Chinese technology giant Huawei on Monday said that its revenue rose by 40 percent but its operating profit dipped marginally during the first half of the financial year, The Wall Street Journal reported.    

Huawei announced that its revenue for the first six months of the current year stands at 245.5 billion Yuan (36.67 billion), compared to 175.9 billion Yuan ($26 billion) in the same period last year. However, company's operating margin saw a six percent decline, from 18 percent in 2015 to 12 percent in 2016. Huawei refused to disclose its net profit for the first half of the year.

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"The modest reduction in operating margin during the period is mostly the result of increased investment to support future growth," a Huawei spokesman said. Huawei added that it is confident that it will be able to maintain its current growth momentum and round out the full year with a robust financial performance.

Huawei, which is third largest smartphone vendor after Samsung and Apple, has been steadily growing over the past few years. The company's decision to expand in other markets such as European, Middle East, Africa and Latin America countries has apparently paid off. However, the Chinese company continues to struggle to make a dent in the US market.

Analysts say that company is making a steady profit from its networking equipment business, despite an apparent decline in demand from clients.      

Huawei's Patent Woos

Huawei's impressive result on Monday comes on the back of a report that the Chinese smartphone giant has been sued by its rival Samsung for patent infringement. Samsung filed the lawsuit in multiple courts in China.

Experts say that lawsuit will have no effect on Huawei's business prospect. Earlier this year Huawei sued Samsung for patent infringement in the US. Experts claim that the ongoing patent battle is the result of cut-throat competition, with Huawei desperate to close the gap with its immediate competitors.

Tagschina, Huawei, Huawei Technologies Co. Ltd., Chinese Smart Phones