Stock Groups

Revenue declines but profit surges

[ad_1]

Huawei recorded its first annual revenue drop in 2021, as U.S. Sanctions continued to harm the company.

The income of the Chinese tech giant has risen last year, as it focuses on increasing profitability.

Meng Wanzhou (chief financial officer at Huawei), stated that despite a decline in revenue in 2021, the company’s ability to generate cash flows and make profits is rising, and they are better equipped to deal with uncertainty.

Huawei’s annual Report, released Monday by Meng, is Meng’s first corporate event of high profile since 2006. returning to China from CanadaIn the United States, she had been involved in nearly three years of extradition negotiations. Meng was speaking at the Shenzhen headquarters of Huawei.

Huawei’s 2021 revenue was 636.8 Billion Chinese Yuan (99.9 Billion), an 8.5% decrease from last year. This is the first annual decline in revenue, according to publicly available data dating back from 2002.

Meng claimed Monday during a press confer that U.S. sanction, supply continuity issues and slowing Chinese 5G demand were the main reasons for revenue falling.

Last year’s net profit rose by 75.9% to 113.7 billion Yuan, an increase of 75% year-on-year.

Huawei was founded under former President Donald Trump. on a U.S. blacklist called the Entity List which restricted American firms from exporting key components and software to the company. Washington sought to cut Huawei’s access to high-end chipsIt is required to make its smartphones and other hardware. Huawei holds a large share of the global smartphone market has plunged as a result.

The U.S. called Huawei a security risk and advised other countries not to use Huawei’s telecommunication equipment in future-generation 5G networks. Huawei has denied that Huawei is a security risk.

These changes had an enormous impact on all business units of the company. Huawei’s consumer unit, which sells smartphones and other products, earned 243.4 billion yuan last year, a decrease of nearly 50% from the previous year.

Carrier business which sells telecommunications equipment saw revenue of 281.5 trillion yuan. That’s a decrease of around 7% from last year.

A bright spot in the company’s future was its new enterprise business. Although it is currently its smallest division, this one has potential to be a significant asset. Huawei is focusing heavily on to pick up the slack. Huawei also offers cloud computing in its enterprise units.

Huawei invests heavily to combat U.S. Sanctions. hiring more scientistsTechnology development should be the main focus.

Huawei spent slightly more than the 2020 figure of 141.9 million yuan for research and development, at 142.7 billion.

In a press release, Guo Ping (Hitachi’s rotating chairman) stated that “Relying upon talent, scientific research and an innovative spirit,” he said.

Huawei isn’t a publicly traded company, but it releases its annual results that are said to be audited annually by KPMG.

[ad_2]