Chinese telecoms giant Huawei on Monday reported a record year-on-year profit growth of about 76 percent for 2021, despite its first revenue decline since 2009, when the non-listed company started unveiling earnings.
The company posted a net profit of 113.7 billion yuan ($17.85 billion) for last year, while its total revenue declined by 28.5 percent year on year to 636.8 billion yuan amid U.S. sanctions and pandemic pressure.
Despite the decline in revenue, Huawei has a stronger ability to make profits and generate cash flows, and the company is more capable of dealing with uncertainties, said Meng Wanzhou, CFO of Huawei, making her first public appearance since she returned to China last September.
Due to the multiple rounds of US sanctions, Huawei has faced supply chain challenges, putting significant pressure on the company’s smartphone and PC businesses, resulting in revenue declines, she said.
Meanwhile, there are not many demands since China has completed its 5G infrastructure by 2020, she said.
Like other companies, Meng also noted that Huawei has been under pressure from the pandemic.
With the U.S. sanctions seeking to cut Huawei’s access to chips, its consumer business, including smartphones, and its carrier business, declined 49.6 percent and 7 percent, respectively.
The company’s operation is in line with expectations, Guo Ping, rotating chairman, Huawei said in a press release.
He also noted that Huawei will continuously increase investment to re-shape its paradigms for fundamental theories, architecture, and software, and build long-term competitiveness.
Huawei invested 142.7 billion yuan in research and development in 2021, accounting for 22.4 percent of the total revenue made last year.
Guo reiterated at the press conference that Huawei will not manufacture cars but will offer smart solutions to carmakers.
In 2021, Huawei launched cooperation on new energy vehicles with a dozen of automakers, including Mercedes-Benz and BAIC group.