HONOR 2020 H1 Business Achievements in International Markets

HONOR Successfully Expand International Business into PC and Wearable category, Experience Consistent Growth in Russia and Made Solid Progress in Sales and User Registration at HIHONOR.com

[Shenzhen, July 28^th, 2020] Huawei announced its business results for the first half of 2020. The company generated CNY454 billion in revenue during this period, representing a 13.1% increase year-on-year, with a net profit margin of 9.2%¹. Huawei's carrier, enterprise, and consumer businesses achieved CNY159.6 billion, CNY36.3 billion, and CNY255.8 billion in revenue, respectively. As part of the Huawei Consumer Business Group's dual-brand strategy, global technology brand HONOR also announced its brand and business performances in its international markets. According to brand equity researcher BrandZ™, HONOR ranked 21^st in the “BrandZ Top 50 Chinese Global Brand Builders 2020” list and saw a 34% increase in its brand score comparing to 2019.

HONOR “1+8+N” All-scenario Strategy Made Solid Progress in International Business Development

• In 2020 H1, HONOR ranked Top 1 smartphone brand with 25.9% market share in terms of sales units in Russia. HONOR has been consistently crowned Top 1 smartphone brand in Russia since November 2019².

• In 2020 Q1, HONOR ranked Top 5 in terms of smartphone shipment in Saudi Arabia and ranked Top 3 in the mid- to -high-end smartphone category ($200-$600)³.

• In 2020 Q1, HONOR ranked Top 5 in terms of smartphone shipment in Czech Republic⁴.

• In the wearable market, HONOR ranked Top 5 in Russia, Malaysia, Czech Republic and India in 2020 Q1⁵.

• In June 2020, the HONOR MagicBook Series ranked Top 1 best-selling ultrabook at DNS in Russia.

• The HONOR MagicBook 14 ranked Top 2 best-selling product at datart.cz, Top 4 best-selling newly launched product at notebooksbilliger.de, Top 5 best-selling laptop, Top 10 searchable products at Boulanger and Top 10 best-selling newly launched product with 4.9-star customer rating on amazon.co.uk.

Smartphones with Huawei Mobile Services Ecosystem Experienced Robust Growth in Market Share in Russia

In 2020, HONOR launched seven smartphones with Huawei Mobile Services Ecosystem in Russia, including the HONOR 30 Series, HONOR View30 PRO, HONOR 9C, HONOR 9A and HONOR 9S. The market share of these smartphones achieved 8% increase in sales units by the end of 2020 Q2⁶. In June 2020, the HONOR 9A and the HONOR 9S both ranked Top 5 best-selling smartphones in Russia⁷.

Huawei Mobile Services Ecosystem is growing rapidly, reaching 700 million global Huawei device users, with a year-on-year growth of 32%. Until 25th July, The number of registered Huawei developers worldwide has reached 1.6 million, up 76% year-on-year, with more than 81,000 innovative applications integrated HMS Core open capabilities.

In Russia, the ecosystem is continuously growing and developing strong and successful partnerships across segments represented on the AppGallery such as Yandex, Mail.ru, Sberbank, S7 Airlines, Wildberries, Alfa Bank, Ozon and many others. Recently Sberbank, Russia's largest bank and a leading global financial institution, launched its contactless payment solution SberPay to all NFC-enabled smartphone users, notably HUAWEI and HONOR users. The service is a feature of the Sberbank Online mobile application, available in the AppGallery, for Visa cardholders. In the near future, this service will also be available to other payment systems. Linking a card with SberPay via Sberbank Online will allow users to make contactless purchases, withdraw cash, and top-up money into their bank accounts at NFC-equipped ATMs. Each transaction is authorized with fingerprint scanning or via a digital code. This partnership with the AppGallery is a vital step to build a more well-developed and seamless ecosystem for global users.

HIHONOR.COM Retains Solid Programs that Drove month-on-month Sales Growth and User Registrations

As the official online store, HIHONOR.com delivers a one-stop shopping experience that offers a comprehensive range of HONOR products and customer-centric services. After upgrading the online shopping experiences in the UK, France, Germany, Italy, Spain and Netherlands, HIHONOR.com experienced an average 146% month-on-month sales growth among those countries in the first half of 2020. It also contributed to 30% of the HONOR MagicBook Series sales revenue and 20% of HONOR MagicWatch 2 sales revenue in Western Europe, playing an essential role in HONOR’s business development. Globally, HONOR has established 14 HIHONOR.com online stores with over 2.79 million registered users across its international markets.

¹The financial data disclosed here are unaudited figures compiled in compliance with the International Financial Reporting Standards; exchange rate at the end of June 2020: US$1 = CNY7.0677 (source: external agencies)
²GFK Report 2020 H1
³IDC Report 2020 Q1
⁴IDC Report 2020 Q1
⁵IDC Report 2020 Q1
⁶GfK Report 2020 H1
⁷GfK Report 2020 H1