Huawei posted its 2021 first annual revenue decrease, due to continued U.S. sanctions.

However, the income of China’s technology company exploded last year due to its focus on 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 addressed a conference in Shenzhen at Huawei headquarters.

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.

The net profit last year grew 75.9%, to 113.7 Billion Yuan.

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 chipsRequired for the manufacture of its smartphones, and other hardware. Huawei has a global share in the smartphone market has plunged as a result.

The U.S. has referred to Huawei as a national security concern and asked other nations not use their telecommunications equipment in the next generation 5G mobile network. Huawei repeatedly denies that it poses a threat to national security.

The company’s business units had seen a significant impact from these moves. The company’s consumer division, which includes smartphone sales, made 243.4 billion Yuan in 2021. This is nearly half the annual growth.

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 includes cloud computing as part of its enterprise unit.

Huawei has made significant investments in areas such as the automobile industry to counter U.S.-imposed sanctions. hiring more scientistsTo put all of our efforts into technology development.

Huawei has spent 142.7 Billion Yuan in research and development between 2021 and 2020, which is slightly less than the figure for 2020 of 141.9 Billion Yuan.

In a press release, Guo Ping (Hawk’s rotating chairman) stated that “We will continue to increase our investment to reshape the paradigms for fundamental theories and architecture and build our long term competitiveness by relying on talent and scientific research and an innovative spirit.”

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