technology
Despite a slump in sales: Huawei reports record profits
A security guard stands at a booth of the Chinese technology company Huawei at the PT Expo in Beijing. Photo: Mark Schiefelbein/AP/dpa
© dpa-infocom GmbH
“We managed to survive in 2021,” said Huawei CEO Guo Ping. The Chinese technology group has successfully kept its head above water despite sanctions.
Despite a significant drop in sales against the background of US sanctions, the Chinese technology group Huawei posted record profits last year.
As the company from Shenzhen in southern China announced on Monday, sales fell by 28.6 percent to around 636.8 billion yuan (91.1 billion euros). Despite the difficult framework conditions, however, profits increased by almost 76 percent to around 113.7 billion yuan.
The US government has imposed sanctions on Huawei and cut off the group’s access to chips from international production, which is particularly affecting the smartphone business. The United States accuses Huawei of close ties to Chinese authorities and warns of the risk of espionage and sabotage. The company denies the allegations.
Survived the pandemic well
The US measures would have a significant impact on Huawei’s business, said CFO Meng Wanzhou. She cited the effects of the pandemic as other reasons for the decline in sales. In addition, the network equipment supplier previously benefited from the rapid expansion of the 5G network in China, which was largely completed in 2021. Huawei has proven “that we are becoming increasingly better at dealing with imponderables,” said Meng, referring to the record profit.
It was Meng’s first annual report submission since she was allowed to return to China in September. The manager and daughter of company founder Ren Zhengfei was arrested in December 2018 at the request of the US authorities in Canada. The US government accused her, among other things, of circumventing the sanctions against Iran.
“We managed to survive into 2021,” said Guo Ping, Huawei’s acting CEO. The company result corresponded to the plans and expectations. After record spending on research and development last year, Huawei will continue to focus on research and innovation.