Due to the US punishment that is still looming over Huawei, this Chinese company admitted that its sales will decline in 2021. However, the company’s profit actually jumped in the same year.
This was conveyed by Meng Wanzhou, Huawei’s CFO on Monday (28/03/2022) who said that, “despite the decline in revenue in 2021, our ability to generate profits and generate cash-flow has also increased.”
In its 2021 annual report, Huawei generated revenue of 636.8 billion Chinese Yuan (USD99.9 billion), down about 28.5 percent year-on-year. This decline is the first time since 2002 for the company.
However, Huawei’s net profit increased by around 75.9 percent year over year to touch the figure of 113.7 billion Chinese Yuan or USD 17.8 billion.
Huawei itself became one of the products blacklisted from the US, causing American companies to stop exporting components and software to the company, as well as banning Huawei from entering the US.
As a result, Huawei’s smartphone market share has slumped globally. Huawei’s smartphone and product sales brought in revenues of 243.4 billion Yuan in 2021, down nearly 50 percent year-on-year.
For the carrier business, Huawei posted revenue of 281.5 billion Yuan, down about 7 percent year-on-year.
To counter US sanctions, Huawei shifted its business and invested heavily in new fields including the auto industry and carried out various technology developments.
Huawei spent 142.7 billion Yuan on technology research and development in 2021, higher than 2020.
“We rely on talent, scientific research and innovative spirit to continuously increase investment and reshape our paradigm in fundamental theory, architecture and software, and build long-term competitiveness,” said Guo Ping, Huawei’s Rotating Chairman.