But the Chinese tech giant’s revenue rose last year as it focused on boosting profitability. “Despite declining revenue in 2021, our ability to make profits and generate cash flow is growing and we are better able to deal with uncertainty,” said Mua Wanzhou, Huawei’s chief financial officer. Huawei’s annual report released Monday is the first high-profile corporate event Meng has led since returning to China from Canada, where he was embroiled in a nearly three-year extradition battle with the United States. Meng spoke at a press conference at Huawei headquarters in Shenzhen. In 2021, Huawei generated revenue of 636.8 billion Chinese yuan ($ 99.9 billion), down 28.5% year on year. This is the first annual decline in revenue based on publicly available reports dating back to 2002. Meng told a news conference on Monday that US sanctions, “supply chain challenges” and a slowdown in 5G demand in China were the main reasons for the drop in revenue. Net profit last year rose 75.9% year-on-year to 113.7 billion yuan. Under former US President Donald Trump, Huawei was blacklisted by the United States as the Entity List, which restricted US companies from exporting key components and software to the company. Washington has sought to curtail Huawei’s access to the high-tech chips needed for its smartphones and other hardware. Huawei’s share of the global smartphone market has fallen as a result. The United States, meanwhile, has described Huawei as a national security threat and urged other nations not to use their telecommunications equipment for next-generation 5G mobile networks. Huawei has repeatedly denied that it poses a threat to national security. These moves had a major impact on the company’s business units. Huawei’s consumer segment, which houses sales of smartphones and other products, generated 243.4 billion yuan in 2021, down nearly 50% year-on-year. The transport company, which includes sales of telecommunications equipment, recorded revenue of 281.5 billion yuan, down about 7% year on year. A bright spot for the company was its budding business, its smallest part at the moment, but one from Huawei is focusing heavily on recovering. Huawei’s business unit includes cloud computing. To address US sanctions, Huawei is investing heavily in new areas, including the auto industry, and is hiring more scientists to focus on technology development. Huawei spent 142.7 billion yuan on research and development in 2021, slightly higher than the 141.9 billion yuan in 2020. “Relying on talent, scientific research and innovative spirit, we will continually increase investment to refine our examples of fundamental theories, architecture and software and build our long-term competitiveness,” said Guo P. President of Huawei. Press release. Huawei is not a public company but publishes annual results which it says are audited by accounting firm KPMG.
title: “Revenue Declines But Profit Surges " ShowToc: true date: “2022-11-23” author: “Jose Hewitt”
But the Chinese tech giant’s revenue rose last year as it focused on boosting profitability. “Despite declining revenue in 2021, our ability to make profits and generate cash flow is growing and we are better able to deal with uncertainty,” said Mua Wanzhou, Huawei’s chief financial officer. Huawei’s annual report released Monday is the first high-profile corporate event Meng has led since returning to China from Canada, where he was embroiled in a nearly three-year extradition battle with the United States. Meng spoke at a press conference at Huawei headquarters in Shenzhen. In 2021, Huawei generated revenue of 636.8 billion Chinese yuan ($ 99.9 billion), down 28.5% year on year. This is the first annual decline in revenue based on publicly available reports dating back to 2002. Meng told a news conference on Monday that US sanctions, “supply chain challenges” and a slowdown in 5G demand in China were the main reasons for the drop in revenue. Net profit last year rose 75.9% year-on-year to 113.7 billion yuan. Under former US President Donald Trump, Huawei was blacklisted by the United States as the Entity List, which restricted US companies from exporting key components and software to the company. Washington has sought to curtail Huawei’s access to the high-tech chips needed for its smartphones and other hardware. Huawei’s share of the global smartphone market has fallen as a result. The United States, meanwhile, has described Huawei as a national security threat and urged other nations not to use their telecommunications equipment for next-generation 5G mobile networks. Huawei has repeatedly denied that it poses a threat to national security. These moves had a major impact on the company’s business units. Huawei’s consumer segment, which houses sales of smartphones and other products, generated 243.4 billion yuan in 2021, down nearly 50% year-on-year. The transport company, which includes sales of telecommunications equipment, recorded revenue of 281.5 billion yuan, down about 7% year on year. A bright spot for the company was its budding business, its smallest part at the moment, but one from Huawei is focusing heavily on recovering. Huawei’s business unit includes cloud computing. To address US sanctions, Huawei is investing heavily in new areas, including the auto industry, and is hiring more scientists to focus on technology development. Huawei spent 142.7 billion yuan on research and development in 2021, slightly higher than the 141.9 billion yuan in 2020. “Relying on talent, scientific research and innovative spirit, we will continually increase investment to refine our examples of fundamental theories, architecture and software and build our long-term competitiveness,” said Guo P. President of Huawei. Press release. Huawei is not a public company but publishes annual results which it says are audited by accounting firm KPMG.
