huawei, HiSilicon

[Epoch Times News on January 9, 2022](The Epoch Times reporter Zhang Yuanzhang reported) Huawei continues to be sanctioned by US technology. Recently, the media disclosed that the shipments of Huawei’s HiSilicon’s mobile application processors were in the third quarter of last year. The plunge of 96% shows that the performance of Huawei’s mobile phone supply chain is not as good as before. Now there are media reports that Dongmu, the hinge supplier of Huawei’s folding screen mobile phone, will have its net profit in 2021 reduced by 66% to 100% compared with the year.

According to comprehensive media reports, Dongmu has become the largest supplier of metal injection molded parts (MIM) for Huawei’s mobile phone through the acquisition of Dongguan Huajing and Fuchi Hi-Tech. It is also the core supplier of Huawei’s second folding screen mobile phone Mate Xs hinge.

However, Dongmu continues to be affected by factors such as the industry’s lack of chips, and its performance in 2021 will drop sharply, and its net profit will drop by 66% to 100% compared with the previous year.

The report pointed out that due to changes in the international political and economic situation and chip shortages, Shanghai Fuchi experienced a decline in orders and project suspension, and the business situation has not been substantially improved, which will affect future profits and Dongmu at the same time. It is understood that Dongmu intends to merge Shanghai Fuchi and Dongguan Huajing, and at the same time conduct goodwill impairment, and allocate 65 million to 85 million yuan in goodwill impairment reserves.

A few days ago, the market research organization Strategy Analytics released a report that Huawei’s IC design company HiSilicon could not provide high-end chips, and its smartphone application processor shipments plummeted 96% in the third quarter of 2021.

Editor in charge: Yuzhen

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