Huawei on Friday reported a practically 70% fall in profit final year amid sanctions and pandemic challenges, but saw its enterprise sales rise as the Chinese technologies giant sought to pivot into digital industries and cut down its vulnerability to U.S. sanct…

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ZEN SOO Linked Press

March 31, 2023, five:26 AM ET

• three min study

HONG KONG — Huawei on Friday reported a practically 70% decline in profit final year amid sanctions and pandemic challenges, but its enterprise sales rose as the Chinese technologies giant sought to pivot into digital industries and cut down its vulnerabilities to U.S. sanctions.

“While it is correct that we have considerable pressures ahead of us, we nevertheless see possibilities to develop a resilient small business portfolio, a special competitive edge, the trust of our consumers and partners and have the courage to invest heavily in R&ampD,” Eric Xu, the outgoing rotating chairman of Huawei, stated throughout a news conference Friday.

Huawei stated Friday that its annual income for 2022 reached 642.three billion yuan ($93.five billion), a .9% acquire from the year ahead of.

The net profit for the year was 35.six billion yuan ($five.18 billion), down 68.7% from 2021 amid pressures from the pandemic, U.S. sanctions, an raise in commodity costs and a decline in the company’s customer small business, which largely sells smartphones. Huawei reported a greater-than-usual 113.7 billion yuan ($16.55 billion) in profit in 2021 due to the sale of Honor, its spending budget smartphone small business.

“The year 2022 is a year exactly where Huawei pulled ourselves out of a crisis mode. U.S. restrictions are now our new standard and we’re back to small business as usual,” stated Sabrina Meng, Huawei’s chief economic officer, who will grow to be the firm’s rotating chairwoman from April 1.

Also recognized as Meng Wanzhou, she is the daughter of Huawei’s founder. She was detained for practically 3 years in Canada soon after her arrest on U.S. charges more than lying to Hong Kong banks about dealings with Iran in violation of trade sanctions.

Meng was released beneath a deal with the U.S. Justice Division that will dismiss the charges in exchange for her accepting duty for misrepresenting Huawei’s dealings with Iran.

Huawei, one particular of China’s very first worldwide tech brands, has been caught up in between China-U.S. tensions more than technologies and safety. American officials say the business is a safety danger and may allow Chinese spying, an accusation Huawei denies.

The U.S. has banned U.S. firms from carrying out small business with Huawei, cutting off the Chinese firm’s access to chips and application such as Google solutions for its smartphones.

The Shenzhen-headquartered telecommunications firm has due to the fact shifted its concentrate in 2022 to developing its corporate small business by promoting network gear and solutions to industries such as healthcare, manufacturing, transportation and mining to assist them grow to be extra digital.

Huawei’s enterprise small business revenues in 2022 grew 30% from a year earlier to 133.two billion yuan ($19.38 billion). Its development in 2021 was just two.1%.

Income from its company’s customer small business, which sells smartphones, tablets and other devices, continued to decline, falling 11.9%. Huawei was the world’s biggest smartphone maker in 2020 but has due to the fact observed its worldwide industry share plunge soon after it lost its Android license and Google solutions.

Huawei is one particular of the world’s most significant spenders in investigation and improvement, devoting a record 161.five billion yuan ($23.51 billion) in R&ampD spending in 2022, representing 25% of its total income.

Just more than half of Huawei’s workforce of 207,000 staff operate in R&ampD.