Technology

China’s Huawei reports sales fall, but profits hit record

Released executive Meng Wanzhou acknowledges challenges sanctions have brought

Huawei chief financial officer Meng Wanzhou at a Huawei press conference in Shenzhen, China. Photograph: STR/AFP via Getty

Mon Mar 28 2022 - 15:55

Chinese telecoms company Huawei has reported a decrease in sales but record profit for 2021, as its top executive, Meng Wanzhou, made her first public appearance since being released from Canadian custody last autumn.

The Shenzhen-based company said on Monday its net profits surged 75.9 per cent year on year to 113.7 billion yuan (€16.2 billion), despite US sanctions. But its revenue skidded 29 per cent to 636.8 billion yuan, in line with Huawei's previous forecast in December.

Over the past decade, Huawei rose to become the symbol of China's growing technological prowess. When the US-China trade and technology rivalry intensified in 2018, the company was caught in the crosshairs. Former US president Donald Trump had moved to cripple Huawei over security and espionage concerns.

The tech firm attributes its profitability to “improved product portfolios and more efficient internal operations”. It also said its HarmonyOS was used in more than 220 million Huawei devices as of 2021, “becoming the world’s fastest growing mobile device operating system”.

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Speaking at a press conference on Monday, Ms Meng acknowledged the challenges sanctions have brought to her company. “The multiple rounds of sanctions imposed by the US have significantly affected our business, especially smartphones and PCs,” she said. Huawei logged 243 billion yuan in consumer business sales – almost 50 per cent down from 2020. – Guardian

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