Huawei posts first-ever yearly revenue decline as U.S. sanctions continue to bite, but profit surges

Huawei’s annual report released Monday is the first high-profile corporate event CFO Meng Wanzhou has led since returning to China from Canada after a nearly three-year extradition battle with the U.S.

The company's revenue fell for the first time in its history in 2021, as U.S. sanctions continued to hurt it.

The income of the Chinese technology giant increased last year.

Despite a revenue decline in 2021, our ability to make a profit and generate cash flows is increasing, and we are more capable of dealing with uncertainty.

Since returning to China from Canada, where she was engaged in a nearly three-year battle with the United States, she has led the first high-profile corporate event. The press conference was held at the headquarters of the company.

Revenue for the year was a 28.5% decline from the previous year. This is the first decline in revenue based on publicly available reports.

Net profit increased by 75.9% last year.

The Entity List restricted American firms from exporting key components and software to the company. Washington wants to cut access to high-end chips for its devices. The market share of the Chinese company has plummeted.

The U.S. urged other nations not to use the telecommunication equipment of China'sHuawei for 5G mobile networks because of a national security threat. The company has denied that it is a national security threat.

The company's business units were affected by these moves. The consumer division of the company brought in less than half of what it did in the previous year.

Revenue for the carrier business fell by around 7% year on year.

One bright spot for the company was its enterprise business, which is currently its smallest division. Cloud computing is included in the enterprise unit.

In order to counter U.S. sanctions,Huawei is investing heavily in new areas including the automotive industry and hiring more scientists to focus on technology development.

In the year 2020, the figure of 141.9 billion yuan was slightly higher than in the year 2021, when it was 142.7 billion.

We will continually increase investment to remake our paradigms for fundamental theories, architecture, and software, and build our long-term competitiveness.

The annual results of the company are audited by the accounting firm.