China’s Huawei Technologies said on Friday (March 31) that it’s net profit had slumped last year. However, the revenue climbed 0.9 per cent which was in line with a prediction by the company. This is indicative of the company having reached some level of stability after several rounds of US export controls.
Huawei post net profit of 35.6 billion yuan (USD 5.2 billion). The profit was down roughly two-thirds from 2021 when profit was helped by the sale of its mid-range Honor smartphone business. The decline was, however, still severe even when compared to 2020 – a drop of 44%.
“Our financial position remains solid, with strong resilience and flexibility,” said Meng, who will become the company’s chairwoman on April 1. Huawei rotates its chairperson every six months.
Chairman Eric Xu said the company saw areas such as green development as opportunities and were investing in 5.5th and 6th generation technology, with the hope that they may be able to start rolling out 5.5G products by 2025.
Xu, asked about recent comments about breakthroughs in electronic design automation (EDA) tools for chips produced at and above 14-nanometre technology, said the company had achieved that with its partners and that meant that Huawei could use its own EDA tools to design chips.
Huawei, a major supplier of equipment used in 5G telecommunications networks, has been the target of U.S. export controls since 2019, restricting its supply of chips and chip-design tools from US companies.
(With inputs from agencies)
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