by AKANI CHAUKE
News Editor
JOHANNESBURG, (CAJ News) – HUAWEI has reported its highest annual profit to date despite revenues dropping by over 28 percent.
Net profits increased 75,9 percent year-on-year to CNY113,7 billion (US$17,84 billion) although Huawei attained CNY636,8 billion in revenue in 2021.
The Chinese-based company released its Annual Report for 2021, indicating its research and development (R&D) expenditure reached CNY142,7 billion.
This represents 22,4 percent of its total revenue, and bringing its total R&D expenditure over the past ten years to over CNY845 billion.
Europe, the Middle East, and Africa (EMEA) region continues to be the biggest revenue by region, outside of China.
Huawei’s revenue from this region reached CNY131,467 million in 2021.
“Our carrier business maintained robust performance thanks to the deployment of 5G network infrastructure. Our enterprise business grew rapidly as digital and intelligent transformation accelerated across industries,” Huawei stated.
“Overall, our performance was in line with forecast,” said Guo Ping, Huawei’s Rotating Chairman.
He said the carrier business remained stable, the enterprise business experienced steady growth and the consumer business expanded into new domains.
“In addition, we embarked on a fast track of ecosystem development,” Ping said.
Huawei’s carrier business generated CNY281,5 billion in revenue and the enterprise business also grew rapidly, generating CNY102,4 billion. The consumer business generated CNY243,4 billion.
“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,” said Meng Wanzhou, Huawei’s Chief Financial Officer.
Because of enhanced profitability of its major businesses, the company’s cash flow from operating activities increased in 2021, amounting to CNY59,7 billion.
Its liability ratio also dropped to 57,8 percent.
“Moving forward, Huawei will advance its journey of digitalisation, intelligent transformation and low carbon,” Ping stated.
– CAJ News