Huawei published the financial results of its activities for the year 2021 at the end of March. The press release reports a drop in the company’s revenues but an increase in its profits.
A mixed record for Huawei
In this report, the global telecommunications giant indicates that it achieved a turnover of 636.8 billion yuan (91.16 billion euros). A drop of nearly 28.6% compared to 2020 when the company had collected 891.4 billion yuan (124.53 billion euros).
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Huawei is offsetting this decline by announcing an increase in their net profits of 75.9% on an annual basis. The group says it earned 113.7 billion yuan (16.31 billion euros) in 2021 compared to 64.6 billion yuan (9.02 billion euros) in 2020.
First public speaking for Meng Wanzhou
Meng Wanzhou, Chief Financial Officer of Huawei spoke at the press conference held in Shenzhen, China. ” Despite lower revenues in 2021, our ability to make profits and generate cash flow is increasing, and in this environment, we are better able to weather the uncertainty. she says.
This is his first public appearance since his release in Canada last fall. As a reminder, the daughter of the founder of Huawei was arrested in Canada in 2018, accused of having lied to Hong Kong banks about transactions between Huawei and Iran.
Meng Whanzou, Huawei’s chief financial officer, presents the 2021 annual report. This is his first public speech since his release in Canada and his return to China last fall. Photography: Huawei.
Huawei tries to cope with US restrictions
The significant increase in the net profit of the Chinese company can be explained by the sale of some of its activities, paralyzed by the American sanctions.
In 2019, Donald Trump revoked the use of Android license on Huawei phones. The group is accused of spying on behalf of the Chinese government and endangering the sovereignty of American technology.
Faced with being blacklisted in the United States, Huawei is forced to sell its entry-level smartphone brand Honor to the Shenzhen Zhixin New Information Technology consortium in November 2020. The sale is estimated at $15 billion.
For Huawei, the separation from Honor has an impact on its finances: the turnover of the general public activity is 243 billion yuan (38.2 billion dollars) in 2021, a drop of 49.5% compared to compared to the previous year.
Deprived of Android, the telecommunications giant has developed its own operating system: HarmonyOS. Used in more than 220 million Huawei devices in 2021, it has become the fastest growing operating system for mobile devices in the world.
The company also remains one of the largest sellers of 5G equipment in the world despite pressure from the Americans. Huawei announces that it has signed more than 3,000 commercial contracts for 5G industrial applications used on a large scale, bringing in a turnover of 281.5 billion yuan (44.2 billion euros) for the Chinese giant against 302.6 billion yuan (40.26 billion euros) in 2020. This represents a 6.9% drop in turnover.
Focus on research and development
Huawei’s business is diversifying. The group invests in many sectors and says it has “established several specialized teams” to meet the needs of coal mines, smart roads, customs and ports.
” By leveraging talent, scientific research and the spirit of innovation, we will continuously increase investments to reshape our paradigms in fundamental theories, architecture and software, and strengthen our long-term competitiveness. says Huawei rotating chairman Guo Ping in the annual report.
The company’s spending on research and development was 142.7 billion yuan ($20.43 billion) in 2021, equivalent to 22.4% of its total revenue.
After a mixed results for the year 2021, Huawei is trying to keep its head above water and is capitalizing on the diversification of its activities to catch up with the loss of momentum linked to the sale of Honor. Automotive, cloud, connected objects: so many sectors in which to invest in order to renew their know-how and establish themselves again in 2022 on the market as a telecommunications giant.